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

The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on July 19 and around 4 percent each for the week.

The sharp fall for the second consecutive session not only dragged the market to its two-month low on July 19, but also got it into negative territory for the week due to some disappointment over earnings, and unhappiness among FPIs after the Finance Minister refused to tweak the surcharge on the super-rich.


The BSE Sensex was down 560.45 points at 38,337.01, while the Nifty50 plunged 177.60 points to 11,419.30 on selling across sectors. Both benchmark indices fell a percent each for the week.

The index formed a bearish candle on daily as well as weekly scale, indicating bears are having the upper-hand on the Street, which could drag the index below 11,300 level, if it decisively breaks 11,400, which it managed to hold while closing on Friday, experts feel.

"The breach of a key rising trend line (placed at 11,530) and a lack of faster retracement of preceding declining legs makes us believe that the Nifty is heading towards 11,300 level, while stock-specific action would continue as we sail through Q1 FY20 earnings and derivatives expiry of July 2019 series," Dharmesh Shah, Head – Technical, ICICI direct told Moneycontrol.

"Another key observation is that, for the first time since October 2018, the index has retraced its preceding major rally by more than 61.8 percent, indicating extended consolidation going ahead. This development, coupled with the shallow nature of pullbacks, led us to believe that 11,600-11,650 will act as a key hurdle going forward as it is the low of Exit poll session and recent breakdown area," he said.

The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on Friday and around 4 percent each for the week.

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

The key support and resistance level for Nifty

The Nifty closed at 11,419.25 on July 19. According to the pivot charts, the key support level is placed at 11,332.23, followed by 11,245.27. If the index starts moving upward, the key resistance levels to watch for out are 11,573.23 and 11,727.27.

Nifty Bank

The Nifty Bank closed at 29,770.35, down 660.25 points on July 19. The important pivot level, which will act as crucial support for the index, is placed at 29,469.47, followed by 29,168.63. On the upside, key resistance levels are placed at 30,307.47, followed by 30,844.63.

Call options data

Maximum Call open interest (OI) of 35.17 lakh contracts was seen at the 11,600 strike price. It will act as a crucial resistance level in the last week of the July series.

This is followed by 11,700 strike price, which now holds 34.40 lakh contracts in open interest, and 12,000, which has accumulated 30.62 lakh contracts in open interest.

Significant Call writing was seen at the 11,500 strike price, which added 24.14 lakh contracts, followed by an 11,600 strike price, which added 17.50 lakh contracts. This was followed by 11,400 strikes, which added 5.66 lakh contracts.

Call unwinding was seen at 12,000 strikes, which shed 4.09 lakh contracts, followed by 11,900 strikes, which shed 2.56 lakh contracts and 11,000 strikes, which shed 1.19 lakh contracts.

Put options data

Maximum Put open interest of 30.44 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the last week of the July series.

This is followed by an 11,400 strike price, which now holds 26.59 lakh contracts in open interest and an 11,000 strike price, which has now accumulated 18.78 lakh contracts in open interest.

Put writing was seen at the 11,400 strike price, which added 7.69 lakh contracts, followed by an 11,100 strike which added 4.65 lakh contracts and 11,300 strikes, which added 4.38 lakh contracts.

Put unwinding was seen at the 11,600 strike price, which shed 10.25 lakh contracts, followed by an 11,500 strike that shed 6.43 lakh contracts and an 11,700 strike price which shed 3.37 lakh contracts.

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