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Trade Setup for Friday: Top 10 things to know before Opening Bell

Nagaraj Shetti of HDFC Securities said the sharp upmove seems to have confirmed a near term bottom reversal in the Nifty and the market is now ready for a reasonable upside bounce in the next few sessions.
Aug 8, 2019 / 08:43 PM IST

Bulls were back in action on Dalal Street with the Nifty 50 reclaiming 11,000 and Sensex climbing above 37,000 levels on August 8. Media reports suggesting a potential rollback of surcharge on the super-rich and a delay in vehicle registration fees by a year lifted sentiment.

The BSE Sensex rallied 636.86 points or 1.74 percent to close at 37,327.36 while the Nifty 50 rose 177 points or 1.63 percent to 11,032.50, forming a bullish candle on daily charts.

"The rebound was largely on the expected lines and we feel Nifty could face immediate hurdle at 11,100 and next around 11,250. Also, traders should focus more on stock selection as we are seeing limited participation," Ajit Mishra, VP - Research at Religare Broking told Moneycontrol.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities said the sharp up move seems to have confirmed a near term bottom reversal in the Nifty and the market is now ready for a reasonable upside bounce in the next few sessions.

A decisive/sustainable up move above the key overhead resistance of 11,100 level could open up space for a further up move towards 11,300-11,350 levels by next week, according to Shetti.

All sectoral indices closed in green with Auto rallying the most with 3 percent gains. Auto, FMCG, IT, Metal and Realty indices gained 1-2 percent.

The broader markets underperformed frontliners with the Nifty Midcap index rising 0.7 percent and Smallcap index climbing a percent.

We have collated 10 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 11,032.45 on August 8. According to the pivot charts, the key support level is placed at 10,897.67, followed by 10,762.83. If the index starts moving upward, the key resistance levels to watch for out are 11,112.67 and 11,192.83.

Nifty Bank

The Nifty Bank closed at 28,110.45, up by 408.40 points on August 8. The important pivot level, which will act as crucial support for the index, is placed at 27,685.13, followed by 27,259.87. On the upside, key resistance levels are placed at 28,381.63 and 28,652.87.

Call options data

Options data suggests that maximum Call open interest is at 11,500, which will act as crucial resistance for Nifty in August series. It is followed by 11,300 strike.

Minor Call writing is at 11,400 strike.

Put options data

Maximum Put open interest is at 11,000, which will act as crucial support for Nifty in August series. It is followed by 10,700 strike.

Put writing is at 11,000 followed by 10,800 strike.

Analyst or Board Meetings/Briefings

Jindal Stainless: Conference call with investors and analysts to be held on August 13.

Century Plyboards: Conference call with investors and analysts is scheduled on August 14.

Assam Company (India): Company will announce its June quarter earnings on August 14.

Himatsingka Seide: Conference call for analysts and investors is scheduled to be held on August 13.

Chalet Hotels: Company is hosting a Conference Call to discuss the performance/results for the quarter ended June 2019 on August 13.

Action Construction Equipment: 25th Annual General Meeting (AGM) of the company will be held on September 27.

Aurobindo Pharma: Company will attend an investor conference on August 9 hosted by Emkay Global in Mumbai.

Veritas (India): Company will announce its June quarter earnings on August 14.

AIA Engineering: Investors' conference call on the results of June quarter 2019 will be held on August 13.

Tata Steel: Company will attend the Emkay Global Confluence conference on August 9.

Stocks in news

Coffee Day Enterprises: Company appointed Ernst & Young to probe statements in VG Siddhartha's letter and company's units' financials.

Yes Bank: QIP issue opened, with the floor price fixed at Rs 87.9 per share. The bank is currently in the process of appointing new key officers, including CFO, COO.

NBCC Q1: Consolidated profit dips 38.4 percent to Rs 49 crore versus Rs 79.4 crore, revenue falls 16.3 percen to Rs 1,885.8 crore versus Rs 2,251.8 crore YoY.

Nalco: Company signed a joint venture agreement with Mishra Dhatu Nigam for setting up aluminium alloys plan for manufacturing plates, sheets.

Tata Chemicals Q1: Consolidated profit rises 19.5 percent to Rs 313 crore versus Rs 261.6 crore, revenue increases 5.6 percent to Rs 2,896.9 crore versus Rs 2,744.4 crore YoY.

Mahanagar Gas Q1: Profit jumps 27.5 percent to Rs 170.2 crore versus Rs 133.5 crore, revenue increases 4.8 percent to Rs 831.2 crore versus Rs 793.2 crore QoQ.

Endurance Technologies Q1: Consolidated profit jumps 32.9 percent to Rs 165.6 crore versus Rs 124.6 crore, revenue rises 2.6 percent to Rs 1,909.2 crore versus Rs 1,860.4 crore YoY.

Page Industries Q1: Profit falls 11.1 percent to Rs 110.6 crore versus Rs 124.4 crore, revenue increases 2.4 percent to Rs 835 crore versus Rs 815.3 crore YoY.

Jindal Stainless (Hisar) Q1: Consolidated profit falls to Rs 104.68 crore versus Rs 139.49 crore, revenue dips to Rs 2,372.35 crore versus Rs 2,476.70 crore YoY.

Rashtriya Chemicals and Fertilizers Q1: Profit falls to Rs 7.98 crore versus Rs 22.99 crore, revenue jumps to Rs 2,409.5 crore versus Rs 1,943.5 crore YoY.

Adani Transmission Q1: Profit rises to Rs 213.42 crore versus Rs 146.70 crore, revenue jumps to Rs 2,858.08 crore versus Rs 2,545.56 crore QoQ.

Hexaware Technologies June quarter: Consolidated profit rises to Rs 151.35 crore versus Rs 138.5 crore, revenue increases to Rs 1,308.3 crore versus Rs 1,264 crore QoQ.

Engineers India Q1: Profit jumps to Rs 125.7 crore versus Rs 89.5 crore, revenue climbs to Rs 742.66 crore versus Rs 582.8 crore YoY.

Clariant Chemicals Q1: Profit rises to Rs 11.27 crore versus Rs 9.64 crore, revenue increases to Rs 295.81 crore versus Rs 264.32 crore YoY.

DHFL: Company said payment obligations falling due in the near future may not be met on schedule, but it is committed to resolving issues related to a liquidity crisis and making best efforts to work out a resolution plan.

Bodal Chemicals: Company acquired 80 percent stake in SEN-ER Boya Kimya Tekstil Sanayi VE Ticaret Ltd. STI. by entering a share sale and transfer agreement.

Marico: Company will further invest in Revolutionary Fitness Private Limited and will increase stake in same to 37 percent.

HCL Technologies: UK subsidiary makes a minority investment in OM Mobile Ventures (doing business as Kalido), headquartered in London.

Indostar Capital Finance: Company approved the appointment of Amol Joshi as the CFO.

Alphageo (India): CRISIL revised long term credit rating to BBB+/Watch Developing, from BBB+/Stable.

Cochin Shipyard: Company launched two Ro Pax vessels designed and built for Inland Waterways Authority of India.

SBI: Term of office of Dinesh Kumar Khara, MD, extended by two years with immediate effect.

IDBI Bank: Bank to cut MCLR on most tenures by 5-15 bps from August 12.

Oriental Bank of Commerce: Bank to cut MCLR across tenures by 5-10 bps from August 10.

GMR Infrastructure: Board approves raising up to Rs 2,500 crore via equity, debt.

Wipro: Company partners with Camunda to offer workflow automation platform.

Results to Watch Out For

Results on August 9: GAIL (India), BPCL, Shree Cement, Hindalco Industries, Britannia Industries, Cadila Healthcare, Sobha, BHEL, Oil India, Reliance Communications, RattanIndia Power, NEL Holdings, PC Jeweller, TTK Healthcare, SH Kelkar, Marksans Pharma, Hercules Hoists, Arshiya, Jamna Auto Industries, Kakatiya Cement, IG Petrochemicals, Royal Orchid Hotels, TV Today, Amber Enterprises, Vivimed Labs, MRF, Future Consumer, Speciality Restaurants, NCC, HG Infra Engineering, Century Plyboards, Kanoria Chemicals

ITD Cementation, Natco Pharma, PSP Projects, Tourism Finance Corporation of India, VIP Clothing, Narayana Hrudayalaya, Golden Tobacco, Tilaknagar Industries, Pfizer, Oswal Chemicals, Neogen Chemicals, Sun TV Network, Satin Creditcare, Subros, NHPC, NRB Bearing, Arvind Fashions, Uniphos Enterprises, Nitco, Shipping Corporation, Himatsingka Seide, Meghmani Organics, Gujarat Industries Power, Pokarna, Inox Wind, State Trading Corporation of India, SAIL, 63 Moons Technologies, Garden Reach Shipbuilders, VST Tillers, Balaji Telefilms, Varroc Engineering, Honeywell Automation

Relief to NBFC, Tweak in FPI Tax

The government is likely to come up with an announcement to provide some relief to FPIs and the NBFC sector.

A senior government official told Moneycontrol that some relief for FPIs on higher surcharge may be announced soon. "We are trying to build consensus on relief for FPIs surcharge issue," the official said.

The official further said some relief measures on sectors like the non-banking financial companies (NBFCs) would also be announced by the government soon.

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FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 437.39 crore, but Domestic Institutional Investors (DIIs) purchased Rs 291.29 crore worth of shares in the Indian equity market on August 8, as per provisional data available on the NSE.
Sunil Shankar Matkar
first published: Aug 8, 2019 08:43 pm