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Trade setup for Monday: Top Important Analysis to know before the opening bell

On Friday(February 10, 2022), nifty moved as predicted by our PickMyStox algo. Our algo predicted that the trend of nifty is sideways to positive.

Market Trend Analysis

Now let us look at the trends of NIFTY, BANKNIFTY, FINNIFTY & INDIA VIX for Monday predicted by our algo PickMyStox.

NIFTY Trend for Monday

  • Trend: strongest bullish reversal.
  • Trend Confirmation: price cross above 17876.95.
  • Targets: 17920.77, 17996.72.
  • Trend Failure Condition: price fall below 17844.82.
  • Failure Targets: 17815.80, 17801.00, 17768.87, 17692.92.
  • Resistances: 17873.83, 17891.75, 17920.77
  • Supports: 17815.80, 17797.88, 17768.87
  • Bears Zone: 17873.83-17876.95 (2.73X)
  • Pivot Zone: 17838.98-17850.66 (0.39X)
  • Bulls Zone: 17801.00-17815.80 (0.47X)
  • Breakout Rank: 6 (55%).
  • Volatility Range: 17712.48 - 18000.52.
  • Vix Trend: strongly bearish..
  • Trending: Yes.
  • Previous Trending: Yes.
  • Previous Close: 17856.50 (-36.95)
  • Camarilla Levels: 
    • Resistances - 17877.39(H3), 17898.27(H4), 17932.69(H5)
    • Supports - 17835.61(L3), 17814.73(L4), 17780.31(L5).

BANKNIFTY Trend for Monday

  • Trend: strongly bullish.
  • Rally Condition: price cross above 41678.90.
  • Targets: 41808.40, 41935.40, 42062.40.
  • Pullback Condition: price fall below 41651.43.
  • Pullback Target: 41554.40.
  • Trend Failure Condition: price fall below 41554.40.
  • Failure Targets: 41424.90, 41300.40, 41046.40.
  • Resistances: 41651.43, 41711.37, 41808.40
  • Supports: 41457.37, 41397.43, 41300.40
  • Bears Zone: 41651.43-41678.90 (3.42X)
  • Pivot Zone: 41551.90-41556.90 (0.07X)
  • Bulls Zone: 41424.90-41457.37 (0.4X)
  • Breakout Rank: 7 (67%).
  • Trending: Yes.
  • Previous Trending: Yes.
  • Previous Close: 41559.40 (5.10)
  • Camarilla Levels: 
    • Resistances - 41629.25(H3), 41699.10(H4), 41814.22(H5)
    • Supports - 41489.55(L3), 41419.70(L4), 41304.58(L5).

FINNIFTY Trend for Monday

  • Trend: strongly bullish.
  • Rally Condition: price cross above 18565.45.
  • Targets: 18616.73, 18667.51, 18718.28.
  • Pullback Condition: price fall below 18553.98.
  • Pullback Target: 18515.18.
  • Trend Failure Condition: price fall below 18515.18.
  • Failure Targets: 18463.90, 18413.63, 18312.08.
  • Resistances: 18553.98, 18577.94, 18616.73
  • Supports: 18476.39, 18452.43, 18413.63
  • Bears Zone: 18553.98-18565.45 (6.19X)
  • Pivot Zone: 18514.68-18515.69 (0.03X)
  • Bulls Zone: 18463.90-18476.39 (0.4X)
  • Breakout Rank: 7 (72%).
  • Trending: Yes.
  • Previous Trending: Yes.
  • Previous Close: 18516.20 (4.40)
  • Camarilla Levels: 
    • Resistances - 18544.13(H3), 18572.05(H4), 18618.04(H5)
    • Supports - 18488.27(L3), 18460.35(L4), 18414.36(L5).

INDIA VIX Trend for Monday

  • Trend: strongly bearish.
  • Rally Condition: price fall below 12.21.
  • Targets: 11.67, 11.14, 10.60.
  • Pullback Condition: price rise above 12.33.
  • Pullback Target: 12.74.
  • Trend Failure Condition: price rise above 12.74.
  • Failure Targets: 13.28, 13.40, 13.81, 14.88.
  • Resistances: 13.15, 13.40, 13.81
  • Supports: 12.33, 12.08, 11.67
  • Bears Zone: 13.15-13.28 (0.75X)
  • Pivot Zone: 12.74-12.75 (0.05X)
  • Bulls Zone: 12.21-12.33 (0.52X)
  • Breakout Rank: 6 (61%).
  • Trending: Yes.
  • Previous Close: 12.74 (-0.30)
  • Camarilla Levels: 
    • Resistances - 13.03(H3), 13.33(H4), 13.86(H5)
    • Supports - 12.45(L3), 12.15(L4), 11.62(L5)

Future OI Analysis

Let us find out long buildup, short buildup, long unwinding and short covering stocks based on the future price movement, open interest and volume.

Long Buildup Stocks

Based on the OI percentage, a long build-up was witnessed in 58 stocks on February 10, including PNB, TATAMOTORS, L&TFH, CANARA BANK, ADANIPORTS, VOLTAS and ONGC.


 

Short Buildup Stocks

Based on the OI percentage, a short build-up was witnessed in 80 stocks on February 10, including TATA STEEL, IDFC FIRST BANK, BHEL, SAIL, ASHOK LEYLAND, TATA POWER and ADANI ENTERPRISES.

 

Short Covering Stocks

Based on the OI percentage, a short build-up was witnessed in 32 stocks on February 10, including SBI, INDUS TOWER, AUROBINDO PHARMA, MOTHERSON SUMI, FEDERAL BANK, BEL and PFC.


Long Unwinding Stocks

Based on the OI percentage, a short build-up was witnessed in 20 stocks on February 10, including GMR INFRA, ITC, ICICI BANK, M&M FINANCE, AXIS BANK, REC LTD, MANAPURAM, JSW STEEL and INDUSIND BANK.


Options OI Analysis

We considered weekly options open interest for this analysis

NIFTY Options Open Interest Analysis

On a weekly basis, the maximum near by Call open interest (OI) was at 18,000 strike, with 6.5 million contracts, which can act as a resistance for the coming week of the February series.

And maximum near by Put open interest (OI) was at 17,800 strike, with 6.5 million contracts, which can act as a support for the coming week of the February series.

BANKNIFTY Options Open Interest Analysis

On a weekly basis, bank nifty has a strong short straddle buildup at the strike price 41500, the Call open interest (OI) with 2.4 million contracts and Put open interest (OI) with 2.6 million contracts.

So the expected support and resistance range is from 40900 to 42100.

FII and DII data

Foreign institutional investors (FII) was on bullish side on stocks and bearish side on futures and options, whereas the domestic institutional investors (DII) was on bearish side on stocks.

Disclaimer: These are only suggestive technical rules that have been found to work well over time in the market. These are not any trading or investing recommendations. We suggest you to take advice from certified experts for trading and investing. Neither PickMyStox nor any of its associates are responsible for any trading or investing loss.

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