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

Shabbir Kayyumi of Narnolia Financial Advisors said a close below the important support of 11,870 will change the current bullish sentiment.

The market snapped a three-day winning streak to close sharply lower on June 12 as traders turned cautious ahead of the factory and retail inflation data expected later in the day.


The BSE Sensex fell 193.65 points to 39,756.81, dragged by banking & financials and auto stocks. The Nifty 50 managed to close a tad above 11,900 after hitting an intraday low of 11,866.35, down 59.40 points to 11,906.20. The index formed a bearish candle resembling a Bearish Belt Hold pattern on the daily charts.

"Although the index formed a bearish body momentum candlestick pattern, the market witnessed intensified buying in the last trading hour, pushing it higher above 5 SMA placed around 11,901 levels which indicates positive short term trend is intact," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.

He said any decisive move above 11,960 will push the index higher towards crucial resistance zone of 12,000-12,040 levels.

On the contrary side, a close below the important support of 11,870 will change the current bullish sentiment, he added.

The market breadth was negative throughout the day - About 1,468 shares declined against 1,022 advancing shares on the BSE. The Nifty Midcap index lost 0.8 percent and Smallcap index fell 0.24 percent.

Among sectors, Nifty Bank and Auto were down a percent each while Realty fell 2 percent.

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

The key support and resistance level for Nifty

Nifty closed at 11,906.20 on June 12. According to the Pivot charts, the key support level is placed at 11,860.83, followed by 11,815.47. If the index starts moving upward, key resistance levels to watch out are 11,957.03 and 12,007.87.

Nifty Bank

The Nifty Bank index closed at 30,965.70, down 299.75 points on June 12. The important Pivot level, which will act as crucial support for the index, is placed at 30,843.97, followed by 30,722.23. On the upside, key resistance levels are placed at 31,154.87, followed by 31,344.04.

Call options data

Maximum Call open interest (OI) of 22.30 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 21.26 lakh contracts in open interest, and 12,200, which has accumulated 15.54 lakh contracts in open interest.

Significant Call writing was seen at 12,000 strikes which added 2.95 lakh contracts, followed by 12,100 strikes that added 1.97 lakh contracts and 11,900 strikes which added 1.69 lakh contracts.

Call unwinding was seen at the strike price of 12,500, which shed 3 lakh contracts, followed by 12,300 strikes which shed 1.21 lakh contracts.

A special offer this week. take 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

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

Image
Rohit Singre of LKP Securities said index formed bullish candle on daily chart suggesting some more upside before expiry. The market rebounded sharply on June 25 after a correction in the previous two consecutive sessions. Overall though it has remained in a 200-point range on the Nifty for the last several sessions. The buying was across sectors with Nifty Metal rising most with 1.7 percent gain followed by PSU Bank (up 1 percent). The BSE Sensex gained 311.98 points to close at 39,434.94 while the Nifty 50 climbed 96.80 points to 11,796.50 and formed bullish candle resembling a Bullish Engulfing kind of pattern on daily charts. "Index has managed to sustain above previous day's high forming Bullish Engulfing candlestick pattern indicating a positive bias to continue towards 11,980-12,070 levels, unless it trades below 11,720 levels," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol. He said any decisive...
Read more