Moneycontrol
Feb 15, 2018 08:03 AM IST | Source: Moneycontrol.com

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

Traders are advised to stay light and cautious as the index could well swing in either direction.

July 6, 2009: The Sensex tumbled 6.98 percent intraday by around 1054.47 points, as investors went on a selling spree following the Government not coming out with any significantly positive news on the reforms and divestment fronts when it presented the Union Budget. The Index however closed down 869.65 points, or 5.8 percent to 14,043.40.
July 6, 2009: The Sensex tumbled 6.98 percent intraday by around 1054.47 points, as investors went on a selling spree following the Government not coming out with any significantly positive news on the reforms and divestment fronts when it presented the Union Budget. The Index however closed down 869.65 points, or 5.8 percent to 14,043.40.

The Nifty50, which started on a positive note, failed to keep the momentum going on Wednesday as D-Street got hit by fraud detected in Punjab National Bank, which weighed on the PSU Banking pack. The Nifty formed a bearish candle and a bearish engulfing pattern on the daily charts.

Punjab National Bank's share price slipped 9.8 percent to Rs 145.80 after the bank detected some fraudulent transactions worth Rs 11,300 crore in its Mumbai branch. Selling pressure extended in the last one hour of trading towards most of the PSU banks.

The Nifty closed below its short-term moving averages of 5-days exponential moving average (DEMA) and 50-DEMA. A break above 10,600 could turn the tables in favour of the bulls while a close below 10,398 could extend the selling pressure, which could take the index towards 200-DMA.

Traders are advised to stay light and cautious as the index could well swing in either direction. It witnessed a short covering rally on Monday but a sharp selloff on Wednesday could well put bears on the driving seat.

The Nifty50, which opened at 10,585, rose marginally to hit an intraday high of 10,590 but then bears took control and pushed the index below 10,500 to hit its intraday low of 10,456. It closed 38 points lower at 10,500 on Wednesday.

“Bears appear to have snatched the game away from bulls as they dominated in the last one hour of the session which resulted in a bearish candle formation mimicking Bearish Belt Hold pattern,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“For bulls, 10,600 is becoming a bigger hurdle and the way they surrendered in the last one hour is certainly looking like a cause for concern. Unless Nifty50 recovers from next session trading shall remain sideways with negative bias and selling shall get accelerated if 10,398 is breached on the downside,” he said.

Mohammad further added that it looks imminent for the bulls to clear the resistance of 10,600 to remain in the game else trades should continue to favour bears.

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

Key Support & Resistance Level for Nifty:

The Nifty closed at 10,500.90 on Wednesday. According to Pivot charts, the key support level is placed at 10,441.57, followed by 10,382.23. If the index starts to move higher, key resistance levels to watch out are 10,575.37 and 10,649.83.

Nifty Bank:

The Nifty Bank closed at 25,341.25, down 1.4 percent. Important Pivot level, which will act as crucial support for the index, is placed at 25,098.94, followed by 24,856.67. On the upside, key resistance levels are placed at 25,696.84, followed by 26,052.47.

Call Options Data:

Maximum call open interest (OI) of 51.21 lakh contracts stands at strike price 11,000, which will be a resistance for the February series, followed by 10,700, which now holds 41.63 lakh contracts in open interest, and 10,600, which has accumulated 37.78 lakh contracts in OI.

Call writing was seen at the strike price of 10,600, which saw the addition of 9.56 lakh contracts along with 10,500, which added 3.2 lakh contracts, along with 10,700, which saw the addition of 2.99 lakh contracts.

Call unwinding was seen at the strike of 11,000, which shed 1.63 lakh contracts and 10,900, which shed 1.59 lakh contracts.

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Put Options Data:

Maximum put OI of 58.36 lakh contracts was seen at strike price 10,500, which will act as a crucial base for February series, followed by 10,000, which now holds 48.43 lakh contracts and 10,400 which has now accumulated 39.88 lakh contracts in open interest.

Maximum Put writing was seen at the strike price of 10,500, which saw the addition of 4.42 lakh contracts, followed by 10,600, which added 0.64 lakh contracts.

Put unwinding was seen at 10,000, which shed 6.33 lakh contracts, followed by 10,300, which shed 3.75 lakh contracts and 10,400, which shed 2.78 lakh contracts.

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FII & DII Data:

Foreign institutional investors (FIIs) have net sold shares worth Rs 728.71 crore and domestic institutional investors (DIIs) offloaded shares worth Rs 152.39 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.

Fund Flow Picture:

FII & DII

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.

Image61422018

38 stocks saw long build-up:

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47 stocks saw short covering:

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

Image81422018

96 stocks saw short build-up:

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

Image91422018

28 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:

Gayatri: Vishwamurte Invest PE Ltd bought 225,000 shares at Rs 11.76 per share

Safari Industries: Tano India Pvt Equity FD II FDI - Tano sold 984,000 shares at Rs 520.01 per share while Malabar India Fund Limited bought 589,218 shares at Rs 520 per share.

(For more bulk deals click here)

Analyst or Board Meets/Briefings:

Kwality: The Board of Directors is likely to consider and approve the conversion of convertible warrants & compulsorily convertible debentures to equity shares of the company allotted through member's approval received dated August 9, 2016.

Balkrishna Industries Ltd: The company at its meeting held on February 14, 2017 has declared third interim dividend of Rs 1.50 per equity share on the equity shares of Rs 2 each for the financial year 2017-2018.

Stocks in news:

Nestle India Q4 profit up 60% at Rs 312 cr

Dhanuka Agritech Q3 net profit up 6.36%

Dena Bank reports Rs 380 cr loss in Q3

Jet Airways: The Board of Directors at its meeting approve the unaudited financial results for Q3 ended December 31, 2017

Indiabulls Real Estate: The company considered the recommendations made by the Committee and authorised it to evaluate and finalize the options available for the company for sale of its residential and commercial assets at Chennai, being a non-core market for Company's real estate business operations.

Zee Learn makes an open offer to acquire 1.86 cr equity shares in MT Educare

Idea Cellular QIP launched, to raise USD 400-546 million including greenshoe

Andhra Bank revises 1-year MCLR To 8.4%

Infibeam board approves issuance of convertible warrants up to Rs 40 cr to Network18

6 stocks under ban period on NSE

Security in ban period for the next trade date under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

The security which are banned for trading are Balrampur Chini, Dish TV, GMR Infra, HDIL, JP Associates and Oriental Bank.
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