Moneycontrol
Last Updated : Jan 11, 2018 08:47 AM IST | Source: Moneycontrol.com

Trade Setup for Thursday: Top 15 things you should know before Opening Bell

The index bounced back in the last one hour of the trade from its 5-day exponential moving average (DEMA) placed at 10,593 to close 4.8 points lower at 10,632.


After a sharp up move seen in the previous six sessions, it looks like 50-share NSE Nifty is taking a breather. The index witnessed some profit booking at higher levels but managed to recoup losses and closed below the opening level making a ‘Hanging Man’ kind of pattern on charts.

A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top. In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.

The Nifty50 which opened at 10,652 rose marginally to an intraday high of 10,655 which resulted in insignificant upper shadow, but bears quickly took control and pushed the index towards 10,592 which made a long lower shadow on the daily charts.

The index bounced back in the last one hour of the trade from its 5-day exponential moving average (DEMA) placed at 10,593 to close 4.8 points lower at 10,632.

Investors are advised to stay long as long as Nifty holds above 10500 levels but if weakness pulls the index below the said level could turn the table in favour of bears.

“The Nifty50 registered a Hanging Man kind of formation which is usually visible around short-term turning points suggesting exhaustion in the current leg of the uptrend. This kind of formation, especially after Tuesday’s Doji, is certainly a cause for concern,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Unless Nifty50 manages to get past 10,660 levels in next trading session market should as well head towards 10,500 kind of levels. Once the said level of 10,500 is breached it should confirm short-term reversal with initial targets placed around 10,400 levels,” he said.

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

Key Support & Resistance Level for Nifty

The Nifty closed at 10,632.20 on Wednesday. According to Pivot charts, the key support level is placed at 10,598.1, followed by 10,564. If the index starts to move higher, key resistance levels to watch out are 10,660.9 and 10,689.6.

Nifty Bank

The Nifty Bank closed at 25,617.30 on Wednesday. Important Pivot level, which will act as crucial support for the index, is placed at 25,524.01, followed by 25,430.7. On the upside, key resistance levels are 25,714.11, followed by 25,810.9.

Call Options Data

Maximum Call open interest (OI) of 45.69 lakh contracts stands at strike price 10,700, which will act as a crucial resistance level for the index in the January series, followed by 11,000, which now holds 45.10 lakh contracts in open interest, and 10,600, which has accumulated 41.60 lakh contracts in OI.

Call writing was seen at a strike price of 10,700, which saw the addition of 6.60 lakh contracts, followed by 10,900, which saw the addition of 1.95 lakh contracts and 10,600, which saw the addition of 1.2 lakh contracts.

Call unwinding was seen at strike prices of 10,800, which saw 1.19 lakh contracts being shed, followed by 10,200, which shed 0.65 lakh contracts and 11,000, which shed 0.34 lakh contracts.

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Put Options Data

Maximum put OI of 75.47 lakh contracts was seen at strike price 10,500, which will act as a crucial base for the index in January series; followed by 10,400, which now holds 65.64 lakh contracts and 10,300 which has now accumulated 51.47 lakh contracts in open interest.

Put writing seen at 10,600, which saw the addition of 6.23 lakh contracts, followed by 6.19 lakh contracts at the strike price of 10,500 and 10,700, which saw the addition of 3.33 lakh contracts.

Put unwinding was seen at the strike price of 10,300, which saw 3.46 lakh contracts being shed, followed by 10,400, which shed 2.7 lakh contracts.

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FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 572.26 crore, while domestic institutional investors bought shares worth Rs 600.24 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.

Also ReadWhat changed for the market while you were sleeping? 15 things you should know

Fund Flow Picture

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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.

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45 stocks saw long build-up

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25 stocks saw short covering

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

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88 stocks saw short build-up

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

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21 stocks saw long unwinding

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

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Bulk Deals

Welspun India Limited: MGN Agro Properties Private Limited sold 480,96,381 shares at Rs 72.71 while DSP Blackrock Mutual Fund bought 71,52,682 shares at Rs 72.70 per share.

High Ground Enterprise: Film Consultancy and Incentives Private Limited sold 16,50,000 shares at Rs16.40 per scrip

Som Distilleries and Breweries: Porinju.V. Veliyath bought 1,50,000 shares at Rs 197.95 per share while EQ India Fund bought 5,00,000 shares at Rs 197 per share on the NSE.

Snowman Logistics Ltd.: Nerwest Venture Partners VII-A-Mauritius sold 8,90,000 shares at Rs 64.45 per share

Stampede Capital Ltd: Rohit Sahai HUF sold 14,00,000 shares at Rs 15.05 per share

Ujjivan Financial Services Ltd: CDC Group PLC sold 11,00,000 shares at Rs 405.02 per scrip

For more bulk deals click here image -9

Analyst, Board Meet/Briefings

Tata Consultancy Services, Bajaj Corp, IndusInd Bank, Shree Cements, 5paisa Capital, Alpha Hi-Tech Fuel, Hindustan Media Ventures, Sintex Plastics Technology, Suraj, Suryajyoti Spinning Mills and Websol Energy System will have board meetings to consider October-December quarter earnings on January 10.

Stocks in the News

DCB Bank: The company informed that a meeting of the Board of Directors will be held on Wednesday, January 17, 2018, to consider and approve the unaudited financial results (Provisional) for Q3 and the nine months ended December 31, 2017.

Can Fin Homes: The Company has entered into a contract with 'Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited' for carrying out the Corporate Agency business.

Blue Dart Express: A meeting of the Board of Directors will be held on Tuesday, January 30, 2018, to take on record the un-audited financial results for the quarter ended December 31, 2017.

Maruti Suzuki, Honda hikes prices by up to Rs 32,000

Various automakers including, Hyundai Motor India, Honda Cars, Mahindra & Mahindra have already announced to increase prices from this month. These companies are however yet to announce price increase for their respective vehicles.

Pharma stocks will be in focus: Homegrown Aurobindo, Zydus Cadila, Torrent Pharma and Intas have expressed preliminary interest in buying the European generics business of Paris-headquartered pharma giant Sanofi as frenzied dealmaking continues in Big Pharma the world over in the new year, ET reported.

Tata Chemicals: Tata Chemicals on Wednesday said it has received approval from majority shareholders for sale of its Haldia fertiliser unit in West Bengal to Netherlands-based Indorama Holdings BV for Rs375 crore.

DLF: The Supreme Court today upheld the Kerala High Court order imposing a fine of Rs 1 crore on real estate major DLF for constructing around 180 luxury flats along the banks of eco-sensitive Chilavannur backwaters near Kochi in Kerala.

Balasore Alloys: Balasore Alloys, a Pramod Mittal group company, has entered into a deal to acquire 70% share of Zimbabwe Alloys consequent upon a scheme of arrangement sanctioned by the High Court of Zimbabwe on December 20, 2017, said a ET report.

Jagatjit Industries to Refinance Rs265-cr Debt

Can Fin Homes: Bulge bracket private equity funds including TPG Capital Management, Bain Capital and Baring Private Equity Asia are in initial talks to buy state-run Canara Bank’s 30% stake in its listed housing finance subsidiary, Can Fin Homes, as the Bengaluru-based lender tries to improve its capital base, said an ET report.

NMDC:

The government's 2.52 per cent stake sale in state-owned miner NMDC saw robust response from investors with the retail portion getting over-subscribed by 5.40 times on Wednesday.

JSW Steel:

Private sector JSW Steel has reported its highest-ever quarterly crude steel production in the October-December quarter of this fiscal at 4.11 million tonnes (MT).

India Nippon Electricals:

It has been decided to convene a meeting of the Board of Directors on Monday the 29th January 2018 to consider payment of an interim dividend and sub-division of equity shares of the company. This proposal will be subject to the approval of the shareholders.

Bank of Baroda: India’s third-largest state-run lender, is seeking to sell unit Nainital Bank as it sheds non-core assets to bolster its balance sheet, people familiar with the matter said, Mint reported.

ONGC:

After a gap of over three- decades, state-owned Oil and Natural Gas Corp (ONGC) is set to open a new sedimentary basin in the country as it puts Kutch offshore on the oil and gas map of India.

Fitch assigns issuer default rating of ‘BBB-’ to Power Grid

Welspun India’s promoter sells stake worth Rs350 crore

Bajaj Auto is confident of 8% jump in market share in 2 months

11 stocks under ban period on NSE

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

Securities which are banned for trading include names such as Fortis Healthcare, GMR Infrastructure, HDIL, IFCI, Jet Airways, Jain Irrigation Systems, Jaiprakash Associates, Reliance Communications, Reliance Capital, Reliance Power and Wockhardt.
First Published on Jan 11, 2018 07:50 am
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