Moneycontrol
Last Updated : Jan 10, 2019 09:17 PM IST | Source: Moneycontrol.com

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

Experts expect the market to move on positive side with Nifty likely reclaiming 11,000 levels soon.

Uttaresh Venkateshwaran @UttareshV
Sunil Shankar Matkar

The market snapped the four-day winning streak as the benchmark indices closed lower amid consolidation on January 10, driven by subdued global cues. But the Nifty 50 managed to hold the 10,800 levels.

The 30-share BSE Sensex fell 106.41 points to 36,106.50 while the Nifty 50 lost 33.60 points to 10,821.60, forming 'Bearish Belt Hold' pattern on the daily charts.

After current consolidation, experts expect the market to move on the positive side with Nifty likely reclaiming 11,000 levels soon.

"Since the beginning of January series, we witnessed long formation in Nifty futures and a decent amount of longs rolled over are also in the system. Stronger hands too turned net buyers in equities and index futures segment on Wednesday’s session. At the same time, index put writers continued adding a good amount of positions in ATM strike. Considering the above data points, we maintain our positive stands on the market and expect Nifty to soon surpass 11,000 mark," Sneha Seth, Derivatives Analyst at Angel Broking told Moneycontrol.

A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.

Overall participants preferred to sit on sidelines in absence of fresh domestic trigger and caution ahead of TCS results announced after market hours on Thursday. Mostly sectoral indices traded in tandem with the benchmark index and settled marginally lower.

"Markets will react to the TCS results in early trades on Friday and then anxiety of another IT major, Infosys results would take over. In short, IT pack would lead the market in the next session," Jayant Manglik, President at Religare Broking said.

He reiterated cautious view and suggested traders to prefer hedged bets.

The broader markets outperformed frontline indices with Nifty Midcap and Smallcap indices rising 0.4 percent each.

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

Key support and resistance level for Nifty

The Nifty closed at 10,821.6 on January 10. According to Pivot charts, the key support level is placed at 10,795.83, followed by 10,770.07. If the index starts moving upward, key resistance levels to watch out are 10,853.33and then 10,885.07.

Nifty Bank

The Nifty Bank index closed at 27,528.6. The important Pivot level, which will act as crucial support for the index, is placed at 27,440.0, followed by 27,351.4. On the upside, key resistance levels are placed at 27,665.4, followed by 27,802.2.

Call Options Data

Maximum Call open interest (OI) of 40.91 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,200 strike price, which now holds 32.93 lakh contracts in open interest, and 11,100, which has accumulated 29.27 lakh contracts in open interest.

Meaningful Call writing was seen at 11,000, which added 2.76 lakh contracts, followed by 11,200 strike which added 1.94 lakh contracts.

There was hardly any Call unwinding seen.

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Put Options data

Maximum Put open interest of 41.59 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 34.15 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 27.62 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,600, which added 3.67 lakh contracts, followed by 10,500 strike which added 3.34 lakh contracts and 10,800 strike which added 2.76 lakh contracts.

There was hardly any Put unwinding seen.

Image2

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 344.58 crore and Domestic Institutional Investors purchased Rs 10.98 crore worth of shares in the Indian equity market on January 10, as per provisional data available on the NSE.

Fund Flow Picture

Image110012019

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

62 stocks saw a long buildup

Image5

47 stocks saw short covering

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

Image6

50 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 on January 10

Bliss GVS Pharma: Kotak Mahindra Investments sold 5,50,000 shares of the company at Rs 171.59 per share on the NSE.

CL Educate: ICICI Lombard General Insurance Company sold 1,03,290 shares of the company at Rs 114.98 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

IndusInd Bank: Motilal Oswal AMC will meet representatives of the company on January 10, 2018.

The Great Eastern Shipping Company: The company will meet representatives of Phillip Capital on January 15, 2019.

Aurion Pro: The company will hold an earnings call on January 23, 2018.

Chennai Petroleum Corporation: Board meeting is scheduled on January 28 to consider the un-audited financial results for the quarter and nine months ended December 2018.

SRG Housing Finance: Board meeting is scheduled on January 17 to consider raising of funds by way of equity shares through further public offer/ preferential allotment/ qualified institutions placement or any other permissible mode.

Dena Bank: Board meeting will be held on Janaury 15 to consider / approve, raising of capital through issuance of fresh Equity shares to Employees and Whole time Directors of the bank under Employee stock purchase scheme (ESps).

HEG: Senior Management of the company is scheduled to meet Analysts / Investors from January 14 to 15 at Singapore, as organized by Bank of America Merill Lynch.

Muthoot Capital Services: Board meeting is scheduled on January 18 to consider the financial statements of the company for the quarter (Q3) ended December 2018.

HT Media: Conference call for analysts and investors is scheduled to be held on January 17.

Siyaram Silk Mills: Board meeting is scheduled on January 19 to consider the unaudited standalone financial results for the quarter /nine month ended December 2018.

Supreme Petrochem: Board meeting is scheduled on January 21 to consider the unaudited financial results of the company for the quarter/nine months ended December 2018.

Great Eastern Shipping: Company's officials will be meeting Phillip Capital on January 15.

Reliance Industries: Board meeting is scheduled on January 17 to consider standalone and consolidated unaudited financial results for the quarter / nine months ended December 2018.

Sundram Fasteners: Board meeting is scheduled on February 1 to consider the unaudited financial results for the third quarter ended December 2018.

Hindustan Media Ventures: Conference call for analysts and investors is scheduled to be held on January 17.

Nucleus Software Exports: Board meeting is scheduled on January 28 to consider the audited standalone financial results for the quarter and nine months ended on December 2018.

Hindustan Bio Sciences: Board meeting is scheduled on January 31 to consider the unaudited financial results for the quarter ended 31/12/2018.

Aarti Industries: Board meeting is scheduled on February 3 to consider the audited financial results for the quarter and nine months ended on December 2018.

Shree Pushkar Chemicals & Fertilisers: Officials of the company will be meeting investors and analyst at the plant at Lote Parshuram, Chiplun, Ratnagiri- Maharashtra on January 11.

Mukand: Board meeting is scheduled on February 12 to consider the un-audited financial results (standalone) of the company for the quarter ended December 2018.

Zee Learn: Board meeting is scheduled on January 18 to consider the un-audited financial results of the company on standalone and consolidated basis for the third quarter and nine months ended of financial year 2018-19 ended as on December 2018.

MT Educare: Board meeting is scheduled on January 18 to consider the un-audited financial results on standalone and consolidated basis for the third quarter and nine months of the financial year 2018-19 ended as on December 2018.

Shriram Asset Management: Board meeting is scheduled on January 28 to consider the unaudited financial results for the quarter and nine months ended December 2018.

Pricol: Board meeting is scheduled on February 7 to consider the un-audited accounts for the quarter and nine months ended December 2018.

Dixon Technologies: Company's officials will be meeting Kotak MF on January 11, Phillip Capital on January 14 and UBS on January 15.

Ujjivan Financial Services: Board meeting is scheduled on January 23 to consider the unaudited financial results for the quarter ended December 2018.

Stocks in news

Results on Friday: Infosys, Karnataka Bank, Reliance Industrial Infrastructure, Infomedia Press, TRF

Reliance Industries: The company is planning to shut down one of the crude distillation units and coker unit of its DTA refinery at Jamnagar for routine maintenance and inspection activities for about 4 weeks staring from January 16, 2019. The other crude distillation and secondary processing units are expected to operate normally.

HFCL: Company wins major optical fibre cable orders worth more than Rs 500 crore for BharatNet Phase -II Project from L&T and ITI led consortium.

Tata Motors: JLR December sales down 6.4 percent to 52,160 units YoY.

Emkay Global Financial Services: Company appointed Suveer Chainani as Chief Executive Officer - Institutional Clients Group.

Praj Industries: Company expands bio-energy basket by adding compressed bio-gas (CBG) technology; also on track with execution of first batch of 2G bio refineries.

Indian Energy Exchange: Board extended the term of Satyanarayan Goel, Managing Director & CEO of the company for further six months.

TCS Q3: Profit rises 2.6 percent at Rs 8,105 crore versus Rs 7,901 crore; revenue increases 1.3 percent to Rs 37,338 crore versus Rs 36,854 crore; $ revenue rises to $5,250 million versus $5,215 million QoQ.

KNR Contructions: Subsidiary company received the financial closure letter from the National Highways Authority of India.

NBCC: Company has secured the total business of Rs 187.90 crore in December 2018.

Kernex Microsystems India: Board approved the appointment of Kalidindi Satyanarayana Raju, as Chief Executive Officer of the company.

Tata Motors: Jaguar Land Rover outlined the next phase of 'Charge and Accelerate', the company's ongoing transformation programme to deliver 2.5 billion pound in cost reductions and cashflow improvements over 18 months as well as long-term strategic operating efficiencies.

RBL Bank: Rama Bijapurkar resigned as Independent Director of the bank.

Lyka Labs: Kapol Co-operative Bank Ltd has assigned company's entire loan account along with all underlying balances, rights and securities to International Asset Reconstruction Co. Pvt. Ltd.

2 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 January 11, Adani Power and Jet Airways is present in this list.

Disclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
First Published on Jan 10, 2019 08:50 pm
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