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Last Updated : Jul 08, 2019 08:53 PM IST | Source: Moneycontrol.com

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

Ajit Mishra of Religare Broking said the market tone is clearly negative and Nifty could inch further lower and test 11,400 ahead.

Sunil Shankar Matkar

Benchmark indices fell sharply for the second consecutive session on July 8 as bears further tightened their grip on Dalal Street after the Budget amid weak global cues.

The BSE Sensex plunged 792.82 points or 2.01 percent to 38,720.57 while the Nifty 50 dipped 252.60 points or 2.14 percent to 11,558.60 and formed large bearish candle on daily charts.

"Technically, this pattern indicates a sharp downward reversal in the market. The Nifty is currently placed near the upper area of the previous opening upside gap of May 20 at 11,591 levels. Further weakness from here is likely to fill this gap around 11,426 levels," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

Close

He said 11,600-11,425 levels are going to be a crucial support zone for the market, and one may expect current downtrend to halt around these levels.

Ajit Mishra, Vice President - Research at Religare Broking also said the market tone is clearly negative and Nifty could inch further lower and test 11,400 ahead. He advises maintaining sell on rise approach and preferring hedged positions.

Investors' wealth eroded by around Rs 5 lakh crore in two trading sessions. The market breadth was largely in favour of bears as three shares declined for every share rising on the BSE.

All sectoral indices closed in the red with Nifty PSU Bank falling most with a loss of 6 percent. The Nifty Midcap index was down 2.7 percent and Smallcap index fell 2.4 percent.

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

Key support and resistance level for Nifty

Nifty closed at 11,558.60 on July 8. According to Pivot charts, the key support level is placed at 11,463.96, followed by 11,369.33. If the index starts moving upward, the key resistance levels to watch out are 11,712.57 and 11,866.53.

Nifty Bank

Nifty Bank closed at 30,603.85, down 871.95 points on July 8. The important Pivot level, which will act as crucial support for the index, is placed at 30,303.6, followed by 30,003.4. On the upside, key resistance levels are placed at 31,137.2, followed by 31,670.6.

Call options data

Maximum Call open interest (OI) of 29.04 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.

This is followed by 11,800 strike price, which now holds 14.29 lakh contracts in open interest, and 12,200, which has accumulated 13.73 lakh contracts in open interest.

Significant Call writing was seen at 11,700 strike price, which added 10.19 lakh contracts, followed by an 11,800 strike price which added 8.61 lakh contracts and 11,600 strike that added 6.26 lakh contracts.

Call unwinding was seen at 12,100 strike, which shed 5.32 lakh contracts, followed by 12,300 strike that shed 1.33 lakh contracts.

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Put options data

Maximum Put open interest of 15.65 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.

This was followed by 11,500 strike price, which now holds 15.50 lakh contracts in open interest and 11,000 strike price, which has now accumulated 14.26 lakh contracts in open interest.

Put writing was seen at 11,600 strike price, which added 3.34 lakh contracts, followed by 11,200 strike price that added 3.08 lakh contracts and 11,400 strike, which added 2.4 lakh contracts.

Put unwinding was seen at the 11,800 strike, which shed 3.24 lakh contracts, followed by 11,900 strike that shed 2.94 lakh contracts and 11,700 strike which shed 2.66 lakh contracts.

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Stocks with a high delivery percentage

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

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4 stocks saw a long buildup

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10 stocks that saw short covering

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

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86 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.

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64 stocks saw long unwinding

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Analyst or Board Meetings/Briefings

Vinyl Chemicals: Company to announce June quarter results on August 2.

EIH Associated Hotels: Company to announce June quarter results on July 30.

Syngene International: Company to announce June quarter results on July 24.

5paisa Capital: Company to announce June quarter results on July 16.

Ambuja Cements: Company to announce June quarter results on July 25.

Emami: Company to announce June quarter results on August 8.

BEML: Analysts/investors meet is scheduled to be held on July 12 to brief the business performance of the company for the financial year ended 31.03.2019.

Galaxy Surfactants: Officials of the company will be meeting the institutional investors on July 11 at Navi Mumbai.

Stocks in news

Results on July 9: TCS, Excel Realty

Titan: April-June jewellery revenue grew by 13 percent YoY. Jewellery sales muted as high gold prices hit demand.

Sandur Manganese & Iron Ores: ICRA issued rating rationale, re-affirming ratings and revised the outlook on a long-term rating from Stable to Positive.

Canara Bank: Bank proposes to sell the equity shares of Webcon Consultancy (India) Ltd, unlisted company. Bank has floated RFQ (request for quotes), inviting quotation/bid for the purchase of the said equity shares from the bank.

Prime Industries: Company approved sub-division of each equity share of the face value of Rs 10 each fully paid up into equity shares of the face value of Rs 5 each fully paid up, subject to the approval of shareholders.

BHEL: Nalin Shinghal has assumed charge of the post of Chairman & Managing Director for a period of five years.

HCL Technologies: Company said and NLC Insurance Companies is now in production with Guidewire InsurancePlatform, integrated with the SmartCOMM document management system.

Galaxy Surfactants: Officials of the company will be meeting the institutional investors on July 11 at Navi Mumbai.

Master Trust: Company approved sub-Division of each equity share of the face value of Rs 10 each fully paid up into equity shares of the face value of Rs 5 each fully paid up, subject to the approval of shareholders.

NHPC: Unit 1 & 3 of Baira Suil Power Station has started electricity generation w.e.f. July 6 and July 7 respectively.

Voltas: Company announced its partnership with Energy Efficiency Services Limited (EESL) to manufacture and sell 5-star rated inverter air conditioners.

Meghmani Organics: Subsidiary Meghmani Finechem has commenced commercial production of chlormethane (CMS).

Bulk deals

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(For more bulk deals, click here)

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 401.99 crore, but Domestic Institutional Investors (DIIs) bought Rs 321.13 crore worth of shares in the Indian equity market on July 8, as per provisional data available on the NSE.

Fund Flow Picture

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Two stocks under F&O ban period on NSE

For July 9, DHFL and Reliance Capital are under the F&O ban period.

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

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First Published on Jul 8, 2019 07:08 pm
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