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Last Updated : Nov 04, 2018 10:05 PM 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 10,500, which added 9.46 lakh contracts in open interest, followed by 10,600 which added 5.57 lakh contracts and 10,300 which added 2.67 lakh contracts.

Sunil Shankar Matkar

November 2 (Friday), was a strong day for the market as the Sensex rallied 580 points and Nifty 50 surpassed critical resistance of 10,450 levels and closed a tad above 10,550. Sharp recovery in the rupee, fall in crude oil prices and rising hope of trade negotiations between the world's largest economies US and China boosted investor sentiments.

After decisively surpassing near-term hurdle of 10,450 levels, the index could be heading towards the next critical resistance of 10,700 levels followed by consolidation, according to experts.

After opening above the 10,450 level, the Nifty 50 witnessed sustained buying throughout the session to extend its gains above 10,600 levels intraday. Finally the index closed 172.55 points higher at 10,553, forming a bullish candle on daily and weekly charts.

Close

"On Friday, the Nifty surpassed the 61.8 percent retracement of the recent fall, which was at 10,440. On the way up, the index managed to overcome upper end of the reverse falling channel as well. All these observations suggest that the bulls are having upper hand on the index & the domination is likely to continue going ahead," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

He said in terms of the wave structure, with Friday's move, the index has taken form of an impulse on the upside. This rules out the possibility of a wedge formation and the index seems to be attempting an Expanded Flat pattern, he added.

This means that the Nifty can go for deep retracement of the entire fall.

On the higher side, he said, a swing high of 10,710 will be the key level to watch out for. "Once that is taken out, the index can head towards 11,000-11,140 in the short term. On the flip side, 10,440-10,400 shall now act as a key support zone," he added.

India VIX fell by 5.01 percent to 18.23 levels.

Falling VIX from last three sessions suggests some bullish price setup but VIX has to go down below 17-16 zones to confirm the short term reversal and a decent bounce back after the sharp cut of last two months.

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

Key support and resistance level for Nifty

The Nifty50 closed at 10,553 on Friday. According to Pivot charts, the key support level is placed at 10,471.47, followed by 10,389.93. If the index starts moving upwards, key resistance levels to watch out are 10,620.77 and then 10,688.53.

Nifty Bank

The Nifty Bank index closed at 25,701.65, up 378 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 25,515.2, followed by 25,328.7. On the upside, key resistance levels are placed at 25,872.2, followed by 26,042.7.

Call Options Data

Maximum Call open interest (OI) of 21.82 lakh contracts was seen at the 10,700 strike price. This will act as a crucial resistance level for the November series.

This was followed by the 10,800 strike price, which now holds 21.27 lakh contracts in open interest, and 10,900, which has accumulated 20.62 lakh contracts in open interest.

Maximum Call writing was seen at the strike price of 10,900, which added 3.93 lakh contracts, followed by 11,200 which added 2.06 lakh contracts and 11,300 which added 0.87 lakh contracts.

Maximum Call unwinding was seen at the strike price of 10,400, which shed 7.88 lakh contracts, followed by 10,500 which shed 4.23 lakh contracts and 10,600 which shed 3.72 lakh contracts.

Image704112018

Put Options data

Maximum Put open interest of 51.01 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the November series.

This was followed by the 10,200 strike price, which now holds 31.35 lakh contracts in open interest, and the 10,300 strike price, which has now accumulated 17.83 lakh contracts in open interest.

Put writing was seen at the strike price of 10,500, which added 9.46 lakh contracts in open interest, followed by 10,600 which added 5.57 lakh contracts and 10,300 which added 2.67 lakh contracts.

Maximum Put unwinding was seen at the strike price of 10,200, which shed 4.61 lakh contracts in open interest, followed by 11,000 which shed 2.03 lakh contracts and 11,200 which shed 1.03 lakh contracts.

Image604112018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 196.9 crore while domestic institutional investors bought shares worth Rs 852.99 crore in the Indian equity market on Friday, as per provisional data available on the NSE.

Fund Flow Picture:

Image804112018

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.

Image904112018

55 stocks saw a long buildup

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80 stocks saw short covering

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

Image1104112018

27 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.

Image1204112018

43 stocks saw long unwinding

Image1304112018

Bulk Deals

8K Miles Software: IFCI continued to sell shares of the company, offloading another 4,23,000 shares on Friday at Rs 60.2 per share on the NSE.

Bharat Financial Inclusion: BNP Paribas Arbitrage net bought 4,90,317 shares of the company at Rs 945.94 per share.

CG Power & Industrial Solutions: WGI Emerging Markets Smaller Companies Fund LLC sold 45 lakh equity shares of the company at Rs 36.65 per share.

Kwality: Letko Brosseau Emerging Markets Equity Fund sold 28,03,620 shares of the company at Rs 6 per share.

Unitech: HDFC sold 1,39,60,354 shares of the company at Rs 2.26 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

McDowell Holdings: Board meeting is scheduled on November 13 to consider financial results of the company for the quarter and half year ended September 2018.

Rolta India: Board meeting is scheduled on November 12 to consider financial results of the company for the quarter and half year ended September 2018.

Lumax Auto Technologies: Board meeting is scheduled on November 12 to consider financial results of the company for the quarter and half year ended September 2018.

Shri Adhikari Brothers: Board meeting is scheduled on November 14 to consider financial results of the company for the quarter and half year ended September 2018.

8K Miles Software Services: Board meeting is scheduled on November 13 to consider financial results of the company for the quarter and half year ended September 2018.

Bombay Rayon Fashion: Board meeting is scheduled on November 13 to consider financial results of the company for the quarter and half year ended September 2018.

GMR Infrastructure: Board meeting is scheduled on November 14 to consider financial results of the company for the quarter and half year ended September 2018.

Cox & Kings: Board meeting is scheduled on November 14 to consider financial results of the company for the quarter and half year ended September 2018.

Simbhaoli Sugars: Board meeting is scheduled on November 14 to consider financial results of the company for the quarter and half year ended September 2018.

Goldiam International: Board meeting is scheduled on November 14 to consider financial results of the company for the quarter and half year ended September 2018 and proposal of buyback of shares.

Walchandnagar Industries: Board meeting is scheduled on November 13 to consider financial results of the company for the quarter and half year ended September 2018 and fund raising.

Eveready Industries: Company would be participating in a Small Group Investors' Conference Call organised by Nomura Financial Advisory & Securities India om November 5.

Reliance Infrastructure: Board meeting scheduled to be held on November 3 postponed to November 14 to consider financial results of the company for the quarter and half year ended September 2018.

M&M: Company's officials will be meeting analysts/investors on November 14, 15 and 16.

Stocks in news

Results on Monday:

Image1404112018

ONGC Q2: Profit rises 34.5 percent to Rs 8,264.6 crore versus Rs 6,143.8 crore; revenue increases 3 percent to Rs 27,989.1 crore versus Rs 27,212.8 crore; EBITDA jumps 7.2 percent to Rs 15,788.4 crore versus Rs 14,731.7 crore; EBITDA Margin at 56.4 percent versus 54 percent QoQ.

Ashoka Buildcon Q2: Profit falls 2.8 percent to Rs 62 crore versus Rs 63.9 crore; revenue rises 11.8 percent to Rs 764.4 crore versus Rs 683.7 crore; EBITDA rises 27.5 percent to Rs 103.6 crore versus Rs 81.24 crore; margin at 13.5 percent versus 11.9 percent QoQ.

Torrent Pharma Q2: Consolidated net profit falls 12.3 percent at Rs 179 crore versus Rs 204 crore; revenue rises 33.7 percent at Rs 1,894 crore versus Rs 1,417 crore; EBITDA rises 43.8 percent at Rs 473 crore versus Rs 329 crore; EBITDA margin at 24.97 percent versus 23.22 percent YoY.

Indo Amines Q2: Profit falls 7.5 percent at Rs 6.1 crore versus Rs 6.6 crore; revenue rises 38.2 percent at Rs 118 crore versus Rs 85.4 crore YoY.

Jaiprakash Power Q2: Net loss at Rs 41.86 crore versus loss of Rs 156.55 crore; revenue rises 15.5 percent at Rs 954 crore versus Rs 825.8 crore; EBITDA rises 17.7 percent at Rs 356.59 crore versus Rs 302.9 crore; EBITDA margin at 37.4 percent versus 36.6 percent YoY.

Godfrey Phillips Q2: Profit rises 19.7 percent at Rs 70.38 crore versus Rs 58.8 crore; revenue falls 2.7 percent at Rs 629.8 crore versus Rs 647.2 crore; EBITDA rises 29.8 percent at Rs 117.32 crore versus Rs 90.42 crore; margin at 18.63 percent versus 13.97 percent YoY.

Gujarat Gas Q2: Profit falls 32.8 percent at Rs 41.07 crore versus Rs 61.08 crore; revenue rises 41.2 percent at Rs 1,964.3 crore versus Rs 1,391.2 crore; EBITDA falls 21.8 percent at Rs 160.4 crore versus Rs 205 crore; margin at 8.2 percent versus 14.7 percent YoY.

Eris Lifesciences Q2: Consolidated net profit falls 8.1 percent at Rs 85.3 crore versus Rs 92.8 crore; revenue rises 6 percent at Rs 264.1 crore versus Rs 249.2 crore; EBITDA rises 2.8 percent at Rs 100.5 crore versus Rs 97.8 crore; margin at 38 percent versus 39.2 percent YoY.

BEML Q2: Profit rises 61.8 percent at Rs 16.9 crore versus Rs 10.2 crore; revenue rises 6.4 percent at Rs 734 crore versus Rs 689.6 crore; EBITDA rises 33.3 percent at Rs 44.8 crore versus Rs 33.6 crore; margin at 6.1 percent versus 4.8 percent YoY.

Future Consumer Q2: Consolidated net loss at Rs 3.2 crore versus Rs 10.3 crore; revenue rises 34.6 percent at Rs 1,011.1 crore versus Rs 751 crore; EBITDA at Rs 25.30 crore versus Rs 12.6 crore; margin at 2.5 percent versus 1.68 percent YoY.

JK Cement Q2: Profit falls 30.5 percent at Rs 64.7 crore versus Rs 93.1 crore; revenue falls 0.6 percent at Rs 1,100.6 crore versus Rs 1,107.7 crore; EBITDA falls 18 percent at Rs 169.8 crore versus Rs 207.2 crore; margin at 15.4 percent versus 18.7 percent YoY.

Archies Q2: Profit at Rs 0.6 crore versus Rs 0.2 crore; revenue rises 4.3 percent at Rs 42.53 crore versus Rs 40.77 crore YoY.

Cadila Healthcare Q2: Profit falls 17 percent at Rs 417.5 crore versus Rs 503.3 crore; revenue at falls 8.1 percent Rs 2,961.2 crore versus Rs 3,222 crore; EBITDA falls 19.8 percent at Rs 687.8 crore versus Rs 857.2 crore; Margin at 23.2 percent versus 26.6 percent YoY.

JSW Energy Q2: Profit rises 1.6 percent at Rs 302.1 crore versus Rs 297.2 crore; revenue rises 18.6 percent at Rs 2,430.8 crore versus Rs 2,049 crore; EBITDA falls 2.4 percent at Rs 861.1 crore versus Rs 882.3 crore; margin at 35.4 percent versus 43.06 percent YoY.

Tata Chemicals Q2: Profit down 2.4 percent at Rs 409 crore versus Rs 419 crore; revenue up 10.1 percent at Rs 2,960.7 crore versus Rs 2,690.2 crore; EBITDA down 5.6 percent at Rs 602 crore versus Rs 647.9 crore; margin at 20.3 percent versus 23.7 percent YoY.

SAIL Q2: Profit at Rs 553.7 crore versus loss of Rs 539 crore; revenue rises 22.8 percent at Rs 16,718 crore versus Rs 13,617.4 crore; EBITDA at Rs 2,365 crore versus Rs 914.3 crore; margin at 14.2 percent versus 6.7 percent YoY.

Gillette India Q2: Profit up 2.1 percent at Rs 33.1 crore versus Rs 32.4 crore; revenue up 11.9 percent at Rs 456.5 crore versus Rs 408 crore; EBITDA up 0.9 percent at Rs 106.8 crore versus Rs 105.8 crore; margin at 23.4 percent versus 25.9 percent YoY.

Sun TV Network Q2: Profit rises 23.4 percent at Rs 351.3 crore versus Rs 285 crore; revenue rises 10.9 percent at Rs 749.6 crore versus Rs 676 crore; subscription revenue rises 21.3 percent; EBITDA rises 11.7 percent at Rs 554 crore versus Rs 496 crore; margin at 73.9 percent versus 73.4 percent YoY.

D-Link Q2: Profit at Rs 8 crore versus Rs 1.1 crore; exceptional loss at Rs 3 lakh versus Rs 5.2 crore; revenue down 1.4 percent at Rs 172.1 crore versus Rs 174.5 crore; EBITDA up 76 percent at Rs 11.8 crore versus Rs 6.7 crore; margin at 6.9 percent versus 3.8 percent QoQ.

Axis Bank Q2; Profit rises 82.6 percent at Rs 789.6 crore versus Rs 432.4 crore; NII rises 15 percent at Rs 5,232 crore versus Rs 4,540 crore YoY; Gross NPA at 5.96 percent versus 6.52 percent; net NPA at 2.54 percent versus 3.09 percent QoQ.

Hinduja Global Solutions Q2: Profit rises to Rs 53.34 crore versus Rs 44.77 crore; revenue falls to Rs 942.6 crore versus Rs 1,158.62 crore YoY.

Oracle Financial Services Software Q2: Consolidated profit falls to Rs 352 crore versus Rs 402 crore; revenue declines to Rs 1,213.3 crore versus Rs 1,344.86 crore QoQ.

V-Mart Retail Q2: Loss at Rs 4.02 crore versus profit at Rs 2.75 crore; revenue rises to Rs 262.2 crore versus Rs 242 crore YoY.

Entertainment Network Q2: Consolidated profit rises to Rs 9.05 crore versus Rs 6.09 crore; revenue dips to Rs 122.5 crore versus Rs 125.3 crore YoY.

Reliance Naval and Engineering Q2: Standalone loss at Rs 363.13 crore versus Rs 150.67 crore; revenue Rs 57.3 crore; revenue Rs 83.29 crore YoY.

Mandhana Retail Ventures Q2: Profit falls to Rs 13.43 lakh versus Rs 3.9 crore; revenue drops to Rs 52.66 crore versus Rs 57.6 crore YoY.

Equitas Holdings Q2: Profit rises to Rs 2.62 crore versus Rs 2.58 crore; revenue dips to Rs 5.09 crore versus Rs 5.02 crore YoY.

Reliance Power Q2: Consolidated profit at Rs 252 crore versus Rs 272.4 crore; revenue at Rs 2,283 crore versus Rs 2,282.2 crore YoY.

Lux Industries Q2: Profit jumps to Rs 21.37 crore versus Rs 13.31 crore; total revenue rises to Rs 277 crore versus Rs 211.3 crore YoY.

Transport Corporation of India Q2: Profit rises to Rs 25.87 crore versus Rs 25.54 crore; revenue increases to Rs 620.3 crore versus Rs 520.33 crore YoY.

Elgi Equipments Q2: Consolidated profit dips to Rs 25.5 crore versus Rs 26.5 crore; revenue rises to Rs 451.8 crore versus Rs 372.9 crore YoY.

Globus Spirits Q2: Profit rises to Rs 2.81 crore versus Rs 2.77 crore; revenue increases to Rs 249.15 crore versus Rs 222.4 crore YoY.

Dr Reddy's Labs: Company completed sale of API manufacturing business unit in Jeedimetla, Hyderabad.

Strides Pharma Science: Company announced successful completion of US FDA inspection at its flagship facility in Bangalore with zero 483 observations.

Indiabulls Real Estate: Company entered into a non-binding term sheet with a globally renowned real estate investor to divest its 50 percent stake in two office assets in Udyog Vihar, Gurugram, aggregating 784,000 square feet leasable office space, which are presently owned by the company through its wholly owned subsidiaries.

PSU banks: Finance Ministry is likely to finalise Rs 54,000 crore capital infusion in PSBs by December 15 - Report

Linde India: Linde AG completed its global merger between Linde AG and Praxair, Inc.

RSWM: Company acquired controlling stake in LNJ Skills & Rozgar Private Limited, an unlisted company.

TeamLease: Company has signed addendum to the Investment Agreement to acquire stake in Avantis Regtech Private Limited.

NBFC and HFCs: RBI allows banks to provide partial credit enhancement to NBFC bonds & HFCs.

IL&FS: Mukund Sapre resigns as executive director of the company and interest on NCDs due on November 2 on wasn't paid due to insufficient funds.

Bank Of Maharashtra: Board reinstates functional responsibilities of RP Marathe, MD & CEO and RK Gupta, ED of bank with immediate effect

No stock 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 November 5, not a single stock is present in this list.

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First Published on Nov 4, 2018 09:02 pm
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