Trade Setup for Thursday: Top 15 things to know before Opening Bell

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said Thursday, being the expiry day for the May series is expected to be volatile.

The market snapped its three-day winning streak and closed sharply lower on May 29 ahead of the expiry of May derivative contracts. Banks, auto and metals stocks lagged. Global trade war tensions and Arun Jaitley's decision to opt out of the new government due to health issues hit traders' sentiment.


The BSE Sensex fell 247.68 points to close at 39,502.05 while the Nifty 50 ended down 67.70 points to end at 11,861.10, forming a bearish candle on daily charts.

"We observe a formation of the small negative candle, after the formation of a hanging man type candle of the last session. This pattern could indicate a minor profit booking at the highs. We also observe a minor higher low formation in the Nifty, as per smaller time frame chart," Nagaraj Shetty - Technical Research Analyst, HDFC Securities told Moneycontrol.

As long as this weakness with range movement continues, the near term uptrend status of the Nifty could be intact, he added. "Next lower supports to be watched is at 11,815."

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said Thursday, being the expiry day for the May series is expected to be volatile.

The weakness was visible in the broader market indices as well. The Nifty Midcap index lost 0.77 percent and Smallcap index shed 0.67 percent.

We have collated 15 data points to help you spot profitable trades:

The key support and resistance level for Nifty

Nifty closed at 11,861.10 on May 29. According to the Pivot charts, the key support level is placed at 11,821.3, followed by 11,781.5. If the index starts moving upward, key resistance levels to watch out are 11,916.4 and 11,971.7.

Nifty Bank

The Nifty Bank index closed at 31,295.55, down 302.35 points on May 29. The important Pivot level, which will act as crucial support for the index, is placed at 31,186.73, followed by 31,077.87. On the upside, key resistance levels are placed at 31,475.63, followed by 31,655.67.

Call options data

Maximum Call open interest (OI) of 53.42 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.

This was followed by 12,500 strike price, which now holds 34.18 lakh contracts in open interest, and 11,900, which has accumulated 26.39 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 12,000, which added 12.95 lakh contracts, followed by 11,900 strikes which added 7.68 lakh contracts.

Call unwinding was seen at the strike price of 12,500, which shed 6.67 lakh contracts, followed by 12,400 strike price that shed 2.7 lakh contracts.

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