Moneycontrol
Oct 12, 2017 09:50 PM IST | Source: Moneycontrol.com

Trade setup for Friday: Top 10 things you should know before Opening Bell

If the strength continues, Nifty should be able to hit fresh record highs ahead of Diwali. The Supertrend indicator too gave a buy signal on the charts which is a bullish sign for investors.

Uttaresh Venkateshwaran @UttareshV

The bulls managed to regain control over D-Street on Thursday after closing in negative territory in the previous session. The index made a strong bull candle on the daily candlestick charts and closed above 10,000, which augers well for the bulls.

The Nifty index opened with a gap on the higher side and witnessed sustained buying interest from buyers till the end of the session. The index rallied more than 100 points in trade and nullified the effect of Bearish Engulfing Pattern formed in the last session.

Investors are advised to stay long with a strict stop loss below 9,959 levels. If the strength continues, Nifty should be able to hit fresh record highs ahead of Diwali. The Supertrend indicator too gave a buy signal on the charts which is a bullish sign for investors.

The Nifty50 opened above 1o,000 at 10,011 and slipped marginally to an intraday low of 9,977. But, then bulls took the index back above 10,100 to hit its intraday high of 10,104.45. It closed 111.60 points higher at 10,096.40.

“Bulls appear to have got a renewed lease of life as indices shrugged off Bearish Engulfing formation witnessed on Wednesday’s trading session with a solid bull candle. This move should certainly empower them to register new lifetime highs beyond 10,179 levels as Thursday’s strong recovery has tilted the tide in favour of bulls and trade as of now looks to be on the long side,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, Bank Nifty is still trading below its 50-days EMS raising doubts about the sustainability of this up move. Hence, traders are advised to cautiously continue their long side bets with a stop below 9955 till further signs of weakness are visible,” he said.

India VIX fell down by 5.86% at 11.04. The decline in VIX with a sharp jump in Put Call Ratio has seen the strong comeback of bulls after one day’s breather.

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

Key Support & Resistance Level for Nifty

The Nifty closed at 10,096.4 on Thursday. According to Pivot charts, the key support level is placed at 10,014.17, followed by 9,931.93. If the index starts to move higher, key resistance levels to watch out are 10,141.57 and 10,186.73.

Nifty Bank

The Nifty Bank closed at 24,361.2. Important Pivot level, which will act as crucial support for the index, is placed at 24,095.27, followed by 23, 829.33. On the upside, key resistance levels are 24,510.27, followed by 24,659.33.

Call Options Data:

Maximum Call open interest (OI) of 38.48 lakh contracts stands at strike price 10,100, which will act as a crucial resistance level for the index in the October series, followed by 10,000, which now holds 38.33 lakh contracts in open interest, and 10,200, which has accumulated 31.47 lakh contracts in OI.

Call writing was seen at strike prices 10,300 (0.32 lakh contracts were added), followed by 9,600 (0.23 lakh contracts added), and 10,500 which added 0.12 lakh contracts.

Call unwinding was seen at strike price 10,000, which shed 12.09 lakh contracts, followed by 10,100, which shed 9.11 lakh contracts and 9,900, which shed 2.28 lakh contracts.

Image1

Put Options Data

Maximum Put OI of 65.9 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in October series, followed by 9,900, which now holds 60.01 lakh contracts and 9,800 which has now accumulated 58.24 lakh contracts in open interest.

Put writing was seen at strike prices 10,000 (12.98 lakh contracts added), followed by 10,100 (11.01 lakh contracts added) and 9,900 which saw an addition of 10.70 lakh contracts.

There was hardly any Put Unwinding seen on Thursday.

Image2

FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 668.13 crore, while domestic institutional investors bought shares worth Rs 872.54 crore in the Indian equity market on Thursday.

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.

Image3

161 stocks saw long build-up

Image4

31 stocks saw short covering

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

Image5

19 stocks saw short build-up

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

Image6

1 stock saw long unwinding

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

Image7
Sections
Follow us on
Available On