Trade Setup for Tuesday: Top 10 things you should know before Opening Bell
Technical chartists suggest consolidation will continue for a couple of more days, but the market is still a buy on dips as long as Nifty50 holds the 9,120 level.
The Nifty50 failed to push the momentum on Monday as the index slipped below its crucial resistance level of 9,150. Technical chartists suggest consolidation will continue for a couple of more days, but the market is still a buy on dips as long as Nifty50 holds the 9,120 level.
We have put together the top ten data points on how to help you in spotting profitable trade:
Key Support & Resistance Level:
The Nifty50 slipped below its crucial resistance level of 9,150 on Monday as profit booking gripped markets. According to Pivot charts, the key support level for Nifty50 is placed at 9106, followed by 9085, and 9054.
If the index starts to move higher then key resistance levels to watch out are 9,157, followed by 9,188.22, and 9,208.
Call Options Data:
On the options front, maximum Call open interest (OI) of 60 lakh contracts stands at a strike price of 9,200 which will act as a crucial resistance level for the index, followed by 9,300 which now holds 43 lakh contracts in open interest and 9,100 which has accumulated 36 lakh contracts in OI.
Call Writing was seen at strike prices 9,100 (5.4 lakh contracts added), followed by 9200 (2.7 lakh contracts were added). Call unwinding was seen at strike prices 9000 (1.4 lakh contracts were shed), followed by 9300 (0.94 lakh contracts were shed).
Put Options Data:
Maximum Put OI of 56 lakh contracts was seen at strike price 8,800 which will act as a crucial base for the index, followed by 8,900 which has accumulated 55.5 lakh contracts, and 9,000 which now holds 55.2 lakh contracts in OI.
There was hardly any Put writing while unwinding was seen at strike prices 8,800 (4.1 lakh contracts shed), followed by 8,900 (1.1 lakh contracts were shed), and 9,200 (5.1 lakh contracts were shed).
It looks like Put writers are closing positions in 8,800 strike and adding in higher strike price such as 8,900 and 9,000 which would help in pushing the market base higher in the next few trading sessions. It is a bullish sign.
FII & DII Data:
The foreign institutional investors (FIIs) bought shares worth Rs 57 crore compared to domestic institutional investors which sold Rs 536 crore in Indian equity market.
The India Volatility Index (VIX) a gauge of the market's short-term expectation of volatility rose by 1.3 percent to 12.01 compared to the previous close of 11.85.Volatility Index is a measure of market's expectation of volatility over the near term. Usually, during periods of market volatility, market moves steeply up or down and the volatility index tends to rise.
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.
67 stocks saw Long Buildup:
37 stocks saw short covering:
Short covering is seen when price moves higher but OI reduces.
20 stocks saw Long Unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
49 stocks saw Short Buildup:
Short Buildup was seen in stocks where there is an increase in open interest along with a decrease in price.