Trade Setup for Monday: Top 10 things you should know before Opening Bell
The Nifty50 closed below its crucial psychological level of 9,200 on Friday weighed down by geopolitical concerns. The index is trading near crucial support levels; hence, a bounce back on Monday cannot be ruled out.
The chart structure still remains intact but there are enough signs that the market is losing momentum which traders should watch out for. If the index slips below 9,150-9,163, momentum will shift entirely towards downside while a close above 9,250 could restore upward bias.
The threat of short-term reversal continues to loom large on the indices and investors who went long on the index can square off their positions and look at shorting the index with a target of around 9,000 and a stop of 9,250 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 slipped below its 5-DEMA placed at 9,215 but closed above its 10-DEMA placed at 9,182. According to Pivot charts, the key support level for Nifty50 is placed at 9,174, followed by 9,149 and 9,111.70 If the index starts to move higher then key resistance levels to watch out are 9,236, followed by 9,274, and 9,298.
Nifty Bank closed 191 points lower or 0.89 percent at 21,431 on Friday. Important Pivot level which will act as crucial support for the index is placed at 21,346, followed by 21,261, and 21,126. On the upside, the key resistance level is 21,566, followed by 21,701 and 21,786.
Call Options Data:
On the options front, maximum Call open interest (OI) of 49 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index, followed by 9,300 which now holds 44 lakh contracts in open interest and 9,400 which has accumulated 38 lakh contracts in OI.
Call Writing was seen at strike prices 9,200 (4.9 lakh contracts added), followed by 9,300 (9.4 lakh contracts added), 9,400 (4 lakh contracts added), and 9,500 (4.5 lakh contracts added).
Call unwinding was seen at strike prices 9,600 (1.8 lakh contracts were shed), followed by 9,700 (0.5 lakh contracts shed), and 8,800 (0.6 lakh contracts were shed).
Put Options Data:
Maximum Put OI of 53.9 lakh contracts was seen at strike price 9,000 which will act as a crucial base for the index in April series followed by 9,100 which has accumulated 48 lakh contracts in open interest, and 9,200 which now holds 37 lakh contracts in open interest.
Put writing was seen at strike prices 9,300 (1.7 lakh contracts added), followed by 8,800 (1.1 lakh contracts added) while some unwinding was seen at strike prices 9,400 (1.1 lakh contracts shed), followed by 9,500 (0.39 lakh contracts shed), and 9,200 (0.47 lakh contracts shed).
“We have seen fresh Call writing at all the strike prices starting from 9,200 to 9,500 which will restrict further upside momentum while Put unwinding is giving a sign of caution on immediate basis,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.com.
FII & DII Data:
The foreign institutional investors (FIIs) sold shares worth Rs 262 crore compared to domestic institutional investors who sold Rs 415 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.
13 stocks saw Long Buildup:
27 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
83 stocks saw Long Unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
68 stocks saw Short Buildup:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.