Monday, 22 May 2017

Trade Setup for Monday: Top 10 things you should know before Opening Bell

The market is likely to trade in a range as long as Nifty50 trades below 9,450-9,500 levels.

The Nifty50 closed below 5-days exponential moving average (DEMA) placed at 9,446 but above its 10-DEMA at 9,420. It made a bearish candle or a spinning top kind of pattern on the daily chart while a Doji pattern on the weekly charts.

Last week May Nifty Futures closed at 9,456.05 with a premium of 28.10 points to its spot. June future were trading at a discount of 44.50 points. PCR-OI has increased from 1.21 to 1.22 levels.

The market is likely to trade in a range as long as Nifty50 trades below 9,450-9,500 levels. For the upside momentum to continue, the index has to close above its previous record high of 9,532 convincingly.

“We foresee a continuation of selling at the higher level trend and 9480 is the immediate resistance point above that 9530 to 9550 is the key level to watch,” Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments told moneycontrol.

“On the downside 9370 is immediate support zone. The market is here to stay and consolidate around 9300 on profit booking after the recent spectacular rally,” he said.

We have collated top ten data points on how to help you in spotting profitable trade:

Key Support & Resistance Level for Nifty:

The Nifty50 closed below its crucial support level of 9450 on Friday but respected its support level of 9,400 which is a positive sign that bulls are still trying to regain control. According to Pivot charts, the key support level for Nifty50 is placed at 9,377, followed by 9,326. If the index starts to move higher then key resistance levels to watch out are 9,492, followed by 9,556.

Nifty Bank:

Nifty Bank closed 71 points higher or 0.3 percent at 22,769 on Friday. Important Pivot level which will act as crucial support for the index is placed at 22,631, followed by 22,493. On the upside, the key resistance level is 22,905 followed by 23,040.

Call Options Data:

Maximum Call open interest (OI) of 61 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index in May series, followed by 9,600 which now holds 49 lakh contracts in open interest and 9,400 which has accumulated 34 lakh contracts in OI.

Call Writing was seen at strike prices 9,600 (1.99 lakh contracts added), followed by 9,700 (2 lakh contracts added), 9,900 (0.8 lakh contracts added) and 10,000 (0.5 lakh contracts added).

Call unwinding was seen at strike prices 9,800 (0.85 lakh contracts shed), 9,400 (2.3 lakh contracts shed), 9,200 (1.1 lakh contracts shed), and 9,300 (0.6 lakh contracts shed).

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