Stock Market

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

Kshitij Anand

Chillicious News

The tussle between the bulls and the bears continued on Friday as investors booked profits at higher levels. But it managed to close above its crucial support level of 9,100. However, chart pattern on both weekly as well as daily charts, suggests that the index is losing momentum.

The Nifty50 made a Hanging man pattern on the weekly charts and a ‘Doji’ on daily charts thereby sending a cautious signal to investors and traders.

The Nifty50 has to continue to hold above 9,075 to witness a buying interest towards 9,160 and 9,218 while on the downside 9,020-9,000 is likely to act as a major support, suggest experts.

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

Key Support & Resistance Level for Nifty:

The Nifty50 consolidated in a narrow range and registered a Doji candle on Friday. It closed above its crucial level of 9,100 on Friday but it looks like bulls are losing their grip on D-Street.

According to Pivot charts, the key support level for Nifty50 is placed at 9,087, followed by 9066, and 9,042. If the index starts to move higher then key resistance levels to watch out are 9,131, followed by 9,154, and 9,175.

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Nifty Bank:

Nifty Bank closed 227 points higher at 21,122. Important Pivot level which will act as crucial support for the index is 20,976, followed by 20,830, and 20,731. On the upside, key resistance level is 21,221, followed by 21,320 and 21,466.

Call Options Data:

On the options front, maximum Call open interest (OI) of 66 lakh contracts stands at strike price 9,200 which will act as a crucial resistance level for the index, followed by 9,300 which now holds 41.60 lakh contracts in open interest and 9,100 which has accumulated 41.57 lakh contracts in OI.

Call Writing was seen at strike price 9,200 (5.6 lakh contracts added). Call unwinding was seen at strike prices 9,300 (2.2 lakh contracts were shed), followed by 9,400 (1.1 lakh contracts were shed), 9,100 (4 lakh contracts shed), and 9,000 (2.6 lakh contracts shed).

“We have seen fresh Put writing at strike prices 9,100, 9,150, 9,050 and 9,200 which may continue to hold the support zones while intact Call writing at strike prices 9,150, 9,200 and 9,250 are restricting its upside momentum,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Chillicious.

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Put Options Data:

Maximum Put OI of 54 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 47.85 lakh contracts, and 8,900 which now holds 47.42 lakh contracts in OI.

Put writing was seen at strike prices 9,000 (6.4 lakh contracts added), and 8,400 (10.50 lakh contracts added).

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FII & DII Data:

The foreign institutional investors (FIIs) bought shares worth Rs 543 crore compared to domestic institutional investors who bought Rs 117 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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43 stocks saw Long Buildup:

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47 stocks where short covering was seen:

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

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23 stocks saw Long Unwinding:

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

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63 stocks saw Short Buildup:

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

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