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

The key support levels for the Nifty are placed at 15,397.1, followed by 15,358.5. If the index moves up, the key resistance levels to watch out for are 15,472 and 15,508.3.

The market extended gains for the sixth consecutive session to end at a record closing high on May 28, the first day of the June series, driven by falling dollar and COVID-19 infections. The Nifty50 crossed its previous record high levels, but the Sensex is yet to hit a fresh all-time high. Reliance Industries, select banking & financials, auto and FMCG stocks supported the rally.

The BSE Sensex climbed 307.66 points to close at 51,422.88, while the Nifty50 rose 97.80 points to 15,435.70 and formed a Doji kind of pattern on the daily charts. The index gained 1.7 percent during the week and witnessed bullish candle formation on the weekly scale.

“Normally, a high wave pattern formation after a reasonable high or at resistance could be considered as a reversal pattern, post confirmation. But, absence of confirmation after the last pattern, and one may expect this to be an uptrend continuation for the short term,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

“Nifty on the weekly chart formed a long bull candle, after an upside breakout of the multi-month trend line resistance in the previous week around 15,000 mark. This pattern could be a validation of upside breakout on the weekly chart,” he said.

“Having moved above the resistance at 15,430, one may expect further upside in the coming sessions. The next upside targets can be watched around 15,800. Immediate support is now placed at 15,350-15,300 levels,” he added.

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Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 15,397.1, followed by 15,358.5. If the index moves up, the key resistance levels to watch out for are 15,472 and 15,508.3.

Nifty Bank

The Nifty Bank rose 46.30 points to close at 35,141.40 on May 28. The important pivot level, which will act as crucial support for the index, is placed at 34,933.53, followed by 34,725.66. On the upside, key resistance levels are placed at 35,392.93 and 35,644.47 levels.

Call option data

Maximum Call open interest of 25.09 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the June series.

This is followed by 15,500 strike, which holds 15.64 lakh contracts, and 15,800 strike, which has accumulated 11.24 lakh contracts.

Call writing was seen at 16,000 strike, which added 5.74 lakh contracts, followed by 15,800 strike which added 1.82 lakh contracts, and 16,100 strike which added 1.67 lakh contracts.

Call unwinding was seen at 15,000 strike, which shed 1.21 lakh contracts, followed by 15,200 strike which shed 54,300 contracts, and 15,300 strike which shed 34,650 contracts.

Put option data

Maximum Put open interest of 27.29 lakh contracts was seen at 14,500 strike, which will act as a crucial support level in the June series.

This is followed by 15,000 strike, which holds 22.28 lakh contracts, and 14,700 strike, which has accumulated 12.80 lakh contracts.

Put writing was seen at 15,000 strike, which added 4.19 lakh contracts, followed by 14,500 strike which added 3.62 lakh contracts, and 15,500 strike which added 3.17 lakh contracts.

Put unwinding was seen at 14,700 strike which shed 40,425 contracts, followed by 16,100 strike, which shed 2,625 contracts.

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

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50 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.

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27 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.

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43 stocks saw short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen.

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39 stocks witnessed short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.

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Bulk deals

Archies: Porinju Veliyath-owned Equity Intelligence India sold 9.5 lakh equity shares in Archies at Rs 15.81 per share on the NSE, the bulk deals data showed.

Mcleod Russel India: Investor Manju Gaggar sold 7,74,724 equity shares in Mcleod Russel at Rs 31.15 per share on the NSE, the bulk deals data showed.

Paisalo Digital: State Bank of India bought 4,37,498 equity shares in Paisalo Digital at Rs 570 per share on the NSE, the bulk deals data showed.

(For more bulk deals, click here)

Results on May 31

Aurobindo Pharma, Chemcon Speciality Chemicals, Allied Digital Services, APM Industries, Asian Granito India, Astron Paper & Board Mill, Bannari Amman Spinning Mills, Blue Coast Hotels, Chaman Lal Setia Exports, Ganesh Housing Corporation, High Energy Batteries, Honeywell Automation India, Ingersoll-Rand (India), Jamna Auto Industries, JBF Industries, Karda Constructions, Kolte-Patil Developers, Lasa Supergenerics, Lloyds Steels Industries, Magma Fincorp, Man Industries, Marksans Pharma, Nahar Industrial Enterprises, Nahar Spinning Mills, Narayana Hrudayalaya, Prakash Industries, Rupa & Company, Shilpa Medicare, Simplex Realty, Tourism Finance Corporation of India, Uttam Galva Steels, Vascon Engineers, and Venus Remedies will quarterly earnings on May 31.

Stocks in News

Bank of Baroda: The bank posted loss of Rs 1,046.5 crore in Q4FY21 against profit of Rs 506.59 crore in Q4FY20. Net interest income rose Rs 7,106.62 crore from Rs 6,798.18 crore YoY.

Divi’s Laboratories: Consolidated profit increased to Rs 502.02 crore in Q4FY21, from Rs 388.23 crore in Q4FY20. Consolidated revenue jumped to Rs 1,788.19 crore, from Rs 1,389.71 crore YoY.

Dollar Industries: The company reported higher consolidated profit at Rs 19.35 crore in Q4FY21 against Rs 12.18 crore in Q4FY20; revenue rose to Rs 308.31 crore from Rs 237.29 crore YoY.

Fortis Healthcare: The company reported consolidated profit at Rs 62.36 crore in Q4FY21 against loss of Rs 41.24 crore in Q4FY20; revenue rose to Rs 1,252.44 crore from Rs 1,112.92 crore YoY.

Himatsingka Seide: The company reported consolidated profit at Rs 37.57 crore in Q4FY21 against loss of Rs 68.84 crore in Q4FY20; revenue jumped to Rs 746.04 crore from Rs 434.6 crore YoY.

Affle (India): The company reported consolidated profit at Rs 58.6 crore in Q4FY21 against Rs 15.29 crore in Q4FY20; revenue jumped to Rs 141.57 crore from Rs 80 crore YoY.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 913.59 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,275.22 crore in the Indian equity market on May 28, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - Sun TV Network - is under the F&O ban for May 31. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.