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

The broader markets outperformed frontliners as the Nifty Midcap and Smallcap indices gained 1.6 percent each.

The market continued its positive momentum for the second consecutive session and ended at fresh record closing high on May 27. Banking & financials and metals led uptrend.


The broader market outperformed the frontlines as the Nifty Midcap and Smallcap indices gained 1.6 percent each.

The BSE Sensex rallied 248.57 points to 39,683.29 while the Nifty50 rose 80.70 points to 11,924.80, forming a bullish candle on the daily charts indicating a bullish trend. Rangebound trade in the second half of the day's session, however, made traders a bit cautious, experts said.

"The short term trend of the market continues to be positive. Nifty could now encounter minor resistance at 12,050 levels in the next few sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

He said any downward correction from near the hurdle is unlikely to damage the near term uptrend status of the market.

"In terms of the Fibonacci retracement, the bounce back has turned out to be a deep one. It reached 78.6 percent retracement mark today & formed a small distribution over there. Hence, the upside looks quite limited from the current level," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said.

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

The key support and resistance level for Nifty

Nifty closed at 11,924.75 on May 27. According to the Pivot charts, the key support level is placed at 11,839.07, followed by 11,753.33. If the index starts moving upward, key resistance levels to watch out are 11,983.87 and 12,042.93.

Nifty Bank

The Nifty Bank index closed at 31,647.65, up 435.10 points on May 27. The important Pivot level, which will act as crucial support for the index, is placed at 31,293.2, followed by 30,938.7. On the upside, key resistance levels are placed at 31,851.5, followed by 32,055.3.

Call options data

Maximum Call open interest (OI) of 44.04 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the May series.

This was followed by 12,000 strike price, which now holds 37.12 lakh contracts in open interest, and 12,200, which has accumulated 23.19 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 12,300, which added 3.73 lakh contracts, followed by 12,400 strikes which added 1.24 lakh contracts.

Call unwinding was seen at the strike price of 11,800, which shed 4.3 lakh contracts, followed by 12,500 strikes which shed 3.11 lakh contracts and 11,700 strikes which shed 1.86 lakh contracts.

Get a 2 days free trial in Stock Market Tips and MCX Tips 

Comments

Post a Comment

Popular posts from this blog

Technical Classroom: How to use Fibonacci Retracement Levels in stock trading

Image
Fibonacci retracement is a method of technical analysis for determining support and resistance levels A Fibonacci retracement is a popular tool among technical traders and is based on some key numbers. The origins of the Fibonacci series can be traced back to the ancient Indian mathematic scripts, with some claims dating back to 200 BC. However – in the 12th century - Leonardo Pisano Bigollo, an Italian mathematician who was known to his friends as Fibonacci, discovered Fibonacci numbers. It is a popular tool that technical traders use to help identify price levels for transactions, stop losses or target prices. These retracement levels also provide support and resistance levels for a stock. However, it really becomes most effective when confirming signals or conditions identified by additional technical analysis tools. Fibonacci Retracement is a method of technical analysis for determining support and resistance levels. It is named after the use of the Fibonacci sequ...
Read more

Veto Switchgears jumps 5% on realisation of unsecured loan

Image
Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. Veto Switchgears and Cables shares rallied 4.8 percent intraday on June 14 after realization of unsecured loan from a subsidiary. "We realized an amount of $1 million against an unsecured loan on June 13," the wires & cables and electrical accessories manufacturer said in its filing. Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. The stock climbed 10 percent in the last 15 sessions. At 13:13 hours IST, it was quoting at Rs 66.75, up to Rs 1.10, or 1.68 percent on the BSE. G et a 2 days free trial in Stock Market Tips and MCX Tips  
Read more

Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for short term

Image
Sudarshan Sukhani of s2analytics.com recommends buying Dabur India with stop-loss at Rs 381 and target of Rs 394, Ajanta Pharma with stop-loss at Rs 944 and target of Rs 973 and Hexaware Tech with stop-loss at Rs 410 and target of Rs 424. The market reversed most of its gains that were seen in the previous session and closed sharply lower on June 21. Escalated geopolitical tensions between the US and Iran and the RBI's concern over slowing economy dented traders' sentiment. Sensex fell 407.14 points or 1.03 percent to 39,194.49, while Nifty shed 107.70 points or 0.91 percent to 11,724.10, forming a bearish candle on the daily as well as weekly charts. For the week, indices declined 0.65 percent and 0.8 percent, respectively. The broader markets outperformed benchmark indices, with the Nifty Midcap and Smallcap indices closing flat with a negative bias. All sectoral indices closed in the red. According to the Pivot charts, the key support level is placed at...
Read more