Moneycontrol
Jun 18, 2017 03:10 PM IST | Source: Moneycontrol.com

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

As per theory, 'Doji' chart patterns are commonly seen in periods of consolidation but given the price movement witnessed throughout this week, technical experts expect the market to break on the upside.

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

Kshitij Anand

Moneycontrol New

The Nifty50 closed below its crucial psychological level of 9,600 on Friday and made a ‘Doji’ kind of pattern on the daily candlestick charts which suggest indecisiveness among bulls as well as bears.

However, a break above 9,600 would strengthen the bullish argument while a breach of 9,500 on the downside will create bearish bias.

As per theory, 'Doji' chart patterns are commonly seen in periods of consolidation but given the price movement witnessed throughout this week, technical experts expect the market to break on the upside.

Investors can initiate long positions once Nifty50 closes above 9,600-9,620 on a closing basis. However, if the index holds below 9,580, selling pressure could drag the index towards 9,550-9,530.

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 10 points higher or 0.10 percent at 9,588. According to Pivot charts, the key support level for Nifty50 is placed at 9,563, followed by 9,539. If the index starts to move higher then key resistance levels to watch out are 9,614, followed by 9,640.

Nifty Bank:

Nifty Bank closed 111 points higher or 0.47 percent at 23,502 on Friday. Important Pivot level which will act as crucial support for the index is placed at 23,419 followed by 23,337. On the upside, the key resistance level is 23,556 followed by 23,610.

Call Options Data:

Maximum Call open interest (OI) of 76 lakh contracts stands at strike price 9,700 which will act as a crucial resistance level for the index in June series, followed by 9,600 which now holds 54 lakh contracts in open interest and 9,800 which has accumulated 49 lakh contracts in OI.

Call Writing was seen at strike prices 9,700 (6.6 lakh contracts added), followed by 9,600 (2.2 lakh contracts added), 9,500 (1.2 lakh contracts added), 9800 (0.9 lakh contracts added), and 10,100 (0.08 lakh contracts added).

Call unwinding was seen at strike prices 9,900 (0.6 lakh contracts shed), 10,000 (0.4 lakh contracts shed), 9,400 (0.4 lakh contracts shed) and 9,300 (0.2 lakh contracts shed).

t1Put Options Data:

Maximum Put OI of 70 lakh contracts was seen at strike price 9,500 which will act as a crucial base for the index in June series followed by 9,600 which has accumulated 58 lakh contracts in open interest, and 9,400 which now holds 51 lakh contracts in open interest.

Put Writing was seen at strike prices 9,600 (2.3 lakh contracts added) and 9,800 (0.4 lakh contracts added). Put unwinding was seen at strike prices 9,700 (1.5 lakh contracts shed), 9,500 (2.4 lakh contracts shed), 9,400 (1 lakh contracts shed), and 9,300 (1.3 lakh contracts shed).

t2

FII & DII Data: 

The foreign institutional investors (FIIs) sold shares worth Rs764 crore compared to domestic institutional investors who bought shares worth Rs891 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.

t352 stocks saw Long Buildup:

t447 stocks saw short covering:

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

t539 stocks saw Long Unwinding: 

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

t666 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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