The market staged a healthy performance after consolidation and recorded a new all-time high on July 12, closing above 24,500 for the first time. The index gained 186 points on Friday and 178 points for the week. If the index manages to sustain above 24,400, then a further march towards 24,800 seems likely in the coming sessions, with crucial support at 24,300, experts said. 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: 24,575, 24,637, and 24,736
Support based on pivot points: 24,376, 24,314, and 24,214
Special Formation: The Nifty 50 formed a bullish candlestick pattern on the daily charts with above-average volumes and a higher top-higher bottom formation, after defending the rising support trendline and the 10-day EMA (Exponential Moving Average). It sustained higher highs formation for the eighth consecutive week and formed a bullish candlestick pattern with a minor lower shadow on the weekly charts.
2) Key Levels For The Bank Nifty
Resistance based on pivot points: 52,653, 52,800, and 53,038
Support based on pivot points: 52,177, 52,030, and 51,791
Resistance based on Fibonacci retracement: 53,235, 54,257
Support based on Fibonacci retracement: 51,637, 50,583
Special Formation: The Bank Nifty formed a Doji candlestick pattern for another session, indicating indecision among bulls and bears about the future market trend. There was a bearish candlestick pattern with a lower high-lower low formation on the weekly charts. The index gained 8.3 points on Friday but lost 0.7 percent for the week.
According to the weekly options data, the maximum open interest was seen at 25,000 strike (with 68.86 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,500 strike (41.68 lakh contracts) and the 24,500 strike (38.48 lakh contracts).
Maximum Call writing was observed at the 25,500 strike, which saw an addition of 24.32 lakh contracts, followed by the 24,900 and 25,000 strikes, which added 23.7 lakh and 21.26 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,200 strike, which shed 7.28 lakh contracts, followed by the 24,300 and 24,400 strikes, which shed 5.51 lakh and 3.7 lakh contracts, respectively.
On the Put side, the 24,000 strike holds the maximum open interest (with 52.36 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 24,400 strike (50.35 lakh contracts) and the 24,300 strike (44.87 lakh contracts).
The maximum Put writing was visible at the 24,400 strike, which saw an addition of 33.84 lakh contracts, followed by the 24,500 and 24,000 strikes, with 27.48 lakh and 17.68 lakh contracts added, respectively. Put unwinding was observed at the 23,200 strike, which shed 63,925 contracts.
5) Bank Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was seen at the 54,000 strike, with 24 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 53,000 strike (22.44 lakh contracts) and the 52,500 strike (21.81 lakh contracts).
Maximum Call writing was visible at the 52,700 strike (with the addition of 7.79 lakh contracts), followed by the 53,000 strike (6.9 lakh contracts) and the 52,600 strike (6.24 lakh contracts), while the Call unwinding was seen at 52,000 strike, which shed 1.5 lakh contracts, followed by 51,900 and 51,800 strikes, which shed 1.29 lakh and 80,295 contracts, respectively.
6) Bank Nifty Put Options Data
On the Put side, the 52,000 strike holds the maximum open interest (with 18.3 lakh contracts), which can act as a key support level for the index. This was followed by the 51,000 strike (16.54 lakh contracts) and the 51,500 strike (13.11 lakh contracts).
The maximum Put writing was observed at the 52,500 strike (which added 3.62 lakh contracts), followed by the 51,000 strike (2.72 lakh contracts) and the 51,500 strike (2.27 lakh contracts), while the Put unwinding was seen at 52,100 strike, (which shed 51,315 contracts), followed by 51,400 strike (24,300 contracts), and 51,300 strike (16,020 contracts).
7) Funds Flow (Rs crore
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 1.28 on July 12 from 1.29 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 declined for another session and could not sustain above the 14 mark for long, making the trend favourable for bulls. The India VIX, the fear gauge, dropped 1.93 percent to 13.73 from 14 levels on Friday, but gained 8.11 percent for the week.
A long build-up was seen in 31 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (45 Stocks)
45 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (61 Stocks)
61 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (49 Stocks)
49 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
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: GMR Airports Infrastructure
Stocks retained in F&O ban: Aditya Birla Fashion & Retail, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers and Chemicals, GNFC, Indian Energy Exchange, India Cements, Indus Towers, Piramal Enterprises, RBL Bank
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.
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