PART 1 : 5 Important Market Data Every Retail Trader Should Follow Before Taking Any Trade

1. Price Action – The King of Technical Analysis

Price action should always be your first priority. Every indicator is derived from price, making it the most reliable source of market information. Before entering a trade, identify: • Higher Highs & Higher Lows (Bullish Trend) • Lower Highs & Lower Lows (Bearish Trend) • Breakout or Breakdown Levels • Support & Resistance Zones • Candlestick Patterns A clean price structure often provides better trading opportunities than relying solely on indicators. Remember: Price tells the truth; indicators only confirm it. 2. Volume – The Fuel Behind Every Move A price breakout without volume is like a car running without fuel. Always check whether the move is supported by above-average trading volume. Bullish Signs: • Price rising with increasing volume • Breakout accompanied by heavy participation • Strong delivery-based buying Warning Signs: • Breakout on low volume • Price rising while volume decreases • Fake breakouts High volume confirms that institutional participants are involved in the move 3. Open Interest (OI) – Understanding Smart Money Positioning For Futures & Options traders, Open Interest provides valuable insight into market participation. Rising Price + Rising OI Fresh Long Build-Up Falling Price + Rising OI Short Build-Up Rising Price + Falling OI Short Covering Falling Price + Falling OI Long Unwinding Understanding OI helps traders determine whether buyers or sellers are aggressively building positions. 4. Put-Call Ratio (PCR) – Measuring Market Sentiment PCR is one of the most widely used sentiment indicators in the derivatives market. Generally: • Higher PCR indicates stronger put writing and relatively bullish sentiment. • Lower PCR indicates stronger call writing and relatively bearish sentiment. 5. Market Trend & VWAP Before taking any individual stock trade, understand the overall market direction. Monitor: • NIFTY Trend • BANK NIFTY Trend • Sector Strength