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

The 50-share NSE Nifty recouped early losses and traded higher for a major part of the session but failed to hold 10,800 levels on Tuesday. The index traded in a range of about 70 points and made a small bullish candle on the daily charts which also resembles a 'Shooting Star' kind of pattern with a long upper shadow.

A 'Shooting Star' pattern is formed when the index comes under selling pressure as traders start booking profits at higher levels. This pattern is usually formed in an uptrend and is treated as a reversal pattern, but it would require confirmation before we can conclude that the trend will get reversed in near future.

The Nifty index opened at 10,742.70 and slipped to an intraday low of 10,732.55 but then bulls took charge and pushed the index back above 10,750. The index made an intraday high of 10,805.25 before closing the day 6.70 points higher at 10,769.15.

Experts expect the range-bound trade to continue for the coming session as well. Nifty needs to break the range of 10,837–10,710 on either side to accelerate momentum on either side, they said.

"Nifty50 continued its lackadaisical way of trading as it remained choppy and volatile in a narrow range of 73 points before signing off the session with a small bullish candle. Though this candle resembles a shooting star with a long upper shadow, owing to intraday profit booking, this pattern has no special significance when it forms inside the lower end of the narrow consolidation range," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said, in fact, it appears that price range for last two sessions is confined inside the bullish bar registered on last Friday giving rise to Inside Bar kind of formation within a range of 10,837–10,710. "Hence, for a directional move to occur Nifty need to close outside this range in either of the direction thereby paving the way for a trading opportunity in the direction of the breakout."

Meanwhile, traders can shift their focus to available individual trading opportunities, he advised.

"The short-term trend of Nifty continues to be choppy, and the range movement is expected to continue for next session," Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, adding the range expansion on either side is likely to accelerate momentum on either side.

India VIX moved up by 1.73 percent at 12.80 levels. On the options front, maximum Put open interest (OI) is at 10,700 followed by 10,600 strike while maximum Call OI was at 11,000 followed by 10,800 and 10,900 strike.

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 10,769.2 on Tuesday. According to Pivot charts, the key support level is placed at 10,732.73, followed by 10,696.27. If the index starts moving upwards, key resistance levels to watch out are 10,805.43 and 10,841.67.

Nifty Bank

The Nifty Bank index closed at 26,601.7 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,483.4, followed by 26,365.1. On the upside, key resistance levels are placed at 26,716.3, followed by 26,830.9.

Call Options Data

Maximum call open interest (OI) of 53.54 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 38.66 lakh contracts in open interest, and 10,800, which has accumulated 38.04 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 6.53 lakh contracts, followed by 10,900, which shed 5.73 lakh contracts, and 10,700, which shed 1.71 lakh contracts.

Put Options data

Maximum put open interest of 50.54 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 34.15 lakh contracts in open interest, and the 10,200 strike price, which has now accumulated 27.96 lakh contracts in open interest.

Put writing was seen at the strike price of 10,700, which added 3.59 lakh contracts.

Put unwinding was seen at the strike price of 10,600, which shed 3.82 lakh contracts, followed by 10,300 which shed 2.48 lakh contracts and 10,500, which shed 1.78 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 538.4 crore, while domestic institutional investors bought shares worth Rs 238.05 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.

46 stocks saw long buildup

66 stocks saw short covering

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

57 stocks saw a short build-up

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

39 stocks saw long unwinding

Bulk Deals:

Sumeet Industries: Mystique Media Private Limited bought 4,79,871 shares at Rs 16.32 per share

Tube Investments: Ambadi Investments Limited sold 16,15,000 shares at Rs 222 per share

(For more bulk deals, click here)

Analyst or Board Meet/Briefings:

ACC: The firm will meet investors on June 27, 2018.

Bajaj Finserv: The company will meet multiple investors between June 27 and 29, 2018.

Stocks in news:

Aurobindo Pharma: It has received receives USFDA Approval for Ertapenem Injection

Corporation Bank: India Ratings has revised credit rating of its debt instruments.

Tata Communications: Establishes a point of presence at EdgeConneX Portland Edge Data Center

Idea Cellular: Gets shareholder nod to issue NCDs on a private placement basis

NMDC ore prices to remain at Rs 3,050 per tonne

IndusInd Bank to acquire IL&FS' brokerage business

PNB Housing Finance plans to raise Rs 10,000 cr via bonds

7 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.