Moneycontrol
Last Updated : Oct 23, 2018 08:23 PM IST | Source: Moneycontrol.com

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

Further buying above 10,245 on the Nifty is needed to confirm the uptrend. That could trigger more short covering.

Sunil Shankar Matkar

Global concerns and rupee volatility dragged the market near seven-month low on October 23. After a sharp gap down opening the Nifty 50 traded lower throughout the session and closed near its starting point of the day.

The index made a small bullish candle and formed 'Long Legged Doji' pattern on the daily candlestick charts.

A typical long-legged Doji pattern is formed when the opening price is almost equal to the closing price but there was a lot of intraday movement on either side.

The Nifty50 after the gap down opening traded rangebound and extended losses in the second half of the session to hit an intraday low of 10,102.35. The index managed to recover some losses in late trade but still closed 98.50 points lower at 10,146.80.

Breach of the recent low of 10,138, though on an intraday basis, suggests the index has started the next leg of the decline and the possibility of a larger pullback can be ruled out, experts said.

"Nifty50 registered a Long Legged Doji kind of formation as it witnessed a gap down opening but closed the session almost around the same point where it opened the day. This kind of indecisive formation after breaching critical support of 10,138 is pointing clueless nature of the bears about further direction on the downside," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said intraday price action is looking like a bear trap as the Nifty 50 appears to have witnessed a decent amount of buying after recording a new corrective swing low around 10,100 levels.

Further buying above 10,245 on the Nifty is needed to confirm the uptrend. That could trigger more short covering.

On the downsides, Mazhar said 10,100 shall remain a critical support here after the breach of which shall drag down the indices initially to 9,950 levels.

India VIX fell sharply by 10.87 percent at 19.03. During the session volatility index made a high of 22.35 and witnessed a cool off even after the overall weakness in the Nifty index which suggests an early sign of consolidation in the market. However, VIX has to go down below 17-16 zones to rescue the bulls after the sharp cut of last two months.

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

Key support and resistance level for Nifty

The Nifty 50 closed at 10,146.80 on Tuesday. According to Pivot charts, the key support level is placed at 10,092.03, followed by 10,037.27. If the index starts moving upwards, key resistance levels to watch out are 10,211.83 and then 10,276.87.

Nifty Bank

The Nifty Bank index closed at 24,972.45, down 106.15 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,796.67, followed by 24,620.93. On the upside, key resistance levels are placed at 25,136.37, followed by 25,300.33.

Call Options Data

Maximum Call open interest (OI) of 37.04 lakh contracts was seen at the 10,500 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,400 strike price, which now holds 35.22 lakh contracts in open interest, and 10,600, which has accumulated 31.48 lakh contracts in open interest.

Maximum call writing was seen at the strike price of 10,200, which added 14.90 lakh contracts, followed by 10,100 which added 5.17 lakh contracts and 10,400 which added 4.7 lakh contracts.

Call unwinding was seen at the strike price of 10,800, which shed 9.75 lakh contracts, followed by 10,600 which shed 4.89 lakh contracts and 10,500 which shed 4.75 lakh contracts.

Image123102018

Put Options data

Maximum Put open interest of 36.66 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 9,500 strike price, which now holds 23.03 lakh contracts in open interest, and the 10,200 strike price, which has now accumulated 22.74 lakh contracts in open interest.

Put writing was seen at the strike price of 9,900, which added 4.86 lakh contracts in open interest, followed by 9,700 which added 1.66 lakh contracts and 10,100 which added 0.42 lakh contracts.

Put unwinding was seen at the strike price of 10,200, which shed 11.88 lakh contracts in open interest, followed by 10,300 which shed 9.4 lakh contracts and 10,500 which shed 5.47 lakh contracts.

Image223102018

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 340.35 crore while domestic institutional investors bought shares worth Rs 116.41 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Image823102018

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.

Image323102018

34 stocks saw a long buildup

Image423102018

31 stocks saw short covering

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

Image523102018

77 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.

Image623102018

64 stocks saw long unwinding

Image723102018

Bulk Deals

Den Networks: MSD India Fund sold 16,00,790 shares of the company at Rs 66.29 per share on the NSE.

Manaksia Steels: Multiplus Resources bought 3,33,700 shares of the company at Rs 16.54 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Adlabs Entertainment: Board meeting will be held on November 1 to consider unaudited financial results for the quarter ended September 2018.

Arvind: Board meeting will be held on November 1 to consider unaudited financial results for the quarter ended September 2018.

IIFL Holdings: Board meeting will be held on November 1 to consider unaudited financial results for the quarter ended September 2018.

Greaves Cotton: Board meeting will be held on November 1 to consider unaudited financial results for the quarter ended September 2018.

Essel Propack: Board meeting will be held on November 1 to consider unaudited financial results for the quarter ended September 2018.

Alkem Laboratories: Board meeting will be held on November 2 to consider unaudited financial results for the quarter ended September 2018.

Ugro Capital: Board meeting will be held on November 2 to consider unaudited financial results for the quarter ended September 2018.

Plastiblends India: Board meeting will be held on October 29 to consider unaudited financial results for the quarter ended September 2018.

BASF India: Board meeting will be held on October 30 to consider unaudited financial results for the quarter ended September 2018.

Alembic: Board meeting will be held on October 30 to consider unaudited financial results for the quarter ended September 2018.

IRB Infrastructure Developers: Board meeting will be held on October 30 to consider unaudited financial results for the quarter ended September 2018.

Talbros Engineering: Board meeting will be held on October 31 to consider unaudited financial results for the quarter ended September 2018.

Sun Pharma: Board meeting will be held on November 13 to consider unaudited financial results for the quarter ended September 2018.

Ucal Fuel Systems: Board meeting will be held on November 3 to consider unaudited financial results for the quarter ended September 2018.

Quick Heal Technologies: Board meeting will be held on November 12 to consider unaudited financial results for the quarter ended September 2018.

PTC India: Board meeting will be held on November 13 to consider unaudited financial results for the quarter ended September 2018.

Oil India: Board meeting will be held on November 12 to consider unaudited financial results for the quarter ended September 2018.

Grasim Industries: Board meeting will be held on November 13 to consider unaudited financial results for the quarter ended September 2018.

Kirloskar Brothers: An analysts' meet has been organised on October 26 by the company to provide information on results for the quarter and half year ended on September 2018.

Cords Cable Industries: Officials of the company will be meeting investors and analysts (participants) on October 26.

Eveready Industries: Board meeting will be held on November 5 to consider unaudited financial results for the quarter ended September 2018.

Stocks in news

Results on Tuesday: Wipro, Bajaj Auto, Kotak Mahindra Bank, Bharti Infratel, InterGlobe Aviation, IDFC Bank, Jubilant Foodworks, SKF India, Gallantt Ispat, Menon Bearings, Sundaram Clayton, Bharat Financial Inclusion, Geojit Financial Services, Syngene International, Hexaware Technologies, Rane Engine Valve, KPIT Technologies, Tijaria Polypipes, Bajaj Holdings, Radico Khaitan, International Paper APPM, Indiabulls Real Estate, Security and Intelligence Services (India), Karur Vysya Bank, Larsen & Toubro Infotech, Everest Industries, Mahindra & Mahindra Financial Services, Jyothy Laboratories, Tamilnadu PetroProducts, L&T Finance Holdings, Chemfab Alkalis, Agro Tech Foods, Sterlite Technologies, TTK Prestige, Lakshmi Vilas Bank.

HCL Technologies Q2: Profit rises 5.7 percent to Rs 2,540 crore versus Rs 2,403 crore; revenue increases 7.1 percent to Rs 14,861 crore versus Rs 13,878 crore; dollar revenue grows 2.1 percent to $2,099 million versus $2,054.4 million; revenue in constant currency up 3 percent QoQ. Company maintained its constant currency revenue growth guidance for FY19 at 9.5-11.5 percent and EBIT margin at 19.5-20.5 percent.

Ambuja Cements Q3: Profit falls 34.4 percent to Rs 178.6 crore versus Rs 272.4 crore; revenue rises 12.6 percent to Rs 2,613.9 crore versus Rs 2,321.8 crore YoY.

Bajaj Corp Q2: Profit rises to Rs 51.65 crore versus Rs 50.71 crore; revenue increases to Rs 212.72 crore versus Rs 204.13 crore YoY.

MCX Q2: Profit jumps 23.2 percent to Rs 35.9 crore versus Rs 29.1 crore; revenue rises 5.6 percent to Rs 71.1 crore versus Rs 67.3 crore YoY.

Adani Ports Q2: Profit falls 39 percent to Rs 605.5 crore versus Rs 992.1 crore; revenue slips 3.6 percent to Rs 2,608 crore versus Rs 2,706.1 crore; forex loss at Rs 570.4 crore versus forex loss of Rs 78.4 crore YoY.

Bajaj Finserv Q2: Consolidated profit rises 0.2 percent to Rs 704.1 crore versus Rs 698.2 crore; revenue increases 17.3 percent to Rs 9,698.1 crore versus Rs 8,266.1 crore YoY.

ICICI Prudential Life Insurance Q2: Profit falls 28.6 percent to Rs 300.9 crore versus Rs 421.2 crore; net premium income rises 16.2 percent to Rs 7,601.2 crore versus Rs 6,539.5 crore YoY.

HDFC Standard Life Insurance Q2: Profit rises 20.3 percent to Rs 287 crore versus Rs 238.5 crore; net premium income jumps 25.8 percent to Rs 6,777.6 crore versus Rs 5,389.4 crore YoY.

Tejas Networks Q2: Profit surges to Rs 33.48 crore versus Rs 26.87 crore; revenue falls to Rs 207.03 crore versus Rs 216.13 crore YoY.

Bayer Cropscience Q2: Profit falls to Rs 142.7 crore versus Rs 190.6 crore; revenue declines to Rs 1,104.1 crore versus Rs 1,232 crore YoY.

Wendt India Q2: Profit increases to Rs 4.6 crore versus Rs 2.65 crore; revenue jumps to Rs 41.61 crore versus Rs 36.93 crore YoY.

Shree Digvijay Cement Q2: Loss at Rs 1.28 crore versus profit at 0.01 crore; revenue rises to Rs 95.27 crore versus Rs 94.28 crore YoY.

Sasken Technologies Q2: Profit falls to Rs 16.89 crore versus Rs 28 crore; revenue slips to Rs 113.08 crore versus Rs 134.27 crore QoQ.

Rallis India Q2: Profit rises 6.1 percent to Rs 87 crore versus Rs 82 crore; revenue increases 11.8 percent to Rs 613.2 crore versus Rs 548.5 crore YoY.

Zensar Technologies Q2: Profit rises to Rs 93.40 crore versus Rs 82.16 crore; revenue increases to Rs 968.71 crore versus Rs 904.56 crore QoQ.

Sun Pharma: Sun Pharmaceutical Industries launched moderate-to-severe psoriasis treatment ILUMYATM (tildrakizumab-asmn) 100 mg/mL in the United States.

Bank Of India: Bank puts 95 accounts with Rs 10,710.22 crore outstanding balance for sale to ARCs/NBFCs/FIs/Bks - CNBC-TV18.

Laurus Labs: Company transferred its USFDA-approved Abbreviated New Drug Application (ANDA) of Tenofovir Disoproxil Fumarate (TDF) to CASI Pharmaceuticals, Inc.

Salzer Electronics: Company has withdrawn its acquisition proposals regarding Dyerseas Companies eAdvanced iD Asia Engineering Co. Ltd, Thailand and United Marketing and Trading Limited, Hong Kong.

Shalby: Shalby Hospitals, Surat (Gujarat) has been granted a certificate under pre-accreditation Entry level–Hospitals (PEH) programme for a period of two years, valid up to September 15, 2020, by National Accreditation Board for Hospitals and Healthcare Providers, a constituent Board of Quality Council of India.

Bodal Chemicals: CRISIL assigned A+ long-term rating and A1+ short-term rating.

Motherson Sumi Systems: India Ratings and Research assigned rating for fund-based working capital limits to AAA/Stable/A1+.

Hi-Tech Gears: Company created a wholly owned subsidiary by the name of Neo-Tech Smart Solutions Inc. in Ontario, Canada.

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 October 24, Adani Enterprises and Adani Power are present in this list.
First Published on Oct 23, 2018 07:39 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant