Trade setup for Monday: 15 things to know before opening bell- Grow Mudra

Trade setup for Monday: 15 things to know before opening bell

24 Jun , 2024 By : Debdeep Gupta

The market corrected but defended the 23,400 levels amid rangebound trade on a closing basis on June 21. The Nifty 50 fell 66 points to 23,501 with above-average volumes. The rangebound trade will likely continue in the coming days, with support at 23,300. On the higher side, if it manages to close and sustain above 23,650, then 23,800 is the next target, experts said. Here are 15 data points we have collated to help you spot profitable trades:

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50

Resistance based on pivot points: 23,625, 23,688, and 23,791

Support based on pivot points: 23,419, 23,356, and 23,253

Special Formation: The Nifty 50 formed a bearish candlestick pattern with a small lower shadow on the daily charts. On the weekly scale, there was a bearish Spinning Top pattern, a bearish reversal pattern, but the follow-through weakness in the coming week could confirm this bearish pattern.

2) Key Levels For The Bank Nifty

Resistance based on pivot points: 51,878, 52,045, and 52,316

Support based on pivot points: 51,336, 51,168, and 50,897

Resistance based on Fibonacci retracement: 52,503, 53,221

Support based on Fibonacci retracement: 50,570, 49,713

Special Formation: The Bank Nifty snapped a four-day winning streak and formed a bearish candlestick pattern with a long lower shadow, resembling a Hanging Man pattern on the daily charts with above-average volumes. It is a bearish reversal pattern, but the weakness in the following sessions could confirm the downtrend. It remained above all key moving averages.

3) Nifty Call Options Data

According to the monthly options data, the 24,000 strike holds the maximum open interest (with 1.06 crore contracts). This level can be a key resistance level for the Nifty in the short term. It was followed by the 24,500 strike (64.53 lakh contracts) and the 23,500 strike (57.83 lakh contracts).

Maximum Call writing was observed at the 24,500 strike, which saw an addition of 19.87 lakh contracts, followed by the 24,000 and 23,600 strikes, which added 17.4 lakh and 16.06 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,000 strikes, which shed 1.64 lakh contracts, followed by the 22,500 and 23,100 strikes, which shed 57,875 and 50,725 contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum open interest was observed at 23,000 strikes (with 96.01 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 22,500 strike (74.64 lakh contracts) and the 23,500 strike (51.97 lakh contracts).

The maximum Put writing was visible at the 22,900 strike, which saw an addition of 18.05 lakh contracts, followed by the 23,000 and 23,100 strikes, with 11.64 lakh and 7.83 lakh contracts added, respectively. Put unwinding was observed at the 23,600 strike, which shed 7.3 lakh contracts, followed by 22,500 and 22,600 strikes, which shed 4.73 lakh and 4.39 lakh contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 52,000 strike, with 23.62 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 52,500 strike (23.6 lakh contracts) and the 53,000 strike (21.52 lakh contracts).

Maximum Call writing was visible at the 52,500 strikes (with the addition of 9.92 lakh contracts), followed by the 53,100 strikes (4.94 lakh contracts) and the 51,500 strikes (3.44 lakh contracts), while the maximum Call unwinding was seen at 51,000 strikes, (which shed 2.49 lakh contracts), followed by 51,200 strikes (1.03 lakh contracts), and 50,500 strikes (33,690 contracts).

6) Bank Nifty Put Options Data

On the Put side, the 51,000 strike holds the maximum open interest (with 23.87 lakh contracts), which can act as a key support level for the index. This was followed by the 50,500 strike (16.91 lakh contracts) and the 51,500 strike (16.74 lakh contracts).

The maximum Put writing was observed at the 50,800 strikes (which added 67,260 contracts), followed by the 50,700 strikes (63,585 contracts) and the 51,300 strikes (60,900 contracts), while the Put unwinding was seen at the 51,800 strikes (which shed 3.75 lakh contracts), followed by 51,500 and 51,700 strikes, which shed 2.21 lakh and 2.13 lakh contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 1.04 on June 21 from 1.29 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 extended its fall for another session and remained in the range of 12-14 levels. Experts expect the trend may turn unfavorable for bulls if the volatility climbs and sustains above the 15 mark. India VIX, the fear gauge, fell 1.24 percent to 13.18 from 13.35 levels.