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Last Updated : Dec 20, 2018 08:09 PM IST | Source: Moneycontrol.com

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

Even though the momentum remains fairly strong as the market was able to absorb much of the selling pressure after a gap-down start, technical chartists advise investors to remain cautious as we are trading near crucial resistance levels.

Uttaresh Venkateshwaran @UttareshV
2018 was a volatile year for the market, with the Nifty and Sensex almost wiping out the previous year's gains. Let's take a look at some of the factors that could move markets in 2019.
2018 was a volatile year for the market, with the Nifty and Sensex almost wiping out the previous year's gains. Let's take a look at some of the factors that could move markets in 2019.

Nifty, which started off on a muted note on December 20, recouped most of its losses and bounced back from its five-day exponential moving average placed at 10,899 to form a bullish candle for the fifth consecutive day in a row.

The index also managed to hold on to its crucial support placed at 10,900-10,950 which is a positive sign for the bulls and is on the way to touch 11,000 in 2018 itself, if the momentum remains intact.

It formed a bullish candle on an intraday basis as the closing level was higher than the opening level. The index also formed a two-candlestick pattern, similar to 'Piercing Line' on the daily charts.

Close

The Piercing Line pattern is formed when the bullish candle on the day 2 closes above middle points of Day 1 bearish candle.

Even though the momentum remains fairly strong as the market was able to absorb much of the selling pressure after a gap-down start, technical chartists advise investors to remain cautious as we are trading near crucial resistance levels.

"Indian markets appears to have decoupled from the global markets at least for time being as Nifty50 refused to toe its line with negative global cues as the gap down opening was bought into by the market participants which depicted a Piercing line kind of formation (Opens gap down but closes above the midpoint of previous sessions candle body).

"However, as sell signals are emerging on lower time frame charts this kind of outperformance may not last long. Nevertheless, as momentum is strongly favouring the bulls traders are advised to buy a fresh breakout above 10,990 kinds of levels rather than buying a dip," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.

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

Key support and resistance level for Nifty

The Nifty closed at 10,951.7 on December 20. According to Pivot charts, the key support level is placed at 10,900.3, followed by 10,848.9. If the index starts moving upward, key resistance levels to watch out are 10,982.8 and then 11,013.9.

Nifty Bank

The Nifty Bank index closed at 27,275.1. The important Pivot level, which will act as crucial support for the index, is placed at 27,136.7, followed by 26,998.3. On the upside, key resistance levels are placed at 27,361.3, followed by 27,447.5.

Call Options Data

Maximum Call open interest (OI) of 41.47 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.

This was followed by the 11,200 strike price, which now holds 32.93 lakh contracts in open interest, and 11,500, which has accumulated 26.34 lakh contracts in open interest.

Meaningful Call writing was seen at 11,200, which added 4.27 lakh contracts, followed by 11,000 strike which added 3.2 lakh contracts and 11,300 strike which added 1.34 lakh contracts.

Call unwinding was seen at 10,900 strike, which shed 4.33 lakh contracts, followed by 11,400 strike which shed 3.9 lakh contracts and 10,600 strike which shed 1.70 lakh contracts.

Image1

Put Options data

Maximum Put open interest of 40.58 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the December series.

This was followed by the 10,800 strike price, which now holds 38.39 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 30.44 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,900, which added 3.17 lakh contracts, followed by 10,500 strike which added 1.6 lakh contracts and 10,600 strike which added 1.08 lakh contracts.

Put unwinding was seen at the strike of 11,100, which shed 1.49 lakh contracts, followed by 10,700 strike which shed 1.39 lakh contracts.

Image2

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 386.44 crore while Domestic Institutional Investors bought Rs 87.96 crore worth of shares in the Indian equity market on December 20, as per provisional data available on the NSE.

Fund Flow Picture

Image1019122018

Stocks with a high delivery percentage

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

Image4

65 stocks saw a long buildup

Image5

36 stocks saw short covering

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

Image6

60 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.

Image7

41 stocks saw long unwinding

Image8

Bulk Deals

BEML: Alphagrep Securities traded 6.95 lakh shares at Rs 901.72-902.2 apiece

CARE RATINGS:

Pabrai investment fund sold four lakh shares at Rs 985.75.

Reliance communications: skyveil Trade solutions traded 1.86 crore shares at Rs 14.39-14.40 apiece.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Biocon: Representatives of the company met Stewart Investors on December 20, 2018.

Eicher Motors: The company will be meeting Steinberg Asset Management on December 21, 2018.

Mahindra Finance: The company has a one-on-one meeting with Manulife Asset Management on December 21, 2018.

Symphony: ENAM Asset Management will have a meeting with the company on December 24, 2018.

New India Assurance: Investec Capital Services held a meeting with the company on December 20, 2018.

Stocks in news

Bosch: The company will suspend manufacturing operations at the company’s Bidadi plant in Karnataka on December 28 and 29, 2018.

Bajaj Electricals: ICRA has reiterated A1+ rating to the company’s commercial paper worth Rs 500 crore.

Bharti Airtel: The company has formed 'special committee of directors to evaluate fund-raising options.

Bharti Airtel: The company has approved the sale of up to 59 crore shares of Bharti Infratel To Nettle Infra

Indian Hume Pipe: It bagged an order worth Rs 503 crore from AP Drinking Water Supply.

Infosys: It has appointed Nilanjan Roy as CFO with effect from March 1, 2019.

4 stocks 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 December 21, 2018, Adani Enterprises, Adani Power, Jet Airways and Reliance Capital are present in this list.

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First Published on Dec 20, 2018 08:09 pm
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