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

The bulls were back at D-Street on Wednesday after getting mauled by bears in the previous trading session. The Nifty50 managed to close above crucial moving averages but witnessed a sell-off nearly in its 20-days moving averages (DMA).

The index made a bullish candle on the daily candlestick charts and now a close above 9,900-9,926 in the coming week could trigger fresh upside in the index, suggest experts.

The Nifty closed above its crucial moving averages such as 5-DEMA, 10-DEMA, and 13-DEMA but failed to close over 20-DMA placed at 9,900 levels. It finally closed 88 points higher or 0.90 percent at 9,884.40 but overall it has been consolidating in the broader range of 9,750 to 9,944 from the last couple of sessions.

“Albeit Nifty50 recouped all the losses witnessed in Tuesday’s trading session patterns are clearly suggesting that as long as it stays below 9,926 levels the threat of big fall shall continue to remain,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

The Nifty Future closed positive with the gains of 0.83 percent at 9,880 ahead of expiry of August derivative contracts on Thursday. India VIX fell down by 4.83 percent at 12.88. VIX has to hold below 12.50 to get a stable market movement.

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

Key Support & Resistance Level for Nifty:

The Nifty closed 88.35 points or 0.90 percent higher at 9,884.40. According to Pivot charts, the key support level for Nifty50 is placed at 9,853.65, followed by 9,822.9. If the index starts to move higher then key resistance levels to watch out are 9,912.3, followed by 9,940.2.

Nifty Bank:

Nifty Bank closed 179.75 points lower or 0.74 percent at 24,308.70 on Wednesday. Important pivot level, which will act as crucial support for the index is placed at 24,238.63, followed by 24,168.57. On the upside, the key resistance level is 24,381.43 followed by 24,454.16.

Call Options Data:

Maximum Call open interest (OI) of 57.7 lakh contracts was seen at strike price of 10,000 which will act as a crucial resistance level for the index in August series, followed by 9,900 which now holds 40.4 lakh contracts in open interest and 10,100 which has accumulated 37.1 lakh contracts in OI.

Call Writing was seen at strike price of 10,400 (0.62 lakh contracts added), followed by 10,000 (0.17 lakh contracts were added).

Call unwinding was seen at strike prices 9,800 (21.7 lakh contracts shed), 9,900 (19.19 lakh contracts shed), and 9,700 (4.27 lakh contracts shed).

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Put Options Data:

Maximum Put OI of 58.3 lakh contracts was seen at strike price of 9,800 which will act as a crucial base for the index in August series followed by 9,500 which has accumulated 47.48 lakh contracts in open interest, and 9,900 which now holds 39.75 lakh contracts in open interest.

Put writing was seen at strike price of 9,900 (16.19 lakh contracts added), followed by 9,800 (2.94 lakh contracts).

Put unwinding was seen at strike price of 9,700 (3.88 lakh contracts shed), followed by 9,600 (3.13 lakh contracts shed) and 9,400 (3.12 lakh contracts shed).

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FII & DII Data:

The foreign institutional investors (FIIs) sold shares worth Rs 12.46 crore compared to domestic institutional investors who bought shares worth Rs 290.78 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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96 stocks saw Long Buildup:

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99 stocks saw Short Covering:

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

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4 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:

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

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