Trade Setup for Wednesday: Top 10 things to know before Opening Bell

Get real time updates directly on you device, subscribe now.

Trade Setup for Wednesday: Top 10 things to know before Opening Bell

A bull run continued on Dalal Street with benchmark indices finishing higher for the seventh consecutive day and Nifty closing above 11,500 level.

The Sensex ended up 268.40 points at 38,363.47, while Nifty was up 70.20 points at 11,532.40.

“Nifty is trading higher on the 7th consecutive day and it has managed to close above the 11,500 psychological mark, which indicates bulls are having an upper hand, said Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors.

Although Nifty has closed near the highs, breaching of ascending trend line standing around 11,480 levels on lower time frame will be an early sign of a reversal of current bullish sentiment and a confirmation will come only below 10,430. Until then, the index can continue its rally towards 11,600 marks, he added.

A consistent rally has brought the market to overbought levels and so the upside from here looks limited, experts said, adding a correction or sideways trade could be possible in coming sessions.

“Bulls continued to retain upper hand as Nifty 50 registered a positive close for the seventh session in a row before signing off the day with a ‘Hanging Man’ kind of indecisive formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said despite weak price behaviour of the last couple of sessions trading remained positively biased as Nifty continued to make new swing highs on a daily basis.

We have collated top 10 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 11,532.4 on March 19. According to the Pivot charts, the key support level is placed at 11,474.47, followed by 11,416.53. If the index starts moving upward, key resistance levels to watch out are 11,567.7 and 11,601.73.

Nifty Bank

The Nifty Bank index closed at 29,767.85, up 171.75 points on March 19. The important Pivot level, which will act as crucial support for the index, is placed at 29,610.4, followed by 29,453. On the upside, key resistance levels are placed at 29,862.5, followed by 29,957.2.

Call options data

Maximum Call open interest (OI) of 26.16 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the March series.

This was followed by the 11,600 strike price, which now holds 17.39 lakh contracts in open interest, and 11,700, which has accumulated 16.11 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 11,800, which added 1.77 lakh contracts, followed by 11,000 strike, which added 1.53 lakh contracts.

Call unwinding was seen at the strike price of 11,600 that shed 2.79 lakh contracts, followed by 11,400 strike that shed 1.40 lakh contracts and 11,300 strike, which shed 80,100 contracts.

call option

Put options data

Maximum Put open interest of 38.16 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the March series.

This was followed by the 11,300 strike price, which now holds 25.18 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 24.87 lakh contracts in open interest.

Put writing was seen at the strike price of 11,500, which added 10.17 lakh contracts, followed by 11,400 strike that added 5.52 lakh contracts and 11,200 strike that added 3.53 lakh contracts.

There were hardly any Put unwinding seen.

put option

Stocks with a high delivery percentage

High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.

highdeliveyr%

127 stocks saw a long buildup

longbuildup

17 stocks saw short covering

A decrease in open interest along with an increase in price mostly indicates short covering.

shortcovering

43 stocks saw a short build-up

An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.

shortbuildup

11 stocks saw long unwinding

longunwinding

Stocks in news:

Muthoot Capital Services completed a securitization transaction of Rs 236.36 crore as on March 15, 2019

Brickwork Ratings India has re-affirmed BWR AA (SO) rating on Future Enterprises NCDs; Outlook stable

Cox & Kings owned Meininger opens hotel in Budapest, Hungary

V-Mart Retail opened a new store in the state of Assam

Bodal Chemicals starts production at Gujarat plant

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-03-20 01:12:30

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Do NOT follow this link or you will be banned from the site!