Moneycontrol
Last Updated : Dec 05, 2018 08:07 PM IST | Source: Moneycontrol.com

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

Maximum Call open interest (OI) of 27.81 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.

Sunil Shankar Matkar

The market fell sharply on December 5 after the Reserve Bank of India kept policy rates unchanged and slashed inflation forecast for second half of FY19. The correction was largely in line with the global weakness and continued for second straight session on caution ahead of states elections results due next week.

The Nifty50 closed 86.60 points lower at 10,782.90 and managed to hold the 200-daily moving average, which is placed around 10,747 levels.

Experts said if the index breaks its 200-DMA then there could be steep correction in the market, but if it holds till states elections results then there could be possibility of index hitting 11,000 levels.

The 30-share BSE Sensex was down 249.90 points at 35,884.41 due to selling across sectors barring IT which ended flat. The broader markets also caught in bear trap with Nifty Midcap index underperforming frontliners, falling 1.5 percent.

"The short term trend of Nifty has reversed down and more weakness could be in store for coming sessions," Nagaraj Shetti, Technical Research Analyst, HDFC Securities, told Moneycontrol.

He said but the uptrend status as per larger timeframe is still intact and the next lower supports to be watched is at 10,680-650 levels in the next few sessions.

India VIX moved up by 1 percent to 18.29 levels. However it has to cool down below 17-16 zones to get the smooth ride to surpass immediate hurdle zones.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol that if Nifty50 decisively breaches its 200-day moving average, whose value is placed around 10,749, then this correction will eventually get extended towards 10,489 levels.

He said on the upsides strength will not be resumed unless Nifty50 registers a close above 10,941 levels.

As the market is heading close to an important binary event traders will be better off by staying away from short term bets at least till Friday, he advised.

We have collated top 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,782.90 on December 5. According to Pivot charts, the key support level is placed at 10,746.93, followed by 10,710.97. If the index starts moving upward, key resistance levels to watch out are 10,819.93 and then 10,856.97.

Nifty Bank

The Nifty Bank index closed at 26,519.60, down 174.20 points. The important Pivot level, which will act as crucial support for the index, is placed at 26,433.1, followed by 26,346.6. On the upside, key resistance levels are placed at 26,616.7, followed by 26,713.8.

Call Options Data

Maximum Call open interest (OI) of 27.81 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.

This was followed by the 10,900 strike price, which now holds 18.85 lakh contracts in open interest, and 11,100, which has accumulated 18.19 lakh contracts in open interest.

Meaningful Call writing was seen at 11,100, which added 2.57 lakh contracts, followed by 11,200 strike which added 2.41 lakh contracts, and 10,800 strike which added 1.68 lakh contracts.

Maximum Call unwinding was seen at the strike price of 10,500, which shed 0.4 lakh contracts, followed by 10,600 which shed 0.2 lakh contracts.

Image1405122018

Put Options data

Maximum Put open interest of 35.55 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the December series.

This was followed by the 11,000 strike price, which now holds 28.37 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 27.06 lakh contracts in open interest.

Put writing was seen at the strike price of 10,700, which added 0.69 lakh contracts, followed by 10,400 strike which added 0.44 lakh contracts, and 10,500 and 10,600 strikes which added 0.31 lakh contracts.

Put unwinding was seen at the strike of 11,000, which shed 2.56 lakh contracts, followed by 10,800 which shed 1.61 lakh contracts and 10,900 which shed 1.3 lakh contracts.

Image1505122018

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 357.82 crore and Domestic Institutional Investors sold Rs 791.59 crore worth of shares in the Indian equity market on Wednesday, as per provisional data available on the NSE.

Fund Flow Picture

Image1605122018

Stocks with high delivery percentage

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

Image905122018

11 stocks saw a long buildup

Image1005122018

13 stocks saw short covering

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

Image1105122018

95 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.

Image1205122018

83 stocks saw long unwinding

Image1305122018

Bulk Deals

Agro Phos India: Mukta Narang sold 1,08,000 shares of the company at Rs 47.25 per share on the NSE.

Supershakti Metaliks: Asia Investment Corporation Mauritius Limited purchased 1,89,000 shares of the company at Rs 407 per share on the BSE. Bijal Mukesh Shah-HUF (41,400 shares), Jignesh Amritlal Patel (36,600 shares) and Vipul Haridas Thakkar (31,500 shares) were net sellers.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Elecon Engineering: Board meeting is scheduled on December 10 to consider issuing the non-convertible debentures upto Rs 150 crore on private placement basis and/or to delegate the powers to the committee in this regards alongwith the other Agenda.

Dr Lal PathLabs: Company's officials will be meeting analysts/institutional investors on December 7, 11, 13 and 14.

Sandhar Technologies: Company's officials will be meeting mutual fund houses on December 6-7.

Pilani Investment and Industries Corporation: Board meeting is scheduled on December 13 to consider unaudited financial results of the company for the quarter and six months ended September 2018.

Moschip Semiconductor Technology: Board meeting is scheduled on December 10 to consider the change in name of the company.

Associated Alcohols & Breweries: Company's officials will be meeting investors in the non-deal road show on December 6 in Mumbai and attending conference organised by Systematix Shares and Stocks (India) Limited on December 7.

Stocks in news

Tata Motors: JLR UK's total sales increased to 9,055 units in November 2018 versus 8,895 units; Jaguar sales falls to 2,716 units versus 6,241 units and Land Rover sales rise to 6,339 units versus 6,241 YoY.

Power Grid Corporation of India: The company is as the successful bidder under tariff based competitive bidding to establish 'transmission system for evacuation of power from 2 x 660 MW Jawaharpur Thermal Power Project and construction of 400 kV substation at Firozabad along with associated Transmission Lines' on build, own operate and maintain (BOOM) basis. This is the first Intra State Transmission System Project won by the company under tariff based competitive bidding.

Sagar Cements: Board approved a proposal to invest Rs 150 crore in Satguru Cement Private Limited (SCPL), Indore, Madhya Pradesh, to set-up a green field cement manufacturing plant of 1 million ton capacity along with waste heat recovery power plant at a total cost of Rs 426 crore, and to invest Rs 108 crore in Jajpur Cements Private Limited (JCPL), Jajpur, Odisha in a phased manner to acquire 100 percent shareholding in it and to set-up through it a green field grinding unit of 1.5 million ton capacity in Jajpur at a total cost of Rs 308.10 crore. Both projects are being planned to be completed by March 2021.

Avenue Supermarts: Company has issued commercial paper of Rs 100 crore.

Castex Technologies: Lenders withdraw Liberty House’s resolution plan.

Bank Of Baroda: The bank keeps MCLR unchanged in range of 8.15-8.65 percent.

Tata Communications: UROS Group, a global innovator in turnkey IoT solutions and smart connectivity, is collaborating with the company to support the deployment of IoT and Smart City solutions across large commercial and public sector organisations globally.

Nestle India: Board declared third interim dividend of Rs 50 per share for the year 2018.

Lemon Tree Hotels: The company opened its hotel under brand name 'Lemon Tree Premier' in Pune which has 201 rooms. It presently operates 52 hotels including managed properties across 31 cities in India.

Trigyn Technologies: New York-based enterprise artificial intelligence startup WhizAI raises $1.1 million in seed funding led by Trigyn Technologies, Inc.

Milestone Furniture: Company successfully completed the contract of Rs 2.33 crore for interior and office furniture with Sudarshan Pharma industries Ltd Group having its office at Borivali, Mumbai. Further company is having in discussion to obtain contract of Rs 2.75 crore for providing facility at godown and sales office for their infra projects.

Sadhna Broadcast: Pooja Aggarwal is appointed as Chief Executive Officer and Satyabrata Mukherjee as Chief Operating Officer of the company.

Ravalgaon Sugar Farm: Board approved sale of land for Rs 28 lakh, candy sugar plant and machinery for Rs 75 lakh, candy sugar plant structure subsequent to the sale of plant and machinery, and capital expenditure of Rs 18 lakh towards construction of factory compound wall plus additional Rs 20 lakh for any additional steps required to protect the property.

Spice Mobility: Madhusudan Venkatachary tendered his resignation as Chief Financial Officer of the company due to personal reasons. Board meeting to be held on December 7 to consider the appointment of new Chief Financial Officer.

No stock under ban period on 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 December 6, 2018, not a single stock is present in this list.
First Published on Dec 5, 2018 08:07 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant