Trade setup for 19 June: BANK NIFTY breaks consolidation, expiry above 50,000?

Asian markets update 7 am

The GIFT NIFTY climbed above the 23,650 mark, indicating another gap-up start for the NIFTY50 today. Other Asian indices are also trading in the green. Japan's Nikkei 225 is up 0.5% and Hong Kong's Hang Seng rose 1%.

U.S. market update

• Dow Jones: 38,834 (▲0.1%)
• S&P 500: 5,487 (▲0.2%)
• Nasdaq Composite: 17,862 (▲0.0%)

U.S. stocks ended Tuesday's session in the green, led by strong gains in chipmaker Nvidia. The semiconductor giant overtook Microsoft to become the most valuable public company.

NIFTY50

• June Futures: 23,568 (▲0.4%)
• Open Interest: 4,92,458 (▲1.8%)

The NIFTY50 index extended the previous week’s positive momentum and closed Monday’s session above the crucial 23,500 mark. After the gap-up start, the index consolidated its opening gains and traded in a narrow range throughout the day.

The technical structure of the NIFTY50 index remains positive, consitent with yesterday's analysis. We highlighted that after a record high closing on Friday, the index remains dominated by the buyers, with immediate support at 23,200. For the upcoming sessions, the index has moved its support to the 23,300 mark, while the resistance remains around the 24,000 zone, which has the highest call open interest for 20 June expiry.

The open interest analysis of the 20 June expiry shows significant put base at 23,500 and 23,300 strikes. These zones will act as immediate support for the NIFTY50 index. The PCR reading around the at-the-money strikes is at 0.9, highlighting strength for the bulls.

BANK NIFTY

• June Futures: 50,417 (▲0.7%)
• Open Interest: 1,63,870 (▲3.8%)

The BANK NIFTY broke out of its five-day consolidation zone and closed above last week’s indecision candle high. After initial volatility in the first half of the session, the index gradually moved higher, forming a bullish candle on the daily chart.

In yesterday’s analysis, we advised readers to monitor the break of last week’s doji candle high and low for directional clues. Once the index surpassed the previous week’s high, it crossed the 50,500 mark on an intraday basis. However, it failed to close above this psychological level due to profit-booking towards the end of the session.

For today’s expiry, let's examine the crucial levels on the 15-minute time frame. The BANK NIFTY has immediate support around the 50,250 zone, which it captured yesterday. If the index moves past yesterday’s high of 50,562, it may advance towards the 50,700 mark and above to fill the gap. However, if it slips below 50,250, the next crucial support is around the 49,500 mark. Traders should closely monitor these levels and take action accordingly.

For the today’s expiry, BANK NIFTY open interest data shows significant put bases at the 50,000 and 49,500 strikes, indicating strength in the ongoing trend. On the flip side, the call base was established at 50,500 and 51,000 strikes, indicating resistance to the index around these levels.

FII-DII activity

Stock scanner

Long build-up: Can Fin Homes, IDFC, IDFC First Bank, City Union Bank, M&M Financial and Samvardhana Motherson

Short build-up: Maruti Suzuki, Biocon, Dr. Reddy’s Laboratories, Jindal Steel and Petronet LNG

Under F&O ban: Balrampur Chini Mills, Gujarat Narmada Vly Frtlzrs, Hindustan Copper, India Cements, Piramal Enterprises, Steel Authority of India and Sun Tv

Out of F&O ban: GMR Airports Infrastructure

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price.

Source: Upstox and NSE.

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