Trade Setup for June 12: Key Market Signals, Index Levels & Top Derivative Trends to Watch Before the Opening Bell
Top Derivative : As we head into the trading session on June 12, market participants are looking closely at key technical levels, derivative trends, and volatility indicators to fine-tune their intraday strategies. The Nifty 50 has managed to post modest gains but is still wrestling with a key resistance at 25,200, hinting at an important breakout zone on the charts. With the India VIX hitting a 10-week low, and a potential MACD crossover in play, sentiment appears to be tilting in favor of the bulls.
In this detailed trade setup, we decode 15 critical data points you must know before the market opens.
π Nifty 50 Outlook (Close: 25,141)
- Resistance levels: 25,202 / 25,236 / 25,289
- Support levels: 25,094 / 25,061 / 25,007
Key Chart Pattern: A Doji-like candlestick formed, showing indecision, yet the index continues its higher highs pattern for the 5th session. The Bollinger Bands expansion, along with RSI at 62.54 and a strengthening MACD, points to bullish momentum.
π¦ Bank Nifty Outlook (Close: 56,460)
- Resistance levels: 56,694 / 56,784 / 56,930
- Support levels: 56,401 / 56,310 / 56,164
Key Observations: A bearish candle signals ongoing weakness, with a lower highsβlower lows structure intact. Despite that, MACD remains positive. However, Stochastic RSI shows a negative crossover, and the RSI tilts slightly downward at 63.43.
π Derivative Data Highlights
1. Nifty Call Option Activity
- Max OI: 26,000 CE (1.43 crore) β Strong resistance
- Max Writing: 25,250 CE (19.81 lakh) β Resistance builds
- Max Unwinding: 25,100 CE (23.62 lakh) β Bullish sign
2. Nifty Put Option Activity
- Max OI: 24,500 PE (98.23 lakh) β Key support
- Max Writing: 25,200 PE (32.01 lakh) β Bulls active
- Max Unwinding: 24,400 PE (11.57 lakh)
3. Bank Nifty Call Option Activity
- Max OI: 56,000 CE (19.03 lakh)
- Max Writing: 58,000 CE (90,210) β Upside bet
- Max Unwinding: 55,000 CE (12,720)
4. Bank Nifty Put Option Activity
- Max OI: 56,000 PE (20.9 lakh) β Critical support
- Max Writing: 56,000 PE (68,610) β Bullish bias
- Max Unwinding: 55,500 PE (47,010)
πΉ Put-Call Ratio (PCR)
- Nifty PCR: Unchanged at 0.97, reflecting a neutral-to-bullish stance. A ratio above 0.7 indicates Put writing dominance β typically a bullish signal.
β‘ Volatility Index: India VIX
- India VIX fell by 2.48% to 13.67, the lowest since April 3. Lower VIX readings generally support stable or bullish market conditions.
π Open Interest (OI) Trends
| Position Type | No. of Stocks | Interpretation |
|---|---|---|
| Long Build-up | 44 | Bullish β price and OI both rising |
| Long Unwinding | 53 | Caution β price and OI both falling |
| Short Build-up | 80 | Bearish β price down, OI up |
| Short Covering | 48 | Bullish β price up, OI falling |
π High Delivery Stocks
- High delivery volume indicates investing interest as opposed to speculative trading. Keep an eye on these for possible long-term breakouts.
π« Stocks in F&O Ban (June 12)
- New Additions: Central Depository Services, Indian Energy Exchange
- Retained: Aditya Birla Fashion, Chambal Fertilisers, Hindustan Copper, IREDA, RBL Bank, Titagarh Rail Systems
- Removed: None
π Institutional Fund Flow
Net fund flow data (FIIs/DIIs) is a strong indicator of sentiment but was not explicitly mentioned in the reference. However, recent trend shows foreign investors trimming positions in select large-caps while DIIs continue to buy selectively.
π Key Financial Ratios Table
| Index | RSI | MACD Signal | VIX | PCR | Special Pattern |
|---|---|---|---|---|---|
| Nifty 50 | 62.54 | Positive Crossover | 13.67 | 0.97 | Doji, Bollinger Expansion |
| Bank Nifty | 63.43 | Positive but tilting down | 13.67 | NA | Bearish candle |
β Conclusion
The markets are poised for a decisive move. If Nifty sustains above 25,200, a sharp rally toward 25,500 cannot be ruled out. The low volatility, positive MACD setup, and supportive PCR all hint at bullish undertones. However, the Bank Niftyβs weakness should be watched closely as it may limit upside momentum.
β Q&A Section β Quick Market Digest
Q1. What is the key resistance level for Nifty on June 12?
A: The immediate resistance lies at 25,200, with potential upside towards 25,300β25,500 if breached.
Q2. What does a Doji candlestick indicate on Nifty charts?
A: It shows market indecision but is neutral-to-bullish when part of a rising trend, especially with momentum indicators positive.
Q3. How is Bank Nifty performing compared to Nifty?
A: Bank Nifty is relatively weaker, showing a bearish candle and forming lower highs and lows.
Q4. What is the sentiment in the options market?
A: Niftyβs PCR is stable at 0.97, indicating a balanced but slightly bullish tone. Heavy Put writing at 25,200 supports upside.
Q5. Is market volatility increasing or decreasing?
A: Decreasing. India VIX is at a 10-week low (13.67), which is bullish for equities.
Q6. Which stocks are under F&O ban on June 12?
A: Newly added are CDSL and IEX. Others include Aditya Birla Fashion, IREDA, RBL Bank, among others.
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