yatheendradas c.k.
View Profile

Trade Setup for Tuesday: Top 10 things you should know

Yatheendradas C.k. at 05:26 AM - Aug 01, 2017 ( ) Views: 353

1 1

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

Moneycontrol News

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.

Nifty Bank

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).

Image1

 

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).Image2FII & 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.

Image3

101 stocks saw Long Buildup:

Image4

25 stocks saw Short Covering:

A decrease in open interest along with an increase in price mostly indicates short covering.

Image5

10 stocks saw Long Unwinding:

Long Unwinding happens when there is a decrease in OI as well as in price.

Image6

75 stocks saw Short Buildup:

An increase in open interest along with a decrease in price mostly indicates short positions being built up.

Image7


Login to participate in discussion.



Top Gainers

MCDOWELL HOLDINGS LTD. 19.80 3.30 (20.00%)
HATHWAY CABLE & DATACOM 32.50 5.40 (19.93%)
SOMI CONVEYOR BELT. LTD. 14.80 2.45 (19.84%)
DEN NETWORKS LTD 80.55 10.70 (15.32%)
INDUSTRIAL INV TRUST LTD 72.80 8.00 (12.35%)
THE MANDHANA RET VENT LTD 13.35 1.20 (9.88%)
63 MOONS TECHNOLOGIES LTD 99.00 7.55 (8.26%)
CINELINE INDIA LIMITED 35.75 2.65 (8.01%)
FLEXITUFF INTER LIMITED 13.95 0.95 (7.31%)
NAVIN FLUORINE INT. LTD 689.90 45.80 (7.11%)



Top Losers

HOUSING DEV & INFRA LTD 8.80 -2.20 (-20.00%)
CG POWER AND IND SOL LTD 11.85 -2.95 (-19.93%)
VAKRANGEE LIMITED 27.70 -6.30 (-18.53%)
SANGAM (INDIA) LTD 40.00 -8.00 (-16.67%)
PARAG MILK FOODS LTD. 142.50 -18.60 (-11.55%)
PARAMOUNT COMM LTD 8.85 -1.10 (-11.06%)
AKSH OPTIFIBRE LIMITED 6.55 -0.80 (-10.88%)
SHREYAS SHIPPING & LOGIST 72.00 -8.00 (-10.00%)
SUPERHOUSE LIMITED 70.85 -7.85 (-9.97%)
IND TERRAIN FASHIONS LTD 75.00 -8.15 (-9.80%)