Trade Setup for June 5: Top 15 things to know before the opening bell ahead of RBI MPC meet outcome - Moneycontrol.com
If the Nifty 50 holds the crucial support level of 23,150 going forward, the possibility of an upward move toward the 23,700–23,900 range cannot be
If the Nifty 50 holds the crucial support level of 23,150 going forward, the possibility of an upward move toward the 23,700–23,900 range cannot be ruled out. However, a decisive fall below this level could drag the index below 23,000. The immediate support is seen at the 23,300 level, according to experts. Nifty Trade Setup for June 5 If Nifty 50 holds crucial support level of 23,150 going forward, rally toward 23,700–23,900 range is possible Decisive fall below 23,150 could drag the index below 23,000 Immediate support is seen at 23,300 level Did our AI summary help? The Nifty 50 closed moderately higher after a strong recovery from the day's low on June 4 ahead of the RBI MPC meeting outcome due on June 5. In fact, the index has been defending the lower end of the bullish gap formed on April 8 (23,150) for the third consecutive session, witnessing buying interest on every decline and consistently closing above 23,400, which coincides with the 50 percent Fibonacci retracement of the April rally. However, the lower high–lower low formation remains intact. Hence, if the index holds the crucial support level of 23,150 going forward, the possibility of an upward move toward the 23,700–23,900 range cannot be ruled out. However, a decisive fall below this level could drag the index below 23,000. The immediate support is seen at the 23,300 level, according to experts. Here are 15 data points we have collated to help you spot profitable trades 1) Key Levels For The Nifty 50 (23,417) Resistance based on pivot points: 23,460, 23,511, and 23,594 Support based on pivot points: 23,293, 23,242, and 23,158 Special Formation: The Nifty 50 formed a bullish candle on the daily charts following bullish reversal pattern formations in the previous two sessions, while consistently defending the April 8 bullish gap, signalling a positive move. However, the technical and momentum indicators are not aligned, as the index continues to trade below all key moving averages, with short- and medium-term moving averages trending downward. The RSI stood at 41.72 and remained sideways below the signal line, while the MACD sustained below the reference line with an expanding red bar in the histogram.
All these factors indicate a cautious undertone despite the recent recovery. 2) Key Levels For The Bank Nifty (54,308) Resistance based on pivot points: 54,441, 54,590, and 54,831 Support based on pivot points: 53,958, 53,809, and 53,568 Resistance based on Fibonacci retracement: 54,423, 55,809 Support based on Fibonacci retracement: 53,687, 52,798 Special Formation: The Nifty Bank outperformed the Nifty 50 and formed a bullish candle on the daily timeframe for the third consecutive session. It closed above the midline of the Bollinger Bands (54,200) and held above the 50 percent Fibonacci retracement of the April rally, signalling an improving trend. However, it failed to close above the 20-day EMA (54,340). Hence, the banking index remained below its 20-, 50-, 100-, and 200-day EMAs. The RSI rose to 48.57 and sustained above the bullish crossover level, while the MACD remained positive with an expanding green bar in the histogram. All these factors indicate improving momentum, although the index remains below key resistance levels. 3) Nifty Call Options Data According to the weekly options data, the 24,000 strike holds the maximum Call open interest (with 1.16 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,500 strike (69.51 lakh contracts) and 24,200 strike (63.33 lakh contracts). Maximum Call writing was observed at the 24,200 strike, which saw an addition of 31.6 lakh contracts, followed by the 24,000 and 23,800 strikes, which added 30.76 lakh and 16.01 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,300 strike, which shed 4.06 lakh contracts, followed by the 23,500 and 23,200 strikes, which shed 3.45 lakh and 1.46 lakh contracts, respectively. 4) Nifty Put Options Data On the Put side, the maximum Put open interest was seen at the 23,000 strike (with 79.94 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 23,300 strike (76.49 lakh contracts) and the 23,400 strike (54.19 lakh contracts).
The maximum Put writing was placed at the 23,150 strike, which saw an addition of 20.03 lakh contracts, followed by the 23,000 and 23,400 strikes, which added 17.61 lakh and 16.45 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,800 strike, which shed 33,735 contracts, followed by the 23,900 and 23,700 strikes, which shed 33,475 and 31,655 contracts, respectively. 5) Bank Nifty Call Options Data According to the monthly options data, the 54,000 strike holds the maximum Call open interest, with 11.06 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 55,000 strike (9.84 lakh contracts) and the 56,000 strike (8.92 lakh contracts). Maximum Call writing was observed at the 54,600 strike (with the addition of 63,930 contracts), followed by the 54,500 strike (62,910 contracts) and 55,000 strike (39,960 contracts). The maximum Call unwinding was seen at the 53,900 strike, which shed 27,210 contracts, followed by the 53,500 and 54,100 strikes, which shed 21,600 and 11,640 contracts, respectively. 6) Bank Nifty Put Options Data On the Put side, the maximum Put open interest was seen at the 54,000 strike (with 12.8 lakh contracts), which can act as a key support level for the index in the short term. This was followed by the 55,000 strike (6.23 lakh contracts) and the 53,500 strike (5.75 lakh contracts). The maximum Put writing was placed at the 54,000 strike (which added 42,030 contracts), followed by the 54,300 strike (40,650 contracts) and 54,600 strike (22,890 contracts). The maximum Put unwinding was seen at the 53,600 strike, which shed 17,700 contracts, followed by the 53,900 and 55,100 strikes, which shed 12,390 and 4,500 contracts, respectively. 7) Funds Flow (Rs crore) 8) Put-Call Ratio The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 1.00 on June 4, from 1.02 compared to previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.
If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market. 9) India VIX Fear index, India VIX fell 2.41 percent to 15.88 after moving within a narrow range. A convincing fall below the 15.5 level is essential for bulls to regain comfort and confidence in the market. 10) Long Build-up (71 Stocks) A long build-up was seen in 71 stocks. An increase in open interest (OI) and price indicates a build-up of long positions. 11) Long Unwinding (35 Stocks) 35 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding. 12) Short Build-up (65 Stocks) 65 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 13) Short-Covering (45 Stocks) 45 stocks saw short-covering, meaning a decrease in OI, along with a price increase. 14) High Delivery Trades Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock. 15) Stocks Under F&O Ban Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Stocks added to F&O ban: Nil Stocks retained in F&O ban: Amber Enterprises India, Kaynes Technology India Stocks removed from F&O ban: Nil Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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