Moneycontrol
Apr 17, 2018 08:53 AM IST | Source: Moneycontrol.com

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

As the index registered its eighth successive close in positive terrain, some pause or consolidation can’t be ruled out going forward

Uttaresh Venkateshwaran @UttareshV
Sandip Das @Im_Sandip1

Bulls managed to recoup early losses on D-Street and helped the Nifty to close above 10500 levels for the first time since February 26 on Monday. The index formed a strong bullish candle on the daily candlestick charts.

Despite weak global cues Nifty managed to close above its crucial resistance levels of 10500 towards the close of the trade which has opened fresh target for the index towards 10600 levels. Investors are advised to maintain their long positions with a stop below 10370 levels.

The Nifty index opened gap down but witnessed sustained buying interest throughout the trading session to settle near day’s high which suggests strength in Indian markets.

The Nifty Midcap index and the Nifty bank gain more than 100 points each. The market breadth was in favour of declines despite gains. The advance-decline ratio stood at 1:1.

The Nifty which opened at 10398 slipped marginally to hit its intraday low of 10396 before bouncing back. It hit an intraday high of 10540 before closing 47 points higher at 10,528.

“In line with our expectations, bulls shrugged off the geopolitical tensions as initial dip was bought into by the market participants which resulted in a strong bullish candle formation suggesting that the trajectory of this market is changing from sell on rallies to buy on dips mode,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, as Nifty heads towards much higher levels, real challenge for bulls lies in destroying the critical resistance placed around 10630 levels. Once this level is decisively conquered then this upmove shall get extended further towards 10900 kind of levels,” he said.

But as the index registered its eighth successive close in positive terrain, some pause or consolidation can’t be ruled out going forward in next couple of trading sessions.

Mohammad further added that on the downsides positional traders are advised to place a stop below 10370 levels breach of which on closing basis shall once gain favour bears. Till then all dips should be considered as an opportunity to go long.

India VIX moved up by 0.51% at 14.21. VIX has to cool down to extend its positive momentum. On the options front, maximum Put OI was seen at 10300 followed by 10400 strikes while maximum Call OI is at 10700 followed by 10500 strikes.

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

Key support and resistance level for Nifty

The Nifty closed at 10,528.3 on Monday. According to Pivot charts, the key support level is placed at 10,436.33, followed by 10,344.37. If the index starts moving upwards, key resistance levels to watch out are 10,580.23 and 10,632.17.

Nifty Bank

The Nifty Bank index closed at 25,320.8. The important Pivot level, which will act as crucial support for the index, is placed at 25,142.54, followed by 24,964.27. On the upside, key resistance levels are placed at 25,423.84, followed by 25,526.87.

Call Options data

In terms of open interest, the 10,700 call option has seen the most call writing so far at 44.16 lakh contracts. This could act as a crucial resistance level for the index in the April series.

The second-highest buildup has taken place in the 10,500 Call option, which has seen 39.78 lakh contracts getting written so far. The 11,000 Call option has accumulated 35.98 lakh contracts.

Call writing was seen at the strike price of 10,700, which added 3.59 lakh contracts, followed by 11,000, which added 51,450 contracts.

Call unwinding was seen at the strike price of 10,400, which shed 2.77 lakh contracts, followed by 10,500, which shed 2.36 lakh contracts, and 10,300, which shed 1.43 lakh contracts.

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Put Options data

Maximum open interest in put options was seen at a strike price of 10,300, in which 55.45 lakh contracts been added till date. This could be a crucial resistance level for the index in April series.

The 10,400 put option comes next, having added 53.51 lakh contracts so far, and the 10,000 put option, which has now accumulated 44.79 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,500, with 7.72 lakh contracts being added, followed by 10,400, which added 4.86 lakh contracts and 10,300 with 3.13 lakh contracts.

Put unwinding was seen at the strike price of 10,200, which shed 6.01 lakh contracts, followed by 10,000, which shed 2.41 lakh contracts.

Image2

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 308.13 crore, while domestic institutional investors sold shares worth Rs 28.97 crore in the Indian equity market, as per provisional data available on the NSE.

Fund flow picture:

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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.

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87 stocks saw long buildup

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60 stocks saw short covering:

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

Image6

45 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates build-up of short positions.

Image7

18 stocks saw long unwinding

Image8

Bulk Deals:

Aplaya Creations Ltd.: Shashikant Chinubhai Kapadia sold 1,596,000 shares at Rs 3.01 per share

Jyoti: Latin Manharlal Securities Pvt Ltd sold 625,000 shares at Rs 69.32 while Finquest Financial Solutions Pvt. Ltd. Bought 743,451 shares at Rs 69.33 per share.

Also, Panoramic Construction Private Limited bought 945,000 shares at Rs 69.35 per share.

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Mahindra & Mahindra: Motilal Oswal AMC will meet the management on April 18, 2018.

Neuland Labs: Nikko AMC, Morgan Stanley, Nomura AMC, Polunin Capital, Stewart Investors, and Goldman Sachs AMC met the management in Singapore on April 16, 2018.

Stocks in news:

Results in focus: Crisil, Muthoot Capital, Orchid Pharma, and Tata Sponge Iron, among 9 companies declaring results on Tuesday.

Goa Carbon: Company resumes operations at Paradeep unit, Orissa from April 16

Fortis Health: The company said that the Board will meet this week to look at eligible options.

Blue Star's Subsidiary partners with Saudi Retail Company for distribution of its Unitary Products in KSA (Kingdom of Saudi Arabia)

Reliance Communications
No more legal restriction on the Reliance Communications to proceed with sale of Spectrum, MNCs and Real estate

Remains confident on completion of its asset monetisation programme of approximately Rs 25,000 crore within the next few weeks

Bajaj Electricals bagged orders worth Rs 3,577.93 crore for 10 rural/urban electrification projects from MVVNL (Madhyanchal Vidyut Vitran Nigam Limited)

UCO Bank clarified on “CB1 books EX-UCO bank CMD in Rs 621 crore Chewing case" as Bank has already filed complaint with CBI on April 11; No material impact of the same on bank, already accounted it as NPA in 2013

Adani Ports signs a long term regasification pact with Indian Oil for Dhamra LNG terminal

IOC booked 3MTPA of capacity spread over 20 years

Infibeam - ICRA assigned credit rating on bank facilities as A+

HDFC AMC filed draft RHP with SEBI for public issue of shares at Rs 5; board of directors of HDFC AMC approved key financials for FY18 on April 26 as revenue up at Rs 1,867 crore versus Rs 1,587 crore; PAT up at Rs 721 crore versus Rs 550 crore

Fortis Healthcare board meeting on April 19 to consider various bids/proposals received by company w.r.t. the ongoing fund raising, re-structuring

Sadbhav Infrastructure - CARE rating for non-convertible debentures (NCD) worth Rs 360 crore as A+

Application preferred by resolution professional for liquidation of Alok Industries with National Company Law Tribunal (NCLT) on April 16

Amtek Auto submitted resolution plan with NCLT for approval

Cipla clarified on USFDA conducted routine CGMP at Indore facility, as there were no data integrity and/or repeat observations; believes that observations are unlikely to have any material adverse impact

JM Financial’s subsidiary now holds 12.95 percent stake in Spandana Sphoorty Financial Ltd as it completed 2nd leg of acquisition

Biocon board meeting on April 26 to consider final dividend

Ramky Infra received provisional completion certificate for project in J&K; so now company is entitled to receive Annuity from NHAI

CRISIL has reaffirmed its ratings on ICICI Bank’s debt instruments at AAA/stable

Jay Bharat Maruti Q4FY18 results YoY: Revenue flat at Rs 480 crore versus Rs 483.6 crore; EBITDA up 14 percent at Rs 47.7 crore; OPM at 9.9 percent versus 8.6 percent; PAT down 13 percent at Rs 18 crore versus Rs 20.75 crore

LKP Finance Q4FY18 results YoY: PAT at Rs 18 crore versus Rs 3 crore; Revenue at Rs 27 crore versus Rs 15 crore

Lloyds Metals Q4FY18 results YoY: Revenue at Rs 109 crore versus Rs 73 crore; net profit at Rs 9.9 crore versus Rs 4.7 crore; EBITDA at Rs 7 crore versus Rs 12 crore; margin at 6.4 percent from 16.4 percent

 

 

Sobha: Company to invest Rs 500 crore for residential project in GIFT City, Gujarat.

Sterlite Technologies: Board to consider raising funds through issue of securities on April 25.

Omkar Specialty Chemicals: Company says Bank of Baroda classified its loan account as NPA.

PNB sees 2 percent rise in willful defaults to Rs 15,000 crore in February

Dhampur Sugar, Shree Renuka Sugars in focus - Sugar prices decline as government looks to crack down on mills for arrears: BS

ABG Shipyard lenders reject Liberty bid, again: ET

Reliance Communications in focus - Supreme Court stays order allowing Reliance Infratel to sell assets

Supreme Court directs status quo on Jayaswal Neco's resolution process: ET

Uttam Galva to repay SBI if kept from NCLT: FE

Amtek Auto submits resolution plan to NCLT: FE

ICICI Bank places application in NCLT for Gitanjali Gems: BS

Fortis raises Rs 150 crore bridge loan in bid to stave off insolvency: Mint

Aditya Birla Group in talks to raise USD 1 billion for Idea Cellular: Media Report

Phoenix Mills, CPPIB JV to buy L&T land in Bengaluru: Media Report

IHH may make hostile bid for Fortis Healthcare: ToI

PSU banks bat for UltraTech's higher bid for Binani Cement: Media Report

Jaiprakash Associates in focus: Supreme Court directs realty firms to deposit Rs 100 crore by May 10

Linde-Praxair deal hits CCI roadblock: DNA India

5 stocks under ban period on NSE

Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For April 17, 2018 Balrampur Chini, IRB, JP Associates Reliance Communications, and TV18 Broadcast are present in this list.
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