Stock Market

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

 

The Nifty50 reclaimed its crucial resistance level of 9,133 and closed above its crucial 10-days exponential moving average (DEMA) placed at 9,104. The index formed a small bullish candle, which resembles spinning top kind of pattern on daily charts.

It is important to note that the index is already up by 2.29 percent in this series and is trading 100 points higher from its volume-weighted average price (VWAP) which indicates that bulls have an upper hand.

It will be interesting to see how Nifty50 moves on the March expiry day. The index climbed above its crucial resistance level of 9,133 and registered a highest daily close in last eight trading sessions, which is positive takeaway from Wednesday’s trading session.

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

Key Support & Resistance Level for Nifty:

The Nifty50 closed above its crucial 10-DEMA placed at 9,104 on Wednesday but Thursday could turn volatile ahead of the March F&O expiry.

According to Pivot charts, the key support level for Nifty50 is placed at 9,117, followed by 9,091, and 9,073. If the index starts to move higher then key resistance levels to watch out are 9,161, followed by 9,179, and 9,205.

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Nifty Bank:

Nifty Bank which hit a record high of 21,418.60 closed 165 points higher at 21,391. Important Pivot level which will act as crucial support for the index is placed at 21,291, followed by 21,192, and 21,128. On the upside, the key resistance level is 21,454, followed by 21,518 and 21,617.

“The index has been making higher highs – higher lows from last five trading sessions and surpassed its previous high of 21,336,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Chillicious.

“The index has immediate support near to 21,150 and if it continues to hold above 21,300 the rally could extend its up move towards 21,600,” he said.

Call Options Data:

On the options front, maximum Call open interest (OI) of 65 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 34 lakh contracts in open interest and 9,100 which has accumulated 30 lakh contracts in OI.

There was hardly any Call Writing while Call unwinding was seen at strike prices 9,100 (15 lakh contracts were shed), followed by 9,050 (2.6 lakh contracts were shed), 9,000 (4.1 lakh contracts shed), and 8,900 (4.9 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 52 lakh contracts was seen at strike price 9,100 which will now act as a crucial base for the index from 9,000 earlier which has accumulated 48.43 lakh contracts in open interest. The strike price 8,800 accumulated 49.14 lakh contracts in open interest.

Put writing was seen at strike prices 9,050 (2.9 lakh contracts added), 9,100 (9.1 lakh contracts added), and 9,150 (10.7 lakh contracts added).

“We have seen significant Put writing at strike prices 9,150 and 9,100 which is shifting its support to higher side while Call unwinding in strike prices 9,150 and 9,200 to help lending a hand for a spike towards 9,218 levels,” said Taparia.

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FII & DII Data: 

The foreign institutional investors (FIIs) bought shares worth Rs 461 crore compared to domestic institutional investors who bought Rs 1,283 crore in Indian equity market.

Stocks with high Delivery%

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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63 stocks saw Long Buildup:

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36 stocks saw short covering was seen:

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

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19 stocks saw Long Unwinding: 

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

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58 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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