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Last Updated : May 25, 2017 09:35 AM IST | Source: Moneycontrol.com

Trade Setup for Thursday: Top 10 things you should know

Here are top 10 data points to help you spot profitable trade.


The Nifty closed below its 20-days exponential moving average (DEMA) at 9,382 and 13-DEMA placed at 9,404 on Wednesday weighed down by geopolitical concerns, FOMC minutes as well as Reserve Bank of India’s (RBI) new NPA ordinance.

The index made a bearish candle after a 'bearish belt hold' kind of formation in the previous trading session which signifies caution for bulls.

The index slipped below its crucial support level of 9,400 for the second day in a row and a close below 9,341 could further exert selling pressure.

Close

However, there could be a small pullback considering Thursday being the expiry day for May expiry. The expiry is likely to happen in the range of 9,300-9,400, derivative data suggests.

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

Key Support & Resistance Level for Nifty:

The Nifty closed below its crucial support level of 20-DEMA on Wednesday. According to Pivot charts, the key support level for Nifty50 is placed at 9,324, followed by 9,287. If the index starts to move higher then key resistance levels to watch out are 9,414, followed by 9,468.

Nifty Bank

Nifty Bank closed 46 points lower or 0.2 percent at 22,536 on Wednesday. Important Pivot level which will act as crucial support for the index is placed at 22,446, followed by 22,356. On the upside, the key resistance level is 22,649 followed by 23,763.

Call Options Data

Maximum Call open interest (OI) of 66 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index in May series, followed by 9,400 which now holds 47 lakh contracts in open interest and 9,600 which has accumulated 44 lakh contracts in OI.

Call Writing was seen at strike prices 9,500 (0.7 lakh contracts added). Call unwinding was seen at strike prices 9,600 (12 lakh contracts shed), 9,700 (1.9 lakh contracts shed), 9,400 (2.2 lakh contracts shed), and 8,800 (1.3 lakh contracts shed).

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Put Options Data

Maximum Put OI of 48 lakh contracts was seen at strike price 9,300 which will act as a crucial base for the index in May series followed by 9,000 which has accumulated 44 lakh contracts in open interest, and 9,100 which now holds 36 lakh contracts in open interest.

Put Unwinding was seen at strike prices 9,400 (11 lakh contracts shed), 9,300 (5.3 lakh contracts shed), 9,200 (4.5 lakh contracts shed), 9,500 (4.7 lakh contracts shed), 9000 (3 lakh contracts shed) and 9100 (1.4 lakh contracts shed).

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FII & DII Data: 

The foreign institutional investors (FIIs) sold shares worth Rs82 crore compared to domestic institutional investors who bought Rs197 crore in Indian equity market.

Stocks with high Delivery percetange

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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Stocks with high rollover percentage ahead of May expiry: 

Rollover is carrying forward a particular month’s derivative positions to the next month which is done by closing the derivative position in the current month and taking a similar position in the subsequent series. A high rollover percentage is a positive indicator.

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15 stocks saw Long Buildup:

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22 stocks saw short covering:

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

image6

115 stocks saw Long Unwinding: 

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

image7

53 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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First Published on May 24, 2017 09:28 pm
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