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

The near term trend of Nifty is rangebound with weak bias and the crucial lower supports to be watched for the next week is at 11,760, said Nagaraj Shetty of HDFC Securities

The equity market fell sharply on June 14 after India announced retaliatory tariffs on American goods. Banking & financials, auto, and FMCG stocks fell the most.


The BSE Sensex plunged 289.29 points to 39,452.07 while the Nifty fell 90.70 points to 11,823.30 and formed bearish candle on a daily and weekly scale. For the week, both benchmark indices declined 0.4 percent each.

"Along negative candle was formed on June 14 and the Nifty is placed near the crucial support of 11,770, which is a strong support level as per the concept of change in polarity," Nagaraj Shetty - Technical Research Analyst, HDFC Securities told Moneycontrol.

"We observe a formation of head and shoulder type pattern as per daily timeframe chart (not a classical one) with the neckline placed at 11,770 levels. Hence, a decisive move below this neckline support could open up a potential downside pattern target of 11,525 in the near term (this pattern could activate only on a decline below the support of 11,770)," he said.

The near term trend of Nifty is rangebound with weak bias and the crucial lower supports to be watched for the next week is at 11,760, he added.

Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas also said the index still continues to hover around the key supports.

"In terms of the price patterns, the running triangular pattern looks intact with a mild throw under. The daily Bollinger Bands, being in a contraction phase, suggests the rangebound activity can continue in the next few sessions. The Nifty will be set for the next up move once the consolidation is over," he added.

The broader markets also fell in line with benchmarks. The Nifty Midcap index dropped 0.9 percent and Smallcap index 0.8 percent as five shares declined for every two shares rising on the NSE.

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

The key support and resistance level for Nifty

Nifty closed at 11,823.30 on June 14. According to the Pivot charts, the key support level is placed at 11,776.73, followed by 11,730.17. If the index starts moving upward, key resistance levels to watch out are 11,890.83 and 11,958.37.

Nifty Bank

Nifty Bank closed at 30,614.35, down 361.75 points on June 14. The important Pivot level, which will act as crucial support for the index, is placed at 30,404.57, followed by 30,194.84. On the upside, key resistance levels are placed at 30,928.37, followed by 31,242.43.

Call options data

Maximum Call open interest (OI) of 24.40 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the June series.

This is followed by 12,500 strike price, which now holds 22.99 lakh contracts in open interest, and 12,200, which has accumulated 15.91 lakh contracts in open interest.

Significant Call writing was seen at 11,900 strike price that added 1.67 lakh contracts, followed by 12,100 strike price that added 1.52 lakh contracts and 12,000 strike price, which added 1.13 lakh contracts.

Call unwinding was seen at the strike price of 12,300, which shed 1.03 lakh contracts, followed by 12,400 strike price that shed 0.33 lakh contracts.

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