Moneycontrol
Last Updated : Oct 21, 2018 11:48 PM IST | Source: Moneycontrol.com

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

Put unwinding was seen at the strike price of 10,400, which shed 9.77 lakh contracts in open interest, followed by 10,500 which shed 8.68 lakh contracts and 10,600 which shed 4.52 lakh contracts.

Sunil Shankar Matkar

The market corrected sharply for the second trading session in a row on October 19, with the Sensex falling more than 450 points as bears further tightened their grip on Dalal Street. Reliance's mixed Q2 earnings, liquidity crisis in NBFCs, H1-B visa issue and weak global cues weighed on the market.

The Nifty 50 opened sharply lower at 10,339.70 and extended sell-off as the day progressed. It hit an intraday low of 10,249.60 in the afternoon, followed by a bit of recovery in the last hour of trade. The index closed 149.50 points lower at 10,303.50.

The Nifty 50 formed the small bearish candle (as the gap between opening and closing price was only 36 points), which resembles a "Spinning Top" kind of indecisive pattern.

Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls and bears. It can be formed in an uptrend as well as a downtrend.

"Nifty50 witnessed a gap down opening before signing off the session with 'Spinning Top' kind of formation as if it is confirming the reversal, with a follow through price action registered in last Wednesday's session," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

On weekly charts this sell off resulted in "Bearish Engulfing" formation as the current week's candle body completely covered that of last week which appears to have negated the bullish connotations of preceding week's Hammer formation, he said.

Further, he pointed out that due to back-to-back sharp corrections, a pull back can't be ruled out going forward in the next session, which ideally should be utilised to create fresh shorts. "On such a pull back move, bulls face resistance as they enter into the bearish gap zone of 10,380–10,436 levels registered in Friday's session."

According to Mazhar, if bulls manage to push the indices beyond 10,450 levels on closing basis then the said relief rally can get extended up to 10,617 level in the next couple of sessions.

Contrary to this, if indices breach 10,249 in the next session itself, then they shall retest the recent corrective swing lows of 10,138 level, he noted.

India VIX moved up by 10.05 percent at 19.78. A spurt in volatility after the dips of the last few sessions suggests that upside could be restricted again in the market.

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

Key support and resistance level for Nifty

The Nifty 50 closed at 10,303.55 on Friday (Oct 19). According to Pivot charts, the key support level is placed at 10,242.03, followed by 10,180.57. If the index starts moving upwards, key resistance levels to watch out are 10,372.53 and then 10,441.57.

Nifty Bank

The Nifty Bank index closed at 25,085.80, down 102.80 points. The important Pivot level, which will act as crucial support for the index, is placed at 24,913.04, followed by 24,740.27. On the upside, key resistance levels are placed at 25,268.24, followed by 25,450.67.

Call Options Data

Maximum Call open interest (OI) of 43.56 lakh contracts was seen at the 10,600 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,500 strike price, which now holds 38.57 lakh contracts in open interest, and 10,700, which has accumulated 37.84 lakh contracts in open interest.

Maximum call writing was seen at the strike price of 10,400, which added 15.09 lakh contracts, followed by 10,600 which added 12.09 lakh contracts and 10,300 which added 9.53 lakh contracts.

Call unwinding was seen at the strike price of 10,900, which shed 3.96 lakh contracts, followed by 10,700 which shed 0.85 lakh contracts and 9,800 which shed 0.44 lakh contracts.

Image419102018

Put Options data

Maximum Put open interest of 33.53 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the October series.

This was followed by the 10,200 strike price, which now holds 26.66 lakh contracts in open interest, and the 10,300 strike price, which has now accumulated 20.46 lakh contracts in open interest.

Put writing was seen at the strike price of 9,900, which added 5.69 lakh contracts in open interest, followed by 10,200 which added 5.20 lakh contracts and 9,700 which added 4.67 lakh contracts.

Put unwinding was seen at the strike price of 10,400, which shed 9.77 lakh contracts in open interest, followed by 10,500 which shed 8.68 lakh contracts and 10,600 which shed 4.52 lakh contracts.

Image519102018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 618.26 crore and domestic institutional investors Rs 2.14 crore in the Indian equity market on Friday, as per provisional data available on the NSE.

Fund Flow Picture:

Image619102018

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.

Image719102018

29 stocks saw a long buildup

Image819102018

40 stocks saw short covering

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

Image919102018

101 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.

Image1019102018

34 stocks saw long unwinding

Image1119102018

Bulk Deals

Indiabulls Housing Finance: William Blair Emerging Markets Growth Fund sold 24,79,838 shares of the company at Rs 691.84 per share on the NSE.

Repco Home Finance: Taiyo Greater India Fund sold 4,27,000 shares of the company at Rs 312.7 per share on the NSE.

Cantabil Retail: Shankar Growth Fund sold 1,02,805 shares of the company at Rs 132.36 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Ashika Credit Capital: Company announced postponement of board meeting on November 6.

Tata Sponge Iron: Board meeting is scheduled on October 24 to consider the opportunities for growth and consequent options for funding.

Oberoi Realty: Conference call to be held on October 23 to discuss Q2FY19 results and business updates.

Welspun India: Conference call to be held on October 23 to discuss Q2FY19 results.

Indiabulls Ventures: Board meeting is scheduled on October 24 to consider the preferential issue and its price for the equity shares of the company to certain foreign investor(s).

Mahindra Logistics: Conference call is scheduled to be held on November 2 with several analysts/ institutional investors/ funds to brief them on the unaudited standalone and consolidated financial results for Q2FY19.

Adani Power: Board meeting is scheduled on October 31 to consider financial results for the quarter ended September 2018.

Tech Mahindra: Board meeting is scheduled on October 30 to consider financial results for the quarter ended September 2018.

Tube Investments: Board meeting is scheduled on November 2 to consider financial results for the quarter ended September 2018.

Edelweiss Financial: Board meeting is scheduled on October 26 to consider financial results for the quarter ended September 2018.

Eros International: Board meeting is scheduled on October 26 to consider financial results for the quarter ended September 2018.

Astec Lifesciences: Board meeting is scheduled on October 26 to consider financial results for the quarter ended September 2018.

Bodal Chemicals: Board meeting is scheduled on October 25 to consider financial results for the quarter ended September 2018.

Monsanto India: Board meeting is scheduled on October 29 to consider financial results for the quarter ended September 2018.

OnMobile Global: Board meeting is scheduled on October 29 to consider financial results for the quarter ended September 2018.

Matrimony.com: Board meeting is scheduled on October 31 to consider financial results for the quarter ended September 2018.

Zydus Wellness: Board meeting is scheduled on November 2 to consider financial results for the quarter ended September 2018.

Aurionpro Solutions: Board meeting is scheduled on October 27 to consider financial results for the quarter ended September 2018.

Just Dial: Board meeting is scheduled on October 29 to consider financial results for the quarter ended September 2018.

Bajaj Electricals: Board meeting is scheduled on November 1 to consider financial results for the quarter ended September 2018.

JSW Holdings: Board meeting is scheduled on November 3 to consider financial results for the quarter ended September 2018.

Voltamp Transformers: Board meeting is scheduled on November 1 to consider financial results for the quarter ended September 2018.

Elecon Engineering: Board meeting is scheduled on November 1 to consider financial results for the quarter ended September 2018.

JSW Energy: Board meeting is scheduled on November 2 to consider financial results for the quarter ended September 2018.

HDFC Standard Life Insurance: The company will be hosting an earnings conference call with analysts and investors on October 23 to discuss the financial results for the quarter ended September 2018.

Kotak Mahindra Bank: Bank will hold an earnings conference call on October 24 to discuss the financial results.

Balaji Telefilms: Company's officials will be meeting analysts/investors on October 22-24 and 25.

Sterlite Technologies: Earnings call to be held on October 24 to discuss results and performance for quarter ended September 2018.

JSW Steel: Board meeting is scheduled on October 25 to consider raising of additional long term resources, including but not limited to, issuance of equity shares or other securities by way of a right issue subject to such regulatory / statutory approvals as may be required.

BHEL: Investor/Analyst Conference Call on the company's Q2FY19 results will be held on October 25.

Stocks in news

Results on Monday: Asian Paints, CCL Products (India), Schaeffler India, Sundaram Finance Holdings, Hatsun Agro Product, Alembic Pharmaceuticals, Welspun India, Can Fin Homes, Manali Petrochemicals, Oberoi Realty, Kalyani Steels, Kalyani Investment Company, Hindustan Oil Exploration Company, Maharashtra Scooters, Omax Autos, Genus Power Infrastructures, GlaxoSmithKline Pharmaceuticals, Oriental Hotels, Hindustan Zinc, DCM Financial Services, INOX Leisure, Kansai Nerolac Paints, Jubilant Life Sciences, Lumax Industries, Lakshmi Machine Works, Sicagen India

HDFC Bank Q2: Profit grows 20.6 percent to Rs 5,005.73 crore versus Rs 4,151 crore; net interest income increases 20.6 percent to Rs 11,763.41 crore YoY. Gross NPA flat at 1.33 percent QoQ.

Persistent Systems Q2: Profit rises to Rs 88.14 crore versus Rs 87.35 crore; revenue increases to Rs 835.55 crore versus Rs 834.28 crore (QoQ).

Bhageria Industries Q2: Profit jumps to Rs 28.21 crore versus Rs 10.65 crore; revenue rises to Rs 126.62 crore versus Rs 91.76 crore (YoY)

Piramal Enterprises: Company strongly refutes all baseless rumours of any sort/form that have been floating around with respect to its real estate loan portfolio companies.

Tata Steel: Wholly owned indirect subsidiary of the company, TS Global Minerals Holdings Pte Ltd entered into an agreement to divest its entire stake in its wholly owned step down subsidiary Black Ginger 461 Pty Ltd which in turn holds 64 percent in Sedibeng Iron ore Pty Ltd, South Africa which is the operating company. The stake has been divested to IMR Asia Holding Pte Ltd which is a group company of IMR Metallurgical Resources AG ('IMR'), a global metals and mining group headquartered in Switzerland.

Bhansali Engineering Polymers Q2: Profit falls to Rs 16.88 crore versus Rs 25.10 crore; revenue jumps to Rs 349.98 crore versus Rs 247.94 crore YoY.

SBI Life Insurance Q2: Profit rises 11 percent to Rs 250.53 crore versus Rs crore; new business premium increases 9 percent Rs 2,221.92 crore YoY.

Biocon: European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has issued a positive opinion recommending approval of Ogivri 41, a biosimilar to Roche's Herceptin (trastuzumab).

Sadhana Nitrochem Q2: Profit surges to Rs 28.74 crore versus Rs 0.83 crore; revenue jumps to Rs 84.13 crore versus Rs 15.68 crore YoY.

Lupin: Lupin Neurosciences, a specialty pharma division said Committee for Medicinal Products for Human Use (CHMP), the scientific committee of the European Medicines Agency (EMA), has adopted a positive opinion recommending the marketing authorisation of NaMusclaim (mexiletine hydrochloride) for the symptomatic treatment of myotonia in adults with non-dystrophic myotonic (NDM) disorders.

Wockhardt: CARE revised company’s rating for long-term bank facilities (fund based) as BBB-; Negative from A; Negative and short term bank facilities (non-fund based) as A3 from A1.

SH Kelkar and Company: Ratul Bhaduri resigned as Executive VP and Group CFO of the company.

SKF India: Board meeting is scheduled to be held on October 24 to consider unaudited financial results for the quarter and six months ended September 2018; and a proposal for buyback of fully paid-up Equity Shares of the company.

ICICI Securities Q2: Profit increases to Rs 132.6 crore versus Rs 129.5 crore; revenue rises to Rs 457.8 crore versus Rs 455.3 crore YoY.

Reliance Power: Wholly owned subsidiary Sasan Power won an arbitration award against North American Coal Corporation (NACC). NACC's claim of around $32 million (around Rs 235 crore) consisting of liquidated damages, interest and legal cost has been dismissed.

Container Corporation: Company signed agreement with Kribhco Infrastructure.

3 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 October 22, Adani Power, DHFL and Jet Airways are present in this list.
First Published on Oct 21, 2018 08:34 pm
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