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Last Updated : Aug 19, 2019 10:49 PM IST | Source: Moneycontrol.com

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

Shabbir Kayyumi of Narnolia Financial Advisors said as long as Nifty is trading above 5-DMA standing around 11,020 levels, one can opt for buy on dip strategy whereby it can continue to trade higher towards 200 DMA placed around 11,180 levels,

Sunil Shankar Matkar

The Sensex lost more than 300 points from the day's high in the last hour of trade to close moderately higher on August 19. The fall was despite the global rally amid hopes of a stimulus and rebound in the US treasury yields.

The BSE Sensex gained 52.16 points at 37,402.49 while the Nifty 50 rose 6.10 points to 11,053.90 and formed bearish candle which resembles a Shooting Star kind of pattern on the daily scale as there was selling pressure at higher levels.

The index faced stiff resistance from previous week's high placed around 11,145 levels, which could be a hurdle in the near term, experts feel.

Close

"The short term trend of Nifty is rangebound with positive bias. The inability of the market to sustain above the key resistance of 11,120-11,150 levels could be a negative indication for the bulls," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

He said a decisive/sustainable move above this hurdle could only bring bulls back into action. Otherwise, one more leg of sharp weakness from the highs is likely and immediate supports to be watched at 10,960 levels, he added.

As long as Nifty is trading above 5-DMA standing around 11,020 levels, one can opt for buy on dip strategy whereby it can continue to trade higher towards 200 DMA placed around 11,180 levels, Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors said.

The broader markets outperformed frontliners with the Nifty Midcap index rising 0.3 percent and Smallcap index climbing 0.5 percent.

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

Key support and resistance level for Nifty

Nifty closed at 11,053.90 on August 19. According to the pivot charts, key support level is placed at 11,012.17, followed by 10,970.43. If the index starts moving upward, key resistance levels to watch out for are 11,121.27 and 11,188.63.

Nifty Bank

Nifty Bank closed at 28,186.10, down 30.90 points on August 19. The important pivot level, which will act as crucial support for the index, is placed at 28,065.43, followed by 27,944.77. On the upside, key resistance levels are placed at 28,387.83 and 28,589.57.

Call options data

Maximum Call Open Interest (OI) of 27.10 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level in the August series.

This is followed by 11,000 strike price, which now holds 24.81 lakh contracts in open interest, and 11,200, which has accumulated 20.22 lakh contracts in open interest.

Significant Call writing was seen at the 11,500 strike price, which added 2.37 lakh contracts, followed by 11,300 strike price, which added 1.01 lakh contracts.

Call Unwinding was seen at 10,900 strike price, which shed 0.53 lakh contracts, followed by 11,400 strike, which shed 0.51 lakh contracts.

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Put options data

Maximum Put Open Interest of 37.56 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.

This is followed by 10,700 strike price, which now holds 25.01 lakh contracts in Open Interest, and 10,800 strike price, which has now accumulated 21.14 lakh contracts in open interest.

Put writing was seen at the 11,100 strike price, which added 2.14 lakh contracts, followed by 11,200 strike, which added 0.33 lakh contracts and 10,600 strike, which added 0.21 lakh contracts.

Put Unwinding was seen at the 10,800 strike price, which shed 2.29 lakh contracts, followed by 11,000 strike that shed 1.25 lakh contracts and 10,400 strike price which shed 0.44 lakh contracts.

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Stocks with a high delivery percentage

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

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29 stocks saw a long buildup

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45 stocks that saw short-covering

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

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54 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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36 stocks saw long unwinding

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Analyst or Board Meetings/Briefings

Vadilal Industries: Board meeting is scheduled to be held on August 23 to consider the annual audited standalone and consolidated financial statements & financial results of the company for the quarter/year ended on March 2019.

Future Lifestyle Fashions: Conference call is organised by Phillip Capital (India) Private Limited on August 20.

SpiceJet: Company's officials will meet analysts/institutional investors on August 20.

Asian Paints: Company through its representatives will be participating in Motilal Oswal Investor Conference and meeting with Capital International on August 21.

Mahanagar Gas: Company's officials will meet Grandeur Peak, L&T MF and Capital International on August 21.

Pfizer: Company's officials will meet Centrum Broking Limited and its clients on August 20.

Selan Exploration Technology: Annual General Meeting to be held on September 18.

Pioneer Distilleries: Shareholder Annual General Meeting to be held on September 12.

Finolex Cables: Conference call is organised by the company through YES Securities (India) on the financial performance for the Q1FY20, on August 21.

Tata Global Beverages: Company's officials will be meeting Analyst/Institutional Investors on August 20 and 21.

Apex Frozen Foods: Conference Call is scheduled for August 20 to discuss the financial performance of the company.

Just Dial: Representative of the company will attend Motilal Oswal's Fifteenth Annual Global Investor Conference on August 20 and 21 at Mumbai.

Equitas Holdings: Representative of the company will attend Motilal Oswal's Fifteenth Annual Global Investor Conference on August 21 at Mumbai.

PI Industries: Company's officials will meet Wellington, Singapore on August 20.

Stocks in the news

Results on August 20: Nova Iron & Steel, Tantia Constructions, Ceenik Exports

Listing on August 20: Sterling and Wilson Solar

Vodafone Idea: Ravinder Takkar appointed as MD & CEO. CEO Balesh Sharma resigned with immediate effect and will take up a new role in Vodafone Group.

MRPL: Refinery affected by a minor landslide due to intensified monsoon in Dakshina Kannada district. As a precaution, structured shutdown of Phase-III process units of refinery. Phase-I, Phase-II and product dispatch facilities unaffected & are operating normally.

Tata Motors: CARE cuts long-term rating to AA- versus AA, outlook negative.

Opto Circuits Q1: Consolidated profit falls to Rs 10.8 crore versus Rs 12.95 crore, revenue dips to Rs 50.28 crore versus Rs 71.31 crore YoY.

LT Foods: With an intent to consolidate its international business, company has approved transfer of investments (shares) in LT Foods International, Limited, UK, (wholly-owned subsidiary of the company) to LT Overseas North Americas Inc., USA, another wholly-owned subsidiary of the company at fair value as determined by an independent merchant bank.

IL&FS: Interest due & payable on August 19 on certain NCD not paid due to insufficient funds.

INEOS Styrolution India: Company appointed merchant banker to undertake due diligence, pursuant to the receipt of the proposal for voluntary delisting of the equity shares of the company.

RPP Infra Projects: Company appointed A Karthiswaran as a Company Secretary and Compliance Officer.

National Fertilizers: ICRA reaffirmed its long term credit rating and term loans rating at AA but revised outlook to negative from stable.

Bulk deals

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(For more bulk deals, click here)

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth net Rs 305.74 crore, while Domestic Institutional Investors (DIIs) purchased net Rs 386.23 crore worth of shares in the Indian equity market on August 19, as per provisional data available on the NSE.

2 stocks under F&O ban period on NSE

On August 20, DHFL and IDBI Bank are under F&O ban.

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

Fund flow picture:

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First Published on Aug 19, 2019 08:55 pm
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