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

Rohit Singer of LKP Securities said as Nifty has given a double bottom breakout on the daily chart, if index managed to sustain above 11,875 zones then it may see further upmove towards immediate hurdle of 12,000 zones.

The market rallied for the second straight day and ended at a two-week closing high on June 26 with the Nifty surpassing its 50-DEMA, backed by optimism over the US-China trade deal.


The BSE Sensex gained 157.14 points to 39,592.08, driven by banks, metals and pharma stocks while the Nifty 50 rose 51 points to 11,847.50, forming a bullish candle on daily charts.

"Index has formed a big body bullish candlestick pattern indicating current momentum to continue unless it trades below 11,750 levels," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.

He said as long as higher high and higher low formation in the index is intact, trading with buy on dip strategy is advised whereas a decisive trade above 11,870 is likely to push prices higher toward the 11,980-12,070 zone.

Rohit Singer, Senior Technical Analyst - LKP Securities also said as Nifty has given a double bottom breakout on the daily chart, if the index managed to sustain above 11,875 zones then it may see further up move towards immediate hurdle of 12,000 zones.

Participation was also seen from broader markets as the Nifty Midcap index gained a percent and Smallcap index rose 0.75 percent.

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

The key support and resistance level for Nifty

Nifty closed at 11,847.55 on June 26. According to the Pivot charts, the key support level is placed at 11,779.4, followed by 11,711.3. If the index starts moving upward, key resistance levels to watch out are 11,893.7 and 11,939.9.

Nifty Bank

The Nifty Bank closed at 31,162.35, up 315.30 points on June 26. The important Pivot level, which will act as crucial support for the index, is placed at 30,885.1, followed by 30,607.9. On the upside, key resistance levels are placed at 31,321.1, followed by 31,479.9.

Call options data

Maximum Call open interest (OI) of 35.23 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 11,900 strike price, which now holds 25.98 lakh contracts in open interest, and 12,500, which has accumulated 14.21 lakh contracts in open interest.

Significant Call writing was seen at 11,900 strike price that added 3.12 lakh contracts, followed by 12,000 strike price that added 0.36 lakh contracts.

Call unwinding was seen at the strike price of 11,800, which shed 10.92 lakh contracts, followed by 12,100 strike that shed 2.91 lakh contracts and 11,700 strikes which shed 2.57 lakh contracts.

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