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

The Nifty50 made a fresh record high of 9,709.30 on Tuesday but failed to keep the momentum going as bears stepped in to spoil the party for bulls. The index made a long bearish candle and a bearish engulfing pattern on daily charts.

A bearish candlestick pattern suggests that bears regained control over market after rangebound activity seen in the last few trading session.

This pattern is usually seen as the end of an uptrend or an intermediate top, but as long as 5-DEMA, 13-DEMA holds, investors need not worry about intraday gyrations.

However, if the Nifty slips 9,600 on Wednesday post the Reserve Bank of India’s policy meet then bears will regain control over D-Street.

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

Key Support & Resistance Level for Nifty:

The Nifty closed 37 points lower or 0.39 percent at 9,637.15. According to Pivot charts, the key support level for Nifty50 is placed at 9,608, followed by 9,579. If the index starts to move higher then key resistance levels to watch out are 9,687, followed by 9,737.

Nifty Bank:

Nifty Bank closed 43 points lower or 0.18 percent at 23,416 on Tuesday. Important Pivot level which will act as crucial support for the index is placed at 23,353 followed by 23,290. On the upside, the key resistance level is 23,507 followed by 23,599.

Call Options Data:

Maximum Call open interest (OI) of 52 lakh contracts stands at strike price 9,700 which will act as a crucial resistance level for the index in June series, followed by 9,800 which now holds 43 lakh contracts in open interest and 9,600 which has accumulated 40 lakh contracts in OI.

Call writing was seen at strike prices 9,700 (5.6 lakh contracts added), 9,800 (1.6 lakh contracts added), 9,900 (1.3 lakh contracts added), and 10200 (0.5 lakh contracts added).

Call unwinding was seen at strike prices 9,600 (1.06 lakh contracts shed), 9,500 (0.38 lakh contracts shed), and 9,400 (0.07 lakh contracts shed).

Put Options Data:

Maximum Put OI of 66 lakh contracts was seen at strike price 9,500 which will act as a crucial base for the index in June series followed by 9,400 which has accumulated 57 lakh contracts in open interest, and 9,600 which now holds 56 lakh contracts in open interest.

Put Writing was seen at strike prices 9,500 (2.2 lakh contracts added) while Put Unwinding was seen at strike prices 9,600 (0.7 lakh contracts shed), 9,400 (2.1 lakh contracts shed), 9,300 (0.9 lakh contracts shed) and 9,200 (1.1 lakh contracts shed).

FII & DII Data:

The foreign institutional investors (FIIs) bought shares worth Rs61 crore compared to domestic institutional investors who sold shares worth Rs360 crore in Indian equity market.

Stocks with high Delivery%:

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