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Last Updated : Feb 06, 2019 07:31 PM IST | Source: Moneycontrol.com

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

Traders are advised to remain long with a stop below 10,980 levels on a closing basis.

Uttaresh Venkateshwaran @UttareshV

Breakout, finally! Five days of a successive rally in the Indian markets pushed Nifty beyond its crucial resistance levels of 10,985-11,000 on February 6. The index made a long bullish candle for the 5th consecutive day in a row.

Nifty 50 opened at 10,965 and slipped marginally to 10,962 before breaking above 11,000 levels. It touched an intraday high of 11,072 before closing the day at 11,062, up 128 points from its previous close of 10,934.35.

The index managed to surpass crucial resistance levels in a single trading session and is on track to hit a higher target towards 11,400, experts said. India VIX fell 0.95 percent to 15.63 levels which should comfort bulls.

Bank Nifty comparatively remained range bound but managed to extend its gains towards 27,400 zones. It formed a Bullish Candle and entered the crucial hurdle zone of 27,500-27,750.

Traders are advised to remain long with a stop below 10,980 levels on a closing basis and look for a bigger target placed around 11,400 levels, experts said.

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

Key support and resistance level for Nifty

The Nifty closed at 11,062.5. According to Pivot charts, the key support level is placed at 10,992.6, followed by 10,922.7. If the index starts moving upward, key resistance levels to watch out are 11,102.5 and then 11,142.5.

Nifty Bank

The Nifty Bank index closed at 27,402.3. The important Pivot level, which will act as crucial support for the index, is placed at 27,321.36, followed by 27,240.43. On the upside, key resistance levels are placed at 27,455.96, followed by 27,509.63.

Call Options Data

Maximum Call open interest (OI) of 33.66 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the February series.

This was followed by the 11,200 strike price, which now holds 21.12 lakh contracts in open interest, and 11,300, which has accumulated 19.54 lakh contracts in open interest.

Meaningful Call writing was seen at the strike of 11,400 which added 2.24 lakh contracts, followed by 11,300 strike which added 2.18 lakh contracts and 11,500 strike which added 1.89 lakh contracts.

Call unwinding was at the strike price of 11,200, which shed 3.3 lakh contracts, followd by 10,900, which shed 2.98 lakh contracts and 10,800, which shed 1.18 lakh contracts.

Image1

Put Options data

Maximum Put open interest of 34.45 lakh contracts was seen at the 10,700 strike price. This will act as a crucial support level for the February series.

This was followed by the 10,900 strike price, which now holds 32.47 lakh contracts in open interest, and the 11,000 strike price, which has now accumulated 31.24 lakh contracts in open interest.

Put writing was seen at the strike price of 11,000, which added 13.82 lakh contracts, followed by 10,900, which added 12.22 lakh contracts and 10,800, which added 2.99 lakh contracts.

There was hardly any Put unwinding seen.

Image2

FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 694.97 crore and Domestic Institutional Investors bought Rs 525.26 crore worth of shares in the Indian equity market on February 6, as per provisional data available on the NSE.

Fund Flow Picture

Image3

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.

Image4

71 stocks saw a long buildup

Image5

77 stocks saw short covering

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

Image6

29 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.

Image7

23 stocks saw long unwinding

Image8

Bulk Deals on February 6

Dewan Housing: Tower Research Capital traded over 21.91 lakh shares at Rs 119.57-119.66 apiece.

Jet Airways: Tower Research Capital traded over 5.78 lakh shares at Rs 237.56-237.82 per share.

PC Jeweller: Crossland Trading traded 20.23 lakh shares at Rs 64.29-64.31 per share.

Reliance Communications: Skyveil Trade Solutions traded 3.41 crore shares at Rs 5.31-5.33 apiece.

Reliance Infrastructure: Alphagrep Securities traded 64 lakh shares at Rs 170.46-171.4 apiece.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Puravankara: The company will hold a conference call to discuss its financial results on February 8, 2019.

Inox Wind: It has scheduled a conference call for analysts and investors on February 8, 2019.

Sun TV: The management will host a conference call on February 8, 2019.

Yes Bank: The lender attended investor meets of ICICI Securities and UTI AMC.

Indiabulls Housing Finance: The company met HSBC Global AMC on February 6, 2019

JM Financial: The company held a phone interaction with TR Capital on February 5, 2019.

KEI Industries: The company will hold meetings with Antique Stock Broking and Edelweiss Securities on February 12-13, 2019.

IndusInd Bank: Elara Securities met the management on February 5, 2019.

Stocks in news

RBI Central Board meeting deferred to February 18

Fortis Malar Hospitals Q3

Net profit at Rs 1.6 crore Vs Rs 0.9 cr (YoY)

Manappuram Finance Q3

Net profit up 44.3% at Rs 247.2 cr Vs Rs 171.2 cr (YoY)

Future Consumer Q3

Net loss at Rs 5.4 cr Vs loss of Rs 6.1 cr (YoY)

Vimita Labs Q3

Net profit down 14.6% at Rs 5.1 cr Vs Rs 6 cr (YoY)

Control Point Q3

Net profit down 17.5% at Rs 5.2 cr Vs Rs 6.3 cr (YoY)

TBZ Q3

Net profit up 50% at Rs 11.1 cr Vs Rs 7.4 cr (YoY)

Himatsingka Seide Q3

Net profit up at Rs 51.2 cr Vs Rs 50.1 cr (YoY)

Vodafone Idea: The net loss has widened to Rs 5,004.6 crore during December quarter.

Indraprastha Gas: Net profit grows 6 percent at Rs 198 crore

Cummins India: Profit up 9 percent at Rs 187.1 crore.

Two stocks 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 February 7, DHFL, IDBI, Jet Airways, Reliance Capital and Reliance Infra are present in this list.
First Published on Feb 6, 2019 07:31 pm
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