Moneycontrol
Apr 18, 2017 10:07 PM IST | Source: Moneycontrol.com

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

The Nifty continued its losing streak for the fourth consecutive session and now it has to hold below 9,165 which may drag the index towards 9,020-9,000 zone, say experts.

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

Moneycontrol News

Bears pulled the Nifty lower in the second half of trading sessions but bulls managed to push it beyond its crucial resistance level of 9,100 on Tuesday.

The Nifty index failed to surpass immediate hurdle placed at 9,218 and corrected sharply towards 9,100 levels. It negated the effect of previous day’s Doji candle and formed a strong bearish candle on the daily chart by closing below its 13 DEMA.

The Nifty continued its losing streak for the fourth consecutive session and now it has to hold below 9,165 which may drag the index towards 9,020-9,000 zone, while on the upside hurdles are seen at 9,191 and 9,218 mark, suggest experts.

We have collated the top ten data points to help you in spotting profitable trade:

Key Support & Resistance Level for Nifty:

The Nifty closed 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 Nifty50 is placed at 9,061, followed by 9,017. If the index starts to move higher then key resistance levels to watch out are 9,183.55, followed by 9,261.95.

Nifty Bank:

Nifty Bank closed 24 points higher or 0.11 percent at 21,671 on Tuesday. Important Pivot level which will act as crucial support for the index is placed at 21,555, followed by 21,438. On the upside, the key resistance level is 21,867.8 followed by 22,063.8.

Call Options Data:

Maximum Call open interest (OI) of 51 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 46 lakh contracts in open interest and 9,500 which has accumulated 39 lakh contracts in OI.

Call Writing was seen at strike prices 9,100 (9.3 lakh contracts added), followed by 9,200 (2.4 lakh contracts added) and 9,500 (2.05 lakh contracts added).

Call unwinding was seen at strike prices 9,300 (5.1 lakh contracts were shed), followed by 9,400 (5.1 lakh contracts shed), 9,400 (2.1 lakh contracts shed), and 9,600 (0.57 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 52 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 49 lakh contracts in open interest, and 8,900 which now holds 43 lakh contracts in open interest.

Put writing was seen at strike prices 8,800 (2.2 lakh contracts added), followed by 8,900 (3.4 lakh contracts added), 8,700 (0.6 lakh contracts) and 9,300 (0.25 lakh contracts added).

Put Unwinding was seen at strike prices 9,000 (8.9 lakh contracts shed), followed by 9,100 (2.9 lakh contracts shed), and 9,200 (2.07 lakh contracts shed).

“We have seen significant Call writing at 9,100, 9,150, 9,200 which are shifting its resistance to a lower level while fresh Put OI addition is seen at 8900 and 9050 strike which may provide support near to 9020-9000 zones,” said Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

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FII & DII Data:

The foreign institutional investors (FIIs) sold shares worth Rs 931 crore compared to domestic institutional investors who bought Rs 878 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.

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15 stocks saw Long Buildup:

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21 stocks saw short covering:

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

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64 stocks saw Long Unwinding:

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

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90 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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