Trade Setup for Thursday: Top 10 things you should know before Opening Bell
For the upside to continue, the index still needs to surpass 9,133 on closing basis while a close below 9,020 could put intensify the pressure, suggest experts.
Bulls managed to push the Nifty above its crucial resistance level of 9,100 on Wednesday and made a hammer-like pattern on the daily candlestick charts.
The index formed a hammer-like pattern on the daily charts after forming an inverted hammer like pattern or a bearish candle on Tuesday, which is a positive sign.
However, for the upside to continue, it still needs to surpass 9,133 on closing basis while a close below 9,020 could put intensify the pressure, suggest experts.
The Nifty continued its losing streak for the fifth consecutive session and now needs to hold above 9,133 to witness an up move towards 9,165 and 9,218. On the downside, it has support at 9,090 and then towards 9,050 zone, they say.
We have collated the top ten data points to help you in spotting profitable trade:
Key Support & Resistance Level for Nifty:
The Nifty closed above its crucial resistance level of 9,100 but it is still trading below its short term moving averages such as 20-days exponential moving average, 5-DEMA, 13-DEMA, and 10-DEMA.
According to Pivot charts, the key support level for Nifty is placed at 9,078, followed by 9,054. If the index starts to move higher then key resistance levels to watch out are 9,124, followed by 9,145.
Nifty Bank closed 115 points lower or 0.53 percent at 21,556 on Wednesday. Important Pivot level which will act as crucial support for the index is placed at 21,448, followed by 21,341. On the upside, the key resistance level is 21,685 followed by 21,813.
Call Options Data:
Maximum Call open interest (OI) of 50 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 37 lakh contracts in OI.
Call Writing was seen at strike prices 9,000 (2.06 lakh contracts added), followed by 9,100 (4.6 lakh contracts added) and 9,400 (0.7 lakh contracts added).
Call unwinding was seen at strike prices 8,900 (0.3 lakh contracts were shed), followed by 9,200 (1.7 lakh contracts shed), 9,300 (2.4 lakh contracts shed), and 9,500 (2.4 lakh contracts shed).
Put Options Data:
Maximum Put OI of 54 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 51 lakh contracts in open interest, and 8,900 which now holds 44 lakh contracts in open interest.
Put writing was seen at strike prices 8,900 (0.7 lakh contracts added), followed by 9,000 (1.6 lakh contracts added), 9,100 (1.2 lakh contracts) and 8,600 (1.4 lakh contracts added).
Put Unwinding was seen at strike prices 9,200 (6.4 lakh contracts shed), followed by 9,300 (3.7 lakh contracts shed), and 9,400 (0.48 lakh contracts shed).
“We have seen fresh Put writing at strike prices 9100, 9150 and 9000 strikes while Call writing was seen at 9000-9400 strikes. Fresh addition to nearby Calls and Puts indicates that bulls and bears both are fighting hard and not expecting much movement in the absence of lower volatility,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“The index has got stuck in the grip of Option writers and that is why it is unable to take the momentum,” he said.
FII & DII Data:
Foreign institutional investors (FIIs) sold shares worth Rs 673 crore compared to domestic institutional investors, who bought Rs 526 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.
75 stocks saw Long Buildup:
49 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
8 stocks saw Long Unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
57 stocks saw Short Buildup:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.