Moneycontrol
Last Updated : Apr 09, 2018 09:47 AM IST | Source: Moneycontrol.com

Trade set up for Monday: Top 15 things to know

Analysts advise investors to remain long on the index with a stop loss below 10,227 levels, which is also its crucial support. On the higher side, Nifty is likely to face stiff resistance around 10,460 levels.

Uttaresh Venkateshwaran @UttareshV

The Nifty which started the week ended April 6 on a muted note managed to recoup losses and closed with gains of just six points but above its crucial psychological support level of 10,300 on Friday. It formed a Doji type pattern on the daily chart and a bullish candle on the weekly chart.

The index, which made a bullish Marubozu candle on the daily chart on Thursday, consolidated in a narrow range on Friday and made an indecisive candlestick pattern on the daily chart.

A 'Doji' is formed when the index opens and then closes approximately around the same level but remains volatile throughout the day as indicated by its long shadow on either side. It appears like a cross or a plus sign.

The Nifty index opened at 10,322 and rose to an intra-day high of 10,350 which is close to its 50-DEMA. It slipped to an intra-day low of 10,290 before closing the day six points higher at 10,331.

Analysts advise investors to remain long on the index with a stop loss below 10,227 levels, which is also its crucial support. On the higher side, Nifty is likely to face stiff resistance around 10,460 levels.

“It was a day of consolidation on the bourses as Nifty witnessed a listless trading session, with an extremely rangebound move of 60 points, before signing off the day with a Doji kind of indecisive formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, on the weekly charts, a decent bullish candle was registered for the second consecutive week suggesting that momentum is slowly shifting in favour of bulls. Once Nifty registers a firm close above 10,350 levels, where its 50-day EMA levels is placed, then it can act as some sort of confirmation for a bigger upmove in the near-term, may be towards 10,650 levels,” he said.

Mohammad said any dip should be used as an opportunity to go long for an initial target of 10,460 and a bigger swing towards 10,650 can’t be ruled out. "On the downside, 10,227 should be assumed as critical support below which bullish momentum shall fade away."

India VIX remains flat at 14.74. However, it needs to hold below 13.50-13 zones for short-term stability in the market.

We have collated the top 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,331.6 on Friday. According to Pivot charts, the key support level is placed at 10,298.1, followed by 10,264.6. If the index starts moving upwards, the key resistance levels to watch out are 10,357.8 and 10,384.0.

Nifty Bank

The Nifty Bank index closed at 24,873.2 on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,688.54, followed by 24,503.87. On the upside, key resistance levels are placed at 24,995.74, followed by 25,118.27.

Call Options data

In terms of open interest, the 10,500 call option has seen the most call writing so far at 37.30 lakh contracts. This could act as a crucial resistance level for the index in the April series.

The second-highest build-up has taken place in the 10,300 call option, which has seen 34.35 lakh contracts getting written so far. The 10,700 call option has accumulated 32.99 lakh contracts.

Call writing was seen at the strike price of 10,600, which added 1.28 lakh contracts, followed by 10,500, which added 0.78 lakh contracts, and 10,800, which added 0.66 lakh contracts.

Call unwinding was seen at the strike price of 10,200, which shed 1.89 lakh contracts, followed by 10,400, which shed 1.25 lakh contracts.

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Put Options data

Maximum open interest in put options was seen at a strike price of 10,000, in which 49.24 lakh contracts has been added till date. This could be a crucial resistance level for the index in the April series.

The 10,200 put option comes next, having added 36.14 lakh contracts so far, and the 10,300 put option, which has now accumulated 28.72 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,300, with 6.27 lakh contracts being added, followed by 10,400, which added 1.81 lakh contracts and 9,900 with 1.46 lakh contracts.

Put unwinding was seen at the strike price of 10,200, in which 1.11 lakh contracts were shed, followed by 9,800, which shed 0.92 lakh contracts.

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FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 524.85 crore, while domestic institutional investors bought shares worth Rs 1,305.45 crore in the Indian equity market, as per provisional data available on the NSE.

Fund flow picture:

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Stocks with high delivery percentage:

High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.

Image4

75 stocks saw long build-up

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60 stocks saw short covering:

A decrease in open interest along with an increase in price mostly indicates short covering.

Image6

56 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates build-up of short positions.

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17 stocks saw long unwinding

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Bulk Deals:

Reliance Communications: Shaastra Securities traded over 2 lakh shares at Rs 24 apiece.

Vivimed Labs: Niraj Shah sold 4.25 lakh shares at Rs 78.10.

(For more bulk deals click here)

Analyst or board meet/briefings:

Ambuja Cements: Bajaj Allianz, GIC, and PNB MetLife met the management on April 6, 2018. Sundaram Mutual Fund will be meeting the management on April 9, 2018.

Astral Poly: IDFC Securities met the firm on April 6, 2018.

Stocks in news:

AkzoNobel: The board has recommended a share buyback to the tune of Rs 235.20 crore.

Dabur: The firm has completed acquisition of two personal care products firms in South Africa.

State Bank of India: Bank puts 15 NPAs worth Rs 1,063 crore for sale

Punjab National Bank: Bank puts 15 NPAs worth Rs 1,063 crore for sale

Shree Renuka Sugars: Company to divest Brazilian operations

1 stock under ban period on NSESecurity in the ban period for Monday's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit. For April 9, Jet Airways is present in this list.
First Published on Apr 9, 2018 07:35 am
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