Built-up Sector and Stock Built-up: Combining Two Tools

Hello everyone, welcome to today's session in Quantsapp. In today's lesson we will be using a combination of tools that are available in Quantsapp, and we will be showing you how you can trade with them efficiently. But before starting the video, if you are new here, you can go to the description; there is a link below with the help of which you can download and install the Quantsapp web application. After successful registration you will get some free tools in the application that will help you out in your trading. In the application we have a separate Video Library, so in this Video Library we have made multiple videos for you based on Pro Plus tools as well as on various strategies, so you can watch these videos in your meantime. These videos are available in multiple languages like English, Hindi, Gujarati, Marathi and Tamil as well, okay. Now, at any point of time, if you guys are having any kind of doubts or queries, you can directly contact us through Support, okay. So here you will get our contact number as well as email ID, so you can contact us and we will be there to sort your queries out. So let's start today's lesson. In today's lesson we will be talking about a combination of tools that are available in Quantsapp, and that will help you out in how you can trade efficiently with your setup, okay. So first of all, when we are using the combination, okay, so the combination will be, the combination will be of

Built-up Sectors, okay. So we will use Built-up Sectors, okay, as well as we will use the Built-up Scrip Symbol, okay, Built-up Scrip Symbol. Right, now when we are using Built-up Sectors, we are looking for the, we are looking for the sectors, okay, we are looking for the sectors. So our main aim is to identify which sector is performing well, or you can say which sector is in the bullish direction, or which is the sector that is in the bearish direction, right. So we will find out that thing from Built-up Sectors. After that we will jump into Built-up Scrip Symbol and we will find out, out of that sector, which is the stock that can give me a good momentum in the upward direction, or, if the market is bearish, which is the stock that can give me a good momentum in the downward direction as well, right. So when we are talking about the Built-up Sector and Built-up Scrip Symbol, you can see there is a common word, that is built-up, right. You can see the built-up is here as well, the built-up is here as well, right. So let's see what actually a built-up is, okay. So when I'm talking about built-up, okay, so built-up is a combination, you can say, okay. So built-up is a combination, or you can say relation, okay. Relation of what? So relation of

your, relation of price, relation of your price plus OI, open interest. The OI is the open interest, okay. Now, when I'm talking about the open interest, we are referring to the open interest of futures, not of options, okay, okay. Now, one thing is that when my price, okay, so if my price is increasing, okay, so if my price is increasing, this upward arrow will show you the increase in the price, okay. So if my price is increasing and at the same time my open interest is also increasing, okay, so what does it mean? It means, if I'm talking about futures, it means there will be some buyers and sellers, okay. There will be some buyers who have bought the futures; there will be some sellers who have sold the futures, right. Okay, now I am using the combination of those open contracts, right, say it means the participants, okay. So if my price is increasing, that means the buyers are aggressive, okay, and at the same time, if my OI, the open interest, or you can say the open contracts, will also increase, it means those participants are in my favour; they are responsible for the price to go up, and out of them the buyers are aggressive, right. So what will it mean here? If the price will increase as well

as my open interest will also increase, right, so it will give me a long built-up. It will give me a long built-up, okay, long built-up, long built-up, okay. So it usually means the market is in the bullish direction, right, because the price is also increasing and at the same time my participants, the open interest of my futures, is also increasing. So that is the long built-up, okay. That is one thing, okay. Now, if my price is decreasing, okay, the second condition is, if my price is decreasing, right, and at the same time my open interest is increasing, right, so what will it mean? It means when my price was falling, it means the sellers are aggressive there, right. Out of my futures OI, or contracts, okay, the sellers must be aggressive, and that is why my open interest is decreasing, and at the same time, if the contracts are increasing, it means the participants are also increasing in the market, right. So that means my built-up is short, okay. So the market will be in the bearish direction, you can say. Okay, so the built-up is short, right, because when the price is falling the open interest is increasing, right. Then there is a third condition, okay. So suppose my price is increasing, okay, and at the same time, just let me scroll it a little bit, okay, so if my price is increasing and at the same time if my

open interest is decreasing, okay, so what will it mean? It means there is a short covering in the market, there is a short covering in the market, okay. So this will mean the short covering, okay. Now, the price was increasing, okay, the price was increasing, so my market was down and after some time the price is increasing, okay. So when my price was increasing, at that time I can see the participants were not that good. It means the market is just not in the bullish direction, but there will be some profit booking, okay. So the market went downward, okay, so there must be some sellers who must be booking their profit, and that is why the market is moving in the upward direction, right. So this is a short-term trend, you can say, that is in the upward direction, but it doesn't mean that the market will again go up. It means, if there will be some new contracts opened, right, because there must be some new sellers, okay, who want to add, who want to take their position here, so they must be waiting for the market to recover a little bit, okay. So what will happen? If this lower region, or you can say the swing low, is of 500, and when my price increases, so right now it is at 550, right, so there must be some sellers who wanted to place their orders now, because a seller always wants to sell at the highest price, right, and that is why now

the new contracts are adding here, here, here again, and when these new contracts increase, again my market will move in the downward direction, okay. So that is my short covering for me, okay. So that is a short covering for me, okay. Now, then there is a fourth condition, and in the fourth condition what do we have? When the price will decrease, okay, when the price will decrease and at the same time my open interest will also decrease, right. You can say the price is decreasing; at the same time my open interest is also decreasing. It means the open contracts of the participants are decreasing; they are not in favour of letting the market down, okay. So what will happen there? What will happen there? Again, there must be some profit booking, you can say, right. So the market was moving in the upper direction, and right now the market is moving in the downward direction. It means there must be some buyers, okay, there must be some buyers who are holding their trade from here, okay, so now they are booking their profit, so that is why the market went downward. Now the market went downward because of this long trend, because of this long trend, okay. There must be some buyers who must be waiting to fulfil their orders at this place, at this place, at this place, and that is why the market will again move in the upper direction, right. So when we are talking about the long unwinding, so this is my long unwinding, right. The market unwound

itself, right. So that is what long unwinding means, okay. So the fourth condition was, the fourth condition was long unwinding. So it was covering, and then the fourth condition was long unwinding, long unwinding, okay, long unwinding. So you can see the price was decreasing and at the same time the open interest was also decreasing, and this is what we will be using today when we will be analyzing the Built-up Sectors as well as the Built-up Scrip Symbol, in which we will be looking for the stocks, right. So I hope the concept is clear. You can just take a screenshot of this, okay, so that you will get an idea whenever you are trading. Right, now let's directly jump into the Quantsapp application and let's see how we can use the combination of these two, that is, my Built-up Scrip Symbol as well as the Built-up Sectors, okay. So this is my Quantsapp application. Now you just have to go to the Track section, and in the Track section you will see Built-up Sector is here, okay. So I will just click on it, okay. Now, what do I have to do? If I'm trading intraday, okay, if I'm trading intraday, I can just use the sector here, okay. So it will show me, right now you can see, today, if I'll show you, the market is in the bullish direction. You can see Nifty is also moving; Nifty has moved by 108, or you can say

approximately 100 points, okay. FinNifty is also moving up by 136 points. BankNifty is also in long built-up; you can say the narration is long, and it has moved by 371 points, right. So you can see the overall sentiment of the market today is bearish, and currently it is the live market, so that is when we will also make our trade for the bullish direction, right. So what I will do, I will just go to the Track section again, into Built-up Sectors, okay. So you can see there are multiple sectors, and almost every sector is in long position today. It means the price is increasing as well as the open interest is also increasing. Now, the main question is how we can identify or select the sectors out of all these, because all of these sectors are in long positions, right. Okay, now the thing is, you will see there is an arrow, okay. Now, when I will arrange my open interest in ascending order, okay, sorry, in descending order, I mean, okay, so I will just arrange my open interest in descending order, so it means it is now decreasing down. So I can see in Infra there is the maximum open interest; it means the maximum participants are interested in this sector, that is my Infra, as well as the price is also increasing by a decent percentage, that is 1.83. So what can I do? I can just

select Infra for the trading, okay. So one sector can be Infra, the other one can be IT. So I will just keep one or two sectors in my pocket, okay. So I will go with Infra and IT if I want to take a trade today, okay. So these are the two sectors. Now, as we have identified the sectors, okay, then we will directly go to the Built-up Scrip Symbol for the selection of my stocks, right. So again I have to go to the Track section, and in the Track section I have Built-up Scrip Symbol here, right, Built-up Scrip Symbol. Now, what do I have to do? First of all, I have to use the expiry, that is, the expiry date. So if I'm trading with the weekly expiry or if I'm trading with the monthly expiry, so if you will be trading with the index, okay, you can select the weekly expiry as well, okay, and then for the stocks we have the monthly expiry as well. So I will choose the monthly expiry, and then here I have to choose whether I'm making my trade for the bearish or for the bullish direction. So right now my market sentiments are bullish, thus all of my sectors are in long position, they are in the bullish direction, so it is very obvious I will go with long position, that is showing me the market is bullish, right. You can see the other options also: long unwinding, short and short covering, that we have discussed earlier, right. So I will choose long position from here. Then, from these sectors, now I have

chosen two sectors, that is my Infra and that is my IT. So first of all I will go with Infra. So let's see, when I'll click on Infra, so now what do I have to do? I have to select one stock out of these two, right. So there are many traders, or people, who can select both of them and they can trade in both of them, right, but I will just sort it out a little bit, okay. So for Adani Ports I can see the open interest is 3.6, right. Okay, when I'm looking into Concor, I can see the open interest is 0.1%, right. So it is very obvious that the open interest percentage increase is more in Adani Ports, so that is why I will choose this stock, right. So what do I have to do then? After all this analysis, if I'm selecting Adani Ports, I can just directly click on this symbol, okay, so I'll be directly directed to the chart here. So you can see this is Adani Ports, and this is the current market right now for Adani Ports in the 5-minute time frame, okay. Now, in the 5-minute time frame, I can see my market took a very good support here, okay. So if I'll make a support here, you can say, after all this analysis you can see my market broke this resistance, you can say; it took a support here; again my market went down today at this point of time, okay, at approximately 9:55, and it took a support, and after that there was a very good movement in

the market, right. Now, if I want to make a trade right now, what can I do? I have to just wait for the market to break this resistance level, because currently it is moving to this resistance level. Now there can be chances that, like, my market will, this resistance will reject my price. So I'll draw the resistance for you as well. So this is the zone from where my market can face the rejection, so I have to wait for the market to break it, right. Just a second. So this was the resistance zone, or you can say the supply zone as well, okay. So this is my resistance zone from where my market was facing rejection before as well, okay, and from there a good downward movement started, right. Now again my market is reaching that level, okay. So the traders who have bought this stock here at 9:55, they can book their profit at this resistance as well, right, because there is a very decent move in this stock right now. The people who want to make a trade now, because this is showing me a long position, it means the market can break this resistance out, right. Now, what do I have to wait for? I have to wait for a confirmation. Now, for the confirmation, if the market will break it out, if the market will break out this resistance,

at that time I can just wait for a retest, okay. I can just wait for a retest and then I can take a trade in the upward direction, right. Now, what is the confirmation that after the retesting the market will not go in the downward direction but will continue in the upward direction? So for that I will use an indicator here again. So for that indicator I will just go to Indicators, and I will use volume here, so volume, okay, and you can see the volume is applied here, and on the volume I will just apply a smoothing moving average, okay. So I will just remove the remaining indicators from here, okay. Now you can see, now you can see currently my market is trending in the upward direction, okay, and currently it is a choppy market for the last 15 to 20 minutes, because you can see the candles are very weak here, the candles are very weak here, okay. Now, what do I want? I want a breakout of this resistance, right. Okay, now, at any point of time, if this resistance will be broken out, okay, then my market will make a move. So I will not go. Why? Because this is a very good resistance, so there can be a liquidity sweep, there can be fake breakouts as well, right. So I will wait for my market to retest, right. Now, this is the very main point, because at any point of time, if your market will

retest itself, at any point of time, if your market will retest, so for example there was a breakout, and after this breakout the market retested itself, right. Now, when this retest is happening in the market, right, at that point of time I have to look at the volume, I have to look at the volume, right. Now, in this retest, what do I want? I want low volume like this. So if there will be low volume at the point of resistance, it means this retest trend is very weak, so again the buyers will take over and this stock can go again in the upward direction. So that will be my trade. I will take a confirmation here of a candlestick pattern. You can go with the engulfing, you can go with the doji candle as well, right, a hammer candle as well. So after confirmation you can make a trade, but make sure the retesting trend should be weak in the market. So if the retesting is something like this, so let me draw it. So if the candles are retesting like this after a good move, after the breakout, you can say, so this is the breakout, and after this breakout the market retested itself, so at that point of time the volume, the bars of volume, like this is the volume, so the bars of the volume should be less than the moving average. So I have drawn the moving average here, you can see, see, this is the line. So the volume should be less than this moving average,

and if I'll get this retesting with a very low volume, at that time the market will again move in the upward direction. So I just have to wait for a confirmation, like there can be a hammer candle, there can be a doji candle, there can be a bullish engulfing candle. So after the confirmation I will just take my trade at this resistance, okay, at this resistance, and I'll get a good move in this particular stock, right. So these are all the confirmations that you can take when you are taking the entry, but the main thing is how to select the stock, how to select the sectors. So I hope you got the concept. Right, now let's see, again I got another sector there as well, so let's see if I will go with IT as well. So in the Built-up Sector as well, you can see, just a second, in the Built-up Sector, if I'll again change the OI, so you can see IT. So in IT the open interest was also good, that is 3.22%, the price decent, that is a 1.69 increase, okay. So what I will do now, I will choose a stock from the IT sector as well. So again I will go to the Built-up Scrip Symbol and I will apply the IT sector here. So this is the IT sector, okay. In the narration I will apply long, and for the expiry date I will select the

monthly expiry, right. So you can see there are so many stocks in, there are so many stocks in IT that are giving me a good upward move, right. Now it will be a challenge for people to select stocks out of all these. So what do I have to do? I will just again change, or you can say position, my open interest increase in descending order. So you can see the maximum open interest increase is in MGL, okay, with an increase of 2.9% in price. So that will be my stock; I can go and make a trade in this stock, or I can go with UltraTech Cement, right. So this is one of the strategies that you have to use whenever you are getting so many stocks in that particular sector. So you have to just arrange your open interest in a descending manner, and the stock in which you are getting the maximum open interest increase, you can just select that stock. So right now I can see MGL, so I can just go and make my trade in MGL as well. I just have to look for where there is, you can say, a very good resistance or a very good support, or if the market is breaking it out with good volume, okay. So at that point of time I can make a trade. So you can see here, in this stock as well, the market is currently breaking the resistance. So here you can see, if I'll make the resistance here as well in this stock, so just let me quickly draw

this. Okay, just hold for a second. So you can see here, currently in this stock, MGL, the resistance is broken out successfully, okay, and after this breaking of resistance, right now you can see there is one more thing: when the market was in a sideways range, okay, for 15 to 20 minutes, at that point of time my volume was not good, right. It means, it means the market is not supporting the sellers, okay, and currently there is a breakout. After this breakout I will wait for a retest of the market, and on this retest, what do I want? I want low volume, below my moving average that is applied here. So if I'll get that reading, then I will take a trade after the retest of the market, right. I will not take the trade on the breakout, because it can be a liquidity sweep, it can be a false breakout. So I will wait for the retest of the market with low volume, and with the confirmation of the candlestick pattern I can again take a trade in this particular stock as well, right. So these are all the confirmations that you can use while you are making your entry in a particular trade, right. But the most important thing, as I have told you, is the selection of your stock: how to select your stocks out of so many stocks in the market that are in F&O. So that is one of the strategies that you have to use: you can use the combination of Built-up Sector as well as the Built-up Scrip Symbol, right. So I hope you got to know the concept of

today's video, right. You can just like the video; you can share your views in the comment section. Make sure to subscribe to the channel if you're new; share it with your friends also. Thank you so much, guys. This is your trainer, Ankit Singh Rawat. Have a good day.