Moneycontrol
Last Updated : Jan 13, 2019 09:31 PM IST | Source: Moneycontrol.com

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

Chandan Taparia of Motilal Oswal said derivatives setup suggests that support of 10,700-10,730 zones could provide comfort to bulls but intact Call writing at 11,000 and 10,900 strikes are going to restrict its momentum.

Sunil Shankar Matkar

Moneyoncontrol News

Benchmark indices ended the rangebound session on a negative note on January 11, with the Nifty50 closing a tad below the 10,800 levels and forming a 'Hammer' kind of pattern on the daily scale.

The 30-share BSE Sensex was down 96.66 points to close at 36,009.84 while the Nifty50 fell 26.65 points to 10,794.95.

For the week, however, the Nifty index gained 0.6 percent and formed a 'Doji' kind of pattern on the weekly scale.

The market is likely to consolidate further in the coming week followed by a directional move on either side which would largely depend upon earnings along with global factors, experts said.

"The Nifty50 formed a small 'Doji' candle on the weekly scale which indicates indecisiveness as a follow up is missing on both the sides in the market," Chandan Taparia of Motilal Oswal Financial Services told Moneycontrol.

The index has been flirting with its 50 DEMA and continued its alternative positive and negative weekly close for the ninth week. It has got stuck in the grip of Option writers and a follow-up is missing on both sides as the index traded in a range of 10,730 to 10,870 zones in last five sessions.

"Now it has to continue to hold above the 10,750-10,777 zones to witness an up-move towards 10,880 then crucial hurdle at 10,925-10,985 zones. On the downside, if it fails to hold 10,720 zones, then only we can see a dip towards the 10,650-10,600 zones," he said.

The derivatives setup suggests that a support of 10,700-10,730 zones could provide comfort to bulls but intact Call writing at 11,000 and 10,900 strikes are going to restrict its momentum, he added.

India VIX fell by 5.01 percent at 15.35 in the last week and started to hold below 16 zones which could attract buying interest on declines.

The Nifty Midcap and Smallcap indices also lost 0.2 and 0.3 percent respectively on January 11, while both ended flat for the week.

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 10,795 on January 11. According to the Pivot charts, the key support level is placed at 10,739.53, followed by 10,684.07. If the index starts moving upward, the key resistance levels to watch out are 10,850.33 and then 10,905.67.

Nifty Bank

The Nifty Bank index closed at 27,453.90, down 74.65 points on January 11. The important Pivot level, which will act as crucial support for the index, is placed at 27,353.4, followed by 27,252.9. On the upside, key resistance levels are placed at 27,583.4, followed by 27,712.9.

Call Options Data

A Maximum Call open interest (OI) of 46.92 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,200 strike price, which now holds 34.34 lakh contracts in open interest, and 11,100, which has accumulated 32.08 lakh contracts in open interest.

Meaningful Call writing was seen at 11,000, which added 6 lakh contracts, followed by a 10,900 strike price which added 3.35 lakh contracts and 11,100 strike which added 2.8 lakh contracts.

There was hardly any Call unwinding seen.

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Put Options data

A Maximum Put open interest of 38.9 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 33.91 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 26.52 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,400, which added 0.98 lakh contracts, followed by the 10,300 strike price which added 0.93 lakh contracts.

Put unwinding was seen at the strike price of 10,500 which shed 2.68 lakh contracts, followed by 11,000 strike price which shed 2.16 lakh contracts and 10,600 strike which shed 1.94 lakh contracts.

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FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 687.2 crore while Domestic Institutional Investors purchased Rs 123.17 crore worth of shares in the Indian equity market on January 11, as per provisional data available on the NSE.

Fund Flow Picture

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.

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25 stocks saw a long buildup

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48 stocks saw short covering

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

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77 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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52 stocks saw long unwinding

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Bulk Deals on January 11

Ajooni Biotech: Prism Medico and Pharmacy sold 40,000 shares of the company at Rs 28.85 per share on the NSE.

MK Proteins: Nirmal Gupta bought 32,000 shares of the company at Rs 77 per share on the NSE.

Apollo Tricoat Tubes: Dinesh Pareekh sold 1,28,500 shares of the company at Rs 132.60 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

TVS Srichakra: A noard meeting is scheduled on February 9 to consider the unaudited financial results for the quarter that ended on December 2018.

KRBL: Board meeting is scheduled on January 24 to consider the standalone and consolidated unaudited financial results for the third quarter (Q3) and nine months ended December 2018.

Gallantt Ispat: Board meeting is scheduled on January 21 to consider the standalone unaudited financial results for the quarter and nine months ended December 2018.

Jaypee Infratech: Meeting of Committee of Creditors to be held on January 17.

Genus Power Infrastructures: Board meeting is scheduled on January 22 to consider the unaudited financial results for the quarter and nine months ended December 2018.

Dishman Carbogen Amcis: Board meeting is scheduled on January 23 to consider the un-audited financial results of the company for the quarter ended on December 2018.

Jindal Hotels: Board meeting is scheduled on January 22 to consider the unaudited financial results of the 3rd quarter ended on December 2018.

Wonderla Holidays: Board meeting is scheduled on January 25 to consider the unaudited financial results of the company for the quarter ended December 2018.

La Opala RG: Board meeting is scheduled on February 14 to consider the un-audited financial results of the company for the third quarter ended December 2018.

LG Balakrishnan & Bros: Board meeting is scheduled on January 31 to consider the standalone audited financial results of the company for the third quarter ended December 2018.

Zuari Global: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.

Zuari Agro Chemicals: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.

Sundaram Finance: Board meeting will be held on January 31 to consider the unaudited standalone financial results for the quarter and nine months ended December 2018.

Hindustan Oil Exploration: Board meeting is scheduled on January 19 to consider the unaudited financial results for the quarter ended December 2018.

Bharti Infratel: Board meeting is scheduled on January 23 to consider the audited financial results (standalone & consolidated) for the third quarter (Q3) and nine months ended on December 2018.

Gujarat Pipavav Port: Board meeting is scheduled on January 30 to consider the unaudited financial results for quarter ended December 2018.

Phillips Carbon Black: Board in a meeting to be held on January 16 may consider the declaration of special / interim dividend for the financial year.

Gruh Finance: Board meeting is scheduled on January 25 to consider the unaudited financial results for the quarter ended December 2018.

Pioneer Distilleries: Board meeting is scheduled on January 30 to consider the unaudited financial results for the quarter ended December 2018.

Omax Autos: Board meeting is scheduled on January 18 to consider the unaudited financial results for the quarter ended December 2018.

Himadri Speciality Chemical: NCLT convened meeting of secured creditors on February 13.

Procter & Gamble Hygiene & Health Care: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.

Gillette India: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.

Shoppers Stop: Company proposes to hold investors call with institutional investors and analysts on January 30 to discuss on the financial results of the company for the third quarter and nine months ended December 2018.

Mahindra & Mahindra: Company's officials will be meeting Southeastern Asset Management on January 14 and Canara HSBC Life Insurance on January 17.

Linc Pen and Plastics: Company's officials will be meeting ICICI Prudential MF on January 16.

Blue Dart Express: Board meeting is scheduled on January 30 to consider the un-audited financial results for the quarter ended December 2018.

Tata Steel: Company's officials will be meeting Daiwa SBI Singapore on January 14.

Torrent Pharmaceuticals: Board meeting will be held on January 30 to consider the audited financial results for the quarter and nine months ended on December 2018.

JK Cement: Board meeting is scheduled on February 2 to consider the unaudited financial results for the 3rd quarter ended on December 2018.

Vijaya Bank: Board meeting is scheduled on January 23 to consider the reviewed financial results of the bank for the quarter ended December 2018.

United Spirits: Board meeting is scheduled to be held on January 23 to consider the un-audited financial results for the quarter ended December 2018.

Stocks in news

Results on Monday: Indiabulls Ventures, ICICI Securities, Supreme Infrastructure India, Tata Metaliks, Prakash Industries

Infosys Q3: Profit down 12.2 percent to Rs 3,609 crore versus Rs 4,110 crore; revenue up 3.1 percent at Rs 21,400 crore versus Rs 20,609 crore; $ revenue up 2.2 percent at $2,987 million versus $2,921 million and constant currency revenue growth at 2.7 percent QoQ. Company raises FY19 constant currency revenue growth guidance to 8.5-9 percent from 6-8 percent and maintains EBIT margin guidance at 22-24 percent.

Infosys: The board approves a special dividend of Rs 4 per share and buyback up to Rs 8,260 crore at maximum Rs 800 per share.

Cadila Healthcare: Zydus received final approvals from the USFDA for Betamethasone Dipropionate Cream and Amlodipine & Atorvastatin tablets.

Jammu & Kashmir Bank Q3: Profit rises 43 percent to Rs 103.75 crore versus Rs 72.47 crore; net interest income increases 13 percent to Rs 881.63 crore YoY.

GNA Axles Q3: Profit rises 41.6 percent to Rs 18 crore versus Rs 12.7 crore; revenue increases 47.5 percent to Rs 246.3 crore versus Rs 167 crore YoY.

Federal Bank: Executive Director, Ganesh Sankaran steps down

Yes Bank: Bank announces Brahm Dutt as non-executive part-time chairman.

Adani Green Energy: Company acquired balance 51 percent equity of Kodangal Solar Parks Private Limited (KSPPL) from FS India Devco Private Limited. With this acquisition, KSPPL has become wholly-owned subsidiary of the company.

Shree Rama Newsprint Q3: Profit at Rs 9.74 crore versus loss of Rs 3.43 crore; revenue falls to Rs 139.3 crore versus Rs 144 crore YoY.

Avenue Supermarts Q3: Profit rises to Rs 257.11 crore versus Rs 251.77 crore; revenue jumps to Rs 5,450.94 crore versus Rs 4,093.89 crore YoY.

Sundaram Multipap: Board approved the draft scheme of amalgamation of E-Class Education System Limited (ECESL), a 51 percent subsidiary of Sundaram Multipap with Sundaram Multipap (SML).

HCL Technologies: Audit Committee recommended the appointment of BSR & Associates LLP as the statutory auditors of the company who will hold office for a period of five consecutive years.

Tata Sponge Iron Q3: Consolidated profit falls to Rs 26.81 crore versus Rs 36 crore; revenue rises to Rs 260.83 crore versus Rs 214.47 crore YoY.

PNC Infratech: Company received resignation from Rakesh Kumar Gupta from the post of director.

NTPC: Company to raise Rs 4,000 crore through private placement of secured non-convertible bonds in the nature of debentures at a coupon of 8.30% per annum.

KNR Constructions: Two wholly owned subsidiary companies have received the financial closure letter from the National Highways Authority of India.

Sun Pharma Advanced Research: Company had out-licensed XELPROSTM to Sun Pharma in June 2015 and this commercialisation of XELPROSTM, has triggered a milestone payment of $10 million and sales linked royalties, by Sun Pharma to company.

IL&FS Engineering and Construction Company: Gujarat Metro Rail Corporation Limited terminated the contract for construction of metro stations for Package-1 of North-South Corridor for Ahmedabad Metro Rail Project Phase-1.

TRF Q3: Loss at Rs 18.35 crore versus loss Rs 26.8 crore; revenue falls to Rs 86.4 crore versus Rs 114.3 crore YoY.

BLS International: Company expanded operations and added more centres for Attestation and Apostille services across the country. This follows the renewal of its contract by the Ministry of External Affairs.

Suzlon Energy: Company has completed sale of securities of Rudra held by the company to AMP Ventures for Rs 14.21 crore and accordingly Rudra has ceased to be a subsidiary of the company.

Marg: Board made a preferential allotment of 1,26,99,533 equity shares at a price of Rs 61.68 per share to non promoters.

Two stocks under a ban period on the 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 January 14, Adani Power and Jet Airways is present in this list.
First Published on Jan 13, 2019 08:36 pm
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