Nifty 50 Intraday & Expiry Day Trade Setup for 04th June 2020Good Morning all,
I did not give any buy or sell levels yesterday because of a gap up opening but explain that how you guys can setup your trade on 15 minute candle high and low to trade in a Trending market. Unfortunate both are not break in Intraday and trade has not come in Intraday. In second Trading session we had seen a major fall from 15 minute candle high and index fallen like a knife from the top and eat all day movement in just 1 hour . Some of guys think that index is gonna to correct from here but this is a profit booking move and we do not believe on it. Index is l bullish until it's not break 9,980 . Today is expiry so let's see what is the Key factor for today Trade Setup.
Key Factor
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1- FIIS are still bullish and SGx nifty is trading on 10,151.00 which is 61 Point up from the previous closing so we are going to see a gap up Opening in our Nifty. 60-70 Point gap up possible
2- Dow Jones Industrial Average was up 251.67 points, which is almost 1.00% from Previous closing.
3-European shares and Index is also showing strength. European STOXX 600 rose 1.2%
4-Asian market also steady .
5-The Reserve Bank of India will not approve SR Batliboi & Co LLP, a local chartered accountancy firm affiliated with EY, for carrying out statutory audits of commercial banks for a year starting April 1.
The regulator found certain lapses in audit assignments carried out by the firm, the RBI said in a statement on its website.
The action stems from the special enforcement framework the regulator announced in June 2018 to take action against firms found to be lacking in their duties as statutory auditors.
SR Batliboi is the statutory auditor to private lenders HDFC Bank Ltd., IndusInd Bank Ltd., Kotak Mahindra Bank Ltd., Bandhan Bank Ltd. and The South Indian Bank Ltd.
6-Cabinet clears 6 month IBC holiday for bank defaulters from March 25. Can be extended by another 6 months CNBCTV18Live reports
7-Abu Dhabi’s Mubadala Investment is nearing a deal to invest about $1 billion into Jio Platforms. An announcement could come as soon as this week. Company is also in discussions with Abu Dhabi Investment Authority & Saudi Arabia’s The Public Investment Fund. (Bloomberg News)
Technical View
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Nifty has given a correction from yesterday high and that was a straight fall but Index is over all bullish and yesterday correction was just a profit booking . Index is still bullish and can hit their resistance Area which is 10412-10600. Index current support is on 9990 . Might be Index give you a sideways move because of expiry and trade in a range.
Option chain data
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Call Option : Maximum OI is still stand on 10000 but we have seen a call Unwinding Means Call writers are square off their position and switching on 10500 Level . Second highest OI is stand on 10500.
Put Option : 10000 is become a support and we can see it in OI data . Lot of contracts are adding in this price .
Trade Setup
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Today is writers and future scalper day. Momentum traders and Option buyers has no space for trading session .
Long : Open long build up if Index trade above on 10,180 Level. Sl is 10,140
Short : Short Position can build lower then 10,040 with 10,070 sl but remember only 50 points room is sell side so book profit before 9,990.
Disclaimer: I am not a SEBI Registered Research Analyst and all the information provided here is for educational purposes Views are shared based on market research and study and personal in nature. Others can take the different view and opinions.
Good Luck and Happy Trading
Team CodeViser
