Trade Setup for Friday: Top 10 things you should know before Opening Bell
The index is now inching towards key resistance level of 9900 and 10,000 and some bit of profit booking cannot be ruled out.
The bulls maintained their hold on D-Street throughout the trading sessions as the index closed near its record high on Thursday and made a strong bullish candle on the daily candlestick charts.
The Nifty which opened with a gap on the higher side gained momentum and rose to a record high of 9,897.25 before closing the day at 9,891.70, up 75.60 points.
The index is now inching towards key resistance level of 9900 and 10,000 and some bit of profit booking cannot be ruled out. The other factor which raises a red flag is the high Put Call Ratio which is now nearing 1.50.
“We are gradually witnessing a shift in higher option band with rising Put Call Ratio. PCR OI based on the Open interest of Nifty is near to 1.50 which is at 5 years high levels,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
The Nifty now appears to be approaching a risky zone of 9900 – 10,000 levels. It looks like traders are becoming cautious as a result of which a number of scrips declining are outpacing a number of scrips which are closing in positive terrain.
We have collated top ten data points on how to help you in spotting profitable trade:
Key Support & Resistance Level for Nifty:
The Nifty closed 75.6 points higher or 0.77 percent at 9,891.7. According to Pivot charts, the key support level for Nifty is placed at 9,864.35, followed by 9,837. If the index starts to move higher then key resistance levels to watch out are 9,908.15, followed by 9,924.6.
Nifty Bank closed 193.2 points higher or 0.82 percent at 23,888.7 on Thursday. Important pivot level, which will act as crucial support for the index is placed at 23,820.47, followed by 23,752.23. On the upside, the key resistance level is 23,947.47 followed by 24,006.23.
Call Options Data:
Maximum Call open interest (OI) of 44.47 lakh contracts stands at strike price 10,000, which will act as a crucial resistance level for the index in the July series, followed by 9,900 which now holds 39.27 lakh contracts in open interest and 9,800 which has accumulated 36.37 lakh contracts in OI.
Call writing was seen at strike prices 9,900 (7.57 lakh contracts added), followed by 10,100 (5.43 lakh contracts added) and 10,200 (3.94 lakh contracts added).
Call unwinding was seen at the strike price of 9,700 which saw shedding of 9.34 lakh contracts in open interest, followed by9,800(5.45 contracts shed) and 9,600 (2.67 lakh contracts shed).
Put Options Data:
Maximum Put OI of 63.41 lakh contracts was seen at strike price 9,600, which will act as a crucial base for the index in July series, followed by 9,700 which has accumulated 62.22 lakh contracts in open interest, and 9800 which now holds 51.73 lakh contracts in open interest.
Put Writing was seen at strike prices of 9,900 (13.56 lakh contracts added), followed by strike prices 9,800 (11.34 lakh contracts added), and 9,700 (9.93 lakh contracts added).
Put unwinding was seen at the strike price of 9,500, which saw shedding of 4.74 lakh contracts in open interest, followed by 9,600 (3.65 lakh contracts shed).
FII & DII Data:
Foreign institutional investors (FIIs) sold shares worth Rs 59.15 crore, while domestic institutional investors bought shares worth Rs 279.13 crore in the 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.
103 stocks saw Long Buildup:
14 stocks saw Short Covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
16 stocks saw Long Unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
83 stocks saw Short Buildup:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.