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

Stock Market Trading

Bulls took back control over Dalal Street from bears, driving the benchmark indices to a new closing high on July 3. The Nifty 50 achieved the 24,300 level before closing 163 points higher at 24,287. If the index manages to hold 24,200, then 24,500 can't be ruled out in the coming sessions. Until then, consolidation may continue with support at the 24,000 mark. 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: 24,307, 24,331, and 24,370

Support based on pivot points: 24,229, 24,205, and 24,166

Special Formation: The Nifty 50 formed a Doji kind of candlestick pattern on the daily charts, indicating the possibility of some consolidation. However, with the continuation of higher highs-higher lows formation and a positive bias in momentum indicators, the overall trend remains positive.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 53,239, 53,421, and 53,717

Support based on pivot points: 52,647, 52,464, and 52,169

Resistance based on Fibonacci retracement: 53,220, 54,255

Support based on Fibonacci retracement: 51,553, 50,507

Special Formation: The Bank Nifty formed a bullish candlestick pattern on the weekly F&O expiry session, with above-average volumes, after taking support at the 10-day EMA (Exponential Moving Average) in the previous session. The momentum indicators showed a positive bias. The index ended at a new closing high of 53,089, up 921 points or 1.77 percent.

3) Nifty Call Options Data

According to the weekly options data, the maximum open interest remained at 25,000 strike (with 1.27 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,500 strike (87.55 lakh contracts) and the 24,300 strike (71.37 lakh contracts).

Maximum Call writing was observed at the 24,300 strike, which saw an addition of 28.53 lakh contracts, followed by the 24,400 and 24,700 strikes, which added 16.17 lakh and 15.41 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,100 strike, which shed 19.36 lakh contracts, followed by the 24,200 and 24,000 strikes, which shed 15.22 lakh and 11.89 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at the 24,000 strike (with 1 crore contracts), which can act as a key support level for the Nifty. It was followed by the 23,800 strike (74.35 lakh contracts) and the 23,500 strike (71.26 lakh contracts).

The maximum Put writing was visible at the 24,200 strike, which saw an addition of 49.71 lakh contracts, followed by the 24,300 and 23,900 strikes, with 42.46 lakh and 26.97 lakh contracts added, respectively. Put unwinding was observed at the 23,200 strike, which shed 13.52 lakh contracts, followed by 23,600 and 23,300 strikes, which shed 11.22 lakh and 6.35 lakh contracts respectively.

5) Bank Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 53,100 strike, with 90.12 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 53,200 strike (44.23 lakh contracts) and the 54,000 strike (41.07 lakh contracts).

Maximum Call writing was visible at the 53,100 strike (with the addition of 72.82 lakh contracts), followed by the 53,200 strike (23.19 lakh contracts) and the 53,300 strike (10.96 lakh contracts), while the maximum Call unwinding was seen at the 53,000 strike, (which shed 36.18 lakh contracts), followed by the 52,500 strike (23.55 lakh contracts), and the 52,800 strike (17.46 lakh contracts).

6) Bank Nifty Put Options Data

On the Put side, the 53,000 strike holds the maximum open interest (with 76.79 lakh contracts), which can act as a key support level for the index. This was followed by the 53,100 strike (58.48 lakh contracts) and the 52,500 strike (29.55 lakh contracts).

The maximum Put writing was observed at the 53,000 strike (which added 65.45 lakh contracts), followed by the 53,100 strike (57.59 lakh contracts) and the 52,900 strike (26.52 lakh contracts), while Put unwinding was seen at the 52,200 strike, which shed 2.34 lakh contracts, followed by the 54,000 and 53,900 strikes, which shed 5,325 and 4,155 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.24 on July 3 from 1.15 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 further, giving more comfort to bulls. India VIX, the fear index, fell 3.19 percent to 13.21, the lowest closing level since June 21.

10) Long Build-up (97 Stocks)

A long build-up was seen in 97 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (4 Stocks)

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

12) Short Build-up (45 Stocks)

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

13) Short-Covering (40 Stocks)

40 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: Hindustan Copper

Stocks retained in F&O ban: India Cements

Stocks removed from F&O ban: Indus Towers

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