Moneycontrol
Last Updated : Dec 10, 2018 09:05 PM IST | Source: Moneycontrol.com

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

Maximum Call open interest (OI) of 47.65 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.

Sunil Shankar Matkar

The market fell sharply on December 10 with the Sensex losing more than 700 points after mixed outcomes from exit polls. Weak global cues amid rising tensions between the US and China also dampened market sentiment.

The Nifty50 closed below psychological 10,500 levels, forming small bearish candle on the daily charts on Monday. Traders retained their cautious stance ahead of outcome of five states' elections which is scheduled to be announced on December 11, and after Urjit Patel resigned as RBI governor.

"The short term trend of Nifty is dicey. All eyes on tomorrow's 5 states assembly election results, which are expected to be out completely by noon," Nagaraj Shetti, Technical Research Analyst at HDFC securities said.

Hence, a 10,450 levels is going to be a make or break situation for the bulls to hold on a defense, he added.

Kotak said if the BJP wins Chhattisgarh, Madhya Pradesh and Rajasthan (3-0) or Chhattisgarh and Madhya Pradesh (2-1) then there could be a moderate market rally, subject to global developments with the market ascribing a higher probability of the BJP winning the national elections in April-May 2019.

However, if BJP loses all the three states (0-3) or loses Madhya Pradesh and Rajasthan (1-2) then there may be a sharp market correction as the market will likely take a dim view of the BJP's prospects in the next national elections given the large contribution of these three states to the BJP's 2014 win, according to Kotak.

The Nifty50 fell 205.20 points or 1.92 percent to close at 10,488.50 and the 30-share BSE Sensex plunged 713.53 points or 2 percent to 34,959.72. The Nifty Midcap and Smallcap indices were down 2 percent each.

VK Sharma, Head PCG & Capital Markets Strategy, HDFC Securities said the RBI governor's resignation alone has the ability to knock off 200 points from the Nifty.

All sectoral indices closed in the red with the Nifty Bank, Auto, FMCG, IT, Metal, Pharma and Realty falling 1-3 percent.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol that the bears now have an upper hand on the index.

"In terms of the Fibonacci retracement, the Nifty has so far retraced 50 percent of the November bounce. Subsequent level on the downside will be the 61.8 percent retracement mark i.e. 10,362. The larger picture shows that the Nifty is poised to test the recent low of 10,005," he said.

India VIX moved up sharply by 10.85 percent at 20.60 levels. Volatility has closed at recent highest zone since October 31, 2018.

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

Key support and resistance level for Nifty

The Nifty closed at 10,488.5 on December 10. According to Pivot charts, the key support level is placed at 10,456.07, followed by 10,423.63. If the index starts moving upward, key resistance levels to watch out are 10,539.87 and then 10,591.23.

Nifty Bank

The Nifty Bank index closed at 26,102.65, up 491.65 points on December 10. The important Pivot level, which will act as crucial support for the index, is placed at 26,004.4, followed by 25,906.1. On the upside, key resistance levels are placed at 26,268.6, followed by 26,434.5.

Call Options Data

Maximum Call open interest (OI) of 47.65 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.

This was followed by the 10,700 strike price, which now holds 29.66 lakh contracts in open interest, and 10,800, which has accumulated 28.78 lakh contracts in open interest.

Meaningful Call writing was seen at 10,700, which added 11.84 lakh contracts, followed by 11,000 strike which added 10.51 lakh contracts, and 10,800 strike which added 8.58 lakh contracts.

There was hardly any Call unwinding seen.

Image310122018

Put Options data

Maximum Put open interest of 45.42 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the December series.

This was followed by the 10,200 strike price, which now holds 42.41 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 36.59 lakh contracts in open interest.

Put writing was seen at the strike price of 10,200, which added 4.94 lakh contracts, followed by 10,000 strike which added 3.43 lakh contracts, and 10,100 which added 1.24 lakh contracts.

Put unwinding was seen at the strike of 10,700, which shed 5.34 lakh contracts, followed by 10,600 which shed 3.9 lakh contracts and 10,800 which shed 1.65 lakh contracts.

Image410122018

FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 116.22 crore while Domestic Institutional Investors sold Rs 145.8 crore worth of shares in the Indian equity market on December 10, as per provisional data available on the NSE.

Fund Flow Picture

Image510122018

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.

Image610122018

4 stocks saw a long buildup

Image710122018

11 stocks saw short covering

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

Image810122018

70 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.

Image910122018

118 stocks saw long unwinding

Image1010122018

Bulk Deals on December 10

Agro Phos India: Narain Kumar Gupta HUF bought 1,02,000 shares of the company at Rs 45.18 per share on the NSE.

Shubhlaxmi Jewel Art: Kirtikumar Prabhudas Vora purchased 72,000 shares of the company at Rs 28.79 per share on the NSE.

Sonam Clock: Total Securities sold 1,32,000 shares of the company at Rs 37.5 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Escorts: Company has scheduled a conference call with the investors & analyst for the discussion on "Kubota and Escorts join hands for global leadership on December 11.

Infibeam Avenues: Board meeting is scheduled on December 13 to evaluate the feasibility of and options for strategic growth opportunities of the business verticals and subsidiaries of the company.

TCI Express: Company's officials will be meeting investors, mutual fund houses, analysts on December 11 and 12.

Zydus Wellness: Extra-ordinary general meeting is scheduled on January 4.

Voltas: Company's officials will be meeting Morgan Stanley, Hillhouse Capital & Aviva Insurance on December 11; and will be attending 'Ghar Maange More Elara Consumer Durables Conference on December 14.

Moschip Semiconductor Technology: Board decided to conduct the postal ballot for seeking approval of shareholders for appointment of Venkata Sudhakar Simhadri as a Managing Director of the company.

V-Guard Industries: Company's officials will be attending Elara Consumer Durables Conference on December 14 and Consumer and Media Investor Forum on December 17.

Larsen & Toubro Infotech: Analyst day of the company will be held on December 12.

JSW Steel: Analysts/Institutional investor meeting will be held on December 11 and 12.

State Bank of India: Executive Committee of Central Board meeting is scheduled to be held on December 12 to examine the status and decide on long term fund raising in single/multiple tranches upto $1.25 billion through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during January to March, 2019.

Symphony: Company's officials will be attending HDFC Securities Consumer and Media Investor Conference on December 17.

Stocks in news

Banks Stocks: Urjit Patel resigned as RBI governor with immediate effect.

Lupin: Company received tentative approval from USFDA for Apixaban tablets, 2.5 mg and 5 mg, which is indicated for reducing the risk of stroke and systemic embolism in nonvalvular atrial fibrillation.

Canara Bank, Vijaya Bank: All India Bank Officers' Confederation (AIBOC) has given a call for strike in the banking industry from the midnight of December 20 to midnight of December 21 for the issues relating to industry level and not for any bank level issues.

ICICI Bank: Committee of executive directors approved proposal for domestic fund-raising via issue of Senior Unsecured Long-term Bonds/Basel-III Compliant unsecured subordinated perpetual additional Tier-I bonds.

Dilip Buildcon: Board appointed Radhey Shyam Garg, (Vice President-Finance) as the Chief Financial Officer and Key Managerial Personnel of the company in place of Raja Ghosh, Interim Chief Financial Officer.

GMR Infrastructure: Subsidiary raised Rs 225.6 crore through CCDs for investment in GMR Bajoli Holi Hydropower Pvt Ltd.

PTC India: Ramesh Narain Misra and Atmanand are appointed as Independent Directors.

Infibeam Avenues: ICRA revised rating on company's long term fund based facilities to A from A+ due to subdued scaling up of profits in certain business segments.

Quess Corp: Ajit Isaac acquired 48,000 equity shares of the company from the open market on December 7, taking total stake to 12.07 percent from 12.04 percent earlier.

Kanoria Chemicals & Industries: Company acquired further 1,05,51,560 shares in its subsidiary company, Kanoria Africa Textiles PLC, Ethiopia. Company's shareholding in KATP will increase from the existing 78.68 percent to 84.45 percent of its equity capital.

Sayaji Industries: Company has fixed December 28 as record date for determining the shareholders entitlement for sub-division of one equity share of Rs 10 each into two equity shares of face value of Rs 5 each.

Avenue Supermarts: Company has issued commercial paper of Rs 100 crore on December 10.

Zensar Technologies: Company selected as IT Infrastructure partner by EBRD, UK.

Titagarh Wagons: Company has received a contract for manufacture and supply of 5,058 wagons to Indian Railways. The value of order is Rs 1,560.87 crore.

2 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 December 11, 2018, Adani Enterprises and Adani Power are present in this list.
First Published on Dec 10, 2018 09:05 pm
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