Moneycontrol
Last Updated : Jun 13, 2018 09:02 AM IST | Source: Moneycontrol.com

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

The index has to clear one big resistance level placed at 10,930 before it heads towards 11,000 and then to fresh highs

Uttaresh Venkateshwaran @UttareshV
Sandip Das @Im_Sandip1
 
 
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The Nifty which started with a gap-up build momentum and reclaimed 10,800 levels on Tuesday but failed to close above Monday’s intraday high of 10,850. It formed a bullish candle on the daily charts.

The index has to clear one big resistance level placed at 10,930 before it heads towards 11,000 and then to fresh highs. For bulls to remain in charge of the index, it has to hold above 10,777 levels on closing basis.

The Nifty, which opened at 10,816, rose to an intraday high of 10,856. It slipped to an intraday low of 10,789 before bouncing back towards 10,800 levels. It closed 55 points higher at 10,842.

Bank Nifty managed to respect previous day’s low and gradually extended its gains towards 26,650 zones. It formed a Bullish Hammer Candle followed by multiple Dojis on daily scales.

“Lack of follow through on the downside reinstated the bullish sentiment in markets, for time being, as the Nifty signed off the session with a bullish candle. However, based on larger trends it still appears that Nifty is staring at a critical resistance point of 10930 which can be a litmus test for bulls,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“A breakout above 10,930 may pave the way for a retest of lifetime highs placed around 11,170 levels. Till then, markets shall remain vulnerable to bouts of volatility and breach of 10777 shall confirm short-term trend reversal in favour of bears,” he said.

Mohammad further added that at this juncture traders are advised to remain focussed on individual stock specific opportunities with a stop below 10,777 on a closing basis.

India VIX fell down by 3.41 percent at 12.73 levels. On the options front, maximum Put OI is placed at 10,600 followed by 10,700 strikes while maximum Call OI is placed at 11,000 followed by 10,900 strikes.

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

Key Nifty support and resistance levels

The Nifty closed at 10,842.8 on Tuesday. According to Pivot charts, its key support is placed at 10,802.63, followed by 10,762.47. If the index starts moving upward, key resistance levels to watch out are 10,869.73 and 10,896.67.

Nifty Bank

The Nifty Bank index closed at 26,607.1. The important Pivot level, which will act as a crucial support for the index, is placed at 26,485.8, followed by 26,364.5. Key resistance levels are placed at 26,692.4, followed by 26,777.7.

Call options data

In terms of open interest, the 11,000 call option has seen the most call writing so far, with 38.34 lakh contracts being written. This level could act as a crucial resistance for the index in the June series.

The second-highest buildup was seen in the 10,900 call option, which has seen 30.35 lakh contracts getting written so far. The 10,800 call option has accumulated 29.73 lakh contracts.

The most call writing was seen at the strike price of 11,100, which saw 1.77 lakh contracts getting written, followed by 10,900, which added 1.06 lakh contracts and 11,300, which added 44,325 contracts.

Call unwinding was seen at the strike price of 10,700, which shed 1.11 lakh contracts, followed by 11,000, which shed 1 lakh contracts and 10,800, which shed 86,000 contracts.

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Put options data

Maximum open interest in put options was seen at the 10,600 strike price, in which 50.64 lakh contracts have been added till date. This level could be a crucial support for the index in the June series.

The 10,700 put option comes next, with 45.91 lakh contracts being added so far, followed by the 10,500 put option, which has now accumulated 36.76 lakh contracts.

Maximum put writing was seen at the strike prices of 10,800, which added 9.38 lakh contracts, followed by 10,700, which added 6.36 lakh contracts, and 10,200, which added 1.5 lakh contracts.

Put unwinding was seen at the strike price of 10,400, which shed 2.02 lakh contracts.

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FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,168.88 crore, while domestic institutional investors bought shares worth Rs 1,327.45 crore in the Indian equity market, as per provisional data available on the National Stock Exchange.

Fund flow picture:

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Stocks with higher delivery percentage

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

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91 stocks saw long build-up

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60 stocks saw short covering:

A decrease in open interest along with an increase in prices is generally indicative of short covering.

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40 stocks saw short build-up

An increase in open interest along with a decrease in prices generally indicates a buildup of short positions.

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17 stocks saw long unwinding

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Bulk deals:

KSK Energy Ventures: M/S Mentor Capital bought 30,00,000 shares at Rs 2.48 per share while Societe Generale sold 52,35,409 shares at Rs 2.46 per share

Uttam Galva Steels: Asia Investment Corporation Mauritius sold 10,00,000 shares at Rs 11.45 per share

(For more bulk deals click here)

Analyst or board meet/briefings:

Mahindra and Mahindra: Jet Age Securities will be meeting representatives of the firm on June 13, 2018.

IndusInd Bank: IG Investment Management met the lender on June 12, 2018.

Mahindra Holidays: Multiple investors and fund managers will be meeting the firm on June 13 and 11, 2018.

Axis Bank: Westbridge Capital, IDFC AMC, and Capital Research met the bank on June 12, 2018.

Stocks in the news:

BHEL: The company has received EPC orders worth Rs 125 crore.

Sun Pharma: The company has received an establishment inspection report (EIR) for its Halol unit from US FDA.

Allahabad Bank: The bank has said that Hong Kong Regulator has upped supervision on banks branch.

Federal Bank: The bank will be buying 19.89% Stake In Equirus Capital

Page Industries: Company says license pact with Jockey extended until December 2040

PNB, SBI, 13 others get Moody's counterparty risk ratings

RIL completes acquisition of 73% stake in AI firm Embibe

4 stocks under ban period on the NSE

Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For June 13, Balrampur Chini, DHFL, Jet Airways and DHFL are present in the F&O ban list.
First Published on Jun 13, 2018 07:24 am
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