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

Stock Market Trend

The market started the week on a positive note on July 1, with breadth favourable for bulls. The Nifty 50 rallied 131 points to end at a new all-time closing high of 24,142 after a day of small profit-taking. Experts expect the index to hit 24,200, followed by 24,500 in the coming sessions, provided it holds 24,000 as immediate support and 23,800 as crucial support. 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: 24,165, 24,205, and 24,271

Support based on pivot points: 24,034, 23,994, and 23,928

Special Formation: The Nifty 50 formed a bullish candlestick pattern following a red candle, with a positive bias in the momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence), while it sustained above the rising channel.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 52,653, 52,768, and 52,956

Support based on pivot points: 52,278, 52,163, and 51,976

Resistance based on Fibonacci retracement: 53,227, 54,267

Support based on Fibonacci retracement: 51,502, 50,462

Special Formation: The Bank Nifty formed a bullish candlestick pattern on the daily charts but continued the lower highs-lower lows formation for another session, which is a concern.

3) Nifty Call Options Data

According to the weekly options data, the 25,000 strike holds the maximum open interest (with 1.19 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 (68.07 lakh contracts) and the 24,700 strike (52.32 lakh contracts).

Maximum Call writing was observed at the 25,000 strike, which saw an addition of 17.78 lakh contracts, followed by the 24,700 and 24,500 strikes, which added 15.54 lakh and 12.61 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,900 strike, which shed 10.31 lakh contracts, followed by the 24,000 and 23,900 strikes, which shed 5.38 lakh and 1.54 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at the 24,000 strike (with 76.92 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 23,000 strike (65.08 lakh contracts) and the 23,500 strike (61.26 lakh contracts).

The maximum Put writing was visible at the 24,000 strike, which saw an addition of 21.94 lakh contracts, followed by the 24,100 and 23,300 strikes, with 19.24 lakh and 15.17 lakh contracts added, respectively. Put unwinding was observed at the 25,000 strike, which shed 3,150 contracts.

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 37.57 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 54,000 strike (24.74 lakh contracts) and the 53,500 strike (20.45 lakh contracts).

Maximum Call writing was visible at the 52,600 strike (with the addition of 4.65 lakh contracts), followed by the 54,000 strike (3.01 lakh contracts) and the 52,800 strike (2.52 lakh contracts), while the maximum Call unwinding was seen at the 53,100 strike, (which shed 1.28 lakh contracts), followed by the 52,900 strike (1.2 lakh contracts), and the 53,800 strike (1.04 lakh contracts).

6) Bank Nifty Put Options Data

On the Put side, the 52,000 strike holds the maximum open interest (with 24.76 lakh contracts), which can act as a key support level for the index. This was followed by the 52,500 strike (20.56 lakh contracts) and the 51,500 strike (16.46 lakh contracts).

The maximum Put writing was observed at the 52,000 strike (which added 7.13 lakh contracts), followed by the 52,200 strike (6.89 lakh contracts) and the 52,400 strike (6.23 lakh contracts), while Put unwinding was seen at the 53,000 strike, which shed 1.98 lakh contracts, followed by the 51,500 and 52,900 strikes, which shed 1.67 lakh and 87,810 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 1.21 on July 1 from 1.17 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 remained below the 14 mark for another session, keeping the trend favourable for bulls. The India VIX, the fear gauge, rose 0.2 percent to 13.83, from 13.8 levels.

10) Long Build-up (91 Stocks)

A long build-up was seen in 91 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (6 Stocks)

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

12) Short Build-up (43 Stocks)

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

13) Short-Covering (45 Stocks)

45 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: Nil

Stocks retained in F&O ban: India Cements, Indus Towers

Stocks removed from F&O ban: Nil