Trade Setup for Friday: Top 14 things to know before Opening Bell

Chandan Taparia of Motilal Oswal Financial Services said the immediate structure of the index is in under pressure and now till it holds below 11,320 zone weakness could extend further towards 11,200 then 11,180 zones.

The market failed to hold on to early gains and closed lower for the sixth consecutive session on July 25, the expiry day for July futures & options contracts. It was dragged down by select banking & financials, auto, metals, and energy stocks.

The BSE Sensex slipped 16.67 points at 37,830.98 while the Nifty 50 fell 19.10 points to 11,252.20, forming a bearish candle resembling an Inverted Hammer kind of pattern on the daily candlestick charts.

"The near-term trend of Nifty continues to be weak with range movement. The falling wedge type formation in the last four sessions hints at the possibility of a sharp comeback of bulls from the lows. But, we need confirmation of turnaround to call this a reversal," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

He said further weakness from here could lead Nifty to reach an important support zone around 11,150-11,100 levels, as per smaller and larger timeframe chart.

Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Financial Services also said the immediate structure of the index is under pressure and until it holds below 11,320 zone weakness could extend further towards 11,200 and then to 11,180 zones. On the upside, the hurdle is seen at 11,365 and thereafter near the 11,400-zone.

The broader markets outperformed frontliners with the Nifty Midcap index rising 0.4 percent.

We have collated 14 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 11,252.15 on July 25. According to the pivot charts, the key support level is placed at 11,207.2, followed by 11,162.2. If the index starts moving upward, the key resistance levels to watch for out are 11,329.3 and 11,406.4.

Nifty Bank

The Nifty Bank closed at 29,043.05, up 90.80 points on July 25. The important pivot level, which will act as crucial support for the index, is placed at 28,902.53, followed by 28,761.96. On the upside, key resistance levels are placed at 29,212.23, followed by 29,381.37.

Call options data

Maximum Call open interest (OI) of 40.33 lakh contracts was seen at the 11,300 strike price. It will act as a crucial resistance level in August series.

This is followed by 11,400 strike price, which now holds 35.96 lakh contracts in open interest, and 11,500, which has accumulated 19.43 lakh contracts in open interest.

Significant Call writing was seen at the 11,300 strike price, which added 14.24 lakh contracts, followed by a 12,000 strike price, which added 0.23 lakh contracts.

Call unwinding was seen at 11,500 strikes, which shed 6.92 lakh contracts, followed by 11,200 strikes, which shed 4.58 lakh contracts and 10,500 strikes, which shed 1.89 lakh contracts.

Maximum Put open interest of 28.78 lakh contracts was seen at 11,200 strike price. It will act as a crucial support level in August series.

This is followed by an 11,000 strike price, which now holds 17.39 lakh contracts in open interest and an 11,100 strike price, which has now accumulated 14.43 lakh contracts in open interest.

Put writing was seen at the 11,200 strike price, which added 6.86 lakh contracts.

Put unwinding was seen at the 11,300 strike price, which shed 19.89 lakh contracts, followed by an 11,400 strike that shed 6.68 lakh contracts and an 11,500 strike price which shed 5.18 lakh contracts.

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