Trade setup for today: Top 15 things to know before the opening bell

Stock Market Trend

The market recorded a fresh closing high for another session despite range-bound trade on July 4. The BSE Sensex ended above the 80,000 mark for the first time, while the Nifty 50 reached the 24,400 level before closing 16 points higher at 24,302 on the weekly expiry F&O session. Experts expect the index to consolidate with immediate support at 24,200, followed by crucial support at 24,000, while 24,400-24,500 could be a hurdle on the higher side. Here are 15 data points we have collated to help you spot profitable trades:

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50

Resistance based on pivot points: 24,374, 24,402, and 24,448

Support based on pivot points: 24,282, 24,254, and 24,208

Special Formation: The Nifty 50 formed a bearish candlestick pattern with a minor upper shadow on the daily charts, indicating a lackluster kind of movement at the highs. However, the index continued its higher highs-higher lows formation with a positive bias in momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence).

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 53,299, 53,427, and 53,634

Support based on pivot points: 52,885, 52,758, and 52,551

Resistance based on Fibonacci retracement: 53,221, 54,250

Support based on Fibonacci retracement: 51,639, 50,576

Special Formation: The Bank Nifty continued its higher highs-higher lows formation, indicating that the overall trend remains positive despite the formation of a bearish candlestick pattern on the daily timeframe. The index stayed above the 53,000 mark for another session, rising 14.5 points to end at a new closing high of 53,104.

3) Nifty Call Options Data

According to the weekly options data, the maximum open interest was seen at 24,300 strike (with 1.81 crore contracts). This level can act as a key level for the Nifty in the short term. It was followed by the 24,400 strike (1.04 crore contracts) and the 25,000 strike (93.57 lakh contracts).

Maximum Call writing was observed at the 24,300 strike, which saw an addition of 1.1 crore contracts, followed by the 24,400 and 24,700 strikes, which added 51.35 lakh and 27.78 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,000 strike, which shed 33.85 lakh contracts, followed by the 24,200 and 24,100 strikes, which shed 21.29 lakh and 10.1 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at the 24,300 strike (with 2.58 crore contracts), which can act as a key level for the Nifty. It was followed by the 24,000 strike (90.2 lakh contracts) and the 24,100 strike (67.39 lakh contracts).

The maximum Put writing was visible at the 24,300 strike, which saw an addition of 2.09 crore contracts, followed by the 24,100 and 24,400 strikes, with 17.64 lakh and 11.82 lakh contracts added, respectively. Put unwinding was observed at the 23,000 strike, which shed 27.87 lakh contracts, followed by 23,500 and 23,800 strikes, which shed 19.13 lakh and 17.48 lakh contracts respectively.

5) Bank Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 53,000 strike, with 17.24 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 54,000 strike (13.9 lakh contracts) and the 53,500 strike (11.63 lakh contracts).

Maximum Call writing was visible at the 53,200 strike (with the addition of 6.36 lakh contracts), followed by the 53,000 strike (5.88 lakh contracts) and the 54,000 strike (5.49 lakh contracts), while the maximum Call unwinding was seen at the 52,500 strike, (which shed 24,885 contracts), followed by the 52,600 strike (1,035 contracts).

6) Bank Nifty Put Options Data

On the Put side, the 53,000 strike holds the maximum open interest (with 20.7 lakh contracts), which can act as a key support level for the index. This was followed by the 52,000 strike (16.09 lakh contracts) and the 52,500 strike (12.27 lakh contracts).

The maximum Put writing was observed at the 53,000 strike (which added 7.02 lakh contracts), followed by the 52,000 strike (6.62 lakh contracts) and the 52,900 strike (5.81 lakh contracts), while there was hardly any Put unwinding seen.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.27 on July 4 from 1.24 levels in the previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

9) India VIX

The volatility sustained a downtrend for three days in a row, closing at the lowest level since June 14, which remains favourable for bulls. India VIX, the fear gauge, dropped 2.65 percent to 12.86, from 13.2 levels.

10) Long Build-up (55 Stocks)

A long build-up was seen in 55 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (29 Stocks)

29 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

12) Short Build-up (53 Stocks)

53 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

13) Short-Covering (47 Stocks)

47 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.

15) Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Stocks added to F&O ban: Aditya Birla Fashion & Retail, Bandhan Bank, Piramal Enterprises

Stocks retained in F&O ban: Hindustan Copper, India Cements

Stocks removed from F&O ban: Nil

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.