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

If the index breaks 200-DEMA, then there could be more selling pressure, experts said.

The bearish sentiment continued on Dalal Street with the Sensex falling more than 400 points intraday on July 22.

Benchmark indices closed at a two-month low. Sensex was down 305.88 points at 38,031.13 while the Nifty50 fell 73.10 points to 11,346.20 but held 200-day exponential moving average (11,297) and formed bearish candle on the daily scale.

If the index breaks 200-DEMA, then there could be more selling pressure, experts said.

"Though the index is trading closer to the next support zone of 11,300-11,350 levels, until it does not trade above 5 EMA placed around 11,490 levels, the trend will remain bearish. Support comes from Andrew pitchfork lower trend line that is placed near 11,340 levels and monthly pivot point (S2) that is at 11,361 marks," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors, told Moneycontrol.

Gaurav Ratnaparkhi, the Senior Technical Analyst, Sharekhan by BNP Paribas, also said the index can consolidate near 11,400-11,300 before stretching further down.

"Overall, the index is expected to test 11,200, which is the equality with the first leg of the July decline. Traders can continue to ride their short positions & trail the stop loss on the way down," he added.

The broader markets also witnessed selling pressure with the Nifty Midcap index falling 0.57 percent and Smallcap index declining 1.57 percent.

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

Key support and resistance level for Nifty

The Nifty closed at 11,346.20 on July 22. According to the pivot charts, the key support level is placed at 11,298.87, followed by 11,251.53. If the index starts moving upward, the key resistance levels to watch for out are 11,395.87 and 11,445.53.

Nifty Bank

The Nifty Bank closed at 29,284.95, down 485.40 points on July 22. The important pivot level, which will act as crucial support for the index, is placed at 29,107.6, followed by 28,930.3. On the upside, key resistance levels are placed at 29,548.7, followed by 29,812.5.

Call options data

Maximum Call open interest (OI) of 32.59 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 11,500 strike price, which now holds 31.43 lakh contracts in open interest, and 11,700, which has accumulated 29.89 lakh contracts in open interest.

Significant Call writing was seen at the 11,400 strike price, which added 22.10 lakh contracts, followed by an 11,300 strike price, which added 4.25 lakh contracts. This was followed by 11,500 strikes, which added 1.22 lakh contracts.

Call unwinding was seen at 11,700 strikes, which shed 4.51 lakh contracts, followed by 12,000 strike, which shed 4.32 lakh contracts and 11,800 strikes, which shed 3.88 lakh contracts.

Put options data

Maximum Put open interest of 38.10 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 11,200 strike price, which now holds 22.03 lakh contracts in open interest and an 11,000 strike price, which has now accumulated 19.64 lakh contracts in open interest.

Put writing was seen at the 11,300 strike price, which added 7.66 lakh contracts, followed by an 11,200 strike which added 4.13 lakh contracts and 10,900 strike, which added 1.05 lakh contracts.

Put unwinding was seen at the 11,400 strike price, which shed 7.13 lakh contracts, followed by an 11,500 strike that shed 4.76 lakh contracts and an 11,600 strike price which shed 4.58 lakh contracts.

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