Moneycontrol
Feb 16, 2018 07:48 AM IST | Source: Moneycontrol.com

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

Maximum call open interest (OI) of 52.7 lakh contracts stands at strike price 11,100, which will be a resistance for the February series, followed by 11,000, which now holds 49.96 lakh contracts in open interest, and 10,700, which has accumulated 37.88 lakh contracts in OI.


The Nifty50 pared most of its gains made in trade on Thursday to close around its opening level forming a ‘Doji’ type of pattern on the daily candlestick charts.

A 'Doji' is formed when the index opens and then closes approximately around the same level but remained volatile throughout the day which is indicated by its long shadows on either side. The body will be insignificant which will appear like a plus sign on the charts.

For bulls to regain control of this market, Nifty should reclaim 10,600 levels to extend its upmove towards 10,700-10,800 levels. A tight stop loss below 10,398 should be kept for all long positions, suggest experts.

The Nifty50 which opened at 10,537 rose to an intraday high of 10,618 which made a long upper shadow, but bears quickly took control and pushed the index towards 10,500, which made a long lower shadow on the daily charts.

The index hit an intraday low of 10,511 before recouping losses. It closed 44 points higher at 10,545. The index decisively closed below its 50-DEMA placed at 10,599 levels.

“Thursday’s price action is suggesting that Nifty50 is stuck up in a trading range as bulls failed to capitalise after pushing the indices beyond psychologically important resistance point of 10600 levels as by the end of the day they have given up all the gains which resulted in a Doji kind of formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, Thursday’s price action looks slightly advantageous to bulls as they managed to close in the positive terrain after giving up all the gains in the midst of negative news flows which failed to aggravate selling pressure further during the course of the day,” he said.

Mohammad advise traders to focus on stock specific opportunities and for a constructive upmove traders need to watch 10600 level on the upside whereas a close below 10398 shall accelerate selling pressure.

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

Key Support & Resistance Level for Nifty:

The Nifty closed at 10,545.50 on Thursday. According to Pivot charts, the key support level is placed at 10,498.3, followed by 10,451.1. If the index starts to move higher, key resistance levels to watch out are 10,605.4 and 10,665.3.

Nifty Bank:

The Nifty Bank closed at 25,424.35, up 0.33 percent. Important Pivot level, which will act as crucial support for the index, is placed at 25,274.6, followed by 25,124.9. On the upside, key resistance levels are placed at 25,594.6, followed by 25,764.9.

Call Options Data:

Maximum call open interest (OI) of 52.7 lakh contracts stands at strike price 11,100, which will be a resistance for the February series, followed by 11,000, which now holds 49.96 lakh contracts in open interest, and 10,700, which has accumulated 37.88 lakh contracts in OI.

Call writing was seen at the strike price of 10,400, which saw the addition of 1.13 lakh contracts.

Call unwinding was seen at the strike of 10,700, which shed 3.74 lakh contracts, along with 10,500, which shed 3.11 lakh contracts and 10,600, which shed 2.19 lakh contracts.

Image61522018

Put Options Data:

Maximum put OI of 64.18 lakh contracts was seen at strike price 10,500, which will act as a crucial base for February series, followed by 10,000, which now holds 48.48 lakh contracts and 10,400 which has now accumulated 40.24 lakh contracts in open interest.

Maximum Put writing was seen at the strike price of 10,500, which saw the addition of 5.81 lakh contracts, followed by 10,200, which added 3.71 lakh contracts and 10,600, which added 3.19 lakh contracts.

Put unwinding was seen at 10,300, which shed 2.77 lakh contracts, followed by 10,900, which shed 2.1 lakh contracts and 11,000, which shed 1.27 lakh contracts.

Image71522018

FII & DII Data:

Foreign institutional investors (FIIs) have net sold shares worth Rs 240.29 crore while domestic institutional investors (DIIs) bought shares worth Rs 49.92 crore in the Indian equity market on Thursday, 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.

Image81522018

18 stocks saw long build-up:

Image91522018

52 stocks saw short covering:

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

Image101522018

70 stocks saw short build-up:

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

Image111522018

67 stocks saw long unwinding:

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

Image121522018

Bulk Deals:

MT Educare Ltd: India Max Investment Fund Ltd sold 3,00,000 shares at Rs 71.15 per share while Rajasthan Global Securities Pvt Ltd bought 4,40,000 shares at Rs 71.15 per share.

Unichem Laboratories Ltd.: Nordea 1 Sicav Indian Equity Fund sold 5,40,562 shares at Rs 379.26 per share.

(For more bulk deals click here)

Analyst or Board Meets/Briefings:

Dena Bank: EGM of the members of the bank will be held on March 27, 2018 to get the shareholders' approval.

FDC: The Board of Directors of the Company in their meeting held on Thursday, February 15, 2018 has finalized the 'Record Date' for the purpose of determining the entitlement.

Stocks in news:

Yes Bank: To consider proposal to raise funds via debt securities or on private placement basis on February 20, 2018

PNC Infratech: Q3 net profit jumps 21 percent to Rs 93 crore

REC: The company has informed regarding payment of interest due on March 15, 2018.

Idea Cellular board to meet on Feb 21 to cosnider the issue price of shares to be allotted under the QIP

Network 18
TV18 Home shopping network ltd and NW18 HSN Holding Plc cease to be subsidiaries of the Co

Home shop 18 and Shop CJ aggregate their business operations

Capital First to consider and approve private placement of NCDs on Feb 21

Indigrid Trust to acquire three power transmission assets from Sterlite Power Grid Ventures Ltd

Future consumer
To allot NCDs for an amount not exceeding 150cr

Raises Rs200cr debt from UK’s CDC Group

IDBI Bank

Divested 30% Stake In NSDL E-governance Infrastructure Ltd

Indoco Remedies granted EU FMP Certification for Goa plant III

Sunteck Realty issuance of commercial paper of Rs 50cr

7 stocks under ban period on NSE

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

The security which are banned for trading are Balrampur Chini, Dish TV, GMR Infra, HDIL, JP Associates, Jain Irrigation and Oriental Bank.
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