Trade Setup for Tuesday: Top 10 things you should know before Opening Bell
It is important for the index to hold above 9800-9850 for the upside to continue while key resistance levels are placed at 9950-10,000.
The Nifty which opened with a mild gap on the upside in morning trade on Monday hit a fresh record high of 9928.20 but moved in a narrow range throughout the trading session and made a small bull candle on the daily charts.
A 'Small Bullish' candle is formed when the index trades higher throughout the sessions, but in a defined range. The length of the candle signifies the range for the day.
A short bull candle formed after a hanging man pattern negates the negative pattern but technical charts are still of the view that investors will be better off booking some profits off the table.
It is important for the index to hold above 9800-9850 for the upside to continue while key resistance levels are placed at 9950-10,000. After a sharp rally of over 400 points from recent low of 9450, investors can look at booking some profits as markets are hinting at overbought levels.
We have collated top ten data points to help you spot profitable trade.
Key Support & Resistance Level for Nifty:
The Nifty closed above the 9900-mark for the first time ever on Monday. According to Pivot charts, the key support level is placed at 9,897.7, followed by 9,879.45. If the index starts to move higher, then key resistance levels to watch out are 9,931.2, followed by 9,946.45.
Nifty Bank closed over 77 points higher at 24015.05 on Monday. Important Pivot level which will act as crucial support for the index is placed at 23,930.5, followed by 23,845.9. On the upside, key resistance level is 24,082.9 followed by 24150.7.
Call Options Data:
Maximum Call open interest (OI) of 48.28 lakh contracts stands at strike price 10,000 which will act as a crucial resistance level for the index in July series, followed by 9,900 which now holds 44.22 lakh contracts in open interest and 9,800 which has accumulated 26.87 lakh contracts in OI.
Call writing was seen at strike prices 10,100 (3.85 lakh contracts added), followed by 10,000 at 2.63 lakh contracts and 10,200 at 2.08 lakh contracts additions.
Call unwinding was seen at strike prices 9800 (4.33 lakh contracts were shed), followed by 9,600 ( 1.66 lakh contracts shed), 9,900 (0.79 lakh contracts shed).
Put Options Data:
Maximum Put OI of 65.03 lakh contracts was seen at strike price 9,800 which will act as a crucial base for the index in April series followed by 9,700 which has accumulated 62.35 lakh contracts in open interest, and 9,600 which now holds 55.67 lakh contracts in open interest.
Put writing was seen at strike prices 9,900 (10.06 lakh contracts added), followed by 9,800 (5.68 lakh contracts added), and 10,000 (3.66 lakh contracts).
Put Unwinding was seen at strike prices 9,600 (6.91 lakh contracts shed).
FII & DII Data:
The foreign institutional investors (FIIs) bought shares worth Rs 328.61 crore compared to domestic institutional investors who sold Rs 447.14 crore in the 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.
90 stocks saw long buildup
21 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
12 stocks saw long unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
86 stocks saw Short Buildup:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.