Moneycontrol
Apr 20, 2017 10:02 PM IST | Source: Moneycontrol.com

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

The momentum will accelerate on the upside once the index closes above its crucial resistance level of 9,218 and the 9,273, which is also its record high, suggest experts.

The Nifty closed around its crucial 20-days exponential moving average as bulls managed to regain control of D-Street after falling for five consecutive sessions in a row on Thursday.

The index made a small bullish candle kind of formation on the daily candlestick charts, which signifies strength. The momentum will accelerate on the upside once the index closes above its crucial resistance level of 9,218 and the 9,273, which is also its record high, suggest experts.

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

Key Support & Resistance Level for Nifty:

The Nifty closed above its crucial resistance level of 9,100 and around its short-term moving averages such as 20-days exponential moving average.

According to Pivot charts, the key support level for Nifty is placed at 9,111, followed by 9,086.40. If the index starts to move higher then key resistance levels to watch out are 9,152.65 followed by 9,169.90.

Nifty Bank:

Nifty Bank closed 64 points lower or 0.3 percent at 21,491 on Thursday. Important Pivot level which will act as crucial support for the index is placed at 21,405.34, followed by 21,319.27. On the upside, the key resistance level is 21,568.14 followed by 21,644.87.

Call Options Data:

Maximum Call open interest (OI) of 51 lakh contracts stands at strike price 9,200 which will act as a crucial resistance level for the index in April series, followed by 9,300 which now holds 44 lakh contracts in open interest and 9,500 which has accumulated 34 lakh contracts in OI.

Call Writing was seen at strike prices 9,200 (1.3 lakh contracts added) while Call unwinding was seen at strike prices 9,400 (3.08 lakh contracts were shed), followed by 9,100 (4.6 lakh contracts shed), 9,500 (2.8 lakh contracts shed), and 9,000 (2.1 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 59 lakh contracts was seen at strike price 9,100 which will act as a crucial base for the index in April series followed by 9,000 which has accumulated 52 lakh contracts in open interest, and 8,900 which now holds 44 lakh contracts in open interest.

Put writing was seen at strike prices 8,800 (5.05 lakh contracts added), followed by 9,000 (1.2 lakh contracts added), 9,100 (5.06 lakh contracts) and 8,700 (0.5 lakh contracts added).

Put Unwinding was seen at strike prices 8,900 (0.2 lakh contracts shed), followed by 9,200 (1.2 lakh contracts shed), and 9,300 (0.12 lakh contracts shed).

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FII & DII Data:

The foreign institutional investors (FIIs) sold shares worth Rs 169 crore compared to domestic institutional investors who bought Rs 9 crore worth of equities 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.

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85 stocks saw Long Buildup:

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61 stocks saw short covering:

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

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11 stocks saw Long Unwinding:

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

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31 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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