Moneycontrol
Last Updated : Aug 01, 2018 07:41 AM IST | Source: Moneycontrol.com

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

The index formed bullish candle on the daily charts, which also resembles a 'Hanging Man' kind of pattern on the daily charts.

Sunil Shankar Matkar

After opening lower the Nifty50 traded in a negative territory amid consolidation. The index managed to recoup losses in the last hour of trade to end at record closing high for the fourth consecutive session Tuesday as investors eyed the monetary policy committee's rate decision on August 1.

The index formed bullish candle on the daily charts, which also resembles a 'Hanging Man' kind of pattern on the daily charts.

A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top (400-point rally from its recent low of 10,957.10 recorded on July 19). In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.

The 50-share NSE Nifty opened lower at 11,311.05 and hit an intraday low of 11,267.75, but it managed to recoup morning losses in the last hour of trade and touched an intraday all-time high of 11,366. The index closed 37 points higher at 11,356.50.

It rallied nearly 8 percent, so far, in 2018 and gained 6 percent in July.

"Albeit Nifty50 recoiled after almost testing its Monday’s low it registered a Hanging Man kind of formation once again for a second day in a row signalling caution," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said as index value is stretched on the upside and trading abnormally away from its short term moving averages a mean reversion phenomenon shall kick in any time pulling back the prices to align themselves with their averages. "Even technical oscillators are strengthening the case for short term pull back as they reached extremely over bought zone warranting a correction or a pause in the ongoing upmove."

However, as market is heading into monetary policy event on Wednesday trading may remain lacklustre ahead of the policy announcement and any disappointment may act as an excuse to set the tone for a corrective and consolidation phase for couple of days, according to him.

In case if the policy is in favour of bulls then this rally shall get extended upto 11,450 levels which should be used by the short term traders to book profits, Mohammad advised.

India VIX dropped 1.25 percent to 12.43. Overall lower volatility suggests bulls are holding the tight grip on the market.

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 11,356.50 on Tuesday. According to Pivot charts, the key support level is placed at 11,294.2, followed by 11,231.9. If the index starts moving upwards, key resistance levels to watch out are 11,392.4 and 11,428.3.

Nifty Bank

The Nifty Bank index closed at 27,764.15, down 78.45 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 27,663.94, followed by 27,563.67. On the upside, key resistance levels are placed at 27,851.84, followed by 27,939.47.

Call Options Data

Maximum call open interest (OI) of 28.93 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for August series.

This was followed by the 11,400 strike price, which now holds 25.33 lakh contracts in open interest, and 11,300, which has accumulated 18.63 lakh contracts in open interest.

Call writing was seen at the stike price of 11,400, which added 4.97 lakh contracts, followed by 11,700 which added 3.79 lakh contracts and 11,600 which added 1.97 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed 0.9 lakh contracts, followed by 11,100, which shed 0.09 lakh contracts.

Image131072018

Put Options data

Maximum put open interest of 47.69 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for August series.

This was followed by the 11,200 strike price, which now holds 30.65 lakh contracts in open interest, and the 11,100 strike price, which has now accumulated 23.29 lakh contracts in open interest.

Put writing was seen at the strike price of 11,000 which added 6.23 lakh contracts, followed by 11,200 which added 5.78 lakh contracts and 11,300 which added 5.66 lakh contracts.

There was hardly any Put Unwinding seen.

Image231072018

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 572.21 crore while domestic institutional investors sold shares worth Rs 290.87 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Image831072018

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.

Image331072018

77 stocks saw long buildup

Image431072018

37 stocks saw short covering

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

Image531072018

63 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.

Image631072018

32 stocks saw long unwinding

Image731072018

Bulk Deals

MMP Industries: Massachussets Institute of Technology bought 1,27,800 shares of the company at Rs 205 per share on the NSE.

Sab Events & Governance: Union Bank of India Treasury Branch sold 1,32,190 shares of the company at Rs 3.7 per share on the NSE.

Sirca Paint India: Elara India Opportunities Fund sold 1,00,000 shares of the company at Rs 172.6 per share on the NSE.

Talwalkar Fitness: Aditya Chandrasekhar Iyer bought 3,25,000 shares of the company at Rs 28.85 per share on the NSE.

Talwalkars Lifestyles: Aequitas Investment Consultancy bought 6,74,273 shares of the company at Rs 135.35 per share while Small Cap World Fund Inc sold 13,33,927 shares of the company at Rs 135.52 per share on the NSE.

Inox Leisure: HDFC Mutual Fund bought 45,00,000 shares of the company at Rs 195 per share while GSAM LP A/C Goldman Sachs Variable Ins Trust GS International Equity Fund sold 24,80,345 shares of the company at Rs 195 per share and DSP Blackrock Mutual Fund sold 21,13,000 shares at Rs 195 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

TCS: Analyst/ institutional investor meetings with key managerial personnel of the company is scheduled August 1, August 13, August 16 and August 27.

Astral Poly Technik: Earnings call for analysts and investors to discuss the Q1FY19 results and business outlook is scheduled to be held on August 1.

Indo Count Industries: Investors' Conference Call to discuss the financial and operational performance for the quarter June will be held on August 6.

GMM Pfaudler: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

VIP Clothing: The meeting of the board of directors of the company would be held on August 13 to approve June quarter results.

SPML Infra: The meeting of the board of directors of the company would be held on August 13 to approve June quarter results.

Gujarat Mineral Development Corporation: The meeting of the board of directors of the company would be held on August 10 to approve June quarter results.

Sandur Manganese & Iron Ores: The meeting of the board of directors of the company would be held on August 11 to approve June quarter results.

Nalco: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

Aditya Birla Capital: The meeting of the board of directors of the company would be held on August 10 to approve June quarter results.

SEL Manufacturing Company: The meeting of the board of directors of the company would be held on August 7 to approve June quarter results.

Sadbhav Infrastructure Project: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

Voltamp Transformers: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

Cummins India: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

Repco Home Finance: The meeting of the board of directors of the company would be held on August 13 to approve June quarter results.

GVK Power: The meeting of the board of directors of the company would be held on August 14 to approve June quarter results.

Selan Exploration Technology: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

NHPC: The meeting of the board of directors of the company would be held on August 10 to approve June quarter results.

Indian Bank: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

Siemens: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

S Chand and Company: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

CG Power and Industrial Solutions: The meeting of the board of directors of the company would be held on August 10 to approve June quarter results.

Walchandnagar Industries: The meeting of the board of directors of the company would be held on August 14 to approve June quarter results.

Hindustan Copper: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

Varun Beverages: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

Jindal Steel & Power: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

Autoline Industries: The meeting of the board of directors of the company would be held on August 10 to approve June quarter results.

Hikal: The meeting of the board of directors of the company would be held on August 8 to approve June quarter results.

Syndicate Bank: The meeting of the board of directors of the company would be held on August 6 to approve June quarter results.

PSP Projects: The meeting of the board of directors of the company would be held on August 9 to approve June quarter results.

Sharda Cropchem: Annual general Meeting is scheduled to be held on August 30.

GNA Axles: 25th Annual General Meeting is scheduled to be held on September 15.

Setco Automotive: Conference call for analyst, fund houses, investors is scheduled to be held on August 1 to discuss the unaudited financial results.

Stocks in news

Results on Wednesday: Apollo Tyres, Emami, Exide Industries, Pidilite Industries, Tata Global Beverage, Torrent Power, Reliance Infrastructure, Aditya Birla Fashion, Astec Lifesciences, Ballarpur Industries, FDC, Gravita India, HEG, HFCL, Jayshree Tea, Jindal saw, Navneet Education, Orient Cement, Orient Paper, Poly Medicure, Repro India, TCI express, TPL Plastech, Triveni Engineering, V2 Retail, Zuari Agro Chemicals, Gateway Distriparks.

Tata Motors: Q1 consolidated loss at Rs 1,863 crore versus adjusted loss of Rs 438 crore; revenue rises 14.7 percent to Rs 67,081 crore versus Rs 58,493 crore; JLR net loss at 210 million pound while standalone profit at Rs 1,188 crore versus loss of Rs 463 crore (YoY).

Vedanta: Q1 consolidated profit rises 0.7 percent to Rs 2,248 crore versus Rs 2,233 crore; revenue jumps 21.4 percent to Rs 22,206 crore versus Rs 18,285 crore (YoY).

BASF India: Q1 profit jumps to Rs 24.4 crore versus Rs 0.7 crore; revenue increases 7.7 percent to Rs 1,627 crore versus Rs 1,510 crore (YoY).

Jagran Prakashan: Q1 net profit falls 0.4 percent to Rs 88.4 crore versus Rs 88.7 crore; revenue rises 1.9 percent to Rs 602.5 crore versus Rs 591.3 crore (YoY)

Mahanagar Gas: Q1 profit increases 3.2 percent to Rs 128 crore versus Rs 124.3 crore; revenue climbs 16.7 percent to Rs 619.4 crore versus Rs 530.9 crore (YoY).

IIFL Holdings: Q1 consolidated profit jumps to Rs 344.54 crore versus Rs 252.71 crore; revenue rises to Rs 1,768 crore versus Rs 1,418.5 crore (YoY).

JK Paper: Q1 profit jumps to Rs 95.14 crore versus Rs 73.60 crore; revenue increases to Rs 795.01 crore versus Rs 631.32 crore (YoY).

Gujarat State Fertilizers and Chemicals: Q1 profit surges to Rs 70.74 crore versus Rs 40.52 crore; revenue rises to Rs 1,770.32 crore versus Rs 1,137.6 crore (YoY).

Castrol India: Q1 profit increases 19 percent to Rs 164.2 crore versus Rs 137.9 crore; revenue jumps 16.9 percent to Rs 1,017.2 crore versus Rs 870.4 crore (YoY).

Triveni Turbines: Q1 profit rises to Rs 19.01 crore versus Rs 12.80 crore; revenue increases to Rs 171.76 crore versus Rs 121.70 crore (YoY).

HPCL: Company does not plan to import any crude from Iran in August and has imported 0.4 mt crude from Iran since January this year.

Jindal Steel & Power: JSPL bags 1 lakh tonne order in first-ever global tender for rails floated by Indian Railways.

Lakshmi Vilas Bank: The bank has revised the marginal cost of funds based lending rate (MCLR) with effect from August 1.

Orient Refractories: Company approves merger with RHI India & RHI Clasil

No stock 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 August 1, not a single stock is present in this list.
First Published on Aug 1, 2018 07:25 am
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