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Last Updated : Sep 03, 2019 09:34 PM IST | Source: Moneycontrol.com

Trade Setup for Wednesday: Top 14 things to know before Opening Bell

According to pivot charts, the key support level for the index is placed at 10,724.57, followed by 10,651.23.

Nishant Kumar @Nishantopines

A strong wave of selloff enveloped the Indian equity market on September 3, dragging key indices Sensex and Nifty down by over 2 percent.

Investor sentiment received a blow after official data on August 30 showed India's gross domestic product (GDP) slowing to 5 percent in April-June 2019. The GDP growth was at 8 percent in the same quarter of 2018-19.

Besides, an alarming fall in auto sales numbers in August aggravated worries.

Close

Other than worrisome macroeconomic indicators, the rupee's fall against the dollar, weak global sentiment and sustained capital outflow of foreign funds continued weighing on market sentiment.

Sensex closed with a strong loss of 770 points, or 2.06 percent, at 36,562.91, with only two stocks - Tech Mahindra (up 1.24 percent) and HCL Technologies (up 0.62 percent) in the green.

Nifty50 finished 225 points, or 2.04 percent down at 10,797.90, with 48 stocks in the red.

Nifty broke multiple support levels on intraday charts and closed below 10,800. The index is trading below its crucial short-term moving averages such as 20-day moving average (DMA), 5-day exponential moving (EMA), and 13-day EMA, which is not a positive sign.

"Going ahead, 10,775 will be crucial for any upmove to be seen in the next couple of days. However, if Nifty trades below 10,775 consistently then it can approach the previous panic low of 10,640," said Gaurav Bissa, AVP Derivatives & Technicals, LKP Securities.

We have collated 14 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty index closed at 10,797.90. According to the pivot charts, the key support level for the index is placed at 10,724.57, followed by 10,651.23. If the index starts moving upward, key resistance levels to watch out for are 10,919.37 and 11,040.83.

Nifty Bank

The Nifty Bank index closed at 26,824.15, down 2.20 percent on September 3. The important pivot level, which will act as crucial support for the index, is placed at 26,628.83, followed by 26,433.47. On the upside, key resistance levels are placed at 27,133.33 and 27,442.47.

Call options data

Maximum Call Open Interest (OI) of 21.27 lakh contracts was seen at the 11,200 strike price. It will act as a crucial resistance level for the September series.

This is followed by 11,000 strike price, which now holds 16.51 lakh contracts in open interest, and 11,300, which has accumulated 12.35 lakh contracts in open interest.

Significant Call writing was seen at the 10,900 strike price, which added 19.83 lakh contracts, followed by 11,000 strike price, which added 17.42 lakh contracts and 11,100 strike which added 7.08 lakh contracts.

Chart 1

Put options data

Maximum Put Open Interest of 28.31 lakh contracts was seen at 10,800 strike price, which will act as crucial support in September series.

This is followed by 10,600 strike price, which now holds 22.60 lakh contracts in Open Interest, and 11,000 strike price, which has now accumulated 21.79 lakh contracts in open interest.

Put writing was seen at the 10,800 strike price, which added 2.49 lakh contracts, followed by 10,600 strike, which added 1.76 lakh contracts.

Put unwinding was seen at the 11,000 strike price, which shed 0.88 lakh contracts, followed by 11,100 strike that shed 0.61 lakh contracts and 11,200 strike price which shed 0.54 lakh contracts.

Chart 2

Stocks with a high delivery percentage

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

Chart 3

7 stocks saw a long buildup

Chart 4

10 stocks saw short-covering

Chart 5

68 stock saw long unwinding

chart 6

77 stocks saw a short build-up

Chart 7

Analyst or Board Meetings/Briefings

Arihant Tournesol has an AGM on September 4.

Arshiya's board will meet on September 4 to discuss the issuance of equity shares or any other security of the company on a preferential basis.

Brahmaputra Infrastructure's board will meet on 4 September to discuss quarterly results.

The board of Jonjua Overseas will meet on September 4 to discuss bonus issue and increase in authorised capital.

The board of Action Financial Services will meet on September 5 to release quarterly results.

Padmanabh Alloys & Polymers' board will meet on September 5 for quartely results.

Stocks in the news

Neeco enters into an arrangement with Tata Communications for loT services.

Gujarat Apollo Industries' subsidiary AEML Investments to sale its shares in JV company.

Central Bank of India introduces repo linked interest rate in the bank on home loan product and vehicle loan product.

Future Market Networks - ESR partners with Future Group to invest close to Rs 300 Crore to develop logistics infrastructure assets in Nagpur and Jhajjar (NCR).

CARE Ratings has reaffirmed CARE AA+/stable to the long-term bank facilities and CARE A1+ commercial paper of the Bharat Heavy Electricals.

Indiamart Intermesh enters into an agreement to invest in Simply Vyapar Apps.

Bulk deals

Chart 8

(For more bulk deals, click here)

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth net Rs 2,016.2 crore, while Domestic Institutional Investors (DIIs) bought net Rs 1251.35 crore worth of shares in the Indian equity market on September 3, as per provisional data available on the NSE.

Fund Flow Picture

Chart 9

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First Published on Sep 3, 2019 09:34 pm
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