Moneycontrol
Last Updated : Jan 07, 2019 09:01 PM IST | Source: Moneycontrol.com

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

Sameet Chavan of Angel Broking said as long as Friday's low of 10,628 remains intact, the breakout is expected to happen in the upward direction i.e. beyond 10,855.

Sunil Shankar Matkar

The market started off the week on a positive note, though it failed to hold on to 10,800 levels at close on the Nifty on January 7. The BSE Sensex rallied 155.06 points to 35,850.16, driven by technology stocks and positive Asian cues amid a new round of trade talks between the US and China. Dovish comments from the Federal Reserve and strong US jobs data also lifted sentiment.

The Nifty 50 surged in the morning to hit an intraday high of 10,835.95, but a bit of profit booking in late trade erased nearly half of its gains. The index closed 44.40 points higher at 10,771.80 and formed a bearish candle on the daily charts that resembles a 'Spinning Top' kind of pattern.

"Looking at the hourly chart, the Nifty is oscillating within the boundaries of a 'Triangle' pattern and we are nearing the apex point of the same. Hence, quite soon, we would see a breakout on either side which may probably expand the range and thereby volatility as well," Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) told Moneycontrol.

He said as long as Friday's low of 10,628 remains intact, we would expect a breakout to happen in the upward direction i.e. beyond 10,855.

Hence, going ahead, one needs to keep a close eye on this development and should position accordingly, he advised.

A breach on the higher side would open up the next leg of the rally towards 10,920–11,000, Chavan said, adding on the lower side, 10,750–10,658 would now be seen as crucial supports.

India VIX marginally moved up by 0.88 percent at 16.30 levels.

VIX needs to hold below 16 zones to again get a bounce back move in the market. Otherwise, the roller coaster ride could continue, Chandan Taparia of Motilal Oswal said.

The broader markets underperformed frontliners closing flat with a positive bias. All sectoral indices closed in the green barring metal and pharma. IT and realty gained the most rising over a percent each.

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

Key support and resistance level for Nifty

The Nifty closed at 10,771.80 on January 7. According to Pivot charts, the key support level is placed at 10,736, followed by 10,700.2. If the index starts moving upward, key resistance levels to watch out are 10,821.8 and then 10,871.8.

Nifty Bank

The Nifty Bank index closed at 27,304.6, up 109.55 points on January 7. The important Pivot level, which will act as crucial support for the index, is placed at 27,230.2, followed by 27,155.8. On the upside, key resistance levels are placed at 27,428.4, followed by 27,552.2.

Call Options Data

Maximum Call open interest (OI) of 40.02 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,200 strike price, which now holds 35.95 lakh contracts in open interest, and 11,300, which has accumulated 26.98 lakh contracts in open interest.

Meaningful Call writing was seen at 11,200, which added 2.27 lakh contracts, followed by 11,300 strike which added 1.82 lakh contracts and 11,000 strike which added 1.12 lakh contracts.

Call unwinding was seen at 10,900 strike, which shed 2.79 lakh contracts, followed by 10,700 strike which shed 1.35 lakh contracts.

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Put Options data

Maximum Put open interest of 38.52 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 31.68 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 23.27 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,700, which added 3.75 lakh contracts, followed by 10,800 strike which added 2.29 lakh contracts and 10,900 strike which added 1.27 lakh contracts.

Put unwinding was seen at the strike of 10,500, which shed 1.98 lakh contracts, followed by 10,400 strike which shed 1.59 lakh contracts.

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FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 736.18 crore while Domestic Institutional Investors sold Rs 141.97 crore worth of shares in the Indian equity market on January 7, as per provisional data available on the NSE.

Fund Flow Picture

Image1007012019

Stocks with a high delivery percentage

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

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51 stocks saw a long buildup

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53 stocks saw short covering

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

Image707012019

62 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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35 stocks saw long unwinding

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Bulk Deals on January 7

Rajshree PolyPack: Unifi Financial Pvt Ltd sold 92,000 shares of the company at Rs 105 per share on the NSE.

TPL Plastech: Bridge India Fund sold 70,000 shares of the company at Rs 150 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

IRIS Business Services: Company's officials will be meeting Baring Private Equity Partners (India) on January 8.

Deccan Health Care: Company will be conducting Investor Meet on January 9 at Trident, BKC Mumbai.

Seshachal Technologies: Board meeting is scheduled on January 14 to consider the proposal of raising funds through issue of equity shares on preferential allotment basis.

DCM Shriram: Company's officials will be meeting Reliance MF on January 9.

Lancer Container Lines: Company will be participating in an Investor Meet scheduled to be held on January 9 at Trident, BKC Mumbai.

Adani Gas: Company will participate in 'HDFC Securities Investor Forum' on January 10 at Mumbai.

Nitin Castings: Board meeting is scheduled on January 14 to consider sub division of equity shares.

ITI Limited: Company's officials will be meeting certain financial/institutional investors on January 8 and 9.

Jay Bharat Maruti: Board meeting is scheduled on January 15 to consider the un-audited financial results for the 3rd quarter and nine months period ended December 2018.

Trident: Board also consider third interim dividend for the financial year 2018-19 in its meeting scheduled to be held on January 15.

Cholamandalam Investment and Finance Company: Board meeting is scheduled to be held on January 30 to consider the unaudited standalone financial statements for the quarter for the ended December 2018 and payment of an interim dividend for the financial year ending March 2019.

MCX: Board meeting is scheduled on January 15 to consider the un-audited financial results (standalone & consolidated) of the company for the quarter and nine months ended December 2018.

Rico Auto Industries: Senior officials of the company will be attending the Investor Conference on January 8.

Jindal Stainless: Management of Jindal Stainless will be participating in the investors' conference - DBS Vickers Pulse of Asia Conference, to be held at Singapore on January 10.

Future Lifestyle Fashions: Company's officials will be meeting institutional investors and mutual fund houses on January 8 and 9.

Tejas Networks: Board meeting is scheduled on January 23 to consider the unaudited standalone financial results of the company for the quarter and nine-months ended December 2018.

L&T Finance Holdings: Board meeting is scheduled on January 21 to consider the unaudited financial results (standalone and consolidated) for the quarter ended December 2018.

Phillips Carbon Black: Board meeting is scheduled on January 16 to consider the unaudited financial results of the company for the quarter and nine months ended on December 2018.

Punjab Chemicals and Crop Protection: Board meeting is scheduled on January 24 to consider the un-audited financial results of the company for the third quarter and nine months period ended on December 2018.

Jumbo Bag: Board meeting is scheduled on January 14 to consider the unaudited results for the quarter ended December 2018.

Everest Industries: Board meeting is scheduled on January 23 to consider the unaudited financial results of the company for the quarter ended December 2018.

Sasken Technologies: Board meeting is scheduled on January 21 to consider the audited financial results of the company for the quarter and nine months ended December 2018.

Wipro: Board meeting is scheduled on January 18 to announce results for the third quarter ended December 2018.

Mafatlal Industries: Board meeting is scheduled on January 31 to consider the un-audited financial results for the quarter ended December 2018.

Jindal Stainless Hisar: Extraordinary general meeting of shareholders is scheduled to be held on February 1.

Titan Company: Board meeting is scheduled on February 1 to consider the unaudited financial results for the third quarter / nine months ended December 2018.

Hindustan Unilever: Board meeting is scheduled on January 17 to consider the unaudited financial results for the quarter ended December 2018.

Magma Fincorp: Board meeting is scheduled on January 31 to consider the financial result (standalone and consolidated) for the quarter ended December 2018.

Alkyl Amines Chemicals: Board meeting is scheduled on January 30 to consider the unaudited financial results.

Futuristic Solutions: Board meeting is scheduled on January 14 to consider the un-audited financial results of the company for the quarter ended on December 2018.

Lakshmi Machine Works: Board meeting is scheduled on February 4 to consider the unaudited financial results of the company for the quarter ended December 2018.

Stocks in news

Himachal Futuristic Communications (HFCL): Board approved the proposal of enhancing the additional manufacturing capacity of optical fibre cable (OFC) at Hyderabad from 7 million Fibre Kilometer (FKM) to 10.5 million FKM where the company is already setting up optical fibre (OF) and OFC manufacturing facilities.

HFCL: Board approved redemption of 60,37,500, 6.5% cumulative redeemable preference shares (CRPS) of Rs 100 each at par aggregating to Rs 60.38 crore as per the terms of CRPS.

VST Tillers and Tractors: The Malur unit will be closed on January 8 and 9 due to the impact of strike and power shut down by BESCOM.

Bandhan Bank: Board approved amalgamation of Gruh Finance, subsidiary of HDFC, into the bank.

TCS: Central Bank of Kuwait modernised its technology platform with TCS BaNCS.

Endurance Technologies: Subsidiary Endurance Overseas Srl., Italy and the special purpose vehicle for strategic overseas investments, acquired entire equity stake in Fonpresmetal Gap SpA (Fonpresmetal), an aluminum die casting company in Italy.

National Peroxide: Board approved the appointment of Conrad David Fernandes as Chief Financial Officer and Shailesh Chauhan ceased to be the Chief Financial Officer.

Indostar Capital Finance: Board approved allotment of 2,500 Series XXXII Rated, Secured, Unlisted, Redeemable, Non-Convertible Debentures of face value of Rs 10 lakh each, for cash at par, on private placement basis, aggregating to Rs 250 crore.

Jagran Prakashan: CRISIL assigned long term rating of AA+/Stable for non-convertible debentures worth Rs 300 crore.

Rane Brake Lining: ICRA reaffirmed - for the Rs 165.32 crore line of credit - long term rating at AA- with outlook stable.

PIX Transmissions: CARE upgraded its rating to an A- rating from BBB+ for long-term bank facilities and A2+ rating for short-term facilities has been reaffirmed .

Omaxe: CARE revised its rating to BBB-/Negative from BBB-/Stable for long term bank facilities.

Trident: Company fixed record date for the purpose of third interim dividend for the financial year 2018-19, if declared by the board in its meeting scheduled to be held on January 15, 2019.

Prabhat Dairy: Company entered into animal nutrition business.

Punjab National Bank: Government amalgamated Madhya Bihar Gramin Bank and Bihar Gramin Bank to become Dakshin Bihar Gramin Bank in Bihar while Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank will be merged to become Punjab Gramin Bank in Punjab.

Alliance Integrated Metaliks: Sanjiv Bhasin, Director resigned from the board and all committees of board, due to personal and unavoidable circumstances.

Fedders Electric and Engineering: Satya Narayan Gupta has resigned as the Non- Executive Independent Director of the company due to personal reasons.

Insecticides India: Government of India, The Patent Office has granted the patent for an Insecticidal Combination of 'Diafenthiuron and Acetamiprid in Wettable Power Form' for 20 years.

Sadbhav Infrastructure Project: Toll revenue received from 10 operational SPVs (apart from NSEL which is an annuity project) have increased by approximately 6.2 percent to Rs 275.76 crore in Q3FY19 from Rs 259.78 crore in Q3FY18.

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 January 8, Adani Power and Jet Airways are present in this list.
First Published on Jan 7, 2019 08:25 pm
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