Moneycontrol
Nov 14, 2017 08:20 PM IST | Source: Moneycontrol.com

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

Call writing was seen at strike price of 10,300, which saw the addition of 3.72 lakh contracts, along with 10,200, which saw the addition of 2.89 lakh contracts, and 10,500, which saw the addition of 1.08 lakh contracts.

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The 50-share NSE Nifty which opened on a muted note failed to build momentum on the upside as bears took control of D-Street pushing the index below 10,200 on Tuesday. The index made a bearish candle on the daily candlestick charts. It closed below its 20-DEMA for the second day in a row.

The Nifty continued its weakness and tested next major support of 10,178 in trade today. It has been making lower highs and lower lows from the last six trading sessions which is a bearish sign.

For the index to move higher, it has to stay above 10,240 level. The bullish momentum will only continue once it surpasses 10,335 level, else the weakness will continue. On the downside, there is significant support available near 10,000 level.

The Nifty which opened at 10,223 rose marginally to hit its intraday high of 10,248. But, then bears took control of D-Street and pushed the index below 10,200 to hit its intraday low of 10,175. The index closed 38 points lower at 10,186.

“The Nifty index has been making lower highs – lower lows from last six trading sessions and requires to negate the same to get the short-term market stability,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

“Now, if the index sustains below 10,250 then weakness could continue towards 10,120 then 10,080 zone while on the upside hurdles are seen at 10,250 then 10,280 zone,” he said.

We have collated top ten data points to help you spot profitable trade:

Key Support & Resistance Level for Nifty

The Nifty closed at 10,186.60 on Tuesday. According to Pivot charts, the key support level is placed at 10,158.73, followed by 10,130.87. If the index starts to move higher, key resistance levels to watch out are 10,231.23 and 10,275.87.

Nifty Bank

The Nifty Bank closed at 25,284.60 on Tuesday, down 73.7 points. Important Pivot level, which will act as crucial support for the index, is placed at 25,203.53, followed by 25,122.46. On the upside, key resistance level is 25,385.23, followed by 25,485.87.

Call Options Data

Maximum Call open interest (OI) of 56.31 lakh contracts was seen at strike price 10,500 which will act as a crucial base for the index in November series, followed by 10,400, which has accumulated 49.16 lakh contracts in open interest, and 10,300, which now holds 43.75 lakh contracts in open interest.

Call writing was seen at strike price of 10,300, which saw the addition of 3.72 lakh contracts, along with 10,200, which saw the addition of 2.89 lakh contracts, and 10,500, which saw the addition of 1.08 lakh contracts.

Call unwinding was seen at strike price of 10,600, which saw shedding of 2.2 lakh shares; followed by 10,000, (0.33 lakh contracts were shed).

Image214112017

Put Options Data

Maximum Put open interest (OI) of 45.18 lakh contracts was seen at a strike price 10,200, which will act as a crucial resistance level for the index in the November series, followed by 10,000, which now holds 44.31 lakh contracts in open interest, and 10,300, which has accumulated 38.83 lakh contracts in OI.

Put writing was seen at a strike price of 9,800, which saw addition of 1.57 lakh contracts, followed by 9,600 (added 0.48 lakh contracts).

Put unwinding was seen at strike prices 10,300 (6.67 lakh contracts were shed); followed by 10,100, which saw shedding of 4.69 lakh contracts and 10,200, which shed 3.33 lakh contracts.

Image314112017

FII & DII Data

The foreign institutional investors (FIIs) bought shares worth Rs 2,576.98 crore, while domestic institutional investors sold only Rs 1.3 crore worth of shares in the Indian equity market on Tuesday, as per data available with the NSE.

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.

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45 stocks saw long buildup

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43 stocks saw short covering

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

Image614112017

74 stocks saw short buildup

An increase in open interest along with a decrease in price mostly indicates short positions being built up.

Image714112017

52 stocks saw long unwinding

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

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