Jul 31, 2017 08:46 PM IST | Source: Moneycontrol.com
Trade Setup for Tuesday: Top 10 things you should know before Opening Bell
Foreign institutional investors sold shares worth Rs 1,196.94 crore, while domestic institutional investors bought shares worth Rs 1,768.43 crore in the Indian equity market on Monday
The Nifty50 which opened with a mild gap on the upside on Monday witnessed marginal profit taking in the opening trade but bounced back from its crucial 5-day exponential moving average (DEMA) placed at 10,019 and made a strong bullish candle on charts.
Banking stocks came to the rescue of Nifty50, which was languishing in a narrow trading range after SBI slashed its rates on saving bank account. The rate cut led to a strong rally in Nifty Bank, which touched fresh record high.
The index closed well above its opening level making a bullish candle on the daily charts suggesting that the market witnessed sustained buying interest from the Bulls for the most part of the trading day, which is a bullish sign.
The index has been making higher top, higher bottom formation on the weekly charts and till it holds above 9,928-mark, the trend may remain intact to head towards 10,250-10,350, suggest experts.
A bullish candle formed on the daily chart after a Hammer-like pattern on Monday signifies further upside in the upcoming sessions. Traders can stay long on the index with a stop below 9,944 with a target of 10,350.
“The Nifty50 continued its upward thrust as it consistently traded above 10,000 levels throughout the trading session, as it registered a decent bull candle, suggesting that traders are slowly getting confident about the sustainability of this up move above this historical land mark,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
We have collated top ten data points on how to help you in spotting profitable trade:
Key Support & Resistance Level for Nifty
The Nifty on Monday ended at fresh record closing high of 10,077.10, up 62.60 points. According to Pivot charts, the key support level for Nifty is placed at 10,034.1, followed by 9,991.1. If the index starts to move higher then key resistance levels to watch out are 10,103.0, followed by 10,128.9.
The Nifty Bank also ended at record closing high of 25,103.65 on Monday, up 1.18 percent. Important pivot level, which will act as crucial support for the index is placed at 24,898.76 followed by 24,693.83. On the upside, the key resistance level is 25,238.36 followed by 25,373.03.
Call Options Data
Maximum Call open interest (OI) of 33.10 lakh contracts stands at strike price 10,500, which will act as a crucial resistance level for the index in the August series, followed by 10,100 which now holds 29.27 lakh contracts in open interest, and 10,000, which has accumulated 27.61 lakh contracts in OI.
Call writing was seen at strike prices — 10,400 (1.56 lakh contracts added), followed by 10,500 (1.38 lakh contracts added) and 9,500 (0.79 lakh contracts added).
Call unwinding was seen at the strike price of 10,200, which saw shedding of 2.9 lakh contracts in open interest, followed by 10,100 (1.13 lakh contracts shed).
Put Options Data
Maximum Put OI of 43.57 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in August series, followed by 9,800, which has accumulated 42.02 lakh contracts in open interest, and 9,900, which now holds 39.43 lakh contracts in open interest.
Put Writing was seen at strike prices of 9,900 (7.97 lakh contracts added), followed by strike prices 10,000 (7.04 lakh contracts added), and 10,100 (3.96 lakh contracts added).
Meanwhile, Put unwinding was seen at the strike price of 10,200, which saw shedding of 0.33 lakh contracts in open interest, followed by 9,800 (0.05 lakh contracts shed).FII & DII Data
Foreign institutional investors (FIIs) sold shares worth Rs 1,196.94 crore, while domestic institutional investors bought shares worth Rs 1,768.43 crore in the Indian equity market on Monday.
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting the delivery of the stock which means that investors are bullish on the stock.
101 stocks saw Long Buildup:
25 stocks saw Short Covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
10 stocks saw Long Unwinding:
Long Unwinding happens when there is a decrease in OI as well as in price.
75 stocks saw Short Buildup:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.