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Last Updated : Jan 19, 2018 08:31 AM IST | Source: Moneycontrol.com

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

Investors are advised to stay long with a strict stop loss below 10,666 levels which is also an important support for the index.


The Nifty, which opened with a strong gap, failed to hold the momentum as traders preferred to book profits in the afternoon session on Thursday. The index closed above its crucial psychological support level of 10,800, forming a bullish candle.

However, since the closing level is lower than opening level, the index formed a bearish candle on an intraday basis, which signals a loss of momentum.

But the index still formed higher highs and higher lows for the second consecutive session, which signifies that the bulls have nothing to worry even though the momentum fizzled out slightly.

Close

Investors are advised to stay long with a strict stop loss below 10,666 levels, which is also an important support for the index.

The Nifty index started the day on a cheerful note and made a new record high of 10,887. But it failed to hold its most of the gains and witnessed a sharp selling in last hour of the session.

The Nifty, which opened at 10,873.40, rose to a record high of 10,887.50. But soon, profit booking gripped markets and took the index to intraday low of 10,782 before closing the day 28 points higher at 10,817.

“The Nifty closed positive with the gains of around 30 points but formed a Bearish candle as it closed lower than its opening mark. However index is still on a positive territory but midcap and smallcap stocks have seen sharp selling pressure which is a cause of concern,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

“Now, Nifty has to continue to hold above 10,750 zones to witness an up move towards 10,888 then 11,000 zones while on the downside supports are seen at 10,700 then 10,666 levels,” he said.

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

Key Support & Resistance Level for Nifty:

The Nifty closed at 10,817.0 on Thursday. According to Pivot charts, the key support level is placed at 10,770.43, followed by 10,723.87. If the index starts to move higher, key resistance levels to watch out are 10,875.53 and 10,934.07.

Nifty Bank:

The Nifty Bank closed at 26,537.4. Important Pivot level, which will act as crucial support for the index, is placed at 26,344.9, followed by 26,152.4. On the upside, key resistance levels are placed at 26,808.8, followed by 27,080.2.

Call Options Data:

Maximum call open interest (OI) of 62.68 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 10,800, which now holds 51.99 lakh contracts in open interest, and 10,900, which has accumulated 42.67 lakh contracts in OI.

Call writing was seen at the strike price of 10,900, which saw the addition of 17.2 lakh contracts along with 11,000, which added 12.36 lakh contracts, and 11,100, which added 9.49 lakh contracts.

Call unwinding was seen at 10,700, which saw shedding of 13.49 lakh contracts, followed by 10,600 at 2.42 lakh contracts and 10,500, which saw shedding of 1.49 lakh contracts.

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Put Options Data:

Maximum put OI of 72.72 lakh contracts was seen at strike price 10,500, which will act as a crucial base for the index in January series; followed by 10,600, which now holds 68.50 lakh contracts and 10,700 which has now accumulated 60.47 lakh contracts in open interest.

Put Writing was seen at 10,800, which saw addition of 22.40 lakh contracts, followed by 10,900, which added 8.24 lakh contracts.

Put unwinding was seen at 10,700 which saw shedding of 14.48 lakh contracts in Open Interest, followed by 10,500 (sheds 7.04 lakh contracts) and 10,600, which shed 4.67 lakh contracts.

Image2J

FII & DII Data:

Foreign institutional investors (FIIs) bought shares worth Rs 1,894.99 crore, while domestic institutional investors sold shares worth Rs 657.46 crore in the Indian equity market, as per provisional data available on the NSE.

Fund Flow Picture:

FII & DII

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.

Image4

27 stocks saw long build-up:

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5 stocks saw short covering:

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

Image6

141 stocks saw short build-up:

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

Image7

42 stocks saw long unwinding:

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

Image8

Bulk Deals:

Arman Financial Services: Param Capital bought 325,000 shares at Rs 255.5 per share while Reliance Mutual Fund sold 394,798 shares at Rs 255.5 per share on the BSE.

Renaissance Jewellery Limited: BG Advisory Services LLP bought 6,99,898 shares at Rs 300 per share on the BSE.

(For more bulk deals click here: https://goo.gl/qrXHCH)

Analyst or Board Meet/Briefings:

Navkar Corporation is calling for a conference call to discuss its results on January 23, 2018.

Stocks in news:

IL&FS Transportation: IL&FS Transportation Networks, part of the IL&FS Group, said its board has given nod for issuance of masala bonds worth up to Rs 2,000 crore besides USD-denominated bonds of up to USD 500 million.

Cairn India: The authorities have also attached Cairn UK's shares, worth around Rs 9,000 crore, in its former Indian arm, senior advocate Harish Salve told the bench.

Star Cement: Star Cement's three promoters sold 3.34 percent stake in the firm for Rs 182 crore, through open market transactions.

Torrent Pharma: Drug firm Torrent Pharmaceuticals said it has acquired US-based generic pharmaceuticals and OTC firm Bio-Pharm Inc for an undisclosed amount. To date, Bio-Pharm Inc has 10 approved abbreviated new drug applications (ANDAs) and 10 ANDAs under review at the United States Food and Drug Administration (USFDA) for itself and it's partners, Torrent Pharmaceuticals said in a filing.

SPML Infra Ltd: SPML Infra Limited with its joint venture partner OM Metals Infraprojects has secured an international order from Africa worth Rs 205 crore.

Zensar Technologies: Mid-sized software services firm Zensar Technologies reported 26 percent drop in its consolidated net profit at Rs 59.1 crore for the quarter ended December 2017.

Tech Mahindra: IT company Tech Mahindra announced it will acquire 17.5 percent stake in US-based telecom software development company Altiostar Networks for USD 15 million in a cash deal.

29 BSE companies will be declaring their results. The key ones in focus will be HCL Tech, HDFC Bank, HDFC Standard Life, ICICI Prudential Life, IDFC Bank, ITC, Kotak Mahindra Bank, Reliance Industries, Tejas Networks and Wipro, among others.

11 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 Balrampur Chini, Dish TV, DLF, Fortis, GMR Infra, HCC, HDIL, IFCI, India Cements, Jain Irrigation, and Kaveri Seed Company.

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First Published on Jan 19, 2018 08:00 am
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