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Last Updated : Sep 19, 2018 07:48 AM IST | Source: Moneycontrol.com

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

According to Pivot charts, Nifty's key support level is placed at 11,228.1, followed by 11,177.3. If the index starts moving upwards, key resistance levels to watch out are 11,370.6 and 11,462.3.

Sunil Shankar Matkar

The Nifty50 corrected sharply for second consecutive session and broke the psychological 11,300-mark on Tuesday, forming bearish candle on the daily candlestick charts. Rising crude oil prices, weakening rupee and escalated trade war tensions between world's largest economies US & China caused selling pressure in the market.

All sectoral indices closed in the red with Nifty PSU Bank falling the most (down 5.44 percent) followed by Bank, Auto, Metal and Realty which lost between 1-3 percent. The broader markets also caught in bear trap with the Nifty Midcap index losing 1.4 percent.

The Nifty50 after opening flat tried to rebound and hit an intraday high of 11,411.45, but could not sustain for long and corrected further as the day progressed. The index fell up to 11,268.95 intraday in late trade but managed to hold its crucial support of 11,250 levels.

Close

It lost 98.90 points to close at 11,278.90. And also closed below its 50-DEMA which indicates that bears are holding the tight grip in the market, experts said.

"Nifty50 continued its downward thrust as it almost tested the recent corrective swing low of 11,250, after hitting intraday low of 11,268, before signing off the session with a strong bearish candle for second day in a row suggesting that market is completely in a bear grip," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

Hence, he said it will be a matter of time before it breaches recent corrective swing low of 11,250 and head towards its critical support zone placed around 11,100 levels. "However, based on long term trend studies with us there is a strong technical evidence suggesting that this corrective swing shall get culminated somewhere in the zone of 11,130–11,050 kind of levels."

He advised traders to cover their short positions as the Nifty heads towards 11,150 kind of levels. "On the upsides relief to bulls can be expected only on a close above 11,425 levels," Mazhar said.

India VIX fell by 0.70 percent to 14.39.

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 11,278.90 on Tuesday. According to Pivot charts, the key support level is placed at 11,228.1, followed by 11,177.3. If the index starts moving upwards, key resistance levels to watch out are 11,370.6 and 11,462.3.

Nifty Bank

The Nifty Bank index closed at 26,441.45, down 378.85 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,265.5, followed by 26,089.6. On the upside, key resistance levels are placed at 26,759.2, followed by 27,077.

Call Options Data

Maximum call open interest (OI) of 42.99 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the September series.

This was followed by the 11,600 strike price, which now holds 40.48 lakh contracts in open interest, and 11,800, which has accumulated 39.77 lakh contracts in open interest.

Call writing was seen at 11,400 strike, which added 8.56 lakh contracts, followed by 11,300 which added 6.54 lakh contracts and 11,500 strike which added 3.37 lakh contracts.

Highest Call unwinding was seen at the strike price of 11,700 which shed 2.37 lakh contracts, followed by 11,900 which shed 1.97 lakh contracts and 11,800 which shed 1.25 lakh contracts.

Image218092018

Put Options data

Maximum put open interest of 37.20 lakh contracts was seen at the 11,200 strike price. This will act as a crucial support level for the September series.

This was followed by the 11,000 strike price, which now holds 35.09 lakh contracts in open interest, and the 11,400 strike price, which has now accumulated 32.97 lakh contracts in open interest.

Put writing was seen at the strike price of 11,100, which added 3.13 lakh contracts in open interest, followed by 11,200 which added 2.26 lakh contracts.

Put unwinding was seen at the strike price of 11,500, which shed 4.54 lakh contracts in open interest, followed by 11,300 which shed 4.45 lakh contracts and 11,400 which shed 3.88 lakh contracts.

Image318092018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,143.73 crore while domestic institutional investors sold shares worth Rs 264.66 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Image918092018

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.

Image418092018

10 stocks saw a long buildup

Image518092018

16 stocks saw short covering

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

Image618092018

112 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.

Image718092018

71 stocks saw long unwinding

Image818092018

Bulk Deals

Lagnam Spintex: Mehta Kishore Kumar bought 90,000 equity shares of the company at Rs 39.24 per share and Professional Arbitrage Concepts 99,000 shares at Rs 41 per share while Suman Bohra purchased 4,50,000 shares at Rs 41 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Electrosteel Steels: Meeting of the board of directors to be held on September 24 to consider the letter received from Vedanta Star, Whereby the company was intimated of the proposal for delisting of the equity shares of the company.

Indian Energy Exchange: Company's officials are meeting Invesco on September 20.

PI Industries: Company's officials are meeting Mirae Asset Global Investments (India) at Gurugram on September 20 and Ambit India Access Conference at New York & Chicago on September 20 & 21.

Cholamandalam Investment and Finance Company: Company's officials are meeting Lohia Securities on September 19.

Adani Ports and Special Economic Zone: Company's officials are meeting analysts/investors in JP Morgan India Conference on September 19, SCB Debt Conference on September 28, and meeting with investors in USA and Canada during October 1-5.

Palred Technologies: Meeting of the board of directors will be held on September 21 to consider investment in subsidiary companies and any other business with the permission of the Chair.

Balrampur Chini Mills: Company's representative(s) would be interacting with various investors / fund managers on September 19 over a concall organised by Phillip Capital.

Mahanagar Gas: Company's officials are meeting Smith Tan Asset Management (P) Singapore on September 19 and Wells Capital Management Inc (P) USA on September 26 in Mumbai.

City Union Bank: N Kamakodi, MD & CEO of the bank will be participating in an investor conference organised by Ambit Capital on September 20 & 21 at New York & Chicago.

Dabur India: Company's officials will participate in JP Morgan’s India Investor Summit 2018 on September 19 and 20.

Dixon Technologies: Company's officials are meeting Champlain Investments on September 24.

ACC: Company's officials are meeting fund houses / investors in Investor meeting organised by JP Morgan on September 20.

Marico: Company's officials are meeting investors/analysts on September 19.

Ambuja Cements: Company's officials are meeting analysts/investors in JP Morgan India Investor Summit 2018 on September 19.

Stocks in news

ICICI Bank: The bank in clarification note said it has not filed any application for settlement after certain media reports indicated that the bank has filed a consent petition with SEBI.

MEP Infrastructure Developers: ICRA has assigned the long term rating for the bank limits for its subsidiaries MEP Sanjose Kante Waked Road Private Limited and MEP Sanjose Arawali Kante Road Private Limited.

Lupin: Company appoints Alok Sonig as CEO - US Generics and Global Head - Generics R&D & Biosimilars.

Sun Pharma: Almirall has received the European Commission (EC) approval for Ilumetri (tildrakizumab) for the treatment of adults with moderate-to-severe chronic plaque psoriasis who are candidates for systemic therapy.

IL&FS Transportation Networks: Settlement agreement was signed by Moradabad Bareilly Expressway (MBEL), a subsidiary of the company on various claims filed against NHAI in relation to the work of development, maintenance and management of a highway from Moradabad to Bareilly in the State of Uttar Pradesh. Pursuant to the settlement, MBEL will be paid a claim compensation of Rs 425 crore by NHAI for the losses suffered by it on account of the cost overrun for development of the project.

RITES: Company has been executing a project of Indian Railways for setting up of wagon workshop at Dalmianagar for which the initial contract cost was Rs 89 crore. The enhanced scope and revision in estimates has resulted in additional contract value of Rs 436 crore. The work is scheduled to be started in the last quarter of this financial year.

KIOCL: Board of directors of the company approved the proposal to buyback of not exceeding 1,25,88,235 equity shares (representing 1.98 percent of paid up equity) at a price of Rs 170 per share, payable in cash for an aggregate consideration not exceeding Rs 214 crore. The company has fixed October 1 as record date for the same.

Tata Steel: Company completed the acquisition of 51 percent equity stake in Creative Port Development Private Limited.

Clariant Chemicals: Its ultimate global holding company Clariant said that SABIC has recently completed the purchase of 24.99 percent stake in Clariant globally as a strategic anchor shareholder. Clariant will combine its additives and high value masterbatches with parts of SABIC's Specialties business to form the business area high performance materials. It also announced about its intention to divest the remaining plastics & coatings business by 2020, subject to necessary approvals.

Linde India: Linde AG and Praxair Inc have received a final order from Competition Commission of India for the proposed business combination.

NIIT Technologies: Company introduces Chain-m, a Blockchain powered solution for airlines and its partners.

Trident: CRISIL has reaffirmed its ratings on the bank facilities of the company and subsequently withdrawn the ratings at the company's request.

Steel Strips Wheels: Naveen Sorot, Chief Financial Official (CFO) of the company, has tendered his resignation from his duties as CFO to pursue opportunities outside the company.

Gulshan Chemfill: Board approved the draft letter of offer of the company and related documents in respect of the proposed rights issue not exceeding an amount of Rs 26 lakh.

Weizmann Forex: Company announced divestment in six subsidiaries.

TCS: Tata Insights and Quants (Tata iQ), a division of Tata Industries, has selected Jile as its enterprise Agile platform.

ICICI Prudential Life Insurance: Company and Saraswat Co-operative Bank sign bancassurance partnership.

Gujarat Borosil: Board approved appointment of Milind Gurjar as Chief Executive Officer and key managerial personnel with effect from September 24; stepping down of B L Kheruka as Director and Chairman of the board and his appointment as chairman emeritus; appointment of P K Kheruka as Chairman of the board.

Som Distilleries & Breweries: Subsidiary Woodpecker Distilleries & Breweries as launched Blackfort Beer in Lager variant to tap the mild beer segment in Karnataka.

Bharat Dynamics: BDL is manufacturing and supplying Akash Missiles. DAC approval is for upgraded version of Akash Weapon System equipped with seeker technology being under upgradation by DRDO. The DAC approval would be followed by an RFP from Ministry of Defence, which would be responded by BDL promptly.

Shriram Transport Finance: On June 30, 2015, the company had given corporate guarantee in connection with non-convertible debentures (NCDs) worth Rs 650 crore issued by SVL Ltd. The NCDs will mature for redemption on 28/06/2019. The disputed amount of Rs 13 crore between one of the subsidiaries of SVL Limited and the customer of that company is expected to be mutually settled. The amount involved in the dispute is not significant.

Infinite Computer Solutions: Company has received a letter from Mr. Sanjay Govil, promoter of the Company, representing that M/s Inswell IT Applications Private Limited, a promoter group company, 100 percent of which is beneficially owned and controlled by Sanjay Govil and his relatives, will also act as an acquirer / person acting in concert in the delisting offer and may acquire certain portion of equity shares that are tendered as part of the delisting process.

Strides Pharma Science: The formulations facility in Bangalore recently underwent pre-approval product inspection by the USFDA. The inspection ended on August 25 and the company has been issued a Form 483 with 3 observations. The company believes that the observations are not material in nature and we have already responded to the USFDA. Company has recently (post completion of the inspection) received a product approval for Potassium Chloride Extended release tablets from this facility.

2 stocks under ban period on NSE

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

For September 19, Adani Enterprises and Balrampur Chini are present in this list.

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First Published on Sep 18, 2018 07:21 am
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