How to Read the Stock Market?

How to Read the Stock Market Want to find how to get signals in Future and Options market, want to know the trend in which the stock market and the individual stocks are likely to move in the short period. Open Interest Open interest is the total number of outstanding positions in the futute and options market, or the unsettled contracts, at the end of the day. It is the most widely tracked indicator and is reported in real time. When seen conjuction with the stock price, with the stock price, it can be good indicator for buying and selling. If the Stock price rises, also the open interest It indicates a surge in buying interest. More participats with long positions are entering the market, signalling a bullishness for the stock. --------- IT is a signal of BUYING.   If the Stock price rises, but open interest falls It shows bearishness. Stock price rises due to short covering, not a fundamental factor. A fall in open interest means money is flowing out of the market. --------- IT is a signal of SELLING.   Stock price falls, but open interest rises It indicates that it is bearish. It is due to a rise in short positions that lead to a fall in stock price. It will fall till investors enter short positions. --------- IT is a signal of SELLING.   If the Stock price falls, also the open interest It shos that it is the time of short-term bearishness, before a bounce-back. Investors with long positions exit the market. The fall in open interest indicates no new short-sellers, so scrip strengthens. --------- IT is a signal of BUYING.