Trade Setup for Wednesday: Top 15 things to know before Opening Bell
Nagaraj Shetty of HDFC Securities said the Nifty could face resistance around 12,050 levels and any downward correction from the highs is unlikely to damage the near term uptrend status of the market.
The market managed to end at record closing high for third consecutive session amid a positive trend in Asian peers on May 28.
The BSE Sensex rose 66.44 points to close at 39,749.73 while the Nifty 50 gained four points to 11,928.75, forming a 'Hanging Man' candle on daily charts.
"A small negative candle was formed today with long lower shadow. Technically, this pattern signals a consolidation at the highs after a smart upside bounce in the last couple of sessions," Nagaraj Shetty - Technical Research Analyst, HDFC Securities told Moneycontrol.
He said the overall trend remains positive, the Nifty could face resistance around 12,050 levels and any downward correction from the highs is unlikely to damage the near term uptrend status of the market.
A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top (around 771-point rally from its recent low of 11,157 recorded on May 15). In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.
The broader markets underperformed frontliners with the Nifty Midcap and Smallcap indices ending flat with a negative bias.
We have collated 15 data points to help you spot profitable trades:
The key support and resistance level for Nifty
Nifty closed at 11,928.75 on May 28. According to the Pivot charts, the key support level is placed at 11,876.3, followed by 11,823.8. If the index starts moving upward, key resistance levels to watch out are 11,969.9 and 12,011.
Nifty Bank
The Nifty Bank index closed at 31,597.90, down 49.75 points on May 28. The important Pivot level, which will act as crucial support for the index, is placed at 31,380.2, followed by 31,162.5. On the upside, key resistance levels are placed at 31,764, followed by 31,930.1.
Call options data
Maximum Call open interest (OI) of 40.86 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,000 strike price, which now holds 40.47 lakh contracts in open interest, and 12,200, which has accumulated 23.73 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,900, which added 3.76 lakh contracts, followed by 12,000 strikes which added 3.34 lakh contracts.
Call unwinding was seen at the strike price of 12,500, which shed 3.18 lakh contracts, followed by 12,300 strike price that shed 1.08 lakh contracts.
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The market managed to end at record closing high for third consecutive session amid a positive trend in Asian peers on May 28.
The BSE Sensex rose 66.44 points to close at 39,749.73 while the Nifty 50 gained four points to 11,928.75, forming a 'Hanging Man' candle on daily charts.
"A small negative candle was formed today with long lower shadow. Technically, this pattern signals a consolidation at the highs after a smart upside bounce in the last couple of sessions," Nagaraj Shetty - Technical Research Analyst, HDFC Securities told Moneycontrol.
He said the overall trend remains positive, the Nifty could face resistance around 12,050 levels and any downward correction from the highs is unlikely to damage the near term uptrend status of the market.
A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top (around 771-point rally from its recent low of 11,157 recorded on May 15). In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.
The broader markets underperformed frontliners with the Nifty Midcap and Smallcap indices ending flat with a negative bias.
We have collated 15 data points to help you spot profitable trades:
The key support and resistance level for Nifty
Nifty closed at 11,928.75 on May 28. According to the Pivot charts, the key support level is placed at 11,876.3, followed by 11,823.8. If the index starts moving upward, key resistance levels to watch out are 11,969.9 and 12,011.
Nifty Bank
The Nifty Bank index closed at 31,597.90, down 49.75 points on May 28. The important Pivot level, which will act as crucial support for the index, is placed at 31,380.2, followed by 31,162.5. On the upside, key resistance levels are placed at 31,764, followed by 31,930.1.
Call options data
Maximum Call open interest (OI) of 40.86 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,000 strike price, which now holds 40.47 lakh contracts in open interest, and 12,200, which has accumulated 23.73 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,900, which added 3.76 lakh contracts, followed by 12,000 strikes which added 3.34 lakh contracts.
Call unwinding was seen at the strike price of 12,500, which shed 3.18 lakh contracts, followed by 12,300 strike price that shed 1.08 lakh contracts.
Get a 2 days free trial in Stock Market Tips and MCX Tips
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