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Last Updated : Mar 01, 2018 07:50 AM IST | Source: Moneycontrol.com

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

The Nifty50 which opened with a gap on the lower side managed to recoup losses and closed near its opening level forming a ‘Doji’ kind of candle on the daily candlestick charts.

 
 
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The Nifty50 managed to recoup some losses towards the end of the trade on Wednesday but there is no confirmation of a trend. A direction move is required above 10600 fir bulls to take control or a breakdown below 10,300 will put bears in driving seat.

The Nifty50 which opened with a gap on the lower side managed to recoup losses and closed near its opening level forming a ‘Doji’ kind of candle on the daily candlestick charts.

Formation of a Doji candle after a bearish candle signifies that bulls are not out of the game; however, a directional move on either side is required to confirm the trend.

Close

India VIX moved down by 0.83% at 13.80. On the options front, maximum Put open interest is placed at 10400 followed by 10300 strikes while maximum Call open interest is at 10700 followed by 11000 strikes.

“We have seen fresh Call writing at 10900 followed by 10500 while fresh Put Writing is seen at 10300 followed by 10400 strikes. Option band signifies a trading range between 10400 to 10630 zones,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

“The Nifty fell down towards 10460 zones but recovered from lows and formed a Doji candle on the daily chart. Formation of Doji candle after the decline of the last session indicates that Bulls and Bear both are fighting hard to get their grip in the market,” he said.

Taparia further added that Nifty has to cross and hold above 10550 zones to witness a bounce back move towards its major hurdle of 10620 while a hold below 10500 could extend its decline towards next support of 10430 then 10400 levels.

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

Key Support & Resistance Level for Nifty:

The Nifty closed at 10,492, down 62 points. According to Pivot charts, the key support level is placed at 10,457, followed by 10,422. If the index starts to move higher, key resistance levels to watch out are 10,531 and 10,570.

Nifty Bank:

The Nifty Bank closed at 25,107, down 276 points or 1.09 percent. Important Pivot level, which will act as crucial support for the index, is placed at 24,968, followed by 24,829. On the upside, key resistance levels are placed at 25,219, followed by 25,331.

Call Options Data:

Maximum call open interest (OI) of 36 lakh contracts stands at strike price 10,700, which will act as a crucial resistance level for the index in the March series, followed by 11,000, which now holds 33 lakh contracts in open interest, and 10,900, which has accumulated 30 lakh contracts in OI.

There was hardly any Call writing buy unwinding was seen at a strike price of 10,500, which saw shedding of 0.5 lakh contracts, followed by 10,600, which shed 1.3 lakh contracts and 10,800, which saw unwinding of 0.4 lakh contracts.

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Put Options Data:

Maximum put OI of 37 lakh contracts was seen at strike price 10,700, which will act as a crucial base for the index in March series; followed by 10,300, which now holds 33 lakh contracts and 10,000 which has now accumulated 31 lakh contracts in open interest.

Put Writing was seen at the strike price of 10,300, which saw the addition of 2.02 lakh contracts, along with 10,400, which added 1.5 lakh contracts while unwinding was seen at strike price 10,200 followed by 10,500, 10,600, 10,700, 10,800, and 10,000.

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FII & DII Data:

Foreign institutional investors (FIIs) sold shares worth Rs 1,750 crore, while domestic institutional investors bought shares worth Rs 1,596 crore in the Indian equity market, as per provisional data available on the NSE.

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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56 stocks saw long build-up:

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42 stocks saw short covering:

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

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98 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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17 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:
Sintercom India Limited: KIFS Enterprises bought 1,52,000 shares at Rs 72.16 per share
Videocon Industries Limited: IFCI Ltd. sold 20,66,259 shares at Rs 14.84 per share
Punjab Alkalies & Chemicals: IDBI Bank sold 965,000 shares at Rs 25.35 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Zen Technologies: A meeting of Board of Directors will be held on March 6, 2018 to consider the issue of shares/ warrants/ other convertible securities on preferential basis.
Gammon India: A meeting of Board of Directors is rescheduled to be held on March 6, 2018
Stocks in news:
Reliance Power: Approves raising upto Rs 2,000 crore via QIP
Rain Industries Ltd: The Board of Directors at their meeting held on February 28, 2018, has recommended a final dividend of Re 1 per equity share for the Financial Year ended on December 31, 2017.
Dilip Buildcon: The company has received Letter of Awards from NHAI for two new EPC Project valued at Rs 670.50 crore and Rs 380.07 crore in Uttar Pradesh and Karnataka respectively.

Ramky Infrastructure: NHAI awards Rs 939-crore contract for ring road around Srinagar

ICICI Bank says bank is a part of working capital consortium to Gitanjali Gems wherein its exposure is not the largest

Tata power - The validity of PPA between BEST and TPC-G has been extended for one year from 1st April 2018 for revised quantum of 676MW

Reliance Power approves QIP of 2000cr and amount will be used to reduce debt of the Company

MOIL has revised prices for different grades of Manganese Ore. For Ferro Grade, SMGR and Chemical grade prices have been increased by 10%. Prices of fines have been increased by 5%

L&T Infotech sale of shares by promoters to meet minimum public shareholding

Fortis promoter holding falls down to 0.77%
3 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, JP Associates and Oriental Bank of Commerce.

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First Published on Mar 1, 2018 07:35 am
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