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Trade setup for Monday: Top 10 things you should know

Yatheendradas C.k. at 09:54 PM - Aug 27, 2017 ( ) Views: 370

Aug 27, 2017 03:32 PM IST |

Trade setup for Monday: Top 10 things you should know before Opening Bell

For the bulls to remain in command, the index has to close above 9,948 for the momentum to strengthen.

Moneycontrol News

The Nifty, which opened with a slight gap on the upside, failed to hold on to gains as the index witnessed selling pressure post opening which made a bearish candle for the third time this week.

The index closed well above its crucial psychological support level of 50-days exponential moving averages (DEMA), but around its 13-DEMA which is placed around 9,860.

Market participants preferred to remain on the sidelines ahead of the long weekend. The market remained shut on Friday on account of a public holiday while global markets were open.

 
 

The Nifty index opened positive but failed to hold above 9,880 and remained in a small trading range of 30 points for the entire trading session. For the bulls to remain in command, the index has to close above 9,948 for the momentum to strengthen.

In Thursday's price action, Nifty opened at 9881.20 which was slightly below its intraday high of 9881.50. The index finally closed 4.5 points higher from its previous close at 9857.05.

“A dull day awaited the indices as Nifty witnessed an extremely range bound session of 32 points as markets headed for a long week end suggesting traders may not like to carry unwanted risk in the truncated week,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, unless Nifty registers a breakout above 9948 levels momentum may not gather pace once again. On the downside, traders are advised to watch the levels of 9740 below which selling shall ideally resume,” he said.

Mohammad further added that longs if any from a trading point of view should be cut if the said level of 9740 is violated.

On weekly basis, the Nifty index closed on a flat to positive note with the marginal gains of 0.20 percent and formed a ‘Long Legged Doji’ candle which also resembles a Dragon Fly Doji kind of pattern.

We have collated top ten data points to help you spot profitable trade.

Key Support & Resistance Level for Nifty:

The Nifty closed at 9,857.05 on Thursday. According to Pivot charts, the key support level is placed at 9,843.43, followed by 9,829.82. If the index starts to move higher, key resistance levels to watch out are 9,876.08 and 9,895.12.

Nifty Bank

The Nifty Bank closed 42.6 points lower at 24,274.2 on Thursday. Important Pivot level, which will act as crucial support for the index, is placed at 24,195.63, followed by 24,117.07. On the upside, key resistance level are 24,381.93, followed by 24,489.66.

Call Options Data

Maximum call open interest (OI) of 58.25 lakh contracts stand at a strike price of 10,000, which will act as a crucial resistance level for the index in the August series, followed by 10,100, which now holds 43.50 lakh contracts in open interest, and 9,900, which has accumulated 43.42 lakh contracts in OI.

Call writing was seen at strike prices 10,000 (3.2 lakh contracts added).

Meanwhile, call unwinding was seen at strike prices 9,800 (2.64 lakh contracts were shed), followed by 9,700 (2.02 lakh contracts shed), and 10,200 which shed 1.64 lakh contracts.

Image1

 

Put Options Data

Maximum Pput OI of 61.71 lakh contracts were seen at a strike price 9,800, which will act as a crucial base for the index in August series, followed by 9,500, which now holds 50.22 lakh contracts and 9,700, which has now accumulated 44.86 lakh contracts in open interest.

Put writing was seen at strike prices 9,800 (4.62 lakh contracts added), followed by 9,500 (3.42 lakh contracts added) and 9,700 which saw an addition of 2.81 lakh contracts.

Meanwhile, put unwinding was seen at strike prices 9,400 (1.96 lakh contracts shed), followed by 9,300, where 1.41 lakh contracts were shed and 10,000, which saw the shedding of 0.97 lakh contracts.

Image2

 

FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 696.93 crore, while domestic institutional investors bought shares worth Rs 1,044.38 crore in the Indian equity market on Thursday.

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

 

71 stocks saw long build-up

Image4

 

55 stocks saw short covering

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

Image5

 

54 stocks saw short build-up

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

Image6

33 stocks saw long unwinding

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

Image7


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Ajeet Singh at 12:21 AM - Aug 28, 2017 ( )

thanks

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