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Trade Setup for Wednesday: Top 10 things you should know before Opening Bell

Here are top 10 data points to help you spot profitable trade

May 23, 2017 / 10:26 PM IST

Bears eventually gained control over D-Street after 3 days of consolidation. The Nifty closed below the crucial support level of 9,400 on Tuesday which suggests a loss of momentum.

The index also slipped below its crucial short-term moving averages such as 5-days exponential moving average (DEMA), 10-DEMA, and 13-DEMA. The index has already given a bearish crossover based on MACD and a negative signal on the relative strength index (RSI).

Traders should tread with caution at current levels as index slipped below its crucial 13-DEMA. History suggests that whenever index slipped below this crucial moving average it has managed to bounce back in the next few trading sessions.

Hence, a bounce back cannot be ruled out as the index is trading near crucial support levels, but a close below 9,380 could exert selling pressure, suggest experts.

We have collated top 10 data points to help you spot profitable trade:

Key Support & Resistance Level for Nifty

The Nifty50 closed below its crucial support level of 9,400 on Tuesday. According to Pivot charts, the key support level for Nifty50 is placed at 9,354, followed by 9,323. If the index starts to move higher then key resistance levels to watch out are 9,432, followed by 9,479.

Nifty Bank

Nifty Bank closed 70 points lower or 0.3 percent at 22,582 on Tuesday. Important Pivot level which will act as crucial support for the index is placed at 22,469, followed by 22,356. On the upside, the key resistance level is 22,718 followed by 23,853.

Call Options Data

Maximum Call open interest (OI) of 66 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index in May series, followed by 9,600 which now holds 56 lakh contracts in open interest and 9,400 which has accumulated 49 lakh contracts in OI.

Call Writing was seen at strike prices 9,400 (13 lakh contracts added), followed by 9,600 (3.5 lakh contracts added), and 9,500 (0.4 lakh contracts added).

Call unwinding was seen at strike prices 9,700 (3 lakh contracts shed), 9,800 (1.2 lakh contracts shed), 9,000 (0.99 lakh contracts shed), 8,800 (0.8 lakh contracts shed) and 9,100 (0.75 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 54 lakh contracts was seen at strike price 9,300 which will act as a crucial base for the index in May series followed by 9,000 which has accumulated 48 lakh contracts in open interest, and 9,400 which now holds 46 lakh contracts in open interest.

There was hardly any Put writing but Put Unwinding was seen at strike prices 9,300 (10 lakh contracts shed), 9,400 (11 lakh contracts shed), 9,500 (8.7 lakh contracts shed), 9,100 (1.5 lakh contracts shed), 8,900 (1.02 lakh contracts shed) and 8,800 (0.9 lakh contracts shed).

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FII & DII Data 

The foreign institutional investors (FIIs) sold shares worth Rs401 crore compared to domestic institutional investors who bought Rs353 crore in Indian equity market.

Stocks with high Delivery percentage

High delivery percentage suggests that investors are accepting the delivery of the stock which means that investors are bullish on the stock.

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17 stocks saw Long Buildup

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14 stocks saw short covering

A decrease in open interest along with an increase in price mostly indicates short covering.

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81 stocks saw Long Unwinding

Long Unwinding happens when there is a decrease in OI as well as in price.

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93 stocks saw Short Buildup

An increase in open interest along with a decrease in price mostly indicates short positions being built up.

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first published: May 23, 2017 10:25 pm

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