Trade Setup for Thursday: Top 15 things to know before Opening Bell

The Nifty bounced back after hitting its 50-days exponential moving average (DEMA) placed at 10,562 on Wednesday to close above its crucial resistance level of 10,600. It made a bullish candle on intraday basis because the closing level was higher than the opening level.

The 50-share index, which opened at 10,579, rose to an intraday high of 10,648 before bears took control and pushed the index below 10,600. The index touched an intraday low of 10,558 before closing the day at 10,614.35, down 18.95 points.

The Nifty also witnessed a sharp recovery post 1pm; the index still closed in red but above its opening levels which made a bullish candle on the daily charts even though the Nifty closed nearly 19 points lower.

Technical chartists advise investors to remain cautious ahead of the expiry and wait for the index to close above 10,700-10,717 levels for the momentum to continue. However, a breach of 10,550 on the downside could take Nifty towards 10,480 levels, suggest experts.

“Wednesday’s intraday price behaviour was quite encouraging for bulls as bears failed to capitalise on the gap-down opening as Nifty smartly recoiled, after testing its 50 day exponential moving average, to sign off the session around higher end of intraday trading range with a bullish candle on intraday basis,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, more strength and directional clarity in the index shall emerge if it manages to get past 10,717 levels on closing basis. In such a scenario higher targets close to 10,900 can be expected going forward,” he said.

Mohammad further added that contrary to this, breach of 10,550 shall enhance selling pressure on the markets with initial targets placed around 10,480 kind of levels. “Traders are advised to focus on stock specific opportunities with a stop below 10,550 on a closing basis for long positions,” he added.

India VIX moved up by 2.16 percent at 13.41 levels. The Nifty index is flattish on expiry to expiry basis as April series closed at 10,617.80 and it is hovering near the same zones.

We have collated top 15 data points to help you spot profitable trade:

Key support and resistance level for Nifty

The Nifty closed at 10,614.3 on Wednesday. According to Pivot charts, the key support level is placed at 10,565.63, followed by 10,516.97. If the index starts moving upward, key resistance levels to watch out are 10,655.83 and 10,697.37.

Nifty Bank

The Nifty Bank index closed at 26,327.8. The important Pivot level, which will act as crucial support for the index, is placed at 26,070.6, followed by 25,813.4. On the upside, key resistance levels are placed at 26,495.2, followed by 26,662.6.

Call Options data

In terms of open interest, the 10,800 Call option has seen the most call writing so far at 52.17 lakh contracts. This could act as a crucial resistance level for the index in the May series.

The second-highest buildup has taken place in the 10,700 call option, which has seen 40.83 lakh contracts getting written so far. The 10,600 call option has accumulated 30.54 lakh contracts.

Highest Call writing was seen at the strike price of 10,600, which added 8.41 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed 9.33 lakh contracts, followed by 10,700, which shed 5.16 lakh contracts, and 10,900, which shed 4.29 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 60.22 lakh contracts has been added till date. This could be a crucial resistance level for the index in May series.

The 10,600 put option comes next, having added 36.94 lakh contracts so far, and the 10,000 put option, which has now accumulated 34 lakh contracts.

Put writing was seen at the strike price of 10,500, which added 10.25 lakh contracts.

Put unwinding was seen at the strike price of 10,700, which shed 7.45 lakh contracts and 10,600, which shed 3.64 lakh contracts along with 10,100, which shed 2.45 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 1,286.91 crore, while domestic institutional investors bought shares worth Rs 492.46 crore in the Indian equity market, as per provisional data available on the NSE.

Fund flow picture:

Stocks with high delivery percentage:

High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.

39 stocks saw long buildup:

50 stocks saw short covering:

A decrease in open interest along with an increase in price mostly indicates short covering.

59 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates build-up of short positions.

62 stocks saw long unwinding

Bulk Deals:

Jubilant Foodworks: Axis Mutual Fund bought 359,250 shares at Rs 2,542.77 per share

Jauss Polymers: Pratibhuti Viniyog bought 100,050 shares at Rs 18.15 per share

(For more bulk deals )

Analyst or Board Meet/Briefings:

Hero MotoCorp: The firm will be meeting multiple investors on June 6 and 7, 2018.

Voltas: Zaaba Capital, Batlivala and Karani Securities, Morgan Stanley, UBS, and Stewart Investors will be meeting investors between May 31 and June 8, 2018.

Stocks in news:

ICICI Bank-Videocon case: Bank calls for probe against Chanda Kochhar after another complaint

Bhushan Steel: Firm reiterates that increase in share price or volume is purely due to market conditions.

UltraTech: The firm has received letter of intent from Binani Cement’s committee of creditors

Punj Llyod posts Q4 profit of Rs 944 crore.

EIH: Q4 net up 11% at Rs 56 crore

IOB: Q4 loss widens to Rs 3,606.73 cr on rising bad loans

8 stocks under ban period on NSE

Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For May 31, 2018 stocks such as Balrampur Chini, DHFL, GMR Infra, IDBI, IDFC Bank, JP Associates, Just Dial and Reliance Communications are present in this list.