Trade Setup for Friday: Top 14 things to know before Opening Bell

Jayant Manglik of Religare Broking reiterated his advice to focus on trade selection and risk management.

The Nifty 50 reclaimed 11,900 levels on June 27 morning but failed to hold on. The index closed flat amid consolidation on account of expiry of derivative contracts.


The BSE Sensex shed 230 points from day's high to close 5.67 points lower to 39,586.41 while the Nifty 50 slipped six points to 11,841.50, forming a bearish candle resembling a Shooting Star kind of pattern on daily charts with long upper shadow and closing near to its intraday lowest point.

"This pattern indicates an inability of bulls to sustain above the resistance of 11,850 levels (resistance as per the concept of change in polarity). Minor volatility was seen mainly due to an F&O expiry of June series. The short term trend of Nifty is still positive with rangebound movement," Nagaraj Shetty, Technical Research Analyst, HDFC Securities told Moneycontrol.

He said only a decisive/sustainable move above 11,850 levels could have a further positive impact on the market ahead, otherwise minor short term correction could be in place.

Jayant Manglik, President - Retail Distribution at Religare Broking reiterated his advice to focus on trade selection and risk management. "Nifty has immediate next crucial hurdle at 12,000."

The broader markets outperformed frontliners with the Nifty Midcap index rising 0.4 percent while the sectoral trend was mixed with Auto climbing a percent and Realty 2 percent.

We have collated 14 data points to help you spot profitable trades:

The key support and resistance level for Nifty

Nifty closed at 11,841.55 on June 27. According to the Pivot charts, the key support level is placed at 11,804.6, followed by 11,767.7. If the index starts moving upward, key resistance levels to watch out are 11,894.8 and 11,948.1.

Nifty Bank

The Nifty Bank closed at 31,269.50, up 107.15 points on June 27. The important Pivot level, which will act as crucial support for the index, is placed at 31,122, followed by 30,974.5. On the upside, key resistance levels are placed at 31,453.8, followed by 31,638.1.

Call options data

Maximum Call open interest (OI) of 29.42 lakh contracts was seen at the 11,900 strike price. This will act as a crucial resistance level for the July series.

This is followed by 12,000 strike price, which now holds 26.62 lakh contracts in open interest, and 12,500, which has accumulated 14.71 lakh contracts in open interest.

Significant Call writing was seen at 11,900 strike price that added 3.69 lakh contracts, followed by 12,100 strike price that added 2.29 lakh contracts.

Call unwinding was seen at the strike price of 11,800, which shed 11.09 lakh contracts, followed by 11,700 strikes that shed 8.03 lakh contracts and 12,000 strikes which shed 7.94 lakh contracts.

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