Trade setup for June 26: Top 15 things to know before the opening bell

Nifty Trade Setup

The Nifty 50 had another gap-up opening on June 25 and gained further strength, closing above 25,200 for the first time since October last year, with a 0.8 percent rally ahead of the expiry of June derivative contracts scheduled for tomorrow. Given the favourable technical indicators and falling VIX, experts suggest that the index is likely to climb toward the 25,300–25,350 range in the upcoming sessions. Sustaining above this zone could open doors for targets in the 25,500–25,600 range, provided the index holds the support at 25,100–25,000.

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50 (25,245)

Resistance based on pivot points: 25,266, 25,300, and 25,354

Support based on pivot points: 25,158, 25,125, and 25,071

Special Formation: The index formed a bullish candle on the daily charts, continuing its higher-low formation for the fourth consecutive session. It sustained above short-term moving averages (10 and 20-day EMAs), with positive crossovers in the RSI (at 60.94) and Stochastic RSI. The MACD is on the verge of a positive crossover with an improving histogram, signaling a healthy uptrend.

2) Key Levels For The Bank Nifty (56,621)

Resistance based on pivot points: 56,674, 56,736, and 56,835

Support based on pivot points: 56,475, 56,413, and 56,314

Resistance based on Fibonacci retracement: 57,050, 57,566

Support based on Fibonacci retracement: 56,208, 56,006

Special Formation: The banking index reported a small bullish candle with upper and lower shadows, trading within the previous day's range, indicating consolidation. Similar to the Nifty 50, Bank Nifty continued its higher-bottom formation for the fourth straight session, holding above short-term moving averages. The RSI (at 60.66) and Stochastic RSI showed positive crossovers, while the MACD is poised for a positive crossover with further improvements in the histogram.

3) Nifty Call Options Data

According to the monthly options data, the 26,000 strike holds the maximum Call open interest (with 1.32 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,500 strike (1.1 crore contracts), and the 25,300 strike (97.67 lakh contracts).

Maximum Call writing was observed at the 25,250 strike, which saw an addition of 17.79 lakh contracts, followed by the 25,600 and 25,350 strikes, which added 16.55 lakh and 13.64 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,100 strike, which shed 50.49 lakh contracts, followed by the 26,000 and 25,000 strikes, which shed 43.6 lakh and 31.7 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 25,200 strike (with 1.49 crore contracts), which can act as a key support level for the Nifty. It was followed by the 25,000 strike (1.3 crore contracts) and the 24,500 strike (98.8 lakh contracts).

The maximum Put writing was placed at the 25,200 strike, which saw an addition of 98.59 lakh contracts, followed by the 25,150 and 25,100 strikes, which added 44.58 lakh and 42.08 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,700 strike, which shed 5.62 lakh contracts, followed by the 26,000 and 25,900 strikes which shed 3.16 lakh and 9,075 contracts, respectively.

5) Bank Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 57,000 strike, with 18.09 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (14.14 lakh contracts) and the 57,500 strike (13.87 lakh contracts).

Maximum Call writing was visible at the 56,600 strike (with the addition of 3.71 lakh contracts), followed by the 57,000 strike (3.15 lakh contracts), and the 57,700 strike (2.54 lakh contracts). The maximum Call unwinding was seen at the 58,500 strike, which shed 2.38 lakh contracts, followed by the 56,000 and 56,200 strikes, which shed 1.98 lakh and 84,480 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the 56,000 strike holds the maximum Put open interest (with 21.17 lakh contracts), which can act as a key support level for the index. This was followed by the 55,000 strike (15.55 lakh contracts) and the 56,500 strike (13.96 lakh contracts).

The maximum Put writing was observed at the 56,500 strike (which added 4.79 lakh contracts), followed by the 56,600 strike (4.34 lakh contracts) and the 55,000 strike (2.9 lakh contracts). The maximum Put unwinding was seen at the 55,400 strike, which shed 1.08 lakh contracts, followed by the 55,300 and 58,000 strikes, which shed 60,450 and 21,150 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.13 on June 25, compared to 0.85 in the previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

9) India VIX

The India VIX, the market's fear gauge, extended its downtrend and hit its lowest closing level since March 28, declining by 4.98 percent to 12.96. This further boosts the confidence of the bulls.

10) Long Build-up (57 Stocks)

A long build-up was seen in 57 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (24 Stocks)

24 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

12) Short Build-up (36 Stocks)

36 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

13) Short-Covering (108 Stocks)

108 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.

15) Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Stocks added to F&O ban: Birlasoft, MCX India

Stocks retained in F&O ban: Titagarh Rail Systems

Stocks removed from F&O ban: Nil