Trade setup for 06 June: Nifty50 to rise above 18,600 or continue consolidation?

Blog | F&O

Asian Markets Update 7 am

Indian equities may start the day flat to negative, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 15 (-0.08%) points lower. Its Asian peers are trading in the green. The Nikkei 225 advanced 0.2%, while Hong Kong's Hang Seng index gained 0.3%.

US market update

US markets ended lower on Monday as tech stocks pulled back from 2023 highs. Dow Jones fell 0.5% while NASDAQ declined 0.09%.

Index Action

June Futures @ 18,702 📈▲66 (+0.3%)
OI Contracts: 1,85,072 (+1.8%)

The Nifty50 started the week on a positive note and settled higher. The index, however, could build on its opening gains and traded in a narrow range before settling just below 18,600. Auto and private banking stocks pushed the index higher, whereas FMCG and IT stocks dragged it lower from the higher levels.

The Nifty50 options expiring on 8 June have significant positions at 18,600 and 18,700 calls and 18,500 and 18,600 puts.

According to options data and OI analysis, the Nifty50's range for the 29th June expiry is between 18,100 and 18,900 levels. On the other hand, 18,400 and 18,700 are the immediate support and resistance levels for this week.

Bank Nifty
June Futures @ 44,282 📈▲171 (+0.3%)
OI Contracts: 95,016 (+6.8%)

The Bank Nifty had a range-bound session and settled in the green. The sharp slide in the last hour of trading saw the index slide lower from the day's high point but still end above 44,100.

Among banking stocks, Axis Bank (+2.6%) and IDFC First Bank (+1.1%) were the top gainers. Bandhan Bank (-0.7%) and AU Small Finance Bank (-2.9%) were the laggards.

The Bank Nifty's options expiring on 8 June have significant positions at the 44,000 and 44,200 calls and 44,000 and 43,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 29th June expiry is between 43,000 and 45,200. On the other hand, 43,600 and 44,500 are this week's immediate support and resistance levels.

FII and DII Data💰

In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹700 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹1,195 crore. In the derivatives market, FIIs bought index futures worth ₹746 crore and sold index options worth ₹1,406 crore. Further, they bought stock futures worth ₹1,388 crore and sold stock options worth ₹349 crore.

India VIX

The volatility index advanced 0.09% to 11.14.

Stock Action📊

Long build-up was seen in Hindustan Aeronautics, M&M, Axis Bank and RBL Bank.

Short build-up was seen in Aditya Birla Capital, AU Small Finance Bank, Vedanta, Indian Hotels and Mphasis.

*In Futures and Options or F&O, long build-up means an increase in Open Interest (OI)

long with an increase in price, and short build-up means an increase in Open Interest

(OI) along with a decrease in price.

**Source: Cash market figures are provisional. 



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