Market outlook and trade setup for Friday

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The Nifty has taken gap up opening and remain positive to get surge to important benchmark 10800 but couldn't retained the same and lost the breakout position and closed with gain and bullish sign.

The Nifty index has a strong support near 10,600, 10,650 and 10,730 levels. If the index breaks 10,698 levels in the forthcoming sessions, there is a higher probability that bears could make a comeback.The Nifty which opened at 10,722 rose to an intraday high of 10,818. The index failed to close near its intraday high and closed 83 points higher at 10,768.But in the last two days, it looks like bulls have tightened their grip on D-Street as Nifty is finding support at lower levels. The next target for Nifty is placed at 10,920 only if it manages to close above 10,820. Price action suggest if Nifty trades below 10,722 levels for some time at least one hour on Friday then it may set the tone for profit booking, but we knows indian market behaves like peak hour  traffic on one side of the road.
India volatility index  moved up by 1.81 percent at 12.55 levels and with high Put call option suggest lower volatility and bullish biasness for Fridays trade.

FIIs are again come out as net seller in the cash  by selling worth RS 524 crore shares and DIIs bought share worth Rs 1194 crore in cash segment.

Balrampur Chini and DHFl are in F&O Ban list for tomorrow trade

Nifty Index

Nifty would been in supply zone below 10720-25 and profit booking may drag it to to 10675 level and If nifty took support at 10720-25 and start moving upward, next resistance and target would be again remain 10820 and closing above 10820 will only open the gate for next upward level of 10920 and 11000!

Bank Nifty Index

Bank Nifty would be having strong support at 26420 and 26300 if traded below 26500, would face profit booking on last day of the week but sustaining above 26525 and further any pull back can take it back to 26700 and at 26800 levels which are key resistances.

Call Option data Analysis 

Max call open interest buildup has been seen at 11000 followed by 10800 and 10700 with accumulation of  40/30/28 lakh contracts in open interest where as Call unwinding was seen at the strike price of 10,800, which shed 4.01 lakh contracts, followed by 10,700, which shed 2.91 lakh contracts as well as 10,600, which shed 2.69 lakh conracts.

Max put open interest buildup has been seen at 10600 with 43 lakh contracts followed by 10200 and 10500 by 34 and 33 lakh contacts.Maximum put writing was seen at the strike prices of 10,700, which added 10.13 lakh contracts, followed by 10,800, which added 7.08 lakh contracts, and 10,600, which added 2.8 lakh contracts.

Put unwinding was seen at the strike price of 10,200, which shed 1.71 lakh contracts, followed by 10,500, which shed 1.13 lakh contracts.

observation: Emmkay_ra

market setup for wednesday

TRADE SETUP FOR WEDNESDAY

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NIFTY given a flat opening following global clues near 10630 and sharply broken down to 10589 and 10565 with continuous short and sell off in the system though it has taken sharp recovery in way of shot covering and seem will continue tomorrow before the RBI policy in second half.

Though the fact market is having shot in the system but see resistance at 10650 and 10675 and support above 10550 and 10535 level near 10 and 50 DMA, which suggest one must trade cautiously and avoid large position. As per market opinion 25 bpsalready discounted in sensex any positive remark or postponement can create positive wave in the market and any surprise on hike create further sell off, suggest high volatility in second half and suggest to be cautious before that.

  India VIX fell 4.03 percent to 13.32. On the options front, maximum put open interest was seen at the 10,200 strike price, followed by the 10,600 strike price, while maximum call open interest was seen at the 11,000 strike price, followed by the 10,700 strike price.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 157.51 crore, while domestic institutional investors bought shares worth Rs 474.33 crore in the Indian equity market.

year as per experts opinion and its certainly good sign of our market.

Option Summary

In terms of open interest, the 11,000 Call option has seen the most call writing so far at 45.69 lakh contracts.The second-highest buildup has taken place in the 10,700 call option, which has seen 33.70 lakh contracts getting written so far. The 10,800  call option has accumulated 31.80 lakh. The Max call writing was seen at the strike price of 11,000, which saw 5.96 lakh contracts getting written, followed by 10,800, which added 4.46 lakh contracts, and 10,900, which added 3.11 lakh contracts.

Maximum open interest in put options was seen at a strike price of 10,200, in which 34.30 lakh contracts have been added till date.The 10,500 put option comes next, having added 29.57 lakh contracts. Maximum put writing was seen at the strike prices of 10,100, which added 2.06 lakh contracts, followed by 10,000, which added 1.68 lakh contracts, and 10,400, which added 1.67 lakh contracts.

Put unwinding was seen most at the strike price of 10,700, which shed 1.61 lakh contracts, followed by the 10,300 strike price

For June 6, DHFL is the only stock on the F&O ban list.

Bulk deals:

Bombay Dyeing: Jitendra Navlani bought 12 lakh shares of the firm at Rs 220.20 apiece.

Electrosteel Steels: Anurag Choudhary bought 2.15 crore shares at the rate of Rs 1.27 apiece.

Justdial: Shaastra Securities traded 7.92 lakh shares at Rs 528 apiece.

PC Jeweller: Vaibhav Stock & Derivatives Broking traded 37.64 lakh shares at Rs 130.5 apiece.

Reliance Communications: Shaastra Securities exchanged over 1.7 crore shares at Rs 14.8 apiece.