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

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

The market fell for the fifth consecutive session on July 24 with the Nifty closing below 11,300 level ahead of F&O expiry. Banks, auto, metals, pharma, and select technology stocks dragged benchmark indices.


The BSE Sensex was down 135.09 points at 37,847.65 while the Nifty 50 declined 59.70 points to 11,271.30, forming bearish candle on daily charts.

As the index fell below the 200-day exponential moving average (11,297), there could be more selling pressure with a bit of volatility in the coming session, experts feel.

"The index is now stone's throw away from the May low of 11,108, which is the make or break level for the medium-term trend. The odds are suggesting a bounce prior to breaking the low of 11,108. Nevertheless, one more push down to 11200 looks possible for the short term," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

He said traders are recommended to cover their short positions near 11,200 & wait for further evidence to initiate a fresh trade.

Nagaraj Shetti, Technical Research Analyst at HDFC securities also said the Nifty is now on the way down towards the next support of 11,150-11,100 levels (previous swing low of mid of May) in the next few sessions.

The selling pressure was more in broader markets as the Nifty Midcap and Smallcap indices fell 1.5 percent each. About two shares declined for every share rising on the NSE.

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

Key support and resistance level for Nifty

The Nifty closed at 11,271.30 on July 24. According to the pivot charts, the key support level is placed at 11,214.13, followed by 11,156.97. If the index starts moving upward, the key resistance levels to watch for out are 11,344.13 and 11416.97.

Nifty Bank

The Nifty Bank closed at 28,952.25, down 175.85 points on July 24. The important pivot level, which will act as crucial support for the index, is placed at 28,797.99, followed by 28,643.8. On the upside, key resistance levels are placed at 29,179.39, followed by 29,406.6.

Call options data

Maximum Call open interest (OI) of 37.66 lakh contracts was seen at the 11,400 strike price. It will act as a crucial resistance level on the last day of the July series.

This is followed by 11,500 strike price, which now holds 26.36 lakh contracts in open interest, and 11,300, which has accumulated 26.08 lakh contracts in open interest.

Significant Call writing was seen at the 11,300 strike price, which added 17.35 lakh contracts, followed by an 11,200 strike price, which added 3.05 lakh contracts. This was followed by 11,400 strikes, which added 2.94 lakh contracts.

Call unwinding was seen at 11,500 strikes, which shed 8.67 lakh contracts, followed by 11,600 strikes, which shed 4.73 lakh contracts and 11,700 strikes, which shed 4.5 lakh contracts.

Maximum Put open interest of 22.51 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level on the last day of July series.

This is followed by an 11,200 strike price, which now holds 21.92 lakh contracts in open interest and an 11,000 strike price, which has now accumulated 19.05 lakh contracts in open interest.

Put writing was seen at the 11,100 strike price, which added 3.09 lakh contracts, followed by an 11,000 strike which added 0.31 lakh contracts and 10,500 strike, which added 0.25 lakh contracts.

Put unwinding was seen at the 11,300 strike price, which shed 17.09 lakh contracts, followed by an 11,400 strike that shed 8.03 lakh contracts and an 11,200 strike price which shed 3.03 lakh contracts.

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