Moneycontrol
May 11, 2017 09:35 PM IST | Source: Moneycontrol.com

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

The trajectory of the Indian market remains intact and investors should remain long on the index with a target of 9,500 and a stop loss of 9,300-9,250.

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

Kshitij Anand

Moneycontrol News

The Nifty50 witnessed profit booking on Thursday as Nifty50 came under pressure after hitting a fresh lifetime high of 9,450.65. It closed 15 points higher at 9,422.40 but made a small bearish candle because the closing level was below opening level.

However, the trajectory of the Indian market remains intact and investors should remain long on the index with a target of 9,500 and a stop loss of 9,300-9,250.

In the absence of any sell signals benefit of the doubt goes to bulls and hence traders are advised to maintain a positive stance till some technical evidence arises in favour of bears and look for higher target placed around 9,550 levels, suggest experts.

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

Key Support & Resistance Level for Nifty:

The Nifty50 closed above its crucial support level of 9,400 at 9,422.40. According to Pivot charts, the key support level for Nifty50 is placed at 9,405, followed by 9,388. If the index starts to move higher then key resistance levels to watch out are 9,444, followed by 9,467.

Nifty Bank:

Nifty Bank closed 11 points lower or 0.05 percent at 22,818 on Thursday. Important Pivot level which will act as crucial support for the index is placed at 22,729, followed by 22,640. On the upside, the key resistance level is 22,942 followed by 23,066.

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 9,400 which now holds 42 lakh contracts in open interest and 9,600 which has accumulated 36 lakh contracts in OI.

Call Writing was seen at strike prices 9,500 (1.6 lakh contracts added), followed by 9,600 (3.07 lakh contracts added), and 9,700 (1.9 lakh contracts added).

Call unwinding was seen at strike prices 9,400 (4.5 lakh contracts shed), 9,300 (3.8 lakh contracts shed), 9,200 (1.9 lakh contracts shed), and 9,100 (1.1 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 76 lakh contracts was seen at strike price 9,300 which will act as a crucial base for the index in May series followed by 9,200 which has accumulated 54 lakh contracts in open interest, and 9,100 which now holds 46 lakh contracts in open interest.

Put writing was seen at strike prices 9,400 (6.7 lakh contracts added), followed by 9,500 (6.4 lakh contracts added), 9,600 (0.3 lakh contracts added), and 8,900 (3.06 lakh contracts added).

Put Unwinding was seen at strike prices 9300 (0.5 lakh contracts shed), 9,200 (1.9 lakh contracts shed) and marginal unwinding was seen at strike prices 9,100, 9,700, and 10,000.

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FII & DII Data:

The foreign institutional investors (FIIs) bought shares worth Rs1307 crore compared to domestic institutional investors who sold Rs1037 crore in Indian equity market.

Stocks with high Delivery%:

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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50 socks saw Long Buildup:

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47 stocks saw short covering:

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

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40 stocks saw Long Unwinding:

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

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69 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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