Moneycontrol
Last Updated : Oct 16, 2018 08:18 PM IST | Source: Moneycontrol.com

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

Maximum call writing was seen at the strike price of 10,600, which added 2.87 lakh contracts, followed by 10,900 which added 0.69 lakh contracts and 11,100 which added 0.60 lakh contracts.

Sunil Shankar Matkar

Benchmark indices closed higher for the third consecutive session on Tuesday, backed by a healthy start to September quarter earnings season, rising rupee and falling oil prices.

The 30-share BSE Sensex gained nearly 300 points while the Nifty50 closed 72.30 points higher at 10,584.80 and made a small bullish candle on the daily charts.

"The Nifty50 appears to have made most of the gains in the first one hour of trade before signing off the session with a small bullish candle suggesting a narrow range for the day," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

"Hence, it looks inevitable for the said index to sustain above Tuesday’s low of 10,525 and witness followthrough gains. In such a scenario a higher target between 10,750–10,850 levels can be expected," he said.

Contrary to this if the index slips below Tuesday's low of 10,525 levels then it can come under selling pressure, according to him. He advised traders to trail stop loss level below 10,500 levels on a closing basis and look for higher targets.

India VIX fell sharply by 8.01 percent to 17.37. Falling volatility is giving comfort to the bulls and a hold below 17 zones could extend its positive momentum, experts said.

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

Key support and resistance level for Nifty

The Nifty50 closed at 10,584.80 on Tuesday. According to Pivot charts, the key support level is placed at 10,538.43, followed by 10,492.07. If the index starts moving upwards, key resistance levels to watch out are 10,618.03 and then 10,651.27.

Nifty Bank

The Nifty Bank index closed at 25,589.65, up 201.60 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 25,391.96, followed by 25,194.23. On the upside, key resistance levels are placed at 25,747.26, followed by 25,904.83.

Call Options Data

Maximum Call open interest (OI) of 47.28 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,700 strike price, which now holds 30.54 lakh contracts in open interest, and 10,800, which has accumulated 30.40 lakh contracts in open interest.

Maximum call writing was seen at the strike price of 10,600, which added 2.87 lakh contracts, followed by 10,900 which added 0.69 lakh contracts and 11,100 which added 0.60 lakh contracts.

Call unwinding was seen at the strike price of 10,500, which shed 3.77 lakh contracts, followed by 10,400 which shed 2.58 lakh contracts and 10,700 which shed 2.26 lakh contracts.

Image816102018

Put Options data

Maximum Put open interest of 35.78 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the October series.

This was followed by the 10,400 strike price, which now holds 29.15 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 28.76 lakh contracts in open interest.

Put writing was seen at the strike price of 10,500, which added 8.72 lakh contracts in open interest, followed by 10,400 which added 4.77 lakh contracts and 10,600 strike which added 3.33 lakh contracts.

Put unwinding was seen at the strike price of 10,300, which shed 0.93 lakh contracts in open interest, followed by 11,000 which shed 0.63 lakh contracts and 10,800 which shed 0.57 lakh contracts.

Image916102018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,165.63 crore while domestic institutional investors bought shares worth Rs 1059.44 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Image1016102018

Stocks with a high delivery percentage

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

Image1116102018

86 stocks saw a long buildup

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67 stocks saw short covering

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

Image1316102018

39 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.

Image1416102018

13 stocks saw long unwinding

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Bulk Deals

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(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Pioneer Distilleries: Board meeting will be held on November 9 to consider un-audited financial results for the quarter and six months ended September 2018.

Mahindra Logistics: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.

MEP Infrastructure: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.

Tata Chemicals: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.

Torrent Pharma: Board meeting will be held on November 3 to consider un-audited financial results for the quarter and six months ended September 2018.

Capital First: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.

LIC Housing Finance: Board meeting will be held on October 29 to consider un-audited financial results for the quarter and six months ended September 2018.

Finolex Industries: Board meeting will be held on October 29 to consider un-audited financial results for the quarter and six months ended September 2018.

GMDC: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.

HCL Infosystems: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.

Force Motors: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.

GMM Pfaudler: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.

Redington India: Board meeting will be held on October 30 to consider un-audited financial results for the quarter and six months ended September 2018.

Welspun India: Board meeting will be held on October 22 to consider un-audited financial results for the quarter and six months ended September 2018.

Aavas Financiers: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.

UPL: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.

Shriram Asset Management: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.

Uniphos Enterprises: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.

Dixon Technologies: Board meeting will be held on October 31 to consider un-audited financial results for the quarter and six months ended September 2018.

Vedanta: Board meeting will be held on October 31 to consider un-audited financial results for the quarter and six months ended September 2018.

TVS Motor Company: A conference call with the analysts / fund houses post results will be held on October 23 to discuss the financial performance of the company for the second quarter.

Havells India: Management of the company has rescheduled the conference call to discuss the financial results for the second quarter on October 17.

Indian Metals: Investor call for earnings for the quarter ended September 2018 will be held on October 25.

Lupin: Investor call for earnings for the quarter ended September 2018 will be held on October 31.

SBI: Board meeting is scheduled on October 22 to examine and decide on raising of Basel III Compliant Tier 2 bonds upto Rs 5,000 crore.

Lakshmi Machine Works: Board meeting is scheduled on October 22 to consider the proposal for buyback of the equity shares of the company.

Den Networks: Board meeting is scheduled on October 17 to consider a proposal for raising of funds inter alia by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutions placement/ preferential issue.

Hathway Cable: Board meeting is scheduled on October 17 to consider a proposal for raising of funds by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutional placement /preferential issue.

Stocks in the news

Results on Wednesday: Reliance Industries, ACC, Havells India, Aditya Birla Money, Cyient, MindTree, Responsive Industries, NIIT Technologies, Mphasis, DCB Bank, 5Paisa Capital.

Infosys Q2: Consolidated net profit rises 13.8 percent to Rs 4,110 crore versus Rs 3,612 crore, revenue increases 7.7 percent to Rs 20,609 crore versus Rs 19,128 crore; revenue in dollar terms rises 3.2 percent in dollar terms and 4.2 percent in constant currency terms QoQ. Guidance: FY19 constant currency revenue growth maintained at 6-8 percent and margin maintained at 22-24 percent. Company's large deal wins crossed $2 billion in Q2.

Hero MotoCorp Q2: Net profit falls 3.4 percent to Rs 976 crore versus Rs 1,010.5 crore; revenue rises 8.6 percent to Rs 9,091 crore versus Rs 8,371.4 crore YoY.

Jammu & Kashmir Bank Q2: Net profit jumps 20 percent to Rs 93.7 crore versus Rs 71.64 crore YoY; gross NPA falls to 9 percent against 9.83 percent and net NPA falls to 3.9 percent versus 4.85 percent QoQ.

Shakti Pumps Q2: Consolidated profit jumps to Rs 9.27 crore versus Rs 3.02 crore; revenue surges to Rs 138.7 crore versus Rs 67.7 crore YoY.

Mahindra CIE Automotive Q2: Profit surges 73.9 percent to Rs 42.6 crore versus Rs 24.5 crore; revenue rises 21.7 percent to Rs 652.4 crore versus Rs 536.2 crore YoY.

CRISIL Q3: Profit jumps to Rs 90 crore versus Rs 69.42 crore; revenue rises to Rs 425.46 crore versus Rs 409.71 crore YoY. Board approved the payment of third interim dividend of Rs 7 per share for the financial year ending December 2018.

Deepak Fertilisers: Securities Allotment Committee allotted 64,76,893 warrants of face value of Rs 10 each at a premium of Rs 298.79 per warrant convertible into 64,76,893 equity shares to Robust Marketing Services Private Limited, a promoter group company.

Aban Offshore: Company acquired 100 percent interest in UK Continental Shelf Production License and sold 50 percent interest in the same.

NHPC: Baira Siul Power Station (180 MW) in Himachal Pradesh has been taken under complete shutdown for six months w.e.f. October 15, 2018 for 'renovation & modernization of power station for its life extension' works. Revenue from continuing operation of Baira Siul Power Station was Rs 124.69 crore in the FY18 which contributes 1.798 percent of total revenue of company.

L&T Technology Services: Company completed acquisition of Graphene Semiconductor Services.

Cochin Shipyard: Board approved buyback of up to 4.39 million shares at Rs 455 per share.

IIFL Holdings: Wealth management subsidiary i.e. IIFL Wealth Management (IIFLW) has entered into a share purchase agreement with Wealth Advisors India Private Limited (WAI) and its shareholders to acquire 100 percent of WAI, at a consideration of Rs 235 crore.

Adani Green Energy: Company has incorporated a wholly-owned subsidiary company Adani Wind Energy (TN).

TTK Prestige: CRISIL upgraded the long term rating from AA-/Positive to AA/Stable and re-affirmed short term rating at A1+.

JSW Steel: Majority of Bhushan Power lenders vote in favour of JSW Steel's bid for company - CNBC-TV18 sources. JSW Steel offered highest bid for Bhushan Power & Steel at Rs 19,700 crore.

IL&FS: Company defaulted on Rs 100 crore loan payment due on Tuesday.

Two 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 October 17, Adani Power and IDBI Bank are present in this list.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
First Published on Oct 16, 2018 08:10 pm
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