Moneycontrol
Last Updated : Aug 20, 2018 07:48 AM IST | Source: Moneycontrol.com

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

Put writing was seen at the strike price of 11,400 which added 9.3 lakh contracts, followed by 11,500 which added 6.48 lakh contracts and 11,300 which added 1.71 lakh shares

Sunil Shankar Matkar
 
 
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The Nifty, after opening sharply higher above the 11,400 mark, extended its rally to move near its intraday record high and finally ended at record closing high on Friday, driven by broad-based buying.

The index formed a bullish candle on daily candlestick charts and the weekly scale. It closed half a percent higher for the truncated week.

The broader markets also participated in the rally, with the Nifty Midcap index rising over a percent, and all sectoral indices ending in the green. Nifty Bank, and the FMCG, metal and pharma indices rose 1-2 percent.

The Nifty started off the session at 11,437.15 and rallied further during the day to touch an intraday high of 11,486.45. But it failed to reclaim its intraday record high of 11,495.20 seen on August 9. The index ended at record closing high of 11,470.75, up 85.70 points.

"Nifty50 made a strong comeback post Thursday's jitters as it signed off the last session of the week with a bullish candle," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

Even on weekly charts, a decent bull candle can be seen for the fourth week in a row as the intra-week dip towards 11,340 was bought into by market participants, who considered it an opportunity, he said. "Post Friday's recovery trading set up is once again favouring bulls," Mohammad said.

So if it sustains above 11,430, the Nifty should once again create history with new highs by clearing the recent top of 11,495. "In such a scenario next resistance, on medium term charts for Nifty50 is placed around 11,630 levels," he said.

On the downside, it looks critical for the Nifty to sustain above 11,400, below which bears can once again dominate in the short term, Mohammad said.

Volatility in the market has started coming down once again from around 14 percent. On Friday, the India Volatility Index fell 3.48 percent to 13.17.

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

Key support and resistance level for Nifty

The Nifty closed at 11,470.75 on Friday. According to Pivot charts, the key support level is placed at 11,439.57, followed by 11,408.33. If the index starts moving upwards, key resistance levels to watch out are 11,494.27 and 11,517.73.

Nifty Bank

The Nifty Bank index closed at 28,128.55, up 302 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 27,995.54, followed by 27,862.47. On the upside, key resistance levels are placed at 28,219.93, followed by 28,311.27.

Call Options Data

Maximum call open interest (OI) of 36.54 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for August series.

This was followed by the 11,600 strike price, which now holds 35.93 lakh contracts in open interest, and 11,400, which has accumulated 28.36 lakh contracts in open interest.

Call writing was seen at the strike price of 11,600, which added 4.36 lakh contracts, followed by 11,800 which added 2.05 lakh contracts.

Highest Call unwinding was seen at the strike price of 11,500, which shed 8.94 lakh contracts, followed by 11,400, which shed 3.71 lakh contracts and 11,900 which shed 2.41 lakh contracts.

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Put Options data

Maximum put open interest of 46.11 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for August series.

This was followed by the 11,300 strike price, which now holds 41.74 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 40.37 lakh contracts in open interest.

Put writing was seen at the strike price of 11,400 which added 9.3 lakh contracts, followed by 11,500 which added 6.48 lakh contracts and 11,300 which added 1.71 lakh shares.

Highest Put unwinding was seen at the strike price of 11,200, which shed 4.2 lakh contracts, followed by 10,900, which shed 2.04 lakh contracts and 11,000 which shed 2.03 lakh contracts.

Image717082018

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 147.31 crore and domestic institutional investors Rs 151.89 crore in the Indian equity market on Friday, as per provisional data available on the NSE.

Fund Flow Picture:

Image1317082018

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.

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93 stocks saw long buildup

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69 stocks saw short covering

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

Image1017082018

34 stocks saw a short build-up

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

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11 stocks saw long unwinding

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Bulk Deals

Hatsun Agro Product: Chandramogan R G bought 10 lakh shares of the company at Rs 719.99 per share.

Lloyds Steels: Metal Industrial Pvt Ltd sold 57,57,305 shares of the company at Rs 0.95 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

MAS Financial Services: The meeting of the board of directors of the company is scheduled on August 24 to consider and approve June quarter results.

FCS Software Solutions: The meeting of the board of directors of the company is scheduled on August 24 to consider and approve June quarter results.

Pratibha Industries: The meeting of the board of directors of the company is scheduled on August 24 to consider and approve March quarter results.

Dabur India: Company is organising a financial analysts/institutional investors meet on August 21.

Infomedia Press: Company revised date for 63rd Annual General Meeting to August 24 from August 17 earlier.

TV18 Broadcast: Company revised date for Annual General Meeting to August 24 from August 17 earlier.

Network18 Media and Investments: Company revised date for Annual General Meeting to August 24 from August 17 earlier.

Goldstone Infratech: Olectra Greentech said Extraordinary General Meeting to be held on September 10.

Filatex India: Meeting of the board of directors of the company has been scheduled to be held on August 23 to consider and approve raising of the funds.

DCM Shriram: Analyst meet with Ambit Holdings is scheduled on August 20.

Cipla: Schedule of analyst Institutional investor meetings with the company - Mitsubishi UFJ Kokusai AM on August 20, HDFC Asset Management Company on August 28 and lnvestec Capital Services (India) on September 6.

Dilip Buildcon: Schedule of analyst Institutional investor meetings with the company - Citi India Corporate Forum in Hong Kong and Singapore 2018 on August 22 and August 23 respectively; Motilal Oswal l4th Annual GIobal Investor Conference 2018 on August 27.

Wipro: Analyst meet with ICICI Securities is scheduled on August 20.

Great Eastern Shipping: Analyst meet with ULJK is scheduled on August 20.

Prime Focus: Conference call with Analysts will be held on August 20.

Stocks in news

Larsen & Toubro: Company will consider the proposal of buyback of equity shares on August 23.

Jet Airways: Clarified to NSE on the news - Jet in talks with True Jet for subleasing of ATR aircrafts.

Company said it is evaluating all possible alternatives for optimum fleet utilisation and committed to making appropriate disclosures as per SEBI regulations. It has been regular in making required disclosures as per SEBI Regulations. "We are unable to comment on reasons for increase in share price on stock exchanges and committed to making disclosures that have a bearing on operations and company's performance.

Mawana Sugars: Board has given in-principle approval for installation of incinerator boiler, evaporators and bagasse shed at its unit Meerut, UP with an estimated cost of Rs 29 crore; to explore the possibility of expansion of NSC Distillery by 30 KLPD; and for apply to Government of India, Department of Food and Public Distribution (DFPD) for putting up a new Distillery of 120 KLPD at Mawana Sugar Works, Mawana, UP.

Prism Cement: Company has awarded Letter of Intent (LoIs) for development of captive solar power projects via special purpose vehicles at its manufacturing facilities with an aggregate capacity of 22 MW. These captive solar power projects are likely to be commissioned in next six to eight months' timeframe. The company will invest approximately Rs 8 crore in captive solar power projects towards acquiring the equity shareholding of 26 percent in the relevant SPV.

Mangalore Chemicals & Fertilizers: Ministry of Environment, Forest and Climate Change (MoEF&CC) has accorded the Environmental Clearance (EC) to the project for expansion cum modernisation of company's fertiliser plant.

Meghmani Organics (MOL): Scheme of arrangement for amalgamation amongst Meghmani Finechem (MFL) a subsidiary and Meghmani Agrochemicals (MAPL), a wholly-owned subsidiary of MOL is proposed.

Dhunseri Petrochem: Company entered into a share purchase agreement with Engineering for the Petroleum & Process Industries (ENPPI) for the purchase of its 7 percent stake in joint venture company Egyptian Indian Polyester Company S A E (EIPET).

Goa Carbon: Maintenance work at the company's Goa unit has been completed and the Kiln has been lit up. After preliminary heat up, feeding of raw material will commence and normal production is likely to resume from August 18.

Idea Cellular: Axiata informed on August 15 it relinquished all major rights to nominate a director on company's board & anti-dilution right.

5 stocks under ban period on NSE

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

For August 20, Adani Enterprises, Adani Power, Jet Airways, Raymond and Jain Irrigation Systems are present in this list.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
First Published on Aug 20, 2018 07:15 am
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