Trade Setup for Today: 15 Things to Know Before the Opening Bell

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Indian benchmark indices ended higher for the second consecutive session amid volatility. The Nifty Index showed strength after a gap-up opening, ending higher at 22,821.40, forming a green doji candle. On the lower side, Nifty has strong support near 22,600 levels, which is also close to its 20-Day EMA levels. According to experts, if the Nifty index fails to hold the mentioned support, it can witness further correction towards the next support of 22,400 levels. On the higher side, Nifty has strong resistance near 23,000 levels. Here are 15 data points to help you spot profitable trades:

Key Levels for the Nifty 50

Supports based on pivot points: 22,051.4, 21,482.45, and 20,604.
Resistance based on pivot points: 22,929.85, 23,239.35, and 24,117.8.
Special Formation: Technically, on a daily scale, the index has formed small bullish candles. On the upside, the immediate resistance for the index is placed near the 23,000 level.

Key Levels for the Bank Nifty

Resistance based on pivot points: 50,129.4, 51,204.2, and 54,120.3.
Support based on pivot points: 47,213.3, 45,372, and 42,455.9.
Special Formation: Bank Nifty traded volatilely after a gap-up opening today, forming a doji candle on the daily chart. The index managed to close above 49,200 levels, signaling strength. On the lower side, the index has strong support near 48,700 levels, which is also near its short-term (20-Day) EMA levels. On the higher side, Bank Nifty faces minor resistance in the range of 49,500-49,650 levels.

Nifty Call Options Data: According to weekly options data, the 23,000 strike (with 2.15 crore combined OI) had the maximum Call open interest, acting as a key resistance level for the Nifty in the short term. This was followed by the 23,200 strike (1.22 crore combined OI) and the 23,300 strike (1.06 crore combined OI). Call writers exiting and additional put writing were observed across strikes from 22,000 to 22,500, keeping the Nifty index steady today.
Nifty Put Options Data: On the Put side, the maximum open interest was at the 22,800 strike (with 1.62 crore combined OI), followed by the 22,500 strike with 1.40 crore combined OI, acting as a key support level for the Nifty.
FII Funds Flow (Rs crore):

Put-Call Ratio: The Nifty Put-Call ratio (PCR), indicating market sentiment, has further improved to 0.81 on June 7 from 0.75 in the previous session. An increasing PCR above 0.7 or surpassing 1 generally indicates bullish sentiment, while a ratio below 0.7 or moving towards 0.5 indicates a bearish mood.
Nifty Max Pain Point: The Nifty max pain point has shifted from the 22,500 strike price to the 22,750 strike. The max pain theory shows the level at which option sellers are likely to have the least loss on expiry.

India VIX: The India VIX further cracked 11.04 percent on an intraday basis and settled at 16.80. The cooling off volatility gave comfort to the bulls. Yesterday, post-election results, VIX, the fear index, had seen a sharp fall, closing at 18.88 percent.

Long Build-up (99 Stocks): A long build-up was seen in 99 stocks, indicated by an increase in open interest (OI) and price.
Long Unwinding (9 Stocks): 9 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
Short Build-up (30 Stocks): 30 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
Short-Covering (47 Stocks): 47 stocks saw short-covering, indicated by a decrease in OI along with a price increase.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: None
Stocks retained in F&O ban: Zee Entertainment Enterprises
Stocks removed from F&O ban: None

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.