Moneycontrol
Jan 04, 2018 08:15 AM IST | Source: Moneycontrol.com

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

A collection of top fifteen data points to help you spot profitable trade.



 

The Nifty50 index consolidated for the second day in a row on Wednesday and formed a ‘small bodied’ candle on the daily candlestick charts. The index failed to hold above 10,500 for the third consecutive day in a row.

The index slipped below its 5-days exponential moving average (DEMA) but found support near 13-DEMA placed around 10,400. Analyst advises investors to either wait for a breakout or a breakdown before initiating fresh positions.

The index has a strong support around 10,400 and if Nifty fails to hold this level in January series, the momentum could tilt towards bears, suggest experts.

The index which opened at 10,482 rose to an intraday high of 10,503. It slipped towards its crucial support of 10,400 to record its intraday low of 10,429. It finally closed 1 point higher at 10,443.

“The Nifty50 witnessed a range bound move of around 70 points before signing off the day almost at the point where it closed in Tuesday’s session. However, in a sense this itself can be construed as slightly advantageous to the bulls as follow up selling to Monday’s consolidation breakdown down is missing suggesting that bulls for time being successfully managed to absorb the selling pressure after the said breakdown,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, as long as they sustain above the psychologically important support point of 10400 levels they can make an attempt to challenge 10550 levels once again. Unless this point is conquered they will not succeed in gaining upper hand over the market again,” he said.

Mohammad further added that if 10400 is broken down then bears will drag down the indices towards their initial target of 10250 levels. Traders are advised to remain cautious and avoid fresh longs on a breakdown below 10400 levels, he said.

India VIX fell down by 0.42 percent at 13.62. VIX has to hold below 13-12.50 zones to support the overall Bullish bias of the market.


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

Key Support & Resistance Level for Nifty

The Nifty closed at 10,443.2 on Wednesday. According to Pivot charts, the key support level is placed at 10,413.93, followed by 10,384.67. If the index starts to move higher, key resistance levels to watch out are 10,488.03 and 10,532.87.

Nifty Bank

The Nifty Bank closed at 25,318.6. Important Pivot level, which will act as crucial support for the index, is placed at 25,261.37, followed by 25,204.13. On the upside, key resistance levels are 25,415.37, followed by 25,512.13.

Call Options Data:

Maximum Call open interest (OI) of 43.38 lakh contracts stands at strike price 11,000, which will act as a crucial resistance level for the index in the January series, followed by 10,600, which now holds 38.22 lakh contracts in open interest, and 10,500, which has accumulated 36.91 lakh contracts in OI.

Call writing was seen at a strike price of 10,500, which saw the addition of 2.39 lakh contracts, followed by 10,800, which saw the addition of 1.43 lakh contracts and 10,400, which saw the addition of 1.11 lakh contracts.

Call unwinding was seen at strike prices of 10,000, which saw 1.08 lakh contracts being shed, followed by 11,000, which shed 0.72 lakh contracts.


 

11

Put Options Data

Maximum put OI of 48.32 lakh contracts was seen at strike price 10,300, which will act as a crucial base for the index in January series; followed by 10,600, which now holds 46.96 lakh contracts and 10,000 which has now accumulated 43 lakh contracts in open interest.

Put writing seen at 10,200, which saw the addition of 1.58 lakh contracts, followed by 1.56 lakh contracts at the strike price of 10,500 and 10,400, which saw the addition of 0.88 lakh contracts.

Put unwinding was seen at the strike price of 10,100, which saw shedding of 2.81 lakh contracts and 10,300, which shed 2.6 lakh contracts.



22



FII & DII Data

Foreign institutional investors (FIIs) bought shares worth Rs 96.31 crore, while domestic institutional investors sold shares worth Rs 269.2 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.

Fund Flow Picture:




33



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.




55


85 stocks saw long build-up:


44



50 stocks saw short covering:

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


 


1


 


62 stocks saw short build-up:

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




2



14 stocks saw long unwinding:

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




3


Bulk Deals:

Navkar Corporation: Ashish Kacholia bought 10 lakh shares or 0.7% stake in Navkar Corporation on Wednesday.



4


 


(For more bulk deals click here: https://goo.gl/qrXHCH)



Analyst, Board Meet/Briefings:

SJVN Ltd:

Meeting of Board of Directors of the Company will be held on 08th January 2018 i.e., Monday at New Delhi, inter alia, to consider the proposal for Buyback of the fully paid-up equity shares of the Company.

Stocks in news:

Unichem Labs: The company will be considering share buyback on January 8

Bank of India: To raise Rs 650 crore through preferential allotment.

IndusInd Bank: The company has allotted 11,260 equity shares of Rs 10/- each on January 3, 2018 to those grantees who had exercised their option under the Company's Employee Stock Option Scheme.

ICICI Bank: The private sector bank has allotted 22,900 equity shares under ESOS on January 2, 2018

Indiabulls Housing Finance: The Company has redeemed (bought back) Secured, Redeemable, Non-Convertible Debentures of face value Rs10,00,000/- each issued by the Company.

Lakshmi Vilas Time: The Capital Raising Committee of the Lakshmi Vilas Bank Ltd approved the allotment of 6,39,87,006 equity shares of face value Rs10/- each at a price of Rs 122/share.

DCB Bank plans to raise Rs 150 crore via bonds

Indian Bank revises interest rates for FCNR(B) deposits

NALCO lines up 3 projects, invests Rs 25,000 crore

Greaves Cotton to make new BS-IV engines for Piaggio

Centrum Capital
Board approves issue of convertible warrants upto Rs 300 cr to BG Advisory Services forming part of promoter group

Board also approves raising of funds upto Rs 750 crore via issuing securities

Aurionpro
Cyberinc, a subsidiary, entered into a definitive agreement with KPMG LLP, USA, for sale of its Identity and Access Management (IAM) business. The

transaction is expected to close on January 31, 2018

Bank of Maharashtra to raise Rs 650 crore by way of preferential allotment to GOI

7 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, GMR Infra, HDIL, IFCI, JP Associates, Reliance Communications and Reliance Power.
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