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Trade Setup for Friday: Top 15 things to know before opening bell

Chandan Taparia of Motilal Oswal Financial Services said till the index holds below 11,650 zone it could remain under pressure for the next support of 11,550.
Jul 18, 2019 / 07:16 PM IST

The extended selling pressure in late trade dented market sentiment on July 18. The Nifty broke below the crucial support level of 11,600 dragged by weakness across sectors and global trade war worries.

After a two-day rally, the BSE Sensex plunged 318.18 points to 38,897.46 while the Nifty 50 slipped 90.60 points to 11,596.90, forming a bearish candle resembling a Bearish Belt Hold kind of formation on the daily scale.

The negative chart pattern and similarity of the reversal pattern indicate more pain ahead for the market, experts feel.

"Technically, with the Nifty correcting sharply, the bears seem to have made a comeback. Further downsides are likely once the immediate support of 11,582 is broken. Any pullback rallies could find resistance at 11,677," Deepak Jasani, Head Retail Research, HDFC Securities told Moneycontrol.

Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Financial Services also said until the index holds below 11,650 zones it could remain under pressure for the next support of 11,550 and then 11,520 zones. On the upside, the hurdle is seen at 11,650 then 11,720 zones.

The broader markets also corrected sharply with the Nifty Midcap and Smallcap indices falling 1.7 percent and 1 percent, respectively.

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

Key support and resistance level for Nifty

The Nifty closed at 11,596.90 on July 18. According to the pivot charts, the key support level is placed at 11,560.47, followed by 11,524.03. If the index starts moving upward, the key resistance levels to watch out are 11,655.27 and 11,713.63.

Nifty Bank

The Nifty Bank closed at 30,430.60, down 304.90 points on July 18. The important pivot level, which will act as crucial support for the index, is placed at 30,283.03, followed by 30,135.46. On the upside, key resistance levels are placed at 30,673.73, followed by 30,916.87.

Call options data

Maximum Call open interest (OI) of 34.72 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.

This is followed by 11,700 strike price, which now holds 30.07 lakh contracts in open interest, and 11,800, which has accumulated 23.07 lakh contracts in open interest.

Significant Call writing was seen at the 11,700 strike price, which added 12.96 lakh contracts, followed by an 11,600 strike price, which added 5.43 lakh contracts and 11,800 strike which added 3.83 lakh contracts.

Call unwinding was seen at 11,000 strike, which shed 0.18 lakh contracts, followed by 12,200 strike, which shed 0.10 lakh contracts.


Put options data

Maximum Put open interest of 26.05 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.

This is followed by an 11,600 strike price, which now holds 25.53 lakh contracts in open interest and 11,500 strike price, which has now accumulated 24.62 lakh contracts in open interest.

Put writing was seen at 11,500 strike price, which added 1.6 lakh contracts, followed by 11,000 strike which added 1.12 lakh contracts and 11,300 strike, which added 0.92 lakh contracts.

Put unwinding was seen at the 12,000 strike price, which shed 0.3 lakh contracts, followed by 11,900 strike that shed 0.23 lakh contracts and 11,700 strike price which shed 0.21 lakh contracts.


Stocks with a high delivery percentage

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


18 stocks saw a long buildup


8 stocks that saw short-covering

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


98 stocks saw a short build-up

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


40 stocks saw long unwinding


Analyst or Board Meetings/Briefings

JSW Steel: Company will consider raising long-term funds on July 26.

Balmer Lawrie & Company: The 102nd Annual General Meeting will be held on September 18.

Alembic Pharmaceuticals: Company will hold a post-results conference call on July 29.

Century Enka: Company will announce its June quarter earnings on July 29.

Nucleus Software Exports: Investor/ Analyst earning conference call of the company would be held on July 24.

Jubilant Industries: Company will announce its June quarter earnings on July 25.

Gulf Oil Lubricants India: Company will announce its June quarter earnings on July 30.

Zee Media Corporation: Company will announce its June quarter earnings on July 31.

Eicher Motors: Company will announce its June quarter earnings on July 31.

Vimta Labs: Company will announce its June quarter earnings on July 27.

Usha Martin: Company will announce its June quarter earnings on July 26.

IDBI Bank: 15th AGM to be held on August 20.

Oil India: Company will announce its June quarter earnings on August 9.

Datamatics Global Services: 31st Annual General Meeting of the company is scheduled to be held on August 13.

Stocks in news

Results on July 19: Reliance Industries, RBL Bank, Dabur India, L&T Finance Holdings, InterGlobe Aviation, Bandhan Bank, L&T Technology Services, ICICI Lombard General Insurance Company, Bhageria Industries, Hindustan Zinc, Dhanuka Agritech, Mahindra CIE Automotive, JM Financial, Phillips Carbon Black, Indbank Merchant Banking Services, Tokyo Plast International

ACC Q2: Profit grows 39.5 percent to Rs 455.7 crore versus Rs 326.7 crore, revenue increases 7.8 percent to Rs 4,149.8 crore versus Rs 3,848.3 crore YoY.

Cyient Q1: Profit falls 48.8 percent to Rs 90.5 crore versus Rs 176.6 crore, revenue dips 6.4 percent to Rs 1,089 crore versus Rs 1,162.9 crore, dollar revenue declines 5.2 percent to $156.6 million versus $165.2 million QoQ.

Sterlite Technologies Q1: Profit dips 14.4 percent to Rs 141.4 crore versus Rs 165.2 crore, revenue slips 20.4 percent to Rs 1,432 crore versus Rs 1,791.2 crore QoQ.

Sasken Technologies Q1: Profit slips 15.3 percent to Rs 23.2 crore versus Rs 27.4 crore, revenue dips 0.7 percent to Rs 134.6 crore versus Rs 135.4 crore QoQ.

Rallis India Q1: Consolidated profit jumps to Rs 67.76 crore versus Rs 54.74 crore; revenue rises to Rs 623.24 crore versus Rs 573.11 crore YoY.

Hatsun Agro Q1: Profit jumps 35.4 percent to Rs 51.2 crore versus Rs 37.8 crore, revenue rises 15.2 percent to Rs 1,423.2 crore versus Rs 1,235.6 crore YoY.

L&T Infotech Q1: Profit falls 11.3 percent to Rs 355.7 crore versus Rs 378.5 crore; revenue dips to Rs 2,484.9 crore versus Rs 2,486 crore, dollar revenue grows 0.8 percent to $356.5 million versus $353.8 million QoQ.

Uttam Galva Steels Q1: Consolidated loss at Rs 269.38 crore versus loss Rs 368.51 crore; revenue falls to Rs 112.24 crore versus Rs 199.30 crore YoY.

Thermax: Company bagged order worth Rs 471 crore from Indian government power company for a project in Jharkhand.

Tata Motors: Company incorporated wholly-owned unit Brabo Robotics & Automation w.e.f July 17.

Oriental Bank of Commerce: CARE revised rating outlook of Tier I & Tier II bonds from negative to stable.

Jet Airways: Insolvency Resolution Professional (IPR) published the list of creditors, claims filed for the airline; financial creditors claim Rs 10,231 crore against airline but IRP admits Rs 8,463 crore of financial creditors claims.

Jasch Industries: CRISIL has upgraded the rating of long-term bank loan facilities from stable to BBB/Positive. Short—term rating of A3+ has been reaffirmed.

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FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 1,404.86 crore, but Domestic Institutional Investors (DIIs) bought Rs 329.05 crore worth of shares in the Indian equity market on July 18, as per provisional data available on the NSE.

Fund Flow Picture


Five stocks under F&O ban period on NSE

For July 19, DHFL, IDBI Bank, Reliance Capital, Reliance Infrastructure and Tata Elxsi are under the F&O ban period.

Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Sunil Shankar Matkar
first published: Jul 18, 2019 07:16 pm