Moneycontrol
Last Updated : Jan 12, 2018 08:12 AM IST | Source: Moneycontrol.com

Trade setup for Friday: Top 15 things you should know before Opening Bell

Investors are advised to stay light and don’t be in a hurry to create fresh long positions on the index and wait for a breakout.

The bulls managed to push the index higher after slipping towards its 5-days exponential moving averages (DEMA) to a fresh record high of 10,664.60 on Thursday making a small bullish candle which also resembles a 'Hanging Man' kind of pattern on daily candlestick charts.

The index which started the day on a muted note slipped to its 5-DEMA placed at 10,612 but then bulls took control and pushed the index to a fresh record high. Last 30 minutes buying took the index above 10,650 levels towards closing.

The Nifty50 index which opened at 10,637 slipped to an intraday low of 10,612.35. It rose to a record high of 10,664.60 before closing the day 19 points higher at 10,651.

Trading continued to remain lackadaisical even in Thursday’s trading session ahead of crucial results from two IT bellwether names – Infosys and TCS.

Also Read - What changed for the market while you were sleeping? 15 things you should know

Investors are advised to stay light and don’t be in a hurry to create fresh long positions on the index and wait for a breakout. However, chances of a breakdown look more likely considering the fact Nifty is showing signs of overbought levels.

The Nifty50 moved in a narrow range of around 50 points before signing off the day with a small bullish candle. “These kind of a range bound moves for last 3 sessions are clearly suggesting that market is in need of a trigger for further upsides and unless it sees a strong intraday up move beyond 10660 levels it is bound to remain sideways,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Monneycontrol.

“Slowly momentum oscillators on lower time frame charts are facilitating sell signals whereas some oscillators on a medium term time frame are in an extremely overbought zone thereby capping the upsides,” he said.

Mohammad further added that a close below 10592 shall confirm the weakness and may trigger a fresh bout of selling. “In the light of these facts traders should give priority to preserve their profits and shall not be in a hurry to create fresh long positions without signs of an upside breakout,” he said.

India VIX moved down by 0.20 percent at 14. VIX has to hold below 13-12.50 zones to support the fresh leg of the rally with a smooth ride in the market.

We have collated the top fifteen data points to help you spot profitable trade:

Key Support & Resistance Level for Nifty

The Nifty closed at 10,651.2 on Thursday. According to Pivot charts, the key support level is placed at 10,620.8, followed by 10,590.4. If the index starts to move higher, key resistance levels to watch out are 10,673.1 and 10,695.0.

Nifty Bank

The Nifty Bank closed at 25,660.9. Important Pivot level, which will act as crucial support for the index, is placed at 25,563.83, followed by 25,466.77. On the upside, key resistance levels are 25,726.33, followed by 25,791.77.

Call Options Data

Maximum call open interest (OI) of 45.10 lakh contracts stands at strike price 11,000, which will act as a crucial resistance level for the index in the January series, followed by 10,700, which now holds 41.7 lakh contracts in open interest, and 10,600, which has accumulated 37.72 lakh contracts in OI.

Call writing was seen at a strike price of 10,900, which saw the addition of 2.31 lakh contracts, followed by 11,200, which saw the addition of 1.19 lakh contracts and 11,100, which saw the addition of 0.35 lakh contracts.

Call unwinding was seen at 10,700, which saw shedding of 3.98 lakh contracts, followed by 10,600 at 3.87 lakh contracts.

image- 1

Put Options Data

Maximum put OI of 81.9 lakh contracts was seen at strike price 10,500, which will act as a crucial base for the index in January series; followed by 10,400, which now holds 64.92 lakh contracts and 10,600 which has now accumulated 55.41 lakh contracts in open interest.

Put writing seen at 10,600, which saw the addition of 13.3 lakh contracts, followed by 6.43 lakh contracts at the strike price of 10,500 and 10,700, which saw the addition of 2.32 lakh contracts.

There was hardly any Put unwinding seen.

image - 2

FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 623.63 crore, while domestic institutional investors bought shares worth Rs 770.02 crore in the Indian equity market on Thursday, as per provisional data available on the NSE.

Fund Flow Picture:

image-3

Stocks with high delivery percentage:

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

image-4

70 stocks saw long build-up:

image-5

51 stocks saw short covering:

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

image-6

68 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates short positions being built up.

image-7

24 stocks saw long unwinding:

Long unwinding happens when there is a decrease in OI as well as in price.

image-8 (2)

Bulk Deals:

Stampede: Padam Raj Agarwal sold 2,000,000 shares at Rs16.07 per share on the BSE.

High Ground Enterprises Ltd: Bhatt Mayank S sold 12,50,000 shares at Rs 15.60 per share on the NSE

Snowman Logistics Ltd.: Norwest Venture Partners VII-A-Mauritius sold 10,01,090 shares at Rs 64.35 per share on the NSE.

For more bulk deals, click here

Analyst Meet/Briefings:

Jubilant Foodworks has invited a conference call of analysts on January 19, 2018 to discuss its Q3 show.

BNP Paribas Mutual Fund, Blue Lotus Capital Advisors, Systematix Shares and Stocks will be meeting the management of Khadim’s India.

Gayatri Projects: The company informed BSE that it is organising a group meeting on Friday, 12 January with brokerage firms like Ambit Capital, Edelweiss Finance, IDBI Capital, Goldman Sachs, CLSA, Kotak etc. among others.

Stocks in news:

SBI: Country's largest lender State Bank of India plans to raise Rs 20,000 crore through long term bonds to fund affordable housing.

Shree Cement: Shree Cements reported a better-than-expected December quarter show, with net profit at Rs 333.3 crore against Rs 235.4 crore posted during the same quarter last year. The growth is at 41.6 percent. The revenue grew 23.1 percent at Rs 2,296.2 crore against Rs 1,864.4 crore year on year.

Infosys: The IT major is expected to report a profit for the quarter at Rs 3,609 crore, down 3.14 percent compared to Rs 3,726 crore in previous quarter, according to an average of estimates of analysts polled by CNBC-TV18.

TCS: India’s largest software services exporter reported a net profit of Rs6,531 crore for the quarter ended December while the dollar revenue rose 1 percent on a QoQ basis to $4787 million.

Varun Beverages: The Company has concluded the acquisition of PepsiCo India's previously franchised rights for the state of Chhattisgarh.

Ujjivan Financial Services: The board approved the allotment of 95,170 equity shares of Rs10 each towards the exercise of vested stock options under various ESOP schemes of the company.

Indiabulls Real Estate: Indiabulls Real Estate on Thursday announced that it will acquire a prime commercial building in Gurgaon having a leasable area of 2.5 lakh sq ft for an undisclosed amount.

Also Read - Stocks in the news: TCS, Infosys, Shree Cements, SBI, Indiabulls Real Estate, Tata Global Beverage, Dredging Corp

IOC: India, the world's third-largest oil importer, joins Asian countries like South Korea, Japan and China to buy US crude after production cuts by oil cartel OPEC drove up prices of Middle East heavy-sour crude, or grades with a high sulphur content.

Motilal Oswal Securities: Markets regulator SEBI on Thursday imposed a fine of Rs 2 lakh on Motilal Oswal Securities in a case related to alleged unauthorised trading through the use of forged Power of Attorney (PoA).

Telecom stocks: The number of telecom subscribers dwindled by 1.58 crore to 118.5 crore in November, even as Reliance Jio continued to lead in customer addition with over 15 crore subscribers, as per a report by TRAI.

Tata Global Beverages: Tata Global Beverages Ltd is looking to divest its 41% stake in Amalgamated Plantations Pvt. Ltd—India’s second largest producer and supplier of tea with estates in Assam and the Dooars region of West Bengal, Mint reported.

Videocon Industries & Dish TV: Direct-to-home (DTH) operator Dish TV India Ltd on Thursday pointed to the ongoing insolvency proceedings against Videocon group in the context of the delay in its planned merger with Videocon d2h, Mint reported.

Binani Cement Ltd: At least two lenders of Binani Cement Ltd, currently undergoing insolvency proceedings, have moved the appellate bankruptcy tribunal after the insolvency resolution professional (IRP) rejected their claims on corporate guarantees worth Rs2,000 crore issued by the company to some subsidiaries in the Binani group, Mint reported.

Shree Cement Ltd: Shree Cement Ltd on Thursday said it had agreed to acquire a 92.83% stake in Union Cement Co. PSC, a United Arab Emirates-based firm, for an enterprise value of $305.24 million (Rs1,945 crore), Mint reported.

Gujarat NRE Coke: The Kolkata bench of the National Company Law Tribunal (NCLT) on Thursday ordered the liquidation of Gujarat NRE Coke Ltd, while appointing insolvency resolution professional Sumit Binani as the official liquidator, Mint reported.

17 stocks to report Q3 results today: 

As many as 17 stocks on the BSE are scheduled to report their results for the quarter ended December on Friday which include names like Infosys, 3i Infotech, Gail India, HT Media, Karnataka Bank, Reliance Industrial Infrastructure, Sintex Industries, and Videocon Industries.

10 stocks under ban period on NSE

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

Securities which are banned for trading include names such as Fortis, GMR Infra, HDIL, Jet Airways, Jindal Steel, JP Associates, Reliance Communications, Reliance Capital, Reliance Power and Wockhardt.
First Published on Jan 12, 2018 07:48 am
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