The market defended the 23,400 level on a closing basis for another session, indicating good support in the immediate term. The Nifty 50 closed 37 points higher at 23,538 after showing a healthy recovery from the day’s low on June 24. Experts see the index moving towards its record high of 23,677 if it holds the 22,400-22,300 levels amid consolidation in the coming sessions. Here are 15 data points we have collated to help you spot profitable trades:
Special Formation: The Nifty 50 formed a bullish candlestick pattern, resembling a Bullish Piercing Line kind of candlestick pattern on the daily charts. The momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) showed a positive bias.
Story continues below Advertisement
2) Key Levels For The Bank Nifty
Resistance based on pivot points: 51,789, 51,941, and 52,187
Support based on pivot points: 51,296, 51,144, and 50,897
Story continues below Advertisement
Resistance based on Fibonacci retracement: 52,516, 53,218
Support based on Fibonacci retracement: 50,576, 49,709
Special Formation: The Bank Nifty also formed a Bullish Piercing Line kind of candlestick pattern on the daily timeframe, with a positive bias in momentum indicators. The index recovered 565 points from the day’s low to close 43 points higher at 51,704.
According to the monthly options data, the maximum open interest remained at 24,000 strike (with 1.28 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,000 strike (82.9 lakh contracts) and the 24,500 strike (76.81 lakh contracts).
Maximum Call writing was observed at the 24,000 strike, which saw an addition of 22.63 lakh contracts, followed by the 24,500 and 23,900 strikes, which added 12.28 lakh and 10.36 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,600 strike, which shed 7.83 lakh contracts, followed by the 24,400 and 24,800 strikes, which shed 4.33 lakh and 1.78 lakh contracts, respectively.
On the Put side, the maximum open interest was observed at 23,000 strike (with 1.31 crore contracts), which can act as a key support level for the Nifty. It was followed by the 22,500 strike (74.79 lakh contracts) and the 23,400 strike (67.71 lakh contracts).
The maximum Put writing was visible at the 23,000 strike, which saw an addition of 35.63 lakh contracts, followed by the 23,400 and 23,300 strikes, with 29.61 lakh and 15.83 lakh contracts added, respectively. Put unwinding was observed at the 22,800 strike, which shed 7.28 lakh contracts, followed by 22,400 and 25,000 strikes, which shed 3.08 lakh and 1.15 lakh contracts, respectively.
5) Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 53,000 strike, with 25.77 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 52,000 strike (23.25 lakh contracts) and the 52,500 strike (22.35 lakh contracts).
Maximum Call writing was visible at the 53,000 strike (with the addition of 4.24 lakh contracts), followed by the 52,200 strike (2.52 lakh contracts) and the 52,100 strike (2.49 lakh contracts), while the maximum Call unwinding was seen at 51,200 strike, (which shed 1.45 lakh contracts), followed by 52,500 strike (1.25 lakh contracts), and 53,100 strike (1.18 lakh contracts).
6) Bank Nifty Put Options Data
On the Put side, the 51,000 strike holds the maximum open interest (with 34.91 lakh contracts), which can act as a key support level for the index. This was followed by the 51,500 strike (24.72 lakh contracts) and the 51,200 strike (19.78 lakh contracts).
The maximum Put writing was observed at the 51,000 strike (which added 11.03 lakh contracts), followed by the 51,300 strike (9.02 lakh contracts) and the 51,200 strike (8.49 lakh contracts), while there was hardly any Put unwinding seen.
7) Funds Flow (Rs crore)
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.14 on June 24 from 1.04 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 rebounded after a two-day fall and climbed above the 14 mark for the first time since June 12. India VIX, the fear index, jumped by 6.66 percent to 14.06, from 13.18 levels.
A long build-up was seen in 54 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (45 Stocks)
45 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (40 Stocks)
40 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (46 Stocks)
46 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: Punjab National Bank, SAIL
Stocks retained in F&O ban: Balrampur Chini Mills, Chambal Fertilisers and Chemicals, GNFC, Granules India, Indus Towers, Piramal Enterprises
Stocks removed from F&O ban: Hindustan Aeronautics, Hindustan Copper
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.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
