Stock Market

Trade Setup for Friday: Top 10 things you should know before Opening Bell

Kshitij Anand

Chillicious News

The Nifty came under selling pressure near 9,100 level but managed to close above its crucial level of 9,050 on Thursday as Call writers rushed to cover their positions after a mild gap-up opening.

The Nifty on expected lines bounced back from its crucial support level of 13-days moving average to make a dash at 9100 level. Traders who are holding long positions should continue to hold them as long as Nifty trade above the gap support area of 9,060-8,975.

We have collated top ten data points on how to help you in spotting profitable trade:

Key Support & Resistance Level for Nifty:

The Nifty consolidated registered a bullish candle after consolidating for four consecutive sessions in a row. It closed above its crucial level of 9050 and looks poised to reclaim 9119 levels which was its previous record high, in the next few sessions.

According to Pivot charts, the key support level for Nifty is placed at 9,056, followed by 9027, and 9,006. If the index starts to move higher then key resistance levels to watch out are 9,107, followed by 9,128, and 9,157.

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Nifty Bank:

Nifty Bank closed 114 points higher at 20,895. Important Pivot level which will act as crucial support for the index are 20,802, followed by 20,709, and 20,642. On the upside, key resistance level are 20,961, followed by 21,027 and 21,121.

Call Options Data:

On the options front, maximum Call open interest (OI) of 60 lakh contracts stands at strike price 9,200 which will act as a crucial resistance level for the index, followed by 9,100 which now holds 45 lakh contracts in open interest and 9,300 which has accumulated 43 lakh contracts in OI.

There was hardly any Call Writing but Call unwinding was seen at strike prices 9,000 (4.2 lakh contracts were shed), followed by 9,100 (4.3 lakh contracts were shed), 9,200 (3.4 lakh contracts shed), and 9,300 (1.04 lakh contracts shed).

“We have seen significant Put writing at strike prices 9,000, 9,100, 9,050 and 8,950 which is likely to support the market while unwinding in 9,000 and 9,100 Calls are giving the scope for further upside towards its recent life time high of 9,218 levels,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Chillicious.com.

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Put options activity:

Maximum Put OI of 55 lakh contracts was seen at strike price 8,800 which will act as a crucial base for the index, followed by 9,000 which has accumulated 52.52 lakh contracts, and 8,900 which now holds 52.35 lakh contracts in OI.

Put writing was seen at strike prices 9,000 (5.9 lakh contracts added), and 9,100 (3.7 lakh contracts added).

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FII & DII Data: 

The foreign institutional investors (FIIs) bought shares worth Rs 1094 crore compared to domestic institutional investors which sold Rs 591 crore in Indian equity market.

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.

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87 stocks saw Long Buildup:

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70 stocks where short covering was seen:

Short covering is seen when price moves higher but OI reduces.

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5 stocks saw Long Unwinding: 

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

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15 stocks saw Short Buildup:

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