The market rebounded after a five-day correction. The Nifty 50 sustained above the 22,450 level for another session at close on May 31. After the exit polls signaled the NDA government coming to power, experts say the index is likely to hit 23,000, followed by 23,200, with strong support at 22,400-22,300. Key drivers include the index defending the middle of the Bollinger band for another session. Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50
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Resistance based on pivot points: 22,622, 22,666, and 22,739
Support based on pivot points: 22,478, 22,433, and 22,361
Special Formation: The Nifty 50 formed High Wave kind of candlestick pattern on the daily charts. The formation of such pattern after significant downtrend generally indicates trend reversal.
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2) Key Levels For The Bank Nifty
Resistance based on pivot points: 49,103, 49,234, and 49,445
Support based on pivot points: 48,680, 48,550, and 48,338
Resistance based on Fibonacci retracement: 49,329, 49,975
Support based on Fibonacci retracement: 48,335, 48,015
Special Formation: The Bank Nifty saw higher high, higher low formation, after respecting 20-day SMA.
According to the weekly options data, the 23,000 strike (with 65.01 lakh contracts) had the maximum Call open interest. This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,000 strike (63.04 lakh contracts) and the 23,500 strike (57.45 lakh contracts).
Maximum Call writing was observed at the 23,500 strike, which saw an addition of 26.8 lakh contracts, followed by the 23,000 and 24,000 strikes, which added 25.90 lakh and 21.37 lakh contracts, respectively. There was hardly any Call unwinding seen.
On the Put side, the maximum open interest was seen at the 22,000 strike (with 31.47 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 22,500 strike (29.36 lakh contracts) and the 21,500 strike (25.32 lakh contracts).
The maximum Put writing was seen at the 21,500 strike, which saw an addition of 12.56 lakh contracts, followed by the 22,600 and 22,500 strikes, with 10.3 lakh and 9.36 lakh contracts added, respectively. Put unwinding was observed at the 23,100 strike, which shed 91,375 contracts. This was followed by the 22,700 strike, which saw a deduction of 9,075 contracts.
5) Bank Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was seen at the 50,000 strike, with 19.78 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 49,000 strike (11.21 lakh contracts) and the 50,500 strike (8.89 lakh contracts).
Maximum Call writing was visible at the 50,000 strike (with the addition of 9.92 lakh contracts), followed by the 50,500 strike (4.55 lakh contracts) and the 50,400 strike (2.1 lakh contracts), while the maximum Call unwinding was observed at the 48,600 strike (which shed 46,320 contracts), followed by the 48,500 strike (38,970 contracts) and the 47,900 strike (3,900 contracts).
6) Bank Nifty Put Options Data
On the Put side, the 48,500 strike holds the maximum open interest (with 11.50 lakh contracts), which can act as a key support level for the index. This was followed by the 49,000 strike (9.37 lakh contracts) and the 48,000 strike (8.33 lakh contracts).
The maximum Put writing was observed at the 48,500 strike (which added 3.32 lakh contracts), followed by the 47,500 strike (2.92 lakh contracts) and the 48,000 strike (2.26 lakh contracts), while the 48,300 strike witnessed the maximum Put unwinding (which shed 15,990 contracts), followed by the 47,800 strike (15,045 contracts), and the 47,600 strike (11,265 contracts).
7) Funds Flow (Rs crore)
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.00 on May 31 from 1.12 levels in the previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
9) India VIX
The volatility inched higher and hit a fresh two-year high at close, possibly urging bulls to remain cautious ahead of the election results. India VIX, the fear index, climbed 1.77 percent to 24.60, the highest closing level since May 25, 2022. On the weekly timeframe, the index was up 13.32 percent, continuing its uptrend for 5 weeks in a row.
A long build-up was seen in 39 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (35 Stocks)
35 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (53 Stocks)
53 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (57 Stocks)
57 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.
15) Stocks Under F&O Ban
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
Stocks added to F&O ban: Nil
Stocks retained in F&O ban: Nil
Stocks removed from F&O ban: Nil
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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