Moneycontrol
Last Updated : Mar 09, 2018 08:03 AM IST | Source: Moneycontrol.com

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

Traders are advised not to short the index at current levels as the rally could stretch towards 10,300 which would prove to be next resistance level for the index.

Uttaresh Venkateshwaran @UttareshV
Sandip Das @Im_Sandip1

The Nifty broke six straight sessions of decline on Thursday and formed a Hammer-like pattern on the daily candlestick charts, but experts feel that bulls are here to stay for a few more sessions. Traders should, therefore, avoid shorting the market.

The Nifty defended its 200-DEMA, placed around 10,101, but still traded below its crucial short-term moving averages, which will remain an overhang.

Traders are advised not to short the index at current levels as the rally could stretch towards 10,300, which would prove to be next resistance level for the index.

A hammer, which is a bullish reversal pattern is formed after a decline while a Hanging Man is a bearish reversal pattern. A hammer consist of no upper shadow, a small body, and long lower shadow.

The long lower shadow of the Hammer signifies that it tested its support where demand was located and then bounced back.

The index opened at 10,216 and rose to an intraday high of 10,270. It slipped to an intraday low of 10,146 before closing the day at 10,242, up 88 points.

“Finally, bulls garnered the courage to defend 200-days moving average (DEMA) and bravely staged a sustainable pullback at least for the session by overcoming intraday setbacks before signing of the day in style with Hammer kind of formation,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

“In subsequent sessions, if Thursday’s low of 10146 is defended then eventually this pull back shall get extended up to 10450 levels. Strength backed by strong momentum can be expected once if bulls manage to push the indices beyond 10450 levels on closing basis,” he said.

Mohammad added that as Nifty50 recently broken down below the consolidation range of 10,600–300 levels, the initial hurdle can be 10,300 and beyond that, the real challenge will be around 10,450.

“Traders are advised not to short this pullback rally in a hurry in the immediate session as bulls are here for few more days to rule,” he said.

India VIX fell down by 7.10 percent at 14.58 and the decline in volatility is supporting the index for a bounce back.

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

Key support and resistance level for Nifty:

The Nifty closed at 10,242.7. According to Pivot charts, the key support level is placed at 10,169.3, followed by 10,095.9. If the index starts to move higher, key resistance levels to watch out are 10,293.2 and 10,343.7.

Nifty Bank:

The Nifty Bank closed at 24,477.7. Important Pivot level, which will act as crucial support for the index, is placed at 24,172.7, followed by 23,867.7. On the upside, key resistance levels are placed at 24,658.6, followed by 24,839.5.

Call Options Data:

In open interest, 10,500 has seen most call writing at 52.43 lakh contracts. This could act as a crucial resistance level for the index in the March series. The second-highest build-up has taken place at strike price 10,700, which has seen 37.29 lakh contracts and 10,400 strike price has accumulated 36.45 lakh contracts in open interest.

Call writing was seen at a strike price of 10,500, which saw the addition of 3.06 lakh contracts, followed by 10,300, which added 2.76 lakh contracts.

Call unwinding was seen at the strike price 10,600, which shed 15.82 lakh contracts, followed by strike price of 10,800, which shed 2.1 lakh contracts and 10,400,which shed 1.93 lakh contracts.

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Put Options Data:

Maximum put open interest of 52.83 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in March series; followed by 10,200, which now holds 36.94 lakh contracts and 10,100 which has now accumulated 30.92 lakh contracts in open interest.

Put Writing was seen at the strike price of 10,000, which saw addition of 12 lakh contracts, along with 10,100, which added 5.69 lakh contracts and 9,900, which added 4.16 lakh contracts.

Put unwinding was seen at the strike price of 10,400, which shed 1.12 lakh contracts, followed by 9,800, which shed 0.75 lakh contracts.

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FII & DII Data:

Foreign Institutional Investors (FIIs) sold shares worth Rs 364.8 crore, while domestic institutional investors bought shares worth Rs 675.26 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 it.

Image4

132 stocks saw long build-up:

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13 stocks saw short covering:

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

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57 stocks saw short build-up:

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

Image7

37 stocks saw long unwinding:

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

Image8

Bulk Deals:

Teamlease Services Ltd.: HDFC Trustee Co. Ltd. - HDFC Prudence Fund sold 6,00,168 shares at Rs 2150.02 per share

CKP Leisure Limited : Brisk Capital Market Services Limited bought 4,76,000 shares at Rs 29.61 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Biocon: Aberdeen Standard Life, Goldman Sachs, Ishana Capital, Kota Capital, Orbimed Advisors, and Surveyor Capital met the management on March 8, 2018.

Vedanta Ltd: A meeting of the Board of Directors will be held on March 13, 2018, to consider and approve first interim dividend on equity shares, if any, for the financial year 2017-18

Stocks in news:

Zydus: The company has partnered with Medicure to launch its NDA Product, ZYPITAMAG (pitavastatin) in the US. The drug is used to treat cholesterol levels.

Ashoka Buildcon: Wins orders worth Rs 2,991.7 crore for NHAI projects

Fortis Healthcare: Non-Executive Independent Director Joji Sekhon Gill Resigns From Co Effective March 7

IDFC Bank: Raises MCLR By 15-25 bps across all tenors

Bharti Airtel: National Company Law Tribunal grants nod to Bharti-Telenor merger

TCS's flagship product TCS BaNCS has gone live in Gansu Bank in China within 18 months

Filatex India - Commencement of extended facility for 190 TPD of bright polyester fully drawn yarn and 85 TPD of Bright Chip at Dahej unit

SpiceJet - Clarification on penalty imposed by CCI: Company clarified that it did not indulge in anti-competitive activities

Vedanta board meeting on March 13, 2018 to approve interim dividend for FY17-18

Orchid Pharma - Extension of date for resolution plans from March 12 to March 15, 2018

Jayaswal Neco - HC dismissed the writ petition for implementation of approved Debt restructuring scheme, it reserves the right to appeal before SC

Piramal Enterprises board meeting for Right issue of 74.85 lac shares at Rs. 2,380 each

Balrampur Chini - AXIS Capital Limited (Manager to the BuyBack Offer) has submitted to BSE a copy of Letter of Offer to the equity shareholder for the

Balrampur Chini Mills

Fortis - Axis acquired 1.83 cr shares to invocation of pledging

IDFC Bank raises MCLR by 15-25 bps across all tenors effective today

4 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, DHFL, HDIL, and IDBI Bank.
First Published on Mar 9, 2018 07:35 am
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