Moneycontrol
May 18, 2017 09:51 PM IST | Source: Moneycontrol.com

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

To sustain momentum, the index has to close above its recent record high of 9,532. Till then, expect consolidation in a range.

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

Kshitij Anand

Moneycontrol News

The Nifty slipped below its crucial support level of 9,500-9,450 on Thursday. It bounced back from its 10-days exponential moving average (DEMA) placed at 9,418 but still made a bearish candle on the daily candlestick charts.

The Nifty50 has broken its immediate support trendline by connecting the lows of 9088, 9272, 9307, 9336 and 9372. If the index trades below 9,450 then selling pressure could drag the index towards 9380 and 9350 zones, suggest experts.

On the upside, immediate hurdle exists at 9,480 to nullify the effect of recent declines. For the momentum to continue, the index has to close above its recent record high 9,532. Till then, the market is likely to consolidate in a range.

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

Key Support & Resistance Level for Nifty:

The Nifty50 closed below its crucial support level of 9500-9450 on Thursday. According to Pivot charts, the key support level for Nifty50 is placed at 9,402, followed by 9,374. If the index starts to move higher then key resistance levels to watch out are 9,473, followed by 9,516.

Nifty Bank:

Nifty Bank closed 237 points lower or 1.03 percent at 22,698 on Thursday. Important Pivot level which will act as crucial support for the index is placed at 22,627, followed by 22,556. On the upside, the key resistance level is 22,802 followed by 22,905.

Call Options Data:

Maximum Call open interest (OI) of 61 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 47 lakh contracts in open interest and 9,400 which has accumulated 37 lakh contracts in OI.

Call Writing was seen at strike prices 9,400 (6.2 lakh contracts added), followed by 9,500 (9.4 lakh contracts added), 9,600 (2.4 lakh contracts added) and 9,800 (1.2 lakh contracts added).

Call unwinding was seen at strike prices 9,300 (1.1 lakh contracts shed), 9,200 (1.2 lakh contracts shed), 9,100 (0.8 lakh contracts shed), and 9,000 (0.3 lakh contracts shed).

z1Put Options Data:

Maximum Put OI of 67 lakh contracts was seen at strike price 9,300 which will act as a crucial base for the index in May series followed by 9,400 which has accumulated 56 lakh contracts in open interest, and 9,200 which now holds 45 lakh contracts in open interest.

Put Unwinding was seen at strike prices 9,500 (19.1 lakh contracts shed), 9,400 (13.5 lakh contracts shed), 9,300 (5.6 lakh contracts shed) and 9,200 (3.9 lakh contracts shed).

z2FII & DII Data: 

The foreign institutional investors (FIIs) sold shares worth Rs361 crore compared to domestic institutional investors who bought Rs898 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.

z35 stocks saw Long Buildup:

z410 stocks saw short covering:

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

z5110 stocks saw Long Unwinding: 

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

z680 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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