In this blog, we will discuss the Autotrender software and its features, which many traders may find overwhelming at first. The software is a paid product by SMC Global and can be beneficial for both futures and options trading. We have Mr. Ishkrit, a semi-registered professional who has contributed significantly to developing this software, to give a detailed demo.
Upon logging in, the users will see a page that helps them understand the market trend and sector movements. It simplifies the process of analyzing the market trend, eliminating the need to constantly study technical charts. With Autotrender, you can access valuable data and insights to aid in your trading decisions.
As a trader, you log in to a software that provides you with valuable insights into market trends and potential opportunities. The software offers four main indicators: Nifty Futures, Bank Nifty Futures, Calls Data, and Puts Data.
To identify a favorable trend, it is essential to have at least three indicators supporting your position. Let’s dive into the significance of each indicator and the importance of their values.
1. Nifty Futures Indicator:
The Nifty Futures indicator provides insights into the market’s overall sentiment and direction. A positive figure suggests a bullish trend, indicating that Nifty is expected to rally. As a rule of thumb, a figure above 8 to 10 lakhs is considered favorable for a strong market trend. However, there is no fixed value, and traders should use their experience and judgment to interpret the data accurately.
2. Bank Nifty Futures Indicator:
The Bank Nifty Futures indicator focuses on the banking sector’s performance within the market. While it may be tempting to assume that Bank Nifty will follow Nifty’s lead, this is not always the case. Bank Nifty may underperform or move in a different direction than Nifty. Therefore, traders should avoid solely relying on Nifty’s performance to predict Bank Nifty’s movement.
3. Calls Data Indicator:
The Calls Data indicator provides insights into the market’s bullish sentiment, reflecting the number of call options being bought by traders. A significant number of call options being purchased indicates optimism and a potential upward trend. Combining this data with other indicators can strengthen your trading strategy.
4. Puts Data Indicator:
Conversely, the Puts Data indicator reflects the bearish sentiment in the market, indicating the number of put options being bought. A high number of put options indicates caution and a potential downward trend. Keeping an eye on this indicator can help you navigate bearish market conditions.
Using all four indicators together, traders can gain a comprehensive understanding of the market’s current state. By having at least three indicators favoring a particular direction, traders increase their confidence in identifying potential trends and making more informed decisions.
In the dynamic world of live market trading, understanding and interpreting various indicators play a vital role in making successful investment decisions. As a trader, you are presented with four key indicators – Nifty Futures, Bank Nifty Futures, Calls Data, and Puts Data – which can guide you towards potential market trends.
To identify a favorable market trend, you rightly emphasize the importance of having at least three out of four indicators in your favor. The three critical indicators that must align are positive Nifty Futures, positive Calls Data, and negative Puts Data. When these indicators converge, it indicates the market’s inclination to take a bullish trend, paving the way for potential opportunities to buy Naked Call Options.
However, an equally significant aspect is examining Bank Nifty Futures data. If Bank Nifty Futures are showing a negative figure, it may act as a contrarian signal, attempting to hinder a long-lasting rally in the market. This negative data should be considered as an additional cautionary signal to protect against possible market reversals.
To simplify the process for traders, a sector strength ranking is provided, indicating which sectors may exhibit strength or weakness on a given day. This ranking helps traders assess potential opportunities in specific sectors and tailor their trading strategies accordingly.
To cater to clients who find data analysis challenging, a visual shortcut is introduced in the form of arrows (Up Arrow for positive and Down Arrow for negative). These arrows provide a quick and clear indication of the overall market flow in the Nifty and Bank Nifty futures.
However, it’s crucial to address the occasional confusion that may arise when certain signals contradict each other. For instance, if the market flow is indicated as ‘buy’ but the Nifty derivative PCR (Put-Call Ratio) is indicating ‘sell,’ it may suggest a potential sideways market. In such cases, traders must exercise caution and consider additional factors to make well-informed decisions.
The mid-term checklist comprises technical indicators based on average prices of Nifty and Bank Nifty over the last seven days. Additionally, it includes the bulk average, which signifies the level at which positions roll over during the series transition, for instance, from August to September.
When analyzing the mid-term checklist, traders need to focus on Nifty and Bank Nifty’s bulk average prices. If Nifty’s bulk average is 17,629 and the signal indicates ‘sell,’ it doesn’t mean immediately shorting Nifty. Instead, traders should observe the market’s behavior relative to this resistance level. As long as Nifty holds below 17,629 on a closing basis, the market remains in a ‘sell on rallies’ mode. This means that when a rally occurs, consider selling positions.
Conversely, if the current market price of Nifty starts moving above the bulk average of 17,629 on a closing basis, it signals a potential shift to a ‘buy on dips’ strategy. In this scenario, traders should consider buying positions on market dips. However, traders must remember that the mid-term checklist is not a foolproof strategy but rather a probability-based approach to assess market direction.
The Nifty Derivative Data provides crucial insights into the open interest in Nifty derivatives, revealing whether positions are skewed towards the buy or sell side. By analyzing this data, traders can gauge the sentiment and potential market direction.
It is essential to differentiate the mid-term checklist’s positional nature from intraday trading strategies. The positional perspective caters to traders who hold positions for an extended period, while intraday strategies focus on short-term trading within the same trading session.
The index sentiments provide valuable insights into the strength of different sectors based on technical indicators. Sectors with more than 60% buy indicators are considered strong, while those with more than 60% sell indicators are deemed weak.
For instance, the FMCG sector exhibits strength with 63% buy indicators, making it a potential candidate for buy positions. On the other hand, the IT sector displays weakness, with 85% sell indicators, suggesting a cautious approach and avoiding buying in IT for now.
The option chain is a powerful tool for both intraday and positional traders. By accessing the weekly option chain for Nifty and Bank Nifty, traders can analyze the open interest and changes in open interest on various strike prices. This data helps traders identify potential support and resistance levels, guiding their trading decisions.
The intraday option data is updated after 10:30 AM, giving traders ample time to review the signals and make informed intraday trades. Traders can use this data to gauge whether Nifty is weak or strong, and base their intraday strategies accordingly.
In the world of intraday trading, deciphering trading signals and making quick decisions is crucial for traders seeking profitable outcomes. Among the signals available, the option signal and VWAP (Volume-Weighted Average Price) signal are key indicators that provide valuable insights into market trends.
The option signal, generated after 10:30 AM, indicates whether Nifty is weak or strong. For instance, if the signal suggests ‘sell,’ it means Nifty is weak on that particular day. On the other hand, the VWAP signal, also available after 10:30 AM, provides a different perspective. If the VWAP signal points to ‘buy,’ it signifies a potential opportunity to go long.
However, when these two signals contradict each other, traders must exercise caution and avoid taking positions. The market is indicating a sideways trend, and trading in such conditions could result in loss due to option value erosion. As a result, it is best to stay on the sidelines and refrain from initiating trades until the contradiction is resolved.
To analyze the data more efficiently, traders can utilize the graphical representation provided. The graph displays the data in relation to the zero line. If the graph is below the zero line, indicating a negative signal, traders should avoid buying Nifty or call options. Similarly, for Bank Nifty, a negative signal suggests a focus on puts or short-selling opportunities.
The 5-minute and 15-minute time frames offer traders flexibility in analyzing the data throughout the trading session. By observing the signals closely after 10:30 AM, traders can make informed intraday trading decisions.
To illustrate, let’s consider the example of Reliance Industries. By analyzing the delivery data, traders can identify the day with the highest delivery, which in this case was 20th July, with a closing price of 2542. As a positional trader, one would wait for the stock’s closing price to breach 2542 before considering a long position. However, if the stock fails to achieve this closing price in subsequent sessions, it may not be the right time to initiate a long position.
On 1st August, the stock finally closed above 2542, presenting a buying opportunity. Traders could then establish a long position with a stop-loss of 4-5% and a target price of 8-10% based on their risk appetite and market conditions.
By leveraging delivery data, traders can gauge market sentiment and make more informed decisions for positional trades. This data empowers traders to identify potential entry points based on the stock’s highest delivery day and set appropriate stop-loss and target levels.
In the ever-evolving world of trading, staying updated with global market trends is crucial for making informed decisions. The “Must Watch – World Market” section on our platform offers a synopsis of major global indices like Nikkei and Dow Jones, providing traders with a quick overview of market movements.
Furthermore, our Nifty 50 Ranking model narrows down the focus to the constituents of the Nifty index. By using the same sector strength ranking model, we identify the top-performing stocks and the weakest ones among the Nifty 50.
For instance, Adani Port, Coal India, Shree Cement, HDFC Life, and Grasim emerge as the top-performing stocks, indicating their strength in their respective sectors. On the other hand, IT giants like Infosys, TCS, Wipro, and others are among the weakest performers.
Traders seeking positional trades can leverage this valuable data to strategize their trades. For those looking to buy on dips, focusing on the top-performing stocks can provide potential buying opportunities. Conversely, avoiding the weakest stocks is prudent to minimize risk exposure.
Understanding global market movements and the strength of Nifty 50 stocks empowers traders to make well-informed decisions and adapt to changing market dynamics.
Additionally, we have previously covered a blog on the “Near Support and Resistance Model,” a powerful tool for swing and positional traders. This model helps traders capture short-term momentum trades and offers insights for BTSD (Buy Today Sell Tomorrow) trading in options or stocks.
Our F&O Ranking model serves as a powerful tool to identify strong stocks listed in the futures and options segment, irrespective of their sectors.
Among the over 150 F&O stocks, we use a systematic approach to pinpoint those with considerable strength. These stocks, such as RBL Bank, Escorts, ABB, India Cement, and BHEL, exhibit resilience and tend to withstand market downturns better than others. Even on a day when Nifty was down by over 250 points, these stocks showcased remarkable performance, with Escorts surging by 5.7% and India Cement by 3.64%.
The model does not involve manual intervention, ensuring transparency and reliability. Traders can follow this model and use their analytical skills to fine-tune their trades. By combining their knowledge with the model’s insights, traders can enhance their strike rates and overall profitability.
In the quest for better trading opportunities, our Stock Position Model offers a unique perspective for algo-based traders. With automated recommendations generated by powerful scanners, this model simplifies trading decisions for both intraday and positional trades.
On the left-hand side of the page, traders can explore the Nifty 50 ranking and F&O ranking. This ranking identifies strong stocks listed in the futures and options segment, providing valuable insights for strategic trading.
Moreover, the delivery model facilitates informed decision-making for positional trades. By tracking the highest delivery level of a stock, traders can determine the ideal entry point for buying. When a stock breaches its highest delivery level on a closing basis, it presents an opportune moment to enter long positions.
For intraday trading, the Stock Position Model generates real-time buy and sell recommendations based on algorithmic analysis. These calls are automatically refreshed every two minutes, ensuring traders stay on top of market movements.
The model caters to both intraday and positional traders, allowing them to select the best-suited calls for their trading strategy. Whether you opt for short-term momentum or BTSD (Buy Today, Sell Tomorrow) trades, the Stock Position Model serves as a reliable guide.
Furthermore, the model categorizes stocks based on their sectors, enabling traders to focus on specific industries that exhibit strength. By tailoring their trades to resilient sectors, traders can increase their probability of success.
Traders can quickly identify stocks that exhibit significant buy or sell signals based on the percentage data.
In this section, we highlight stocks that have a buy or sell sentiment of more than 60%. For instance, let’s say a trader is interested in knowing the overall market sentiment for stocks with a buy signal. They can simply check the miscellaneous section to find stocks where more than 60% of indicators indicate an upside movement. Similarly, if a trader wants to explore stocks with a bearish outlook, they can find stocks where more than 60% of indicators point towards a downside trend.
This section allows traders to filter stocks based on their preferences, saving time and effort in the research process. Whether they want to focus on a specific sector or check the broader market sentiment, the miscellaneous section provides valuable insights.
Moreover, the platform offers access to commodity and currency markets, providing traders with a holistic view of the financial landscape. By analyzing different segments on a single page, traders can make informed decisions and capitalize on potential opportunities in the market.
For instance, if a trader is interested in finding stocks with a buy sentiment of more than 60%, they can simply click on the buy sentiment more than 60 option, and the platform will automatically display stocks that meet this criterion. Similarly, if they want to explore stocks with a bearish outlook, they can click on the sell sentiment more than 60 option to see the relevant stocks.
Traders can filter stocks based on their preferences and make informed decisions by analyzing different segments on a single page. The platform provides valuable insights and helps traders save time and effort in the research process.
In the Miscellaneous section, traders can also access commodities and currency markets. While the data available for commodities is more limited compared to equity, the platform still offers useful information for intraday traders. For example, traders can find insights on gold and crude prices, along with buy and sell signals, pivot points, and target and stop loss levels.
Additionally, the platform offers algo-based trades for stocks and commodities. These algo-based trades provide buy above and sell below signals, along with target and stop loss levels, to assist traders in their intraday trades.
Although the currency model is currently under observation, the platform is continuously working on developing and optimizing the currency trading model. In the future, traders can expect access to currency-related insights and trades as well.
Overall, our platform aims to empower traders with valuable information, analysis, and trading opportunities across various segments, helping them make well-informed decisions and capitalize on potential opportunities in the market.
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