Monday’s Trade Setup: The Top 15 Things to Know Before the Opening Bell

Here are the 82 stocks with a short build-up based on open interest future percentage, including JK Cement, Deepak Nitrite, Shree Cements, Dalmia Bharat, and ACC.

On June 3, the market’s strong rally was broken in the final hour of trading, and the market ended with moderate losses, with all sectoral indices, except IT, closing in the red.

The BSE Sensex fell more than 660 points from its day’s high, closing 49 points lower at 55,769, while the Nifty50 fell 44 points to 16,584 and formed a bearish candle on the daily charts, indicating market participants’ nervousness.

The Nifty Midcap 100 and Smallcap 100 indices both fell 1.6 percent and 0.86 percent, respectively, as the broader markets were caught in the bear trap.

Trade Setup
Trade Setup

“With an intraday high of 16,793, the Nifty50 experienced selling pressure as it tested its 200-day exponential moving average (EMA). This sell-off, which is accompanied by a bearish candle, could be an early sign of a short-term reversal “Founder and Chief Market Strategist at Chartviewindia, Mazhar Mohammad.

To maintain their chances of a comeback, the bulls needed to defend the low of 16,578 levels in the next session, or weakness could extend to 16,400. If the Nifty closes below 16,370, the trend will shift in favor of bears, according to the market expert.

Traders should remain neutral for the time being, he said, as the market may wait for more clues from the upcoming RBI monetary policy meeting.

We’ve compiled 15 data points to assist you in identifying profitable trades:

Note that the open interest (OI) and volume data for stocks in this story are three-month averages, not just for the current month.

The Nifty’s key support and resistance levels

Trade Setup
Trade Setup

The pivot charts show that the Nifty’s key support level is 16,503, followed by 16,423. The key resistance levels to watch if the index rises are 16,729 and 16,875.

Nifty Bank is a financial institution that specializes in the

On Friday, the Nifty Bank fell 339 points, or nearly 1%, to close at 35,275. The pivot level, which will serve as critical support for the index, is 34,981, followed by 34,686. On the upside, key resistance levels of 35,764 and 36,253 have been identified.

Data on the call option

At the 17,500 strike, there was a maximum Call open interest of 23.78 lakh contracts, which will act as a key resistance level in the June series.

Then there’s 17,000 strike, which has 21.28 lakh contracts under its belt, and 18,000 strike, which has 17.08 lakh contracts under its belt.

The 16,900 strike added 1.2 lakh contracts, followed by the 18,000 strike, which added 86,800 contracts, and the 16,800 strike, which added 77,400 contracts.

The 16,500 strike lost 2.57 lakh contracts, followed by the 16,400 strike, which lost 1.95 lakh contracts, and the 16,600 strike, which lost 87,750 contracts.

Optional data should be entered

At the 16,000 strike, there was a maximum Put open interest of 39.35 lakh contracts, which will act as a crucial support level in the June series.

The 15,500 strike, which has 30.57 lakh contracts, is followed by the 15,000 strike, which has 23.15 lakh contracts.

Trade Setup
Trade Setup

The 16,100 strike saw the most put writing, with 2.67 lakh contracts added, followed by 15,600 strike with 1.57 lakh contracts added and 16,700 strike with 1.38 lakh contracts added.

The 16,400 strike lost 1.54 lakh contracts, followed by the 16,500 strike, which lost 60,250 contracts, and the 15,300 strike, which lost 59,100 contracts.

Stocks with a high percentage of deliveries

A high delivery percentage indicates that these stocks have piqued the interest of investors. Havells India, Power Grid Corporation of India, Tata Communications, Alkem Laboratories, and Bharti Airtel were among the companies with the highest delivery rates.

There was a long build-up in 9 stocks

A rise in open interest accompanied by a rise in price usually indicates a build-up of long positions. Here are the 9 stocks with a long build-up based on open interest future percentage, including Indiabulls Housing Finance, Birlasoft, Hindustan Copper, Alkem Laboratories, and Rain Industries.

Long unwinding was seen in 85 stocks

A drop in open interest accompanied by a drop in price usually indicates a long unwinding. Here are the top 10 stocks with long unwinding based on open interest future percentage: Nifty Financial, Apollo Tyres, Max Financial Services, Coal India, and Astral.

There was a short build-up in 82 stocks

An increase in open interest accompanied by a drop in price usually indicates the accumulation of short positions. Here are the top 10 stocks with a short build-up based on open interest future percentage, including JK Cement, Deepak Nitrite, Shree Cements, Dalmia Bharat, and ACC.

Short-covering was seen in 25 stocks

Short-covering is usually indicated by a decrease in open interest combined with an increase in price. Here are the top 10 stocks where short-covering was observed, based on open interest future percentage: Persistent Systems, L&T Infotech, Infosys, Metropolis Healthcare, and M&M Financial.

On June 6, there will be Investor Meetings

Cummins India: Officials from the company will meet with First State Investments.

Officials from Clean Science and Technology will attend the Axis Capital Investor Meet and meet Motilal Oswal.

Officials from Tata Consumer Products will meet with RBC Global Asset Management (UK) and Ninety One.

CSB Bank will send representatives to YES Securities’ High Conviction Ideas Conference.

Officials from Sona BLW Precision Forgings will attend the Nomura Investment Forum Asia 2022.

Voltas: Officials from the company will meet with Batlivala & Karani Securities India.

Officials from JSW Energy will attend the Investec India – New & Renewable Energy Conference.

Asian Paints will meet with Deutsche Investment Management and participate in the Nomura Investment Virtual Forum Asia 2022.

Dr Lal PathLabs: Motilal Oswal Asset Management Company will meet with company officials.

UltraTech Cement: Officials from the company will meet with MFS Investment Management.

New Port Capital, Ripple Wave Equity Advisors LLP, KR Choksey Shares & Securities, Mytemple Capital Advisors LLP, Dalai & Broacha Stock Broking, Accendo Capital, and SBI Cap Securities are among the companies Max India will meet with.

Officials from Axis Bank will attend the Nomura Investment Forum Asia 2022.

Read Also: The RBI is expected to raise interest rates by 0.40 % next week, according to a report

In the News: Stocks

Ujjivan Small Finance Bank said its board of directors will meet on June 8 to consider a proposal to raise funds through the private placement of debt securities in one or more tranches.

RattanIndia Power: Due to personal reasons, Vibhav Agarwal has resigned as the company’s Managing Director. As a result, on June 3, he ceased to be a member of the company’s Key Management Personnel. For the interim period, until a new Managing Director is appointed by the company, Asim Kumar De, the company’s Whole Time Director, has assigned additional responsibilities to discharge the functions that were previously assigned to the Managing Director.

Trade Setup
Trade Setup

SBI Mutual Fund purchased 59,171 equity shares in V-Guard Industries via open market transactions on June 2 through its various schemes. As a result, its stake in the company has risen to 9.04 percent, up from 9.027 percent previously.

Poonawala Fincorp: The Securities and Exchange Board of India (Sebi) has lifted Abhay Bhutada’s securities market ban in a case involving alleged insider trading in Magma Fincorp’s shares (which is now known as Poonawalla Fincorp). Sebi discovered that “Abhay Bhutada had not communicated UPSI (unpublished price sensitive information)” after conducting a thorough investigation into the matter. (PTI)

Prudent Corporate Advisory Services: On June 3, the promoter group Niketa Sanjay Shah & PACs bought 2.6 lakh equity shares in the company through open market transactions. As a result, the promoters’ shareholding in the company has increased to 58.44%, up from 57.81% previously.

Adani Transmission has signed a Share Purchase Agreement with Essar Power Transmission Company to acquire a 100 percent stake in the company (EPTCL). The acquisition is in line with the company’s value-added growth strategy, which includes both organic and inorganic growth. The purchase price is Rs 1,913 crore.

Savita Oil Technologies: According to a BSE filing, the board of directors will consider dividing the company’s equity shares on June 21.

Read Also: Despite Golden Handcuffs, Elon Musk opens the door to a Tesla talent exodus

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