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Last Updated : Sep 04, 2019 08:22 PM IST | Source: Moneycontrol.com

Trade Setup for Thursday: Top 10 things to know before Opening Bell

Maximum Put Open Interest of 29.88 lakh contracts was seen at 10,800 strike price, which will act as crucial support in September series.

Nishant Kumar @Nishantopines

Gains in shares of select bank and financial stocks, including HDFC twins, ICICI Bank and State Bank of India, helped key equity indices Sensex and Nifty log decent gains on September 4, in the light of improved global sentiment and rupee's fresh rise against the US dollar.

After a subdued start, the market slipped in the red and traded with negative bias in the first half. However, it managed to pull back from the lows and ended the session higher.

Sensex closed 162 points, or 0.44 percent, higher at 36,724.74, with 18 stocks in the green. The Nifty index logged a gain of 47 points or 0.43 percent to settle at 10,844.65, with 30 stocks ending in the positive.

Close

Midcaps and smallcaps underperformed Sensex as their sectoral indices on BSE climbed up to 0.29 percent.

Advance decline ratio was at neutral level near to 1:1.

Metals and bank stocks showed signs of short covering, which, as per analysts, is positive for the market as these stocks have very high beta and can change the momentum of the market.

"The rise in metals and banks that could be big positive for the market as it implies that investors are ready to shift from defensive sector to high-risk sectors or investors are ready to handle risk in the market," said Shrikant Chouhan, Senior Vice President - Equity Technical Research at Kotak Securities.

Nifty witnessed a technical bounce back to reclaim 10,800 levels and formed a bullish candle on the daily candlestick charts after a massive fall seen in the previous session.

The index is still trading below crucial short term moving averages and despite the bounce, the trend is still negative, suggest experts. Traders are advised to trade with strict stop losses as long as the index trades above 10,756-10637 levels.

We have collated 10 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,844.65 on September 4. According to the pivot charts, the key support level is placed at 10,774.4, followed by 10,704.1. If the index remains on an upward trajectory, key resistance levels to watch out for are 10,886.9 and 10,929.1.

Nifty Bank

The Nifty Bank index closed at 27,123.85, up 1.12 percent. The important pivot level, which will act as a crucial support for the index, is placed at 26,750.5, followed by 26,377.2. On the upside, key resistance levels are placed at 27,387.9 and 27,652.

Volatility declines

The volatility index India VIX fell 4.54 percent to 17.23 level.

Call options data

Maximum Call Open Interest (OI) of 24.80 lakh contracts was seen at the 11,200 strike price. It will act as a crucial resistance level for the September series.

This is followed by 11,000 strike price, which now holds 18.77 lakh contracts in open interest, and 11,300, which has accumulated 13.41 lakh contracts in open interest.

Significant Call writing was seen at the 11,200 strike price, which added 3.53 lakh contracts, followed by 11,000 strike price, which added 2.26 lakh contracts and 11,300 strike which added 1.06 lakh contracts.

Call Unwinding was seen at 10,700 strike price, which shed 5,250 contracts, followed by 10,500 strike, which shed 3,150 contracts.

Chart 1

Put options data

Maximum Put Open Interest of 29.88 lakh contracts was seen at 10,800 strike price, which will act as crucial support in September series.

This is followed by 10,600 strike price, which now holds 23.05 lakh contracts in Open Interest, and 11,000 strike price, which has now accumulated 20.88 lakh contracts in open interest.

Put writing was seen at the 10,700 strike price, which added 1.65 lakh contracts, followed by 10,800 strike, which added 1.56 lakh contracts.

Put unwinding was seen at the 11,000 strike price, which shed 91,275 contracts.

Chart 2

Analyst or Board Meetings/Briefings:

Ess Dee Aluminium: The company's annual general meeting (AGM) will take place on September 29.

Indo Thai Securities: The company's AGM will be held on September 28, 2019.

Mohota Industries: The company's AGM is scheduled on September 26.

Central Bank of India: The bank has fixed September 13 as the record date for the payment of annual interest, subject to compliance with applicable guidelines.

Power Mech Projects: The company has informed that the register of members and share transfer books of the company will remain closed from September 23, 2019 to September 25, 2019 (both days inclusive) for the purpose of AGM and payment of dividend.

Hi-Tech Pipes: The register of members and share transfer books of the company will remain closed from September 19, 2019 to September 24, 2019 (both days inclusive) for the purpose of AGM and payment of dividend.

Stocks in news:

Avenue Supermarts: Rating agency CRISIL has assigned "CRISIL AA+" rating with "stable" outlook on the company's non- convertible debentures (NCDs) of Rs 200 crore.

Power Grid Corporation of India: The company said in a regulatory filing that it has been declared as the successful bidder for Madhya Pradesh Transmmission System.

Century Plyboards: The company informed that Vijay Chhibber, whose present term expires on 31st January, 2020, has been re-appointed as an independent director of the company for a second term for a period of five years till January 31, 2025.

Cox & Kings: With respect to the report "Cox & Kings said to weigh sale of European hotel chain Meininger", the company in a regulatory filing said there is no event or information or announcement.

Punjab National Bank: Moody's has changed the outlook on PNB to positive' from 'stable'.

PNB-OBC-United Bank and Union-Andhra-Corp Bank: The merger of these banks have come under IRDA scanner, CNBC TV18 reported.

IndiGo: The aviation firm has got a letter from Sebi seeking reply with respect to the letter by Rakesh Gangwal's counsel.

Shankara Building Products: India Ratings has downgraded Shankara Building Products to IND A-. The rating agency has a 'stable' outlook on the firm.

ICICI Lombard: The firm has entered into a strategic tie-up with Standard Chartered Bank.

Usha Martin Education & Solutions: The company has appointed Nipendra Kumar Shanna and Trivikram Khaitan as its independent and non-executive directors.

MCX: MCX India has signed an MoU with Zhengzhou Commodity Exchange.

NMDC: The company reported a year-on-year fall in sales of iron ore (provisional) in August.

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth net Rs 1,738.49 crore, while Domestic Institutional Investors (DIIs) bought net Rs 1,304.58 crore worth of shares in the Indian equity market on September 4, as per provisional data available on the NSE.

Fund Flow Picture (in cash)

Fund Flow in cash

Fund Flow Picture (in F&O)

Fund flow future

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First Published on Sep 4, 2019 08:10 pm
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