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

The Nifty, which started the week on a positive note, failed to keep its momentum going and hold on to its crucial resistance placed at around 10,770 on Monday.

The index made a strong bearish candle on the daily candlestick chart, which also closely resembles a pattern similar to a Bearish Belt Hold.

Analysts advise investors to avoid long positions for now and stay on the sidelines till the monetary policy committee's meet gets done with. Hawkish commentary from the Reserve Bank of India could lead to a knee-jerk reaction in the market.

The Nifty broke below its crucial short-term moving averages (13-day,5-day, and 20-day EMA) and its next support is placed at 10,576 and 10,558. Bulls would only be able to take control over the market once Nifty closes above 10,770.

The Nifty, which opened at 10,765 on Monday, rose to an intraday high of 10,770.30. However, bears eventually took control over the index and pushed it below 10,700, and 10,650, to hit an intraday low of 10,618.35. The index finally closed 67.70 points lower at 10,628.50.

"The tide may be slowly tilting in favour of bears as Nifty was sold off from day’s high of 10,770 levels before signing off the session with a strong bearish candle formation. Interestingly for last three sessions bulls struggled to get past the level placed around 10,770 which shall now become a formidable resistance point on the upside," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in.

"Hence, unless this level is cleared upsides shall continue to remain capped and Nifty shall be heading to lower levels with initial targets placed around 10,558, and a breach of which shall further accelerate downward pressure on the markets," he said.

Mohammad added that based on long-term projections of trends, the possible end point for this downward move is placed below 10,419, to culminate one leg of the corrective structure. Short-term traders are advised to avoid long side bets, barring select scrips where likelihood of an upward move is clearly visible.

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

Key Nifty support and resistance levels

The Nifty closed at 10,628.5 on Monday. According to Pivot charts, its key support is placed at 10,574.43, followed by 10,520.37. If the index starts moving upward, key resistance levels to watch out are 10,726.43 and 10,824.37.

Nifty Bank

The Nifty Bank index closed at 26,257.6. The important Pivot level, which will act as crucial support for the index, is placed at 25,959.8, followed by 25,662.0. On the upside, key resistance levels are placed at 26,801.5, followed by 27,345.4.

Call option data

In terms of open interest, the 11,000 call option has seen the most call writing so far at 39.73 lakh contracts. This could act as a crucial resistance for the index in the June series.

The second-highest buildup has taken place in the 10,700 call option, which has seen 31.78 lakh contracts getting written so far. The 10,800 call option has accumulated 27.28 lakh contracts.

Highest call writing was seen at the strike price of 10,700, which added 9.87 lakh contracts, followed by 10,800, which added 5.33 lakh contracts, and 10,900, which added 3.54 lakh contracts.

There was hardly any call unwinding seen.

Put options data

Maximum open interest in put options was seen at the 10,200 strike price, in which 35.34 lakh contracts have been added till date. This could be a crucial support for the index in the June series.

The 10,600 put option comes next, with 34.69 lakh contracts being added so far, followed by the 10,500 put option, which has now accumulated 28.04 lakh contracts.

Maximum put writing was seen at the strike prices of 10,300 and 10,600, which added 3.77 lakh contracts, followed by 10,200, which added 3.48 lakh contracts, and 10,100, which added 1.67 lakh contracts.

Hardly any put unwinding was seen.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 2,354.03 crore, while domestic institutional investors sold shares worth Rs 712.41 crore in the Indian equity market, as per provisional data available on the National Stock Exchange.

Fund flow picture:

Stocks with higher delivery percentage

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

24 stocks saw long build-up

18 stocks saw short covering:

A decrease in open interest along with an increase in prices is generally indicative of short covering.

121 stocks saw short build-up

An increase in open interest along with a decrease in prices is generally indicative of a buildup of short positions.

45 stocks saw long unwinding

Bulk deals:

Bhushan Steel: BP Fintrade traded over 22 lakh shares at Rs 45 apiece.

Justdial: Crossland Trading traded over 4.3 lakh shares at Rs 568.95 per share.

PC Jeweller: Crossland Trading exchanged over 22 lakh shares at Rs 136-137.05 apiece.

Shankara Buildpro: Alliant Techsystems sold 1.17 lakh shares at Rs 1,535.15.

(For more bulk deals click here)

Analyst or board meet/briefings:

Bajaj Corp: The company participated in an analysts' call on June 4.

Mahindra Holidays: IDBI Mutual Fund and Motilal Oswal will meet the company's management on June 5 and June 6.

Indian Hotels: Multiple investors will meet the company's management in an investors' conference on June 5.

EClerx: Emkay, JM Financial, and Matthews International Capital will meet the firm between June 5 and June 19.

Stocks in the news:

PNB: Fitch downgraded PNB's viability rating to 'B', maintaining its rating watch at 'negative'

NIIT: The company signed a learning and development partnership with Pitney Bowes.

Vedanta: The company paid Rs 5,300 crore to the Committee of Creditors for Electrosteel Steels.

Idea Cellular gets approval to increase FDI limit in company to 100%

Vedanta pays Rs 5,300 crore for acquisition of Electrosteel Steel

No stocks under ban period on the NSE

Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.