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

The late rally in banking & financials helped the 50-share NSE Nifty recoup all its losses seen in the previous session and closed strongly above 10,800 levels on Friday, forming a 'Bullish Engulfing' pattern on the daily chart.

The index rebounded sharply from close to its support levels of 10,700 levels.

A bullish engulfing pattern is made up of two candles and is formed when a small black candle is followed by a large bullish candle that completely engulfs the previous day’s candle.

Formation of bullish engulfing pattern signifies that bulls have taken control over D-Street from bears.

The Nifty50, after opening at 10,742.70 traded lower in the morning to hit day's low of 10,710.45, recouped all those losses in afternoon and then turned strong in the last hour of trade to hit an intraday high of 10,837. It ended at 10,821.90, higher by 80.80 points from the last close.

The Nifty is few points away from 10,850, the crucial level for bulls to gain strength and move towards earlier record high, experts said.

"Albeit Nifty strongly rebounded from the right technical support level of 10,700 before signing off the session with a Bullish Engulfing kind of formation," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.

He said the index has reached a zone where multiple resistance points in the form of downsloping trendline, bearish gap zone and previous swing high are placed around 10,840 levels. "Hence, a sustainable close above 10,850 shall instill more confidence in bulls which should then ideally result in clearing all the hurdles on its way to new life time highs."

He further said however, today's positive close is inline with its recent behaviour in which both bulls and bears are displaying their strength on alternate days. "Hence, a follow through buying on Monday with a decisive breakout above 10,850 shall catapult the trend in favour of bulls."

As of now it looks prudent on the path of traders either to buy on a breakout above 10,850 or on declines close to 10,740 levels with a stoploss below 10,700, he advised.

India VIX fell down by 3.43 percent at 12.02 levels.

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

Key support and resistance level for Nifty

The Nifty closed at 10,821.8 on Friday. According to Pivot charts, the key support level is placed at 10,742.53, followed by 10,663.27. If the index starts moving upwards, key resistance levels to watch out are 10,869.03 and 10,916.27.

Nifty Bank

The Nifty Bank index closed at 26,766.8 on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 26,485.13, followed by 26,203.46. On the upside, key resistance levels are placed at 26,927.53, followed by 27,088.27.

Call options data

Maximum call open interest (OI) of 47.57 lakh contracts was at the 11,000 strike price, which will act as a crucial resistance level for the index in the June series.

This was followed by the 10,900 strike price, which now holds 32.53 lakh contracts in open interest, and 10,800, which has accumulated 31.52 lakh contracts in open interest.

There was hardly any Call writing seen.

Call unwinding was seen at the strike price of 10,800, which shed 12.87 lakh contracts, followed by 10,700, which shed 5.9 lakh contracts and 11,000, which shed 5.41 lakh contracts.

Put options data

Maximum put open interest of 57.06 lakh contracts was seen at the 10,700 strike price, which will act as a crucial base for the index in June series.

This was followed by the 10,600 strike price, which now holds 42.91 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 31.46 lakh contracts in open interest.

Put writing was seen at the strike price of 10,700, which added 8.64 lakh contracts, followed by 10,800, which added 8.02 lakh contracts and 10,300, which added 2.01 lakh contracts.

Put unwinding was seen at the strike price of 10,500, which shed 2.96 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 1,343.44 crore, while domestic institutional investors bought shares worth Rs 1,105.76 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.

53 stocks saw long buildup

93 stocks saw short covering

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

35 stocks saw short build-up

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

25 stocks saw long unwinding

Bulk Deals:

Bharat Road Network: Ayodhya Gorakhpur SMS tolls purchased 20.99 lakh shares in the firm at Rs 167.86 apiece.

Celestial Biolabs: Chetan Parekh bought 1.2 lakh shares at Rs 13.20 per share.

ZEE Media: JSGG Infra Developers purchased 50 lakh shares at Rs 29.50 apiece, while ARM Infra and Utilities Pvt Ltd sold 50 lakh shares at the same price.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings:

Axis Bank: The lender has scheduled an analyst/investor meeting on June 20 and 21, 2018.

Crompton: The company is meeting multiple investors between June 25 and 28, 2018.

PI Industries: HDFC Life Insurance, Catamaran, Old Bridge Capital, among others, will meet the management between June 25 and 29, 2018.

Stocks in news:

Tata Power: Gets defence industrial licence nod from SEZ BoA

Bharti Infratel: Pankaj Miglani resigns as CFO of the firm, effective August 9, 2018. S Balasubramanian to replace him as CFO and Key Managerial Personnel.

SREI Infra: Sandeep Sultania appointed as CFO Of the firm, effective July 5, 2018.

ICICI Bank: The bank has said that in March 2018, it received anonymous complaint which alleged issues in financial statements

SBI: Arijit Basu to be new managing director of SBI

IFCI to raise Rs 3,000 cr from debt to fund business growth

Dr Reddy's loses patent case with Eli Lilly over Alimta

Asian Paints to invest Rs 4,000-cr this fiscal in largest

Idea-Voda merger may get delayed as DoT readies fresh demand of Rs 4,700 cr

5 stocks under ban period on NSE

Securities 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.