Trade setup for Wednesday: 15 things to know before opening bell

Market Trend

The market had a spectacular session after recent consolidation and made a new closing high, indicating that bulls are in a strong position, although the breadth was weak. The Nifty 50 jumped 183 points to 23,721, forming higher highs and higher lows. The momentum is expected to take the index towards 24,000, with support at the 23,500 levels in the coming sessions. 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: 23,753, 23,798, and 23,871

Support based on pivot points: 23,606, 23,560, and 23,487

Special Formation: The Nifty 50 formed a long bullish candlestick pattern on the daily charts, with momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) showing a positive trend in the monthly F&O expiry week.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 52,748, 52,984, and 53,366

Support based on pivot points: 51,985, 51,749, and 51,368

Resistance based on Fibonacci retracement: 53,223, 54,255

Support based on Fibonacci retracement: 51,170, 50,204

Special Formation: The Bank Nifty has formed a long bullish candlestick pattern on the daily charts, with higher highs and higher lows. The momentum indicators RSI and MACD also indicated a positive bias. The index also ended at a new closing high of 52,606, up 902 points.

3) Nifty Call Options Data

According to the monthly options data, the 24,000 strike holds the maximum open interest (with 1.07 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,000 strike (75.51 lakh contracts) and the 24,500 strike (70.67 lakh contracts).

Maximum Call writing was observed at the 24,200 strike, which saw an addition of 10.61 lakh contracts, followed by the 24,100 strike, which added 7.44 lakh contracts. The maximum Call unwinding was seen at the 24,000 strike, which shed 21.58 lakh contracts, followed by the 23,500 and 23,400 strikes, which shed 15.41 lakh and 9.74 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at 23,000 strike (with 1.3 crore contracts), which can act as a key support level for the Nifty. It was followed by the 23,500 strike (87.94 lakh contracts) and the 23,600 strike (74.2 lakh contracts).

The maximum Put writing was visible at the 23,600 strike, which saw an addition of 47.69 lakh contracts, followed by the 23,700 and 23,500 strikes, with 29.46 lakh and 21.13 lakh contracts added, respectively. Put unwinding was observed at the 22,700 strike, which shed 6.69 lakh contracts, followed by 22,900 and 22,500 strikes, which shed 5.28 lakh and 4.35 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 54,000 strike, with 37.67 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 (27.97 lakh contracts) and the 53,500 strike (26.64 lakh contracts).

Maximum Call writing was visible at the 52,700 strike (with the addition of 7.04 lakh contracts), followed by the 53,200 strike (6.24 lakh contracts) and the 53,500 strike (5.63 lakh contracts), while the maximum Call unwinding was seen at 52,000 strike, (which shed 11.75 lakh contracts), followed by 51,500 strike (9.01 lakh contracts), and 51,700 strike (8.86 lakh contracts).

6) Bank Nifty Put Options Data

On the Put side, the 52,000 strike holds the maximum open interest (with 42.4 lakh contracts), which can act as a key support level for the index. This was followed by the 51,500 strike (34.16 lakh contracts) and the 52,500 strike (20.65 lakh contracts).

The maximum Put writing was observed at the 52,000 strike (which added 32.72 lakh contracts), followed by the 52,500 strike (19.96 lakh contracts) and the 52,400 strike (11.66 lakh contracts), while Put unwinding was seen at 51,200 strike, which shed 48,465 contracts.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped further to 1.38 on June 25 from 1.14 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 extended its upward journey for another session and climbed near the 14.5 levels. The India VIX, the fear gauge, rose 1.81 percent to 14.31, from 14.06 levels, but is still below all key moving averages.

10) Long Build-up (38 Stocks)

A long build-up was seen in 38 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (50 Stocks)

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

12) Short Build-up (65 Stocks)

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

13) Short-Covering (34 Stocks)

34 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: GNFC, Indus Towers, Punjab National Bank, SAIL

Stocks removed from F&O ban: Balrampur Chini Mills, Chambal Fertilisers and Chemicals, Granules India, Piramal Enterprises

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.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.