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

The Nifty, which started on a positive note on Monday, rose to an intraday high of 10,850, but fierce selling in the last hour of trade pushed it below 10,800.

The index closed near its intraday low, making a ‘Gravestone Doji’ kind of pattern on the daily chart.

A Gravestone Doji is formed when the open, low and the closing price are all at a similar level. The candle would have a long upper shadow, which would depict a fall from the intraday high, and no lower shadow.

The long upper shadow indicates the selling pressure that pushed the index towards its opening level. It is considered as a bearish reversal candlestick pattern.

The Nifty, which opened at 10,781.85 rose to an intraday high of 10,850. Bulls took charge in the final hour of trade, pushing the index to an intraday low of 10,777.05. The index finally closed 19 points higher at 10,786.95.

Investors are advised to stay cautious as bears might try and regain control in the coming few sessions. It is crucial for the index to hold above 10,777 on Tuesday. Experts have placed the immediate resistance for the index at 10,850.

"The Nifty registered a bearish reversal formation called Gravestone Doji with a long upper shadow suggesting that bulls encountered selling pressure around its critical resistance point of 10,826 levels," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, told Moenycontrol.

"Hence, in the next trading sessions bears shall pick up momentum once they manage to push the prices below 10,777 levels and selling shall get accelerated further on a close below 10,709 levels marking a significant near-term top around 10,850 going forward," he said.

Mohammad added that after the index recorded a top of 10,850, there were suspicions of a fresh leg of downward movement in which it could potentially fall to below 10,550.

However, he also said that a close above 10,850 could reinstate bullish momentum. Traders are advised to remain neutral and avoid long side bets for the time being.

India VIX rose 3.78 percent to 13.18. On the options front, the maximum put open interest was seen at the 10,600 strike price, followed by the 10,700 strike price.

The maximum call open interest was seen at the 11,000 strike price, followed by the 10,900 strike price.

Fresh put writing was seen the most at the 10,800 and 10,700 strike prices, while fresh call writing was seen the most at the 10,900 and 11,100 strike prices.

The Bank Nifty closed largely unchanged, having lost its entire gain in a fall from its intraday high of 26,653 to the 26,420 mark.

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

Key Nifty support and resistance levels

The Nifty closed at 10,787.0 on Monday. According to Pivot charts, its key support is placed at 10,759.17, followed by 10,731.33. If the index starts moving upward, key resistance levels to watch out are 10,832.67 and 10,878.33.

Nifty Bank

The Nifty Bank index closed at 26,453.6. The important Pivot level, which will act as a crucial support for the index, is placed at 26,366.0, followed by 26,278.4. Key resistance levels are placed at 26,597.1, followed by 26,740.6.

Call options data

In terms of open interest, the 11,000 call option has seen the most call writing so far, with 39.35 lakh contracts being written. This level could act as a crucial resistance for the index in the June series.

The second-highest buildup was seen in the 10,800 call option, which has seen 30.59 lakh contracts getting written so far. The 10,900 call option has accumulated 29.29 lakh contracts.

The most call writing was seen at the strike price of 11,100, which saw 3.04 lakh contracts getting written, followed by 11,200, which added 2.28 lakh contracts and 10,900, which added 1.78 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed 3.32 lakh contracts, followed by 10,700, which shed 2 lakh contracts and 10,800, which shed 1.65 lakh contracts.

Put options data

Maximum open interest in put options was seen at the 10,600 strike price, in which 49.51 lakh contracts have been added till date. This level could be a crucial support for the index in the June series.

The 10,700 put option comes next, with 39.55 lakh contracts being added so far, followed by the 10,500 put option, which has now accumulated 36.82 lakh contracts.

Maximum put writing was seen at the strike prices of 10,800, which added 7.23 lakh contracts, followed by 10,700, which added 6.43 lakh contracts, and 10,400, which added 1.26 lakh contracts.

There was hardly any put unwinding seen.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,156.77 crore, while domestic institutional investors bought shares worth Rs 1,062.82 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.

54 stocks saw long build-up

65 stocks saw short covering:

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

63 stocks saw short build-up

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

30 stocks saw long unwinding

Bulk deals:

63 Moons: BP Fintrade traded over 2.4 lakh shares at Rs 87.1 apiece.

Reliance Industrial Infra: Mahaveer Equibiz traded over 1.29 lakh shares at Rs 455 apiece.

(For more bulk deals )

Analyst or board meet/briefings:

Container Corporation: The firm met analysts from Emkay on June 11, 2018.

State Bank of India: The bank met analysts on June 11, 2018.

Axis Bank: The bank met analysts from Seiga Asset Management on June 11, 2018.

Stocks in the news:

IFCI: It revised its benchmark rate to 10.4 percent from 10.2 percent.

Infosys: It has announced voluntary delisting of its American depositary shares from Euronext Paris & Euronext London.

Orchid Pharma: The firm has received EU GMP certification for its Alathur facility.

3 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.