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Last Updated : Jul 18, 2018 07:47 AM IST | Source: Moneycontrol.com

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

According to Pivot charts, the key support level for Nifty is placed at 10,949.57, followed by 10,891.13.

Sunil Shankar Matkar
 
 
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The Nifty50 recouped some of its previous day's losses to close the session above psychological 11,000-mark on Tuesday, forming strong bullish candle on the daily charts.

The rally was backed by oil & gas, banking & financials, metals and pharma stocks. All sectoral indices closed in the green except IT index which fell a percent.

The broader markets, which were badly hit in the previous session, also participated in the rally with Nifty Midcap index rising more than 2 percent.

Close

The Nifty50 after opening higher at 10,939.65 wiped out early gains to hit an intraday low of 10,925.60, but managed to recoup those losses in morning trade itself and reclaimed psychological 11,000-mark in later part of the session. The index hit an intraday high of 11,018.50, before closing 71.10 points higher at 11,008.

The closing above 11,000-mark is a good thing but to maintain that momentum, the index has to close above 11,080 levels and then only it can be able to march towards its earlier life time high of 11,171 seen in January, experts said.

"It was heartening to see Nifty50 strongly recoiling after testing erstwhile breakout point present around 10,930 levels before bulls signed off the session in style with a strong bullish candle," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said on the back drop of today’s move it appears that the last three sessions of corrective consolidation phase is a mere pause in the ongoing strong uptrend as advance decline ratio also tilted in favour of bulls during the course of the day.

"Momentum in the indices shall pick up further on a close above 11,080 which shall also confirm the end of recent corrective swing there by paving the way for new life time highs which may not be difficult as Bank Nifty which was looking relatively stronger registered a bullish engulfing formation thereby erasing Monday's losses," he said.

Hence, traders are advised to create fresh long positions with a stop below 10,925 on closing basis and look for bigger targets around 11,171, he added.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan said as per the wave theory, the Nifty is forming wave extension on the upside on the daily chart. "This means that the bulls are likely to push the index towards north."

India VIX fell by 0.52 percent to 12.88 levels.

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 11,008 on Tuesday. According to Pivot charts, the key support level is placed at 10,949.57, followed by 10,891.13. If the index starts moving upwards, key resistance levels to watch out are 11,042.47 and 11,076.93.

Nifty Bank

The Nifty Bank index closed at 27,008.10, up 328.3 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,760.77, followed by 26,513.43. On the upside, key resistance levels are placed at 27,148.37, followed by 27,288.63.

Call Options Data

Maximum call open interest (OI) of 35.32 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for July series.

This was followed by the 11,200 strike price, which now holds 31.99 lakh contracts in open interest, and 11,100, which has accumulated 31.01 lakh contracts in open interest.

Call writing was seen at the strike price of 11,200, which added 1.18 lakh contracts, followed by 11,600, which added 0.17 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed 4.28 lakh contracts, followed by 11,300, which shed 1.95 lakh contracts and 11,400 which shed 1.67 lakh contracts.

Image917072018

Put Options data

Maximum put open interest of 46.55 lakh contracts was seen at the 10,800 strike price. This will act as a crucial support level for July series.

This was followed by the 10,600 strike price, which now holds 42.72 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 41.46 lakh contracts in open interest.

Put writing was seen at the strike price of 11,000, which added 8.37 lakh contracts, followed by 10,900, which added 5.68 lakh contracts and 10,800, which added 5.48 lakh contracts.

Put Unwinding was seen at 10,600, which shed over 4.49 lakh contracts, followed by 10,700, which shed 2.22 lakh contracts and 10,500 which shed 0.97 lakh contracts.

Image1017072018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 673.99 crore while domestic institutional investors bought shares worth Rs 840.06 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Image1117072018

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.

Image1217072018

92 stocks saw long buildup

Image1317072018

92 stocks saw short covering

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

Image1417072018

11 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.

Image1517072018

14 stocks saw long unwinding

Image1617072018

Bulk Deals

PC Jeweller: Well Management sold 37,45,651 equity shares at Rs 85.43 per share.

Uttam Value Steels: JM Global Equities Private Limited bought 2,74,93,509 equity shares at Rs 0.1 per share while Shree Global Tradefin sold 5,65,04,306 equity shares at Rs 0.1 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

JK Paper: Board meeting for announcement of June quarter earnings is scheduled to be held on July 31.

Vivid Global Industries: Board meeting for announcement of June quarter earnings is scheduled to be held on July 24.

JPT Securities: Board meeting for announcement of June quarter earnings is scheduled to be held on July 30.

SQS India BFSI: Board meeting for announcement of June quarter earnings is scheduled to be held on July 26.

Dishman Carbogen Amcis: Board meeting for announcement of June quarter earnings is scheduled to be held on July 25.

Oriental Carbon & Chemicals: Board meeting for announcement of June quarter earnings is scheduled to be held on July 27.

D-Link (India): Board meeting for announcement of June quarter earnings is scheduled to be held on August 10.

Harmony Capital Services: Board meeting for announcement of June quarter earnings is scheduled to be held on July 27.

Genus Power Infrastructures: Board meeting for announcement of June quarter earnings is scheduled to be held on July 27.

Star Cement: Board meeting for announcement of June quarter earnings is scheduled to be held on July 26.

Deepak Nitrite: Board meeting for announcement of June quarter earnings is scheduled to be held on August 2.

Shivalik Rasayan: Board meeting for announcement of June quarter earnings and dividend is scheduled to be held on July 25.

Matrimony.com: 17th Annual General Meeting is scheduled to be held on August 10.

Jet Airways: 26th Annual General Meeting is scheduled to be held on August 9.

FDC: 78th Annual General Meeting is scheduled to be held on September 7.

Brooks Laboratories: Annual General Meeting is scheduled to be held on August 10.

Bayer CropScience: 60th Annual General Meeting is scheduled to be held on August 21.

BHEL: Investor/ Analyst conference call is scheduled to be held on July 25.

PSP Projects: Analyst/institutional investor call with the management of the company is scheduled to be held on July 18.

Stocks in news

HDFC: HDFC Asset Management Company decided to open its initial public offering for subscription on July 25 and close on July 27. Price band is fixed at Rs 1,095 to Rs 1,100 per share.

IDBI Bank: The bank has received a letter from Life Insurance Corporation of India expressing their interest in acquiring 51 percent controlling stake in the bank, as a Promoter through preferential allotment of shares/open offer.

PSU Banks: The government has announced a capital infusion of Rs 11,336 crore in five public sector banks, which include Punjab National Bank (Rs 2,816 crore), Indian Overseas Bank (Rs 2,157 crore), Andhra Bank (Rs 2,019 crore), Corporation Bank (Rs 2,555 crore) and Allahabad Bank (Rs 1,790 crore).

Zee Entertainment Enterprises: Q1 consolidated net profit up 31.2 percent at Rs 326 crore versus Rs 248.2 crore; revenue up 15 percent at Rs 1,772 crore versus Rs 1,504.3 crore (YoY).

Sintex Industries: Q1 consolidated profit up 11.5 percent at Rs 39.1 crore versus Rs 35.1 crore; revenue up 34.6 percent at Rs 925.3 crore versus Rs 687.6 crore (YoY).

5paisa Capital: Q1 consolidated loss at Rs 5.6 crore versus loss of Rs 6.2 crore; revenue rises to Rs 9 crore versus Rs 2.2 crore (YoY).

HDFC Bank: The bank will issue 3.91 crore shares to HDFC via preferential allotment at Rs 2,174.09 per share.

Tejas Networks: Tejas implements 100G DWDM network for MCM Telecom in Mexico.

Kridhan Infra: VNC's JV awarded order worth Rs 222.6 crore.

PNC Infratech: The concession agreement signed between National Highways Authority of India and PNC Challakere (Karnataka) Highways Private Limited [special purpose vehicle] incorporated for implementation of project of four laning of Challakere to Hariyur section of NH 150 A, in Karnataka on Hybrid Annuity Mode.

Vibrant Global Capital: Board approved further Investment in Vibrant Global Salt Private Limited (subsidiary company) by way of purchase of 7 lakh Equity Shares in VGSPL. By way of this proposed investment, VGSPL will become wholly-owned subsidiary of the company.

Results on Wednesday: Ultratech Cement, Bandhan Bank, Mindtree, NIIT Technologies, JM Financial, Mastek, GHCL, Mahindra CIE Auto, Reliance Communications, Sasken Tech, Responsive Industries, JK Tyre & Industries, Foseco India, HT media, Artson Engineering

3 stocks under ban period on NSE

Securities 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 July 18, Adani Enterprises, Adani Power and Jet Airways are present in this list.

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First Published on Jul 18, 2018 07:25 am
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