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

Stock Market Trend

The market hit a new all-time high after consolidating for a couple of trading sessions, with the Nifty 50 closing above 24,400 for the first time, on July 9. The index settled at 24,433, up 113 points. Given the strong momentum, the index is likely to climb above 24,500 in the coming sessions, followed by 24,800, while the immediate key support is placed at 24,300, experts said. 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: 24,446, 24,472, and 24,515

Support based on pivot points: 24,360, 24,334, and 24,291

Special Formation: The Nifty 50 formed a bullish candlestick pattern after a Doji pattern in the previous session. The momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) maintained a positive trend on all major timeframes.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 52,624, 52,702, and 52,830

Support based on pivot points: 52,369, 52,290, and 52,162

Resistance based on Fibonacci retracement: 53,220, 54,264

Support based on Fibonacci retracement: 51,646, 50,569

Special Formation: The Bank Nifty formed a bullish candlestick pattern on the daily charts and continued to take support at the 10-day EMA (Exponential Moving Average placed at 52,441) on a closing basis. The index traded within the previous day's range and closed 143 points higher at 52,569.

3) Nifty Call Options Data

According to the weekly options data, the maximum open interest was seen at 25,000 strike (with 86.18 lakh 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 (53.02 lakh contracts) and the 24,400 strike (47.67 lakh contracts).

Maximum Call writing was observed at the 24,400 strike, which saw an addition of 12.07 lakh contracts, followed by the 24,700 and 24,600 strikes, which added 8.36 lakh and 7.81 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,300 strike, which shed 20.59 lakh contracts, followed by the 24,200 and 24,100 strikes, which shed 5.21 lakh and 4.47 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at the 24,000 strike (with 68.22 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 24,300 strike (59.85 lakh contracts) and the 24,200 strike (52.72 lakh contracts).

The maximum Put writing was visible at the 24,400 strike, which saw an addition of 38.7 lakh contracts, followed by the 24,300 and 24,100 strikes, with 17.6 lakh and 12.77 lakh contracts added, respectively. Put unwinding was observed at the 23,700 strike, which shed 9.47 lakh contracts, followed by 23,000 and 23,200 strikes, which shed 4.38 lakh and 2.52 lakh contracts respectively.

5) Bank Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 53,000 strike, with 39.81 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 52,500 strike (39.5 lakh contracts) and the 54,000 strike (36.43 lakh contracts).

Maximum Call writing was visible at the 52,600 strike (with the addition of 13.63 lakh contracts), followed by the 52,500 strike (12.04 lakh contracts) and the 53,000 strike (8.59 lakh contracts), while the Call unwinding was seen at 51,500 strike, which shed 34,005 contracts, followed by 53,700 strike, which shed 16,635 contracts.

6) Bank Nifty Put Options Data

On the Put side, the 52,500 strike holds the maximum open interest (with 27.77 lakh contracts), which can act as a key support level for the index. This was followed by the 52,000 strike (20.76 lakh contracts) and the 51,500 strike (19.43 lakh contracts).

The maximum Put writing was observed at the 52,500 strike (which added 7.78 lakh contracts), followed by the 51,500 strike (7.42 lakh contracts) and the 52,400 strike (4.97 lakh contracts), while the Put unwinding was seen at 53,000 strike, (which shed 1.61 lakh contracts), followed by 53,100 strike (83,265 contracts), and 53,300 strike (77,940 contracts).

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 1.28 on July 9 from 1.18 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 spiked for another session, climbing above the 14 mark and closing above the 10-day EMA after several weeks. If the volatility closes above 14.6, the 200-day EMA, and sustains the same, then bulls need to be cautious. The India VIX, the fear index, jumped 5 percent to 14.28 from 13.6 levels.

10) Long Build-up (63 Stocks)

A long build-up was seen in 63 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (27 Stocks)

27 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 (49 Stocks)

49 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: Balrampur Chini Mills, Indian Energy Exchange

Stocks retained in F&O ban: Aditya Birla Fashion & Retail, Bandhan Bank, Chambal Fertilisers and Chemicals, GNFC, India Cements, Indus Towers, Piramal Enterprises

Stocks removed from F&O ban: Hindustan Copper

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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