Trade Setup for Thursday: Top 15 things to know before Opening Bell

Shabbir Kayyumi of Narnolia Financial Advisors said Nifty50 trading above 11,800 will accelerate up move taking it higher towards 12,000 levels

The market closed a volatile session marginally higher on May 22, the day before the Lok Sabha election 2019 result on May 23.

India VIX moved up by 7.73 percent to 27.63 levels hitting a new record high of 30.18, the highest levels in 44 months since September 2015.

Traders turned cautious following fresh record highs on indices on Monday after exit polls indicated the ruling party may get a second term, experts said, adding wild swings on either direction are also expected on election results scheduled on May 23.

The BSE Sensex gained 140.41 points at 39,110.21 while the Nifty 50 rose 28.80 points to close at 11,737.90 and formed small bullish candle which resembles a Doji kind of pattern on the daily scale.

"As tomorrow has resulted in announcement date of General Election-2019 and extreme volatile movement cannot be ruled out," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.

Moreover, index trading above 11,800 will accelerate up move taking it higher towards 12,000 levels; at the same time a close below 20 DMA placed at 11,514 will push prices lower towards 11,400 levels, he said.

Higher VIX could continue to keep a volatile swing in the market but a sharp cut in VIX cannot be ruled out after the outcome of election result as per the Options property, Chandan Taparia of Motilal Oswal said.

Among sectors, banks, auto, metals, and pharma closed higher while IT and FMCG fell sharply. The broader markets ended mixed with a flat close for Nifty Midcap 100 index. The Nifty Smallcap 100 index gained half a percent.

We have collated 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

Nifty closed at 11,737.90 on May 22. According to the Pivot charts, the key support level is placed at 11,685.27, followed by 11,632.63. If the index starts moving upward, key resistance levels to watch out are 11,787.67 and 11,837.43.

Nifty Bank

The Nifty Bank index closed at 30,526.80, up 218.40 points on May 22. The important Pivot level, which will act as crucial support for the index, is placed at 30,305.23, followed by 30,083.67. On the upside, key resistance levels are placed at 30,711.73, followed by 30,896.67.

Call options data

Maximum Call open interest (OI) of 37.83 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.

This was followed by 12,200 strike price, which now holds 17.23 lakh contracts in open interest, and 11,800, which has accumulated 13.75 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 12,200, which added 2.37 lakh contracts, followed by 12,100 strike price that added 1.87 lakh contracts and 12,000 strike price that added 1.74 lakh contracts.

Call unwinding was seen at the strike price of 11,600, which shed 0.8 lakh contracts, followed by 11,200 strikes which shed 0.4 lakh contracts.

Put options data

Maximum Put open interest of 20.39 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the May series.

This was followed by 11,700 strike price, which now holds 16.46 lakh contracts in open interest and 11,200 strike price, which has now accumulated 13.42 lakh contracts in open interest.

Put writing was seen at the strike price of 11,700, which added 3.84 lakh contracts, followed by 11,500 strike price that added 3.34 lakh contracts and 11,200 strike price that added 2.72 lakh contracts.

Put unwinding was seen at the strike price of 11,600, which shed 2.54 lakh contracts, followed by 11,400 strikes which shed 2.34 lakh contracts.

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