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

The Sensex was down 382.87 points at 38,969.80, while Nifty was down 119.20 points at 11,709.10.

Benchmark indices were dragged down by profit booking on May 21, a day after clocking strong gains on the back on exit polls for Lok Sabha Election 2019.


The Sensex closed down 382.87 points at 38,969.80, while Nifty ended 119.20 points lower at 11,709.10. About 970 shares advanced, 1,560 shares declined, and 160 shares remained unchanged.

Tata Motors, BPCL, Zee Entertainment, IndusInd Bank and Adani Ports were the top losers on the Nifty, while gainers were Dr Reddy’s Labs, Bharti Infratel, Britannia Industries, Titan Company and Reliance Industries.

All the sectoral indices ended in the red led by auto, bank, pharma, energy, infra, metal, energy and IT.

After a sharp up move yesterday, the Indian benchmark indices witnessed profit taking at higher levels due to nervousness amongst market participants ahead of the actual election results. The Nifty index witnessed selling pressure throughout the day as it ended with losses of ~1% at 11,709 levels, said Jayant Manglik, President - Retail Distribution, Religare Broking.

"The broader market outperformed the benchmark with BSE Midcap and Smallcap ending with losses of 0.9 percent and 0.6 percent, respectively. Amongst the sectoral indices, except consumer durables which ended with gains of 0.7 percent, all the other sector indices ended in red with auto, banking and metal being the top losers, he added.

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

Key support and resistance level for Nifty

Nifty closed at 11709.1 on May 21. According to the Pivot charts, the key support level is placed at 11,633.43, followed by 11,557.77. If the index starts moving upward, key resistance levels to watch out are 11,834.13 and 11,959.17.

Nifty Bank

The Nifty Bank index closed at 30,308.4, down 451.3 points on May 21. The important Pivot level, which will act as crucial support for the index, is placed at 30,073.43, followed by 29,838.46. On the upside, key resistance levels are placed at 30,735.03, followed by 31,161.66.

Call options data

Maximum Call open interest (OI) of 36.19 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 11,800 strike price, which now holds 16.46 lakh contracts in open interest, and 12,200, which has accumulated 15.22 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 12,200, which added 3.85 lakh contracts, followed by 12,000 strike price that added 3.13 lakh contracts and 11,700 strike price that added 1.23 lakh contracts.

No major Call unwinding seen.

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