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

Rajesh Malviya of Axis Securities expects Nifty to trade in the range of 12,100-11,700 with mixed bias

After a rangebound trade, the market recouped its losses in the final hour and closed with marginal gains on June 7, driven by select banking and financials and IT stocks.


The BSE Sensex gained 86.18 to close at 39,615.90, while the Nifty50 rose 26.90 points to 11,870.70 and formed a small bullish candle which resembles a Doji on daily charts.

However, for the week, the Sensex lost 0.25 percent, while the Nifty50 shed 0.44 percent and formed a Spinning Top pattern on the weekly charts.

Both technical patterns indicate indecisiveness on Dalal Street, which pointed towards the consolidation in the coming week, experts said, adding the range could 11,700 to 12,000 on the Nifty.

Normally, a formation doji after a reasonable up or down move signals an impending reversal indication. Having formed this pattern immediately after one session of decline, the predictive value of this pattern could be ruled out," Nagaraj Shetty - Technical Research Analyst, HDFC Securities told Moneycontrol.

He said the short term trend of the Nifty is weak, and a minor upside bounce is expected next week before showing further weakness. "A sustainable move below the key support of 11,760 levels could have a further negative impact on the market ahead."

Rajesh Palviya, Head Technical and Derivatives Research, Axis Securities, who expects Nifty to trade in the range of 12,100-11,700 with mixed bias, said that the chart pattern suggests that if the Nifty crosses and sustains above 11,970 levels, it would witness buying which would lead the index towards 12,100-12,250 levels.

However, if index breaks below 11,840 levels, it would witness selling which would take the index towards 11,770-11,630, he added.

The broader markets underperformed the front lines, with the Nifty Midcap and Smallcap indices closing flat with negative bias.

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

The key support and resistance level for Nifty

The Nifty closed at 11,870.65 on June 7. According to the Pivot charts, the key support level is placed at 11,794.3, followed by 11,717.9. If the index starts moving upward, key resistance levels to watch out are 11,922.3 and 11,973.9.

Nifty Bank

The Nifty Bank index closed at 31,066.55, up 209.15 points on June 7. The important Pivot level, which will act as crucial support for the index, is placed at 30,749.26, followed by 30,431.93. On the upside, key resistance levels are placed at 31,261.76, followed by 31,456.93.

Call options data

Maximum Call open interest (OI) of 27.62 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the June series.

This is followed by 12,000 strike price, which now holds 19.07 lakh contracts in open interest, and 12,200, which has accumulated 13.39 lakh contracts in open interest.

Significant Call writing was seen at 12,500 strikes which added 1.52 lakh contracts, followed by 11,800 strikes that added 0.69 lakh contracts and 12,100 strikes which added 0.5 lakh contracts.

Call unwinding was seen at the strike price of 12,400, which shed 0.57 lakh contracts, followed by 11,900 strikes which shed 0.11 lakh contracts.

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