The NewsYet – Trade Setup for Thursday: Top 15 things to know before Opening Bell – Moneycontrol.com
The NewsYet –
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:
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.
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 strike which added 2.95 lakh contracts, followed by 12,100 strike that added 1.97 lakh contracts and 11,900 strike 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 strike which shed 1.21 lakh contracts.
Put options data
Maximum Put open interest of 34.40 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the June series.
This was followed by 11,800 strike price, which now holds 18.49 lakh contracts in open interest and 11,700 strike price, which has now accumulated 18.41 lakh contracts in open interest.
Put writing was seen at the 11,500 strike price, which added 6.17 lakh contracts, followed by 11,200 strike which added 0.92 lakh contracts.
Put unwinding was seen at the strike price of 11,800, which shed 0.72 lakh contracts, followed by 12,300 strike which shed 0.14 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
52 stocks saw a long buildup
6 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
104 stocks saw a short build-up
An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.
34 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 1,050.43 crore while Domestic Institutional Investors (DIIs) bought Rs 271.15
crore worth of shares in the Indian equity market on June 12, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Tata Motors: Group May total global wholesale sales down 23 percent at 82,374 units YoY. JLR global sales at 39,895 units.
SAIL: Company likely to auction three loss-making steel plants – CNBC-TV18 sources
Mercator: RBI approved the amendment of the existing terms and conditions of the $16,000,000 4.75% Unsecured Foreign Currency Convertible Bonds (FCCBs) issued by the company.
Wipro: Company partners with Moogsoft to deliver next-gen AIOps solutions.
Kopran: Unlisted preference shares would be redeemed on the due date in June as per the terms of the issue out of accumulated profits.
Tiger Logistics: CARE revised the outlook of credit rating for bank facilities to negative from stable.
Music Broadcast: Company entered into a definitive binding agreement for the acquisition of Reliance Broadcast Network Limited (Big FM).
Power Finance Corporation: Company successfully tapped the international market and raised $1 billion through Reg- S bonds in one go.
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Analyst or Board Meet/Briefings
Polycab India: Meeting is scheduled on June 13 with the institutional investors.
NOCIL: Company’s officials will meet IIFL Securities on June 13.
Allcargo Logistics: Analyst/Institutional Investor meeting is scheduled to be held on June 14.
Camlin Fine Sciences: Senior management will be attending the IIFL Life Sciences & Chemicals Conference to be held on June 14.
Beardsell: Meeting of the board of directors is scheduled on June 28 to consider the issue of shares to existing equity shareholders on rights basis.
Four stocks under F&O ban period on NSE
For June 13, IDBI Bank, PC Jeweller, Reliance Capital and Reliance Infrastructure are under the F&O ban period.