Moneycontrol
Last Updated : Oct 12, 2018 07:30 AM IST | Source: Moneycontrol.com

Trade Setup for Friday: Top 15 things to know before Opening Bell

Put writing was seen at the strike price of 9,900, which added 2.36 lakh contracts in open interest, followed by 9,800 which added 2.27 lakh contracts and 10,200 strike which added 0.93 lakh contracts.

Sunil Shankar Matkar

Brutal sell-off following sharp correction in global peers dragged benchmark indices to fresh six-month low on Thursday. The Nifty50 ended with deep cuts amid fears of rapidly rising interest rates and likely slowdown in global economic growth hinted by IMF.

The Nifty50 opened with big gap down at 10,169.80 followed by a bit of recovery from day's low of 10,138.60 in later part of the session. The index still closed 225.40 points lower at 10,234.70, the lowest closing level since April 4, 2018.

Experts expect the most selling pressure could be possible if the index breaks Thursday's low of 10,138 in coming sessions.

"Global volatility appears to have spooked the strong pull back attempt initiated by the bulls in Wednesday's session as Nifty50 opened with a huge gap down before recovering some of the lost ground on intraday basis," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said this move not only erased the gains of last session but also dissipated the hopes of a pullback rally by registering a new corrective swing low which has reinstated bearish sentiment.

Hence, in next couple of sessions if index fails to sustain above 10,138 levels then initially it can test March 2018 lows of 9,950 to complete the corrective structure, he feels.

Contrary to this if the index manages to sustain above 10,335 levels on closing basis then it can renew the chances of a relief rally going forward, according to Mazhar.

India VIX moved up sharply by 14.68 percent to 20.53 levels. Spurt in VIX from previous day's low suggests that bears are not loosening their grip and bounce are being sold in the market. Now VIX has to cool down below 17.50-17 zones to get any sign of consolidation, experts said.

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

Key support and resistance level for Nifty

The Nifty50 closed at 10,234.70 on Thursday. According to Pivot charts, the key support level is placed at 10,136.87, followed by 10,039.03. If the index starts moving upwards, key resistance levels to watch out are 10,334.27 and 10,433.83.

Nifty Bank

The Nifty Bank index closed at 24,783.95, up 537.75 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 24,538.37, followed by 24,292.83. On the upside, key resistance levels are placed at 24,984.77, followed by 25,185.63.

Call Options Data

Maximum Call open interest (OI) of 35.24 lakh contracts was seen at the 10,500 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,800 strike price, which now holds 28.65 lakh contracts in open interest, and 10,600, which has accumulated 27.09 lakh contracts in open interest.

Call writing was seen at the strike price of 10,500, which added 9.54 lakh contracts, followed by 10,400 which added 7.39 lakh contracts and 10,600 which added 6.66 lakh contracts.

Call unwinding was seen at the strike price of 10,800, which shed 0.94 lakh contracts, followed by 10,000 which shed 0.23 lakh contracts.

Image511102018

Put Options data

Maximum Put open interest of 37.82 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the October series.

This was followed by the 10,800 strike price, which now holds 19.96 lakh contracts in open interest, and the 10,200 strike price, which has now accumulated 19.81 lakh contracts in open interest.

Put writing was seen at the strike price of 9,900, which added 2.36 lakh contracts in open interest, followed by 9,800 which added 2.27 lakh contracts and 10,200 strike which added 0.93 lakh contracts.

Put unwinding was seen at the strike price of 10,500, which shed 7.46 lakh contracts in open interest, followed by 10,400 which shed 6.10 lakh contracts and 10,300 which shed 4.68 lakh contracts.

Image611102018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 2,869.41 crore while domestic institutional investors bought shares worth Rs 1,888.18 crore in the Indian equity market on Thursday, as per provisional data available on the NSE.

Fund Flow Picture:

Image711102018

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.

Image811102018

9 stocks saw a long buildup

Image911102018

18 stocks saw short covering

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

Image1011102018

80 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.

Image1111102018

100 stock saw long unwinding

Image1211102018

Bulk Deals

Silgo Retail: Overskud Multi Asset Management bought 1,14,000 shares of the company at Rs 36.25 per share and 1,32,000 shares at Rs 36.42 per share whereas Usha Shreya Trust sold 1,35,000 shares at Rs 36.42 per share on the NSE.

Vinny Overseas: Harishkumar Jitmal Bhansali purchased 2,04,000 shares of the company at Rs 41.58 per share, Mohinidevi Mahendrakumar Bhansali 69,000 shares at Rs 41 per share and Sunitadevi Harishkumar Bhansali 1,35,000 shares at Rs 41.42 per share on the NSE.

Kshitij Polyline: Sanghvi Hardik Jayesh bought 68,000 shares of the company at Rs 34.89 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Shriram City Union Finance: Board meeting is scheduled to be held on October 25 to consider unaudited financial results for the second quarter and half year ended September 2018.

Indo Tech Transformers: Board meeting is scheduled to be held on October 31 to consider unaudited financial results for the second quarter and half year ended September 2018.

Shanthi Gears: Board meeting is scheduled to be held on October 26 to consider unaudited financial results for the second quarter and half year ended September 2018.

MCX: Board meeting is scheduled to be held on October 23 to consider unaudited financial results for the second quarter and half year ended September 2018.

Rallis India: Board meeting is scheduled to be held on October 23 to consider unaudited financial results for the second quarter and half year ended September 2018.

CreditAccess Grameen: Board meeting is scheduled to be held on October 30 to consider unaudited financial results for the second quarter and half year ended September 2018.

Karur Vysya Bank: Board meeting is scheduled to be held on October 30 to consider unaudited financial results for the second quarter and half year ended September 2018.

Astra Microwave Products: Board meeting is scheduled to be held on October 30 to consider unaudited financial results for the second quarter and half year ended September 2018.

Canara Bank: Board meeting is scheduled to be held on October 31 to consider unaudited financial results for the second quarter and half year ended September 2018.

Fiberweb (India): Board meeting is scheduled to be held on October 22 to consider unaudited financial results for the second quarter and half year ended September 2018.

63 Moons Technologies: Board meeting is scheduled to be held on October 25 to consider unaudited financial results for the second quarter and half year ended September 2018.

Godrej Properties: Board meeting is scheduled to be held on November 1 to consider unaudited financial results for the second quarter and half year ended September 2018.

Sundaram Finance: Board meeting is scheduled to be held on November 1 to consider unaudited financial results for the second quarter and half year ended September 2018.

Marico: Board meeting is scheduled to be held on November 1 to consider unaudited financial results for the second quarter and half year ended September 2018.

VRL Logistics: Board meeting is scheduled to be held on November 3 to consider unaudited financial results for the second quarter and half year ended September 2018.

Shree Cement: Board meeting is scheduled to be held on November 12 to consider unaudited financial results for the second quarter and half year ended September 2018.

Mahanagar Gas: Company's officials will be meeting Lazard Asset Management (P) USA on October 15.

Finolex Industries: Company's officials will be meeting investors/analysts on October 12.

Tata Sponge Iron: Company's officials will be meeting Centrum Broking on October 12.

Stocks in news

TCS Q2: Net profit rises 7.6 percent to Rs 7,901 crore versus Rs 7,340 crore, rupee revenue increased 7.6 percent to Rs 36,854 crore versus Rs 34,261 crore; dollar revenue up 3.2 percent to $5,215 million versus $5,051 million (QoQ).

GM Breweries Q2: Profit rises to Rs 19.42 crore versus Rs 15.73 crore; revenue increases to Rs 413.59 crore versus Rs 384.82 crore (YoY).

Bank of Baroda: Company has extended the term of office of P S Jayakumar as Managing Director and Chief Executive Officer for a further period of one year.

Sambhaav Media: Company commenced FM radio channel under the brand name "Top FM" at Godhra (93.1).

OnMobile Global: Subsidiary OnMobile Europe BV entered into an agreement for acquisition of 100 percent shares of Appland AB.

PNC Infratech: Company announced declaration of appointed date for two contiguous EPC packages (Rs 1,566 crore and 954 crore) of Lucknow - Ghazipur six lane access controlled Purvanchal Expressway Project in Uttar Pradesh on EPC basis. The Company has received a communication from Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to this

Avenue Supermarts: Company has issued commercial paper of Rs 65 crore.

Sundaram-Clayton: Company inaugurated new foundry in Chennai, wherein it invested over Rs 150 crore to significantly expand capacity.

Arrow Textiles: Company resigned Chand Arora from the post of Managing Director.

1 stock under ban period on NSE

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

For October 12, IDBI Bank is present in this list.
First Published on Oct 11, 2018 08:18 pm
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