Moneycontrol
May 15, 2017 08:44 PM IST | Source: Moneycontrol.com

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

The market is trading near key resistance levels which make some analysts’ a bit cautious at current levels.

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

Kshitij Anand

Moneycontrol News

The Nifty50 recorded its fresh closing high on Monday and closed shade below its fresh record high of 9,450.65. It made a small bullish candle on the daily candlestick charts.

The market is trading near key resistance levels which make some analysts’ a bit cautious at current levels. Investors are advised not to initiate any fresh long positions at current levels and keep a stop loss below 9,372 levels.

A short bull candle is formed when the closing level is higher than the opening level but moved in a narrow range throughout the trading day.

The next logical target for this market appears to be placed around 9,550 levels which is pretty much possible before this expiry itself.

The emphasis at this juncture should be placed on preserving the profits rather than trying to make money by creating fresh long positions unless there is a compelling buying opportunity, 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 closed above its crucial support level of 5-DEMA placed at 9,402. According to Pivot charts, the key support level for Nifty50 is placed at 9,429, followed by 9,413. If the index starts to move higher then key resistance levels to watch out are 9,455, followed by 9,465.

Nifty Bank:

Nifty Bank closed 149 points higher or 0.66 percent at 22,821 on Monday. Important Pivot level which will act as crucial support for the index is placed at 22,737, followed by 22,653. On the upside, the key resistance level is 22,898 followed by 22,975.

Call Options Data:

Maximum Call open interest (OI) of 67 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index in May series, followed by 9,400 which now holds 40 lakh contracts in open interest and 9,600 which has accumulated 34 lakh contracts in OI.

Call Writing was seen at strike prices 9,600 (0.5 lakh contracts added), followed by 9,800 (0.2 lakh contracts added), and 9,700 (0.15 lakh contracts added).

Call unwinding was seen at strike prices 9,500 (3.5 lakh contracts shed), 9,400 (3.2 lakh contracts shed), 9,300 (2.7 lakh contracts shed), and 9,200 (0.4 lakh contracts shed).

a1Put Options Data:

Maximum Put OI of 73 lakh contracts was seen at strike price 9,300 which will act as a crucial base for the index in May series followed by 9,200 which has accumulated 46.37 lakh contracts in open interest, and 9,400 which now holds 46.32 lakh contracts in open interest.

Put writing was seen at strike prices 9,400 (8.2 lakh contracts added), followed by 9,300 (1.2 lakh contracts added). Put Unwinding was seen at strike prices 9,200 (12 lakh contracts shed), 9,100 (4.5 lakh contracts shed) and 9,000 (0.45 lakh contracts shed).

a2FII & DII Data:

The foreign institutional investors (FIIs) bought shares worth Rs235 crore compared to domestic institutional investors who sold Rs66 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.

a388 stocks saw Long Buildup:

a456 stocks saw short covering:

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

a514 stocks saw Long Unwinding: 

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

a644 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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