Moneycontrol
Mar 16, 2017 10:51 PM IST | Source: Moneycontrol.com

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

The Nifty50 rose to a fresh record high on Thursday and closed above its crucial level of 9,150 for the first time ever, but Friday might be a day of consolidation.


The Nifty50 rose to a fresh record high on Thursday and closed above its crucial level of 9,150 for the first time ever, but Friday might be a day of consolidation.

We have collated the top ten data points to help you in spotting profitable trade:

Key Support & Resistance Level for Thursday:

The Nifty50 saw a breakout on Thursday after US Federal Reserve decided to raise rates, but it was gradual. According to Pivot charts, the key support level for Nifty50 is placed at 9135, followed by 9117, and 9105.

If the index starts to move higher, then key resistance levels to watch out are 9165, followed by 9,176, 9,195.

1

Call Options Data:

On the options front, maximum Call open interest (OI) of 54 lakh contracts stands at a strike price of 9,200, followed by 9,500 which now holds 42 lakh contracts in open interest and 9,300 which has accumulated 41 lakh contracts in OI.

There was hardly any Call writing but unwinding was seen at strike prices 9,100 (12.5 lakh contracts shed), followed by 9,000 (8.06 lakh contracts shed), and 9,500 (5.2 lakh contracts shed).

This is the third day when we saw massive Call unwinding which is a positive sign for the bulls.

2

Put Options Data:

Maximum Put OI of 59 lakh contracts was seen at a strike price 8,800 which will act as a crucial base for the index, followed by 8,900 which has accumulated 51 lakh contracts, and 9,000 which now holds 48 lakh contracts in OI.

Fresh Put writing at strike prices 8,800 (3.2 lakh contracts were added), followed by 8,900 (2.9 lakh contracts were added), 9,100 (8.2 lakh contracts were added), and 9,200 (4.8 lakh contracts were added) strengthen the bullish argument.

3

Nifty Bank:

Nifty Bank outperformed the Nifty50 index and registered a fresh record high of 21,289.80 on Thursday before closing the day at 21,249, up 92 points.

The key pivot levels for NiftyBank are 21,199, followed by 21,149 and 21,103, which will act as crucial support while key resistance lev1els are 21,295, followed by 21340, and 21,390.

FII & DII Data:

The foreign institutional investors (FIIs) bought shares worth Rs 1,360 crore compared to domestic institutional investors which sold Rs 88 crore in Indian equity markets.

India VIX:

The India Volatility Index (VIX), a gauge of the market's short-term expectation of volatility, slipped by 0.51 per cent to 11.91 compared to the previous close of 12.42.

Volatility Index is a measure of market's expectation of volatility over the near term. Usually, during periods of market volatility, market moves steeply up or down and the volatility index tends to rise.

85 stocks saw Long Buildup:

4

71 stocks saw short covering was seen:

Short covering is seen when price moves higher but OI reduces.

5

8 stocks saw Long Unwinding:

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

6

10 stocks saw Short Buildup:

Short Buildup was seen in stocks where there is an increase in open interest along with a decrease in price.

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