Moneycontrol
May 18, 2018 08:48 AM IST | Source: Moneycontrol.com

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

Maximum call open interest (OI) of 57.05 lakh contracts stood at strike price 11,000, which will act as a crucial resistance level for the index in the May series.

Moneycontrol News @moneycontrolcom

The Nifty50 which started with a small gap on the higher side in morning trade on Thursday failed to garner momentum as bears took control of D-Street in the first 15-minute of trade. The index witnessed strong selling pressure throughout the session which made a ‘Bearish Belt Hold’ kind of pattern on the daily candlestick charts.

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 small lower shadow.

In Thursday’s price action, Nifty50 opened at 10,775.60 and rose marginally to 10,777.25 which made a small or non-existent upper shadow. The bears took control of D-Street in morning trade and pushed the index below its crucial support placed at 5-double exponential moving average (DEMA) placed at 10,737, and 13-DEMA at 10,712.

The index bounced back from its 20-DEMA placed at 10,670 to close 58 points lower at 10,682.70. The positive takeaway is that it managed to close above its support placed at 10,680.

But, bears are slowly tightening their grip on D-Street. The Moving Average Convergence and Divergence, popularly known as MACD, gave a 'sell' signal on the daily charts for the first time since March 2018.

MACD is one of the most effective trend-following momentum indicators, which can be used to spot a change in the short-term trend of the market.

The outlook has become slightly bearish as the index registers a 'sell' signal on the MACD; however, a confirmation will come if the index consistently trades below 10,700 levels.

“In line with our projections, Nifty50 continued its slide before signing off the session with a Bearish Belt Hold kind of formation. Hence, it appears that to culminate the corrective structure it will continue its downward swing below 10601 and may test its 50-day moving average, whose value is placed around 10550 levels, before bottoming out,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, in the zone of 10,601 – 10,550 one can expect the correction to end and selectively look for stock specific opportunities. Meanwhile, daily MACD also generated a ‘sell’ signal confirming downward pressure on the markets,” he said.

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

Key support and resistance level for Nifty

The Nifty closed at 10,682.70 on Thursday. According to Pivot charts, key support level is placed at 10,639.07, followed by 10,595.43. If the index starts moving upwards, key resistance levels to watch out are 10,751.77 and 10,820.83.

Nifty Bank

The Nifty Bank index closed at 26,073.80 on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 25,962.67, followed by 25,851.54. On the upside, key resistance levels are placed at 26,234.27, followed by 26,394.73.

Call Options data

Maximum call open interest (OI) of 57.05 lakh contracts stood at strike price 11,000, which will act as a crucial resistance level for the index in the May series, followed by 10,800, which now holds 46.8 lakh contracts in open interest, and 10,900, which has accumulated 36.87 lakh contracts in OI.

Call writing was seen at the strike price of 10,700, which added 9.3 lakh contracts; followed by 10,800 which added 5.56 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed 3.8 lakh contracts; followed by 10,500, which shed 0.3 lakh contracts.

Image61752018

Put Options data

Maximum put OI of 53.3 lakh contracts was seen at strike price 10,500, which will act as a crucial base for the index in May series; followed by 10,700, which now holds 43 lakh contracts and 10,600 which has now accumulated 41.9 lakh contracts in open interest.

Put writing was seen at the strike price of 10,300, which added 2.6 lakh contracts; followed by 10,400 which added 1.7 lakh contracts and 10,600 strike added 1.35 lakh contracts.

Put unwinding was seen at the strike price of 10,800, which shed 2.2 lakh contracts; followed by 10,500, which shed 1.99 lakh contracts and 10,900 strike which shed 1.36 lakh contracts.

Image71752018

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 830.94 crore, while domestic institutional investors bought shares worth Rs 428.92 crore in the Indian equity market on Thursday, as per provisional data available on the NSE.

Fund flow picture:

Image3 (1)

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.

Image81752018

55 stocks saw long buildup

Image91752018

43 stocks saw short covering:

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

Image101752018

74 stocks saw short build-up:

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

Image121752018

35 stocks saw long unwinding

Image111752018

Bulk Deals:

 

Reliance Communications: Adroit Financial Services traded 2.45 crore shares at the price of Rs 13.7 apiece.

Adroit Share and Stock Broker traded 1.5 crore shares at Rs 14 apiece.

Shaastra Securities traded 4.15 crore shares at Rs 13.6 apiece

Reliance Naval: Shaastra Securities trade 37.9 lakh shares at the price of Rs 15.2-15.3.

Vijay Shanthi Builders: Ashish Thakkar traded 3.84 lakh shares at Rs 14.2 apiece. ​

Analyst or Board Meet/Briefings:

Syndicate Bank: The lender held an analysts' call on May 17, 2018.

ICRA: The agency's Q4 earnings call will be held on May 18, 2018.

Bosch: The company's investors' call will be held on May 22, 2018.

AGL Titles: The firm has organised an analysts' call on May 21, 2018.

Ujjivan: Multiple investors will be meeting the bank on May 18, 2018.

Stocks in focus

Coffee Day Q4: Profit up 95 percent at Rs 25.2 crore versus Rs 12.9 crore; revenue up 26 percent at Rs 1,297 crore versus Rs 1,029 crore (YoY)

Voltas Q4: Profit down 3.1 percent at Rs 194.2 crore versus Rs 200.5 crore; revenue down 0.5 percent at Rs 2,048.4 crore versus Rs 2,058.3 crore (YoY)

Bajaj Finserv Q4: Consolidated profit up 28 percent at Rs 685 crore versus Rs 535 crore; revenue up 25 percent at Rs 8,829 crore versus Rs 7,040 crore (YoY)

Sun Pharma announces US launch of authorized generic for Welchol tablets

Fortis Healthcare receives letter from IHH Healthcare Berhad for extension of the acceptance period for the Enhanced Revised Offer

Here are stocks that are in the news today:

Coffee Day Q4: Profit up 95 percent at Rs 25.2 crore versus Rs 12.9 crore; revenue up 26 percent at Rs 1,297 crore versus Rs 1,029 crore (YoY)

Voltas Q4: Profit down 3.1 percent at Rs 194.2 crore versus Rs 200.5 crore; revenue down 0.5 percent at Rs 2,048.4 crore versus Rs 2,058.3 crore (YoY)

Bajaj Finserv Q4: Consolidated profit up 28 percent at Rs 685 crore versus Rs 535 crore; revenue up 25 percent at Rs 8,829 crore versus Rs 7,040 crore (YoY)

Quess Corp Q4: Consolidated profit at Rs 75.75 crore versus Rs 33.34 crore; revenue at Rs 1,890.75 crore versus Rs 1,239.5 crore (YoY)

Central Bank of India Q4: Loss widens to Rs 2,113.5 crore versus loss at Rs 591.77 crore, net interest income falls to Rs 1,500 crore versus Rs 1,715.5 crore (YoY); gross NPA jumps to 21.48 percent versus 18.08 percent, net NPA rises to 11.10 percent versus 9.45 percent (QoQ); provisions 4,832.5 crore versus Rs 3,081.6 crore (QoQ) and Rs 2,022.70 crore (YoY).

Balkrishna Industries Q4: Profit up at Rs 193.62 crore versus Rs 137.9 crore; revenue rises to Rs 1,231.8 crore versus Rs 1,001.2 crore (YoY).

JK Tyre & Industries Q4: Profit up at Rs 158.9 crore versus Rs 89.5 crore; revenue rises to Rs 2,284 crore versus Rs 2,152.49 crore (YoY)

SRF Q4: Profit at Rs 123.9 crore versus Rs 129.22 crore; revenue at Rs 1,612.3 crore versus Rs 1,325.81 crore (YoY)

Trigyn Technologies Q4: Profit rises to Rs 9.82 crore versus 9.2 crore; revenue up at Rs 178.8 crore versus Rs 168.3 crore (YoY)

Mirc Electronics Q4: Profit at Rs 4.01 crore versus Rs 14.06 crore (YoY) and Rs 2.94 crore (QoQ); revenue at Rs 188.4 crore versus Rs 207.91 crore (YoY) and Rs 131.34 crore (QoQ)

Star Cement Q4: Profit at Rs 108.84 crore versus Rs 128 crore (YoY) and Rs 91.4 crore (QoQ); revenue at Rs 523.3 crore versus Rs 465.33 crore (YoY) and Rs 374.24 crore (QoQ)

Orient Refractories Q4: Profit at Rs 27.5 crore versus Rs 17.77 crore; revenue at Rs 178.9 crore versus Rs 126.75 crore (YoY)

-Company completed expansion of Isostatic production capacity from 9,300 tons per year to 11,700 tons per year at Bhiwadi, the plant has been successfully commissioned on 17 May 2018 and the commercial production will start from June'2018.

Minda Corporation: Raises Rs 310.69 crore through qualified institutional placement.

Reliance Jio: Exclusively partners with Screenz to create a digital engagement platform

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

6 stocks under ban period on NSE

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

For May 18, 2018 stocks such as DHFL, Jet Airways, Jaiprakash Associates, Just Dial, PC Jeweller and Wockhardt are present in this list.
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