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Last Updated : Oct 22, 2018 07:33 PM IST | Source: Moneycontrol.com

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

The index closed below the psychological 10,300 levels and formed large bearish candle which resembles a 'Bearish Belt Hold' kind of pattern on the daily charts.

Sunil Shankar Matkar

The market started off the week on a negative note with the Nifty 50 losing all its opening gains in the morning trade and closing sharply lower amid volatility despite strong global cues on October 22.

Monday's intraday price action is clearly favouring the bears as two attempts by the bulls, during the course of the day, succumbed to the pressures of bears who succeeded in pushing the indices to much lower levels, experts said.

The index closed below the psychological 10,300 levels and formed large bearish candle which resembles a 'Bearish Belt Hold' kind of pattern on the daily charts.

Close

A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.

The Nifty 50 saw a strong gap opening at 10,405.85, but erased all gains in the morning and turned volatile. The index then slipped into the red in last hour of trade to hit an intraday low of 10,224. It closed below the immediate support levels, down 58.20 points lower at 10,245.30.

"In line with our projections Nifty 50 was sold off as it opened into the bearish gap area of 10,380-10,436 levels, which was registered in last Friday, before signing off the session with a strong bearish candle," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said once the bulls give up the psychological support point of 10,200 levels bears will swiftly breach recent swing lows of 10,138 and eventually look to take the indices below 10,000 levels.

However, as the index has fallen by around 500 points in last three sessions from the highs of 10,760 a pullback rally can't be ruled out owing to profit booking by the short sellers ahead of the expiry, he feels.

On such pullbacks, unless bulls manage a close above 10,710 levels, the trend will continue to remain in favour of bears, he said.

India VIX moved up by 7.87 percent to 21.34. The spurt in volatility suggests upside could be restricted. Recent high of VIX is at 21.76 and above that it could even head towards 24 levels.

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

Key support and resistance level for Nifty

The Nifty 50 closed at 10,245.25 on Monday. According to Pivot charts, the key support level is placed at 10,176.63, followed by 10,108.07. If the index starts moving upwards, key resistance levels to watch out are 10,361.13 and then 10,477.07.

Nifty Bank

The Nifty Bank index closed at 25,078.60, down 7.20 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,898.34, followed by 24,718.07. On the upside, key resistance levels are placed at 25,381.84, followed by 25,685.07.

Call Options Data

Maximum Call open interest (OI) of 41.80 lakh contracts was seen at the 10,500 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,600 strike price, which now holds 36.37 lakh contracts in open interest, and 10,700, which has accumulated 35.58 lakh contracts in open interest.

Maximum call writing was seen at the strike price of 10,300, which added 4.81 lakh contracts, followed by 10,400 which added 3.76 lakh contracts and 10,500 which added 3.23 lakh contracts.

Call unwinding was seen at the strike price of 10,600, which shed 7.18 lakh contracts, followed by 10,800 which shed 5.21 lakh contracts and 10,700 which shed 2.26 lakh contracts.

Image222102018

Put Options data

Maximum Put open interest of 36.80 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the October series.

This was followed by the 10,200 strike price, which now holds 34.63 lakh contracts in open interest, and the 10,300 strike price, which has now accumulated 23.75 lakh contracts in open interest.

Put writing was seen at the strike price of 10,200, which added 7.97 lakh contracts in open interest, followed by 9,800 which added 4.75 lakh contracts and 10,300 which added 3.29 lakh contracts.

Put unwinding was seen at the strike price of 10,600, which shed 2.46 lakh contracts in open interest, followed by 10,500 which shed 2.44 lakh contracts and 10,900 which shed 1.83 lakh contracts.

Image322102018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 511.91 crore while domestic institutional investors bought shares worth Rs 303.21 crore in the Indian equity market on Monday, as per provisional data available on the NSE.

Fund Flow Picture:

Image922102018

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.

Image422102018

27 stocks saw a long buildup

Image522102018

31 stocks saw short covering

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

Image622102018

100 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.

Image722102018

44 stocks saw long unwinding

Image822102018

Bulk Deals

Dewan Housing Finance Corporation: Jasmine Capital Investments Pte Ltd sold 71,19,283 shares of the company at Rs 197.77 per share.

Hathway Cable & Datacom: Rajasthan Global Securities bought 55,68,623 shares of the company at Rs 29.27 per share while Ashish Dhawan sold 80,58,738 shares at Rs 29.04 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

TeamLease Services: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Phillips Carbon Black: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Tata Teleservices (Maharashtra): Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Info Edge India: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Vakrangee: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

JK Tyre: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Bhushan Steel: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Shemaroo Entertainment: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Talwalkars Better Value Fitness: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Cummins India: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Nilkamal: Board meeting is scheduled on October 29 to consider financial results for the quarter and half year ended September 2018.

BHEL: Board meeting is scheduled on October 25 to consider financial results for the quarter and half year ended September 2018, and the proposal for buyback of fully paid-up equity shares.

Bombay Dyeing: Board meeting is scheduled on November 13 to consider financial results for the quarter and half year ended September 2018.

Lux Industries: Board meeting is scheduled on November 2 to consider financial results for the quarter and half year ended September 2018.

JK Cement: Board meeting is scheduled on November 3 to consider financial results for the quarter and half year ended September 2018.

Rico Auto Industries: Board meeting is scheduled on November 2 to consider financial results for the quarter and half year ended September 2018.

Bharat Forge: Board meeting is scheduled on November 2 to consider financial results for the quarter and half year ended September 2018.

Power Finance Corporation: Board meeting is scheduled on November 2 to consider financial results for the quarter and half year ended September 2018.

SAIL: Board meeting is scheduled on November 2 to consider financial results for the quarter and half year ended September 2018.

BEML: Board meeting is scheduled on November 3 to consider financial results for the quarter and half year ended September 2018.

Speciality Restaurants: Board meeting is scheduled on November 3 to consider financial results for the quarter and half year ended September 2018.

Godrej Industries: Board meeting is scheduled on November 12 to consider financial results for the quarter and half year ended September 2018.

Sharda Cropchem: Board meeting is scheduled on October 31 to consider financial results for the quarter and half year ended September 2018.

Ajanta Pharma: Board meeting is scheduled on October 31 to consider financial results for the quarter and half year ended September 2018.

Amarjothi Spinning Mills: Board meeting is scheduled on October 31 to consider financial results for the quarter and half year ended September 2018.

CRISIL: Company's officials will be meeting Centrum Broking on October 23.

Shree Surgovind Tradelink: Board meeting is scheduled on October 26 to consider to avail credit facility of Rs 20 crore from State Bank of India, SME Backbay Reclamation Branch.

Motilal Oswal Financial: Company will hold earnings conference call with institutional investor(s)/analyst(s) on October 31 to discuss Q2FY2019 financial performance.

Genus Power Infrastructures: Earnings call to discuss operational and financial performance in the quarter ending September 2018 is scheduled to be held on October 24.

Aurionpro Solutions: Earnings call to be held on October 29.

Future Market Networks: Board meeting is scheduled on October 30 to consider financial results for the quarter and half year ended September 2018.

Varun Beverages: Company will host a conference call with investors/ analysts on October 25.

DB Corp: Media company will host a conference call for investors and analysts on October 25 to discuss the company's 02 FY2019 financial performance.

Equitas Holdings: Earnings call of company with investors and analysts is scheduled to be held on November 5 to discuss the company's financial performance for Q2 FY19.

PPAP Automotive: Conference call for analysts and investors is scheduled to be held on October 24 to discuss the financial performance for quarter and half year ended September 2018.

Stocks in news

Results on Tuesday: HCL Technologies, Ambuja Cements, Bajaj Finance, Adani Ports, TVS Motor Company, Sasken Technologies, Tejas Networks, IRB InvIT Fund, GNA Axles, HDFC Standard Life Insurance Company, RBL Bank, Setco Automotive, ICICI Prudential Life Insurance, Reliance Naval, Zensar Technologies, Bajaj Corp, Indian Metals & Ferro Alloys, Bajaj Finserv, Wendt (India), Indbank Merchant Banking Services, Rallis India, Asian Hotels (North), Aksh Optifibre, PPAP Automotive, Tata Metaliks, Rane Brake Lining, Southern Petrochemicals Industries Corporation

Asian Paints Q2: Profit falls 3.2 percent to Rs 506 crore versus Rs 526.2 crore; revenue increases 8.8 percent to Rs 4,639 crore versus Rs 4,265.3 crore YoY.

Oberoi Realty Q2: Profit doubled to Rs 213.83 crore versus Rs 104.32 crore YoY, but falls from Rs 309.42 crore QoQ; revenue jumps to Rs 592.11 crore versus Rs 303.52 crore YoY, but drops from Rs 888.26 crore QoQ.

Lakshmi Machine Works Q2: Profit declines 12.6 percent to Rs 40 crore versus Rs 46.2 crore; revenue jumps 34.7 percent to Rs 772 crore versus Rs 573 crore YoY.

Lakshmi Machine Works: Board approved the buyback of 2,66,666 equity shares at a price not exceeding Rs 6,000 per share.

Fiberweb India Q2: Profit falls to Rs 7.81 crore versus Rs 8.51 crore; revenue slips to Rs 57.55 crore versus Rs 62.11 crore YoY.

LKP Finance Q2: Loss at Rs 4.85 crore versus Rs 6 crore; revenue falls to Rs 2.92 crore versus Rs 18.71 crore YoY.

Genus Power Infrastructures Q2: Profit jumps to Rs 12.37 crore versus Rs 8.92 crore; revenue rises to Rs 223.35 crore versus Rs 166.29 crore YoY.

Can Fin Homes Q2: Profit rises 7.6 percent to Rs 76.83 crore versus Rs 71.42 crore; total revenue from operations increases 11 percent to Rs 423.04 crore versus Rs 378.54 crore YoY.

Rural Electrification Corporation: Ministry of Corporate Affairs (MCA) has approved the change of name of the company from Rural Electrification Corporation Limited to REC Limited.

Cyient: Vikas Sehgal joins company's board as an independent director and Peter F Longo inducted on Cyient Inc's board and appointed as Chairman.

Trident: Gunjan Shroff resigned as Chief Financial Officer of the company.

TCI Express: CRISIL reaffirmed the credit rating in respect of the company's long term rating.

Syndicate Bank: Government conveyed its sanction for release of Rs 728 crore to bank towards contribution of the central government in the preferential allotment of equity shares (special securities/bonds) of the bank during the financial year 2018-19, under plan as government's investment.

Kilpest India: Due to certain internal issues - Brook Besor University, Lusaka Zambia, have indicated there inability to proceed for setting up the Diagnostic Laboratory Project in Lusaka Zambia, with Three Bee Biotech Zambia Ltd. Zambia.(a JV of 3B Blackbio Biotech India Ltd, set-up for this purpose), where the infrastructure and utilities where to be provided by Brook Besor University Lusaka for this project. Due to this development the above Diagnostic Laboratory Project has to be discontinued.

Everest Organics: Company has received closure orders of factory situated at Sadasivapet, Telangana from Telangana State Pollution Control Board ITSPCB), with regards to non-compliances of pollution norms.

PNC Infratech: PNC Aligarh Highways Private Limited' wholly owned subsidiary, submitted duly executed financing documents to NHAI for 4-laning of Aligarh-Kanpur Section of NH 91 in Uttar Pradesh of Rs 1,197 crore.

Hinduja Global Solutions: AxisPoint Health, an HGS company, earned URAC reaccreditation in Health Call Center for its GuidePoint solution, a clinically and analytically driven nurse advice, navigation, and member engagement service.

3 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 October 23, Adani Enterprises, Adani Power and Jet Airways are present in this list.

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First Published on Oct 22, 2018 07:33 pm
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