Trade setup for June 27: Top 15 things to know before the opening bell

Nifty Trade Setup for June 27

The Nifty 50 had a strong close on June 26, the monthly F&O expiry session, rising 1.2 percent and continuing its upward journey for the third straight day. The index marked a fresh nine-month closing high, supported by a further cooling of the VIX. Given the bullish sentiment and the expansion in Bollinger Bands following a significant consolidation breakout, the Nifty 50 is expected to face a hurdle in the 25,650–25,750 zone in the upcoming sessions. A breakout above this zone could open the path toward the 26,000 level, while support is seen at the 25,400–25,300 levels, according to experts.

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

1) Key Levels For The Nifty 50 (25,549)

Resistance based on pivot points: 25,575, 25,647, and 25,763

Support based on pivot points: 25,341, 25,269, and 25,153

Special Formation: The Nifty 50 formed a long bullish candlestick on the daily charts, continuing its higher lows formation for the fifth straight session, alongside the expansion in Bollinger Bands. The index finished above the upper line of the Bollinger Bands and also broke above the upward-sloping resistance trendline. It recorded above-average volumes, while key technical indicators—RSI, Stochastic RSI, and MACD—showed positive crossovers, with the MACD histogram turning bullish.

2) Key Levels For The Bank Nifty (57,207)

Resistance based on pivot points: 57,279, 57,445, and 57,715

Support based on pivot points: 56,740, 56,574, and 56,305

Resistance based on Fibonacci retracement: 57,585, 58,250

Support based on Fibonacci retracement: 56,447, 56,195

Special Formation: The Bank Nifty hit a fresh record high of 57,263 and closed above the upper line of the Bollinger Bands, forming a long bullish candle. Trading volumes were above average, and the index also extended its higher lows formation for the fifth consecutive session. The RSI, Stochastic RSI, and MACD all displayed positive crossovers, with a bullish bias evident in the MACD histogram.

3) Nifty Call Options Data

According to the weekly options data, the maximum Call open interest was seen at the 26,500 strike (with 60.73 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 26,000 strike (49.93 lakh contracts), and the 25,500 strike (47.72 lakh contracts).

Maximum Call writing was observed at the 26,500 strike, which saw an addition of 30.93 lakh contracts, followed by the 25,500 and 26,000 strikes, which added 18.57 lakh and 16.71 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,200 strike, which shed 11.55 lakh contracts, followed by the 25,250 and 25,100 strikes, which shed 3.93 lakh and 2.71 lakh contracts, respectively.

4) Nifty Put Options Data

On the Put side, the 25,000 strike holds the maximum Put open interest (with 58.25 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 25,500 strike (51.51 lakh contracts) and the 25,200 strike (51.12 lakh contracts).

The maximum Put writing was placed at the 25,500 strike, which saw an addition of 48.02 lakh contracts, followed by the 25,400 and 25,300 strikes, which added 37.45 lakh and 28.31 lakh contracts, respectively. The maximum Put unwinding was seen at the 26,500 strike, which shed 45,675 contracts.

5) Bank Nifty Call Options Data

According to the monthly options data, the 56,000 strike holds the maximum Call open interest, with 14.28 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 57,000 strike (7.8 lakh contracts) and the 58,000 strike (5.6 lakh contracts).

Maximum Call writing was visible at the 59,000 strike (with the addition of 1.64 lakh contracts), followed by the 57,000 strike (1.54 lakh contracts), and the 57,500 strike (1.44 lakh contracts). The maximum Call unwinding was seen at the 56,600 strike, which shed 17,325 contracts, followed by the 56,400 and 55,800 strikes, which shed 6,545 and 2,940 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 56,000 strike (with 19.32 lakh contracts), which can act as a key support level for the index. This was followed by the 57,000 strike (8.54 lakh contracts) and the 56,500 strike (4.73 lakh contracts).

The maximum Put writing was observed at the 57,000 strike (which added 4.6 lakh contracts), followed by the 56,000 strike (2.12 lakh contracts) and the 55,500 strike (1.9 lakh contracts). There was hardly any Put unwinding seen in the 55,250-59,250 strike band.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, climbed further to 1.28 on June 26 (the highest since May 12), compared to 1.13 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, which measures expected market volatility, dropped for the third consecutive session and ended at 12.59 (its lowest closing level since March 21), down 2.87 percent. This further boosted confidence among the bulls.

10) Long Build-up (4 Stocks)

A long build-up was seen in 4 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (50 Stocks)

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

12) Short Build-up (6 Stocks)

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

13) Short-Covering (164 Stocks)

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

14) High Delivery Trades and High Rollovers

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.

Here are the stocks which saw the highest rollovers on expiry day.

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: Nil

Stocks retained in F&O ban: Nil

Stocks removed from F&O ban: Nil