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Last Updated : Feb 27, 2019 09:08 PM IST | Source: Moneycontrol.com

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

Sahaj Agrawal of Kotak Securities said the broader market is relatively strong and the upside remains open for 11,100-11,200 in the near term.

Sunil Shankar Matkar

Geopolitical tensions between India and Pakistan spooked Dalal Street on February 27 as benchmark indices gave up early gains and fell over 200 points in afternoon trade on widespread selling.

The Sensex shed 465 points from day's high to slip below 36,000 levels, down 68.28 points to settle at 35,905.43.

The Nifty50 erased 133 points from day's high to close marginally lower amid volatility ahead of expiry of February derivative contracts due on February 28. It was down 28.60 points to 10,806.70 at close and formed bearish candle on the daily charts.

Close

Experts expect the volatility to continue in coming sessions.

"Despite positive opening, the index traded lower entire day amid Indo-Pak tension at LOC and majority of sector indices closed in the red. We expect markets to trade with a zigzag movement in a tight range of 10,760-10,888 levels on monthly expiry day," Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors, told Moneycontrol.

He said any decisive move above 200 DMA placed around 10,860 will push the index higher towards 11,000 levels, while a close below the strong support of 10,760 will change the sentiment bearish.

Sahaj Agrawal of Kotak Securities said the broader market is relatively strong and the upside remains open for 11,100-11,200 in the near term.

The Nifty Midcap index was up 0.4 percent and Smallcap index gained 0.2 percent while major sectors like banks, FMCG and IT were lower.

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

Key support and resistance level for Nifty

The Nifty closed at 10,806.65 on February 27. According to Pivot charts, the key support level is placed at 10,725.37, followed by 10,644.03. If the index starts moving upward, key resistance levels to watch out are 10,913.87 and then 11,021.03.

Nifty Bank

The Nifty Bank index closed at 26,799.30, down 153.65 points on February 27. The important Pivot level, which will act as crucial support for the index, is placed at 26,616.0, followed by 26,432.7. On the upside, key resistance levels are placed at 27,086, followed by 27,372.7.

Call options data

Maximum Call open interest (OI) of 49.11 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 10,900 strike price, which now holds 28.29 lakh contracts in open interest, and 11,100, which has accumulated 22.70 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 11,000, which added 6.05 lakh contracts, followed by 10,900 strike which added 1.59 lakh contracts.

Call unwinding was seen at the strike price of 11,200 that shed 2.27 lakh contracts, followed by 11,300 strike that shed 1.47 lakh contracts and 10,500 strike that shed 0.95 lakh contracts.

Image127022019

Put options data

Maximum Put open interest of 30.31 lakh contracts was seen at the 10,400 strike price. This will act as a crucial support level for the February series.

This was followed by the 10,700 strike price, which now holds 22.93 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 22.47 lakh contracts in open interest.

Put writing was seen at the strike price of 10,400 which added 1.1 lakh contracts, followed by 11,000 strike that added 0.27 lakh contracts.

Put unwinding was seen at the strike price of 10,500 that shed 5.87 lakh contracts, followed by 10,800 strike that shed 5.26 lakh contracts and 10,300 strike which shed 3.67 lakh contracts.

Image227022019

FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 423.04 crore and Domestic Institutional Investors purchased Rs 66.81 crore worth of shares in the Indian equity market on February 27, as per provisional data available on the NSE.

Fund Flow Picture

Image927022019

Stocks with a high delivery percentage

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

Image327022019

27 stocks saw a long buildup

Image427022019

73 stocks saw short covering

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

Image527022019

26 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.

Image627022019

77 stocks saw long unwinding

Image727022019

Bulk Deals on February 27

GSS Infotech: Vicky Rajesh Jhaveri bought 1,64,486 shares of the company at Rs 117.24 per share on the NSE.

Shashijit Infraprojects: Rajiv Ishwarbhai Mistry bought 96,000 shares of the company at Rs 30 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Metalyst Forgings: Board meeting is scheduled on February 28 to consider and approve and take on record the unaudited financial results for the quarter and nine months ended December 2018.

ACC: Company's officials will meet investors on February 28.

Shanthi Gears: Company's officials will meet investors February 28.

Wockhardt: Meeting of Capital Raising Committee of the company will be held on March 19 to consider and approve alteration/ extension of the date of redemption of 16,00,00,000 0.01% non-convertible cumulative preference shares of face value of Rs 51 each held by Khorakiwala Holdings & Investments Private Limited (Promoter Group Entity) to such date as may be decided at the said meeting.

Container Corporation of India: Company's officials will meet analysts/investors on March 4, 7 and 12, will attend UBS India Midcap Conference 2019 on June 6.

Mahindra & Mahindra: Company's officials will meet analysts/investors on February 28, March 5, 8, 11, 12 and 14.

CESC: Company's officials will attend Daiwa Investment Conference during March 4-5 in Japan.

Quick Heal Technologies: Board meeting is scheduled on March 5 to consider a proposal for buy-back of the fully paid up equity shares of the company.

Stocks in news

Wipro: Company to sell Workday & Cornerstone on demand operations to Alight for $110 million.

Punjab National Bank: Bank reduced marginal cost of funds based lending rate (MCLR) by 10 bps.

Vascon Engineers: Company received work order amounting to Rs 83.52 crore from Airport Authority of India.

Allahabad Bank: Board approved raising equity capital of the bank by an amount aggregating upto around Rs 6,896 crore through preferential issue of equity shares to the Government against their capital infusion.

Nitin Fire Protection Q3: Loss at Rs 87.5 crore versus loss Rs 85.6 crore; revenue falls to Rs 3.43 crore versus Rs 11.63 crore YoY.

Quess Corp: ICRA upgraded rating on company's long term fund based limits to AA/Stable from AA-/Positive and non-convertible debentures to AA/Stable from AA-/Positive.

Shipping Corporation of India: Company has given physical delivery of its 1 container vessel "M V Lal Bahadur Shashtri to its buyer.

Varroc Engineering: Phase I of plant set-up by Varroc Lighting Systems S.A. Morocco (a wholly owned step down subsidiary company) has commenced commercial operations from February 26. Plant has been set up in Maroc with an aim to manufacture and supply automotive lighting parts.

KSB Ltd Q4CY18: Standalone profit dips to Rs 25.3 crore versus Rs 27.4 crore; revenue rises to Rs 346.6 crore versus Rs 328.2 crore; CY18 consolidated profit rises to Rs 71.6 crore versus Rs 70.9 crore, revenue increases to Rs 1,093.1 crore versus Rs 969.2 crore YoY. Board recommended Rs 6 per share of Rs 10 each (60 percent) as dividend for the year ended December 2018.

Vesuvius India: Board recommended a dividend at the rate of Rs 7 per share (70 percent).

Meghmani Organics: National Company Law Tribunal approved the Scheme of Arrangement amongst subsidiaries of company.

ARSS Infrastructure Projects: Joint venture NPCC-ARSS received a work order of Rs 429 crore from National Highways & Infrastructure Development Corporation.

Circuit Filter Revision: BSE revised circuit filter price band to 10 percent for Technofab Engineering and Adhunik Industries; to 5 percent for E-Land Apparel, Ind-Swift, and Veto Switchgears & Cables; and to 2 percent for Shree Global Tradefin.

Mangalam Seeds: Migration of equity shares of company from BSE SME Platform to BSE Mainboard Platform with effect from March 1.

Three 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 28, Adani Enterprises, Adani Power and Reliance Power stocks are present in this list.

Out of F&O ban: IDBI Bank and Jet Airways.

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First Published on Feb 27, 2019 08:23 pm
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