Trade Setup for June 6: Is the Nifty back on track after three days of extreme moves?

NSE

What Are The F&O Cues Indicating?

Stock Price Change OI Change Marico 5.43% 30.94% CONCOR 4.45% 22.40% GCPL 5.28% 19.01% Bharat Forge 4.33% 14.87% Vodafone Idea 12.36% 5.74%

Stock Price Change OI Change Navin Fluorine 8.20% -12.68% IndiaMART 5.84% -8.52% Can Fin Homes 6.94% -7.52% SBI Cards 4.47% -5.98% SRF 4.26% -5.27%

BHEL: Wins order worth more than ₹3,500 crore from Adani Power to set up the 2X800 MW Thermal Power Project at Raipur in Chhattisgarh. Additionally, the company has also won an order worth over ₹3,500 crore from Mirzapur Thermal Energy (UP) for a 2x800 MW Thermal Power Project at Mirzapur Phase I.

Wins order worth more than ₹3,500 crore from Adani Power to set up the 2X800 MW Thermal Power Project at Raipur in Chhattisgarh. Additionally, the company has also won an order worth over ₹3,500 crore from Mirzapur Thermal Energy (UP) for a 2x800 MW Thermal Power Project at Mirzapur Phase I.

IEX: Total volumes in May up 28.9% to 10,633 million units. Green market volume up 73.9% year-on-year to 622.2 million units. Electricity volumes up 21% from last year to 9,568 million units. Day-Ahead Market (DAM) volumes at 4,371 million units, up 7.5% from last year. Real-time electricity market at 3,352 million units, up 38.3% year-on-year.

Total volumes in May up 28.9% to 10,633 million units. Green market volume up 73.9% year-on-year to 622.2 million units. Electricity volumes up 21% from last year to 9,568 million units. Day-Ahead Market (DAM) volumes at 4,371 million units, up 7.5% from last year. Real-time electricity market at 3,352 million units, up 38.3% year-on-year.

Century Textiles: Birla Estates Pvt. Ltd., the real estate venture of the Aditya Birla Group and a 100% wholly-owned subsidiary of the company has signed a JV with Barmalt India Pvt. Ltd. for a luxury residential group housing development in Sector 31, Gurugram. The land parcel, spread across 13.27 acres with a development potential of nearly 2.4 million square feet, offers revenue potential of nearly ₹5,000 crore.

Birla Estates Pvt. Ltd., the real estate venture of the Aditya Birla Group and a 100% wholly-owned subsidiary of the company has signed a JV with Barmalt India Pvt. Ltd. for a luxury residential group housing development in Sector 31, Gurugram. The land parcel, spread across 13.27 acres with a development potential of nearly 2.4 million square feet, offers revenue potential of nearly ₹5,000 crore.

Torrent Pharma: Enters into a non-exclusive patent licensing agreement with Takeda Pharmaceuticals to commercialise its novel gastrointestinal drug in India. Torrent will market Vonoprazan under its own trademark, Kabvie. The Indian market for treatments used in GERD is valued at ₹8,064 crore.

Enters into a non-exclusive patent licensing agreement with Takeda Pharmaceuticals to commercialise its novel gastrointestinal drug in India. Torrent will market Vonoprazan under its own trademark, Kabvie. The Indian market for treatments used in GERD is valued at ₹8,064 crore.

Uno Minda: Partners with Inovance Automotive to strengthen its e-four-wheeler product portfolio. The JV will manufacture and sell high voltage category EV products for passenger vehicles and commercial vehicles in India.

Partners with Inovance Automotive to strengthen its e-four-wheeler product portfolio. The JV will manufacture and sell high voltage category EV products for passenger vehicles and commercial vehicles in India.

NBCC: Has received multiple work orders worth ₹491.45 crore.

Has received multiple work orders worth ₹491.45 crore.

Nandan Denim: To consider stock split on June 17.

To consider stock split on June 17.

KPI Green: Arm gets orders of 26.15 MW Solar Power Projects under the captive power producer segment.

Arm gets orders of 26.15 MW Solar Power Projects under the captive power producer segment.

Concord Biotech: Ireland's health product regulatory authority issues EU GMP certificate for Unit II of Valthera facility in Gujarat.

Ireland's health product regulatory authority issues EU GMP certificate for Unit II of Valthera facility in Gujarat.

Force Motors: May sales domestically up 13.9% to ₹2,412 units. Exports down 63.3% from last year to 180 units.

A 3%-plus move on one day, a 6% drop the next and another 3.5% gain on the third day, if you are not well versed with the WWE, it always carried a disclaimer - "Please do not try this at home." The market has also been carrying a similar disclaimer "Not for the faint hearted" for the last three sessions. At one point on Tuesday, it felt as though the Nifty has gone into a free fall, but it has managed to find some support at lower levels, at least for now.The recovery seen by the Nifty on Wednesday has taken the market back to levels above last Friday's close. In fact, it has even turned positive for the week. The market took heart from the fact that Narendra Modi is all set to be prime minister for a historic third time, albeit in a alliance, but with alliance partners like JD (U) and TDP backing the NDA, the government formation looks mostly certain in the coming few days.Yet, the Nifty is 700 points adrift of its peak of 23,338. That may take a while as many brokerages have turned cautious on the market post this election outcome. Emkay went to the extent of cutting its Nifty target to 22,000, exited all PSUs and gave its model portfolio a more defensive colour.Bernstein also believes that the extreme near term may see some selling pressure on the market, but maintained its Nifty target of 23,500 for the end of the year.The gains on Wednesday was led by FMCG, a sector that did not participate in the post-exit poll rally. Autos, Metals, Real Estate were some of the other top contributors. However, PSUs, which had a disastrous session on Tuesday, had a mixed day.While most of the state-run companies saw some semblance of recovery from Tuesday's losses, defence stocks, shipbuilders in particular, continued to have a rough ride. Stocks like Bharat Dynamics, Cochin Shipyard, Garden Reach, all succumbed to selling for the second day in a row. It remains to be seen whether these themes manage to find a floor soon.Thursday will be the first weekly expiry of an already action-packed start to the June F&O series. Besides the political developments taking place, the market also awaits comments from the Reserve Bank of India's Monetary Policy Committee on Friday on whether they revise their inflation or GDP outlook for the fiscal year after the fourth quarter print. There are currently no talks of a rate cut from the central bank just yet.Foreign investors continued to remain net sellers in the cash market on Wednesday, while domestic investors were net buyers.Shrikant Chouhan recommends 'level-based trading' for day traders as the current market is very volatile. 22,500 - 22,400 will be the key support on the downside, while 22,800 - 22,950 may act as a resistance area. The uptrend would be vulnerable if the Nifty again slips below 22,400.The Nifty moving above the crucial hurdle of Tuesday's long-range bear candle around 22,250 and moving higher, makes the upper part of the candle at 23,200 the next key level to watch, said HDFC Securities' Nagaraj Shetti. He also said that the market will remain volatile for the short-term and sees immediate support at 22,300 levels.Osho Krishnan has similar levels shared by Shrikant Chouhan earlier. He sees 22,500 - 22,400 as a key downside support, followed by 22,200 - 22,100, while on the upside, 22,800 will be a resistance zone for the Nifty, followed by 23,000.The Nifty Bank is also nearly back to last Friday's closing levels of 48,983 and has also recovered nearly half of Tuesday's losses courtesy of Wednesday's recovery. However, the index is still another 2,000-plus points away from Monday's record high of 51,133. Banking stocks will also continue to be in focus ahead of the RBI policy. Most brokerages, who have turned cautious on the Indian market, remain overweight on financials, courtesy of their growth prospects and valuation comfort.Rupak De of LKP Securities said that the Nifty Bank recovered sharply from its 200-DMA and closed above its rising trendline and its 21-Day Exponential Moving Average. He recommends a 'buy-on-dips' strategy with a stop loss of 47,500. The immediate support is at 47,800, with resistance on the upside at 49,500.On the hourly chart of the Nifty Bank, Om Mehra of SAMCO Securities finds support at 47,300, with resistance at 49,650 and 50,050. A pullback towards 48,500 will present a good buying opportunity for short-term traders, he added.