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

Moneycontrol News

The NSE Nifty, which nearly touched a record high on Tuesday, closed below its opening level, thus making a small-bodied candle on the daily candlestick charts.

The index which opened with a slight gap on the upside rose to a high of 10,237 which was just 14 points short of hitting a fresh record high of 10,251.85. It slipped in morning trade to hit its intraday low of 10,182.40.

The index which opened at 10,218.55 failed to keep the momentum going and closed just above its psychological support level of 10,207.70. It made a small-bodied candle which looked like a ‘Doji’ type of pattern but has a small body.

"Nifty index has been consolidating in between 10,120 to 10,250 zones from last seven trading sessions and requires a decisive range breakout to commence the next leg of the rally,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

Taparia said that the index has to continue to hold above 10,178 to witness an up move towards 10,250-10,280 zones while supports are seen at 10,178 then 10,120 zones.

We have collated the top ten data points to help you spot profitable trade:-

Key Support & Resistance Level for Nifty

The Nifty closed up 22.80 points at 10,207.70 on Tuesday. According to Pivot charts, the key support level is placed at 10,180.8, followed by 10,153.9. If the index starts to move higher, key resistance levels to watch out are 10,236.2 and 10,264.7.

Nifty Bank

The Nifty Bank closed at 24,222.15 on Tuesday, up 133.25 points. Important Pivot level, which will act as a crucial support level for the index, is placed at 24,072.2, followed by 23,922.2. On the upside, key resistance levels are 24,332.7, followed by 24,443.2.

Call Options Data

Maximum call open interest (OI) of 39.62 lakh contracts stands at strike price 10,300, which will act as a crucial resistance level for the index in the October series, followed by 10,200, which now holds 35.58 lakh contracts in open interest; and 10,400, which has accumulated 32.57 lakh contracts in OI.

Call writing was seen at strike price of 10,300, which saw addition of 2.98 lakh shares.

Call unwinding was seen at strike price of 10,200, which shed 8.2 lakh contracts; followed by 10,000, which shed 4.24 lakh contracts; and 10,100, which shed 4.06 lakh contracts.

Put Options Data

Maximum Put OI of 70.56 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in October series; followed by 10,100, which now holds 60.23 lakh contracts and 9,900 which has now accumulated 47.55 lakh contracts in open interest.

Put writing was seen at strike price of 10,200 (which added 10.95 lakh contracts in OI); followed by 10,100 (which added 5.29 lakh contracts) and 10,300, which saw addition of 3.99 lakh contracts.

Put unwinding was seen at strike price of 9,700, which saw shedding of 2.07 lakh contracts; followed by 10,500, which saw shedding of 1.27 lakh contracts; and 9,800, which saw shedding of 0.99 lakh contracts.

FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 1,306.76 crore, while domestic institutional investors bought shares worth Rs 592.28 crore on Tuesday, as per provisional data available on the NSE.

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.

86 stocks saw long build-up

51 stocks saw short covering

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

50 stocks saw short build-up

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

26 stocks saw long unwinding

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