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

Nifty Trend

The market closed off the day's low, halting its upward journey of the previous 14 consecutive days, on September 4. The Nifty 50 ended just below 25,200, down 81 points. Despite profit booking, the uptrend seems to be intact, and the index may march towards the 25,300-25,350 levels if it holds above 25,200 in the coming sessions, with immediate support at 25,100, experts said. Below 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: 25,217, 25,248, and 25,298

Support based on pivot points: 25,116, 25,085, and 25,034

Special Formation: Despite the downtrend, the Nifty 50 formed a bullish candlestick pattern on the daily charts, as the closing price was above the opening levels. Additionally, the index defended the 10-day EMA (Exponential Moving Average), which coincides with the previous swing high of August 1. This is a positive sign.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 51,481, 51,539, and 51,632

Support based on pivot points: 51,295, 51,237, and 51,144

Resistance based on Fibonacci retracement: 51,956, 52,585

Support based on Fibonacci retracement: 50,621, 49,747

Special Formation: Despite the downtick, the Bank Nifty has formed a small bullish candlestick pattern with upper and lower shadows on the daily timeframe, indicating volatility. The index defended the previous day's low and sustained above all key moving averages, which is a positive sign. It fell 289 points to 51,400.

3) Nifty Call Options Data

According to the weekly options data, the maximum open interest was seen at the 25,300 strike (with 1.01 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,000 strike (98.96 lakh contracts) and the 25,500 strike (97.64 lakh contracts).

Maximum Call writing was seen at the 25,200 strike, which saw an addition of 40.8 lakh contracts, followed by the 25,500 and 25,300 strikes, which added 35.2 lakh and 30.93 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,900 strike, which shed 7.74 lakh contracts, followed by the 25,700 and 24,800 strikes, which shed 2.57 lakh and 1.21 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,000 strike holds the maximum open interest (with 97.09 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,100 strike (67.71 lakh contracts) and the 24,500 strike (64.34 lakh contracts).

The maximum Put writing was observed at the 25,000 strike, which saw an addition of 32.68 lakh contracts, followed by the 25,100 and 24,700 strikes, with 29.59 lakh and 21.78 lakh contracts added, respectively, while the Put unwinding was seen at the 25,300 strike, which shed 19.88 lakh contracts, followed by the 24,000 and 25,200 strikes, which shed 7.19 lakh and 4.86 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the weekly options data, the maximum open interest was observed at the 51,400 strike, with 1.18 crore contracts. This can act as a key level for the index in the short term. It was followed by the 51,500 strike (81.29 lakh contracts) and the 51,600 strike (37.08 lakh contracts).

Maximum Call writing was visible at the 51,400 strike (with the addition of 1.08 crore contracts), followed by the 51,500 strike (57.12 lakh contracts) and the 51,600 strike (25.71 lakh contracts), while the maximum Call unwinding was seen at the 52,000 strike, which shed 2.5 lakh contracts, followed by the 50,500 and 50,400 strikes, which shed 28,920 and 7,050 contracts respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum open interest was seen at the 51,400 strike (with 1.3 crore contracts), which can act as a key level for the index. This was followed by the 51,300 strike (83.51 lakh contracts) and the 51,000 strike (36.33 lakh contracts).

The maximum Put writing was observed at the 51,400 strike (which added 1.07 crore contracts), followed by the 51,300 strike (65.09 lakh contracts) and the 51,100 strike (12.21 lakh contracts), while the maximum Put unwinding was seen at the 51,500 strike, which shed 12.97 lakh contracts, followed by the 51,700 and 51,600 strikes, which shed 6.36 lakh and 5.74 lakh contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.08 on September 4, from 1.2 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 climbed above the 14 mark after a day of correction but remains within the lower range and still below the 15 mark, which is a comfortable position for bulls. The India VIX rose by 3.86 percent to 14.38, up from 13.84.

10) Long Build-up (45 Stocks)

A long build-up was seen in 45 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (35 Stocks)

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

12) Short Build-up (68 Stocks)

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

13) Short-Covering (37 Stocks)

37 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: RBL Bank

Stocks retained in F&O ban: Aditya Birla Fashion and Retail, Balrampur Chini Mills, Hindustan Copper

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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