Trade setup for Monday: Top 15 things you should know before Opening Bell

The index broke below crucial resistance levels of 11,000, followed by 10,900 and 10,800. It also closed below its crucial short-term moving averages of 5-days exponential moving average (DEMA), 13-DEMA, and 10-DEMA, and 20-DEMA.

Widely tracked Supertrend indicator also gave a sell signal on the charts which suggest that bears are likely to remain in control at least in the short term.

As the name suggests, 'Supertrend' is a trend following indicator just like Moving Averages and MACD (Moving Average Convergence Divergence). It is plotted on prices and their placement indicates the current trend. The MACD also gave a Sell signal in the previous trading session.

The Nifty index has a strong support near 10500 levels and any rallies towards 10,900-11,000 should be used to lighten positions, suggest experts.

“The Nifty registered a Long Black Day formation on candlestick charts suggesting an acceleration of downtrend especially after mild negative closes witnessed in preceding three trading sessions,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“The pace with which Nifty has fallen is suggesting a trend reversal in favour of bears and hence a multi-week top might be in place at the recent high of 11171 levels as it breached critical short-term support points. Selling shall get extended as well into next week towards 10500 levels where significant support on medium-term charts is available,” he said.

Mohammad is of the view that traders should make use of any rally towards 10,900 levels to lighten up their long positions. Upsides for time being shall be capped around 11,000 levels.

India VIX moved up by 8.09 percent at 15.25. A sudden jump in the volatility even after the big event could hit the market sentiment.

We have collated the top fifteen data points to help you spot profitable trade:

Key Support & Resistance Level for Nifty:

The Nifty closed at 10,760.6 on Friday. According to Pivot charts, the key support level is placed at 10,679.47, followed by 10,598.33. If the index starts to move higher, key resistance levels to watch out are 10,898.37 and 11,242.83.

Nifty Bank:

The Nifty Bank closed at 27,220.7. Important Pivot level, which will act as crucial support for the index, is placed at 26,973.5, followed by 26,726.3. On the upside, key resistance levels are placed at 27,540.7, followed by 11,036.13.

Call Options Data:

Maximum call open interest (OI) of 48.15 lakh contracts stands at strike price 11,000, which will be a crucial base for the January series, followed by 11,200, which now holds 44.84 lakh contracts in open interest, and 11,100, which has accumulated 37.92 lakh contracts in OI.

Call writing was seen at the strike price of 10,900, which saw the addition of 21.48 lakh contracts along with 11,000, which added 17.89 lakh contracts, along with 11,200, which saw the addition of 13.60 lakh contracts.

There was hardly any Call unwinding seen.

Put Options Data:

Maximum put OI of 66.13 lakh contracts was seen at strike price 10,500, which will act as a crucial base for January series, followed by 10,800, which now holds 44.38 lakh contracts and 10,700 which has now accumulated 43.05 lakh contracts in open interest.

Maximum Put writing was seen at the strike price of 10,800, which saw the addition of 7.09 lakh contracts, followed by 10,900, which added 6.89 lakh contracts and 10,300, which added 4.19 lakh contracts.

Put unwinding was seen at 11,000, which shed 13.34 lakh contracts, followed by 10,900, which shed 2.93 lakh contracts and 11,200, which shed 1.09 lakh contracts.

FII & DII Data:

Foreign institutional investors (FIIs) bought shares worth Rs 950 crore, while domestic institutional investors (DIIs) sold shares worth Rs 508.78 crore in the Indian equity market, as per provisional data available on the NSE.

Fund Flow Picture:

Stocks with high delivery percentage:

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

3 stocks saw long build-up:

2 stocks saw short covering:

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

140 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates short positions being built up.

67 stocks saw long unwinding:

Long unwinding happens when there is a decrease in OI as well as in price.

Bulk Deals:

Camlin Fine Sciences Ltd: NTGI Collective Funds Trust bought 6,90,166 shares at Rs 120.29 per share

Elpro International Limited: Jupiter South Asian Investment Company Limited sold 1,464,774 shares at Rs 60.9 while The Royal Bank of Scotland PLC bought 1,464,704  shares at Rs 60.9 per share.

Man Industries (India) Limited: Man Finance Private Limited sold 3,500,000 shares at Rs 123.91 per share.

(For more bulk deals click here: https://goo.gl/qrXHCH)

Analyst or Board Meet/Briefings:

Axis Bank held an investor conference in Hong Kong on January 31, 2018.

ICICI Prudential Life Insurance: Senior management of the company met the investors of SBI Cap Securities.

GMR Infrastructure Limited: A meeting of the Board of Directors of the Company is scheduled on February 13, 2018 to consider and approve the un-audited financial results of the Company.

RPG Life Sciences: The Board of Directors of the Company has considered and approved the un-audited financial results for the quarter ended December 31, 2017.

Gujarat State Fertilizers & Chemicals: The Board of Directors has decided to held a meeting on February 12, 2018 for considering and approving unaudited financial results for Q3 ended on December 31, 2017.

Stocks in news:

Inox Wind Q3 net loss at Rs 46.1 crore against a profit of Rs 107.5 crore year on year.

Syndicate Bank: The Company in its Board Meeting has decided to consider the revised capital plan to Rs 3,990 crore for FY 17-18.

The Hi-Tech Gears: The Board of Directors of the Company have declared an interim dividend on equity shares at 15 percent on the paid up share capital of the Company for the year 2017-18.

Aegis Logistics: The Company has declared interim dividend of 50 percent on equity shares of face value of Re 1 per share and has fixed February 12, 2018 as the record date for the purpose of payment of interim dividend during the financial year 2017-18.

GMR Infra
To acquire 4,15,80,000 shares of face value of Rs 10 each, representing 11% equity stake in GMR Hyderabad International Airport Limited (GHIAL) collectively from Malaysian Airports Holding Berhard

Sintex Plastics
To issue warrants to promoters aggregating to Rs 600cr

Cosmo Films
Commissions second Cast Polypropylene line

NBCC
Letter of Approval from the Government of Assam for construction of Twin Tower Trade Centre at Guwahati, Assam amounting Rs 2000 crore

Windsor Machines
Has entered into an 'Investment Agreement' on February 2, 2018 with R Cube Energy Storage Systems LLP (R Cube Energy) for making strategic investment

Aurobindo Pharma gets USFDA approval for Niacin

GAIL
Places order of Rs 440 crore for 350 kilometers Vijaipur(UP) – Auraiya(MP) spurline
Rs 3,500 crore capex for City Gas Distribution in financial year 2019

Tata Steel completes completion of 74 percent stake in Bhubaneshwar Power for Rs 255 crore

5 stocks under ban period on NSE

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

The security which are banned for trading are Fortis, HDIL, India Cements, JP Associates, and Wockhardt.