Moneycontrol
Last Updated : Sep 17, 2018 07:43 AM IST | Source: Moneycontrol.com

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

Highest Call unwinding was seen at the strike price of 11,400, which shed 8.54 lakh contracts, followed by 11,600 which shed 3.97 lakh contracts and 11,800 which shed 3.03 lakh contracts.

Sunil Shankar Matkar

The Nifty 50, after a sharp gap-up opening, witnessed sustained buying interest throughout the trading session to extend its gains above the psychological 11,500-mark on September 14 ahead of the Prime Minister's meeting with top government officials to review the current economic scenario.

The index held on to its crucial support placed at 11,380 levels and closed sharply higher, forming a bullish candle on the daily candlestick charts and 'Hammer' pattern on the weekly charts.

A Hammer, which is a bullish reversal pattern, is formed after a decline. A Hammer consists of no upper shadow, a small body, and long lower shadow, the latter of which signifies that it has tested support where demand was located and then bounced back.

The Nifty 50 opened sharply higher at 11,443.50 and maintained 11,400 levels throughout the session. The index extended rally as the day progressed and hit an intraday high of 11,523.25.

It closed 145.30 points or 1.28 percent higher at 11,515.20, but on weekly basis, it lost 0.6 percent on top of a 0.8 percent loss in the previous week.

"Nifty 50 appears to have witnessed a sustained buying after the gap up opening before signing off the session with a decent bullish candle," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in told Moneycontrol.

Technically speaking as multiple buy signals are visible on lower time frame charts post the September 14 price action, the trajectory may continue to remain positive for the next couple of trading sessions provided Nifty 50 sustains above the 11,380 levels on closing basis, he said.

He added, the last two sessions of strong recovery chalked out a perfect Hammer formation on weekly charts, which should be positive going forward. "In such a scenario logical target for Nifty50 shall get extended upto 11,650 kind of levels if positive momentum sustains as Monday's move is going to be influenced by the outcome of the ‘week end meeting over economy," he said.

Nevertheless, he advised traders to focus on larger technical levels mentioned on closing basis to gauge the short term trend and maintain a stop below 11,380 levels.

In case Nifty 50 closes below 11,380 levels, then chances of new swing low beyond 11,250 could remain strengthened, Mazhar added.

India VIX fell by 3.24 percent to 13.78. Decline in VIX could provide some stability in the market, experts said.

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

Key support and resistance level for Nifty

The Nifty closed at 11,515.20 on Friday. According to Pivot charts, the key support level is placed at 11,456.07, followed by 11,396.93. If the index starts moving upwards, key resistance levels to watch out are 11,548.77 and 11,582.33.

Nifty Bank

The Nifty Bank index closed at 27,163.85, up 344.65 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 27,033.8, followed by 26,903.8. On the upside, key resistance levels are placed at 27,249.8, followed by 27,335.8.

Call Options Data

Maximum call open interest (OI) of 40.84 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the September series.

This was followed by the 11,600 strike price, which now holds 32.45 lakh contracts in open interest, and 11,500, which has accumulated 31.24 lakh contracts in open interest.

There was hardly any Call writing seen.

Highest Call unwinding was seen at the strike price of 11,400, which shed 8.54 lakh contracts, followed by 11,600 which shed 3.97 lakh contracts and 11,800 which shed 3.03 lakh contracts.

Image114092018

Put Options data

Maximum put open interest of 40.55 lakh contracts was seen at the 11,400 strike price. This will act as a crucial support level for the September series.

This was followed by the 11,000 strike price, which now holds 39.11 lakh contracts in open interest, and the 11,500 strike price, which has now accumulated 38.55 lakh contracts in open interest.

Put writing was seen at the strike price of 11,500, which added 5.18 lakh contracts in open interest, followed by 11,300 which added 0.85 lakh contracts.

Put unwinding was seen at the strike price of 11,200, which shed 4.27 lakh contracts in open interest, followed by 11,100 which shed 1.8 lakh contracts and 11,400 which shed 0.85 lakh contracts.

Image214092018

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 1,090.56 crore and domestic institutional investors worth Rs 115.14 crore in the Indian equity market on Friday, as per provisional data available on the NSE.

Fund Flow Picture:

Image814092018

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.

Image314092018

86 stocks saw a long buildup

Image414092018

102 stocks saw short covering

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

Image514092018

12 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.

Image614092018

8 stocks saw long unwinding

Image714092018

Bulk Deals

Balrampur Chini Mills: Kotak Securities bought 9,85,577 shares of the company at Rs 88.04 per share but Aequitas Investment Consultancy sold 11,70,617 shares at Rs 90.24 per share and Norges Bank A/C sold 19,24,846 shares at Rs 84.44 per share on the NSE.

Mawana Sugars: Renu bought 1,90,000 shares of the company at Rs 58.16 per share on the NSE.

KM Sugar Mills: Marvel Business sold 18,50,000 shares of the company at Rs 10.7 per share on the NSE.

J Kumar Infraprojects: Well Management Company LLP A/C bought 4,87,922 shares of the company at Rs 242 per share on the NSE.

IRB InvIT Fund: Virendra Dattatray Mhaiskar purchased 34,65,000 shares of the company on the NSE and 40,35,000 shares on the BSE at Rs 75.6 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Kalpataru Power Transmission: Company's officials are meeting ICICI Prudential Asset Management on September 17.

Emami: The senior management of the company will be participating in the investor conference, "J P Morgan 2018 India Investor Summit 2018" in Mumbai on September 19.

Shriram City Union Finance: Company's officals are meeting Laburnum Capital Advisors on September 17 and SAIF Partners on September 19.

Balrampur Chini Mills: Company's representative(s) would be interacting on September 17 over a concall with analysts and/or other officials of ICICI Direct.

KEI Industries: Company's officials are meeting ICICI Securities on September 18.

Stocks in news

Reliance Industries: Subsidiary Reliance Retail Ventures (RRVL) purchased an additional stake of 3.10 percent equity holding in Genesis Colors (GCL) for a consideration of Rs 8.39 crore, taking its total stake in GCL to 19.63 percent. The aggregate equity shareholding of RRVL and Reliance Brands in GCL stands at 69.10 percent.

Century Textiles & Industries: Board has appointed RK Dalmia as a Whole-time Director of the company for a period of three years; Snehal Shah has been appointed as a Chief Financial Officer of the company in place of RK Dalmia.

MEP Infrastructure Developers: Toll Tax Department extended period of suspension of collection of toll tax from any of the specified commercial vehicle till September 30, 2018 owing to pending of completion of installation of Radio Frequency Identification Device (RFID) work. The settlement of claims, if any, will be dealt as per the provisions of the Contract Agreement executed with the authority.

Gammon Infrastructure Projects: Patna Buxar Highways (PBHL), erstwhile a wholly owned non-material unlisted subsidiary of the company which was sold on March 31, 2016 with the company's rights to future claims pending under arbitration, has received an amount of Rs 14.70 crore on September 14, 2018 from the National Highways Authority of India in compliance of the order passed by the Delhi High Court.

Tantia Constructions: M L Agarwala resigned from the board of company.

Uday Jewellery Industries: Company has started export of its speciality jewellery and has completed its first export.

Modern Steels: As the company's Account is NPA with Punjab National Bank, company will settle the dues to PNB by paying Rs 30 crore.

Gammon India: The Court of Monza, Italy has declared the bankruptcy of the company's step down subsidiary 'SAE Powerlines S.r.l' (which is held through ATSL Holdings BV).

Alok Industries: State Bank of India has withdrawn the nomination of Atanu sen from the board of directors of the company.

Dynemic Products: Company has received an environment clearance for its unit III project located at Dahej in Bharuch.

Vikas Granaries: Company has planned to manufacture proppants and mining of granite and fractured debris near Jodhpur. It has given on contract 200 bighas land for mining to remove fractured debris from the ground upto 10 meters depth for a sum of Rs 29.81 crore. These revenues would be accrued during second and third quarters of FY 2019. The remaining land of approximately 100 bighas would be given for mining of fractured debris in times ahead. The estimated value of these debris is about Rs 14.90 crore.

TCI Express: ICRA reaffirmed its credit rating in respect of the company's commercial paper programme.

2 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 September 17, Adani Enterprises and Balrampur Chini are present in this list.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust, which controls Network18 Media & Investments Ltd.
First Published on Sep 17, 2018 07:35 am
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