Moneycontrol
Last Updated : Nov 20, 2018 08:46 PM 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 10,617.73, followed by 10,579.27. If the index starts moving upwards, key resistance levels to watch out for are 10,717.73 and then 10,779.27.

Sunil Shankar Matkar

The market closed sharply lower with the Sensex falling 300 points on November 20 as the Reserve Bank of India's decision to boost lending failed to impress investors. Weak global cues and correction in technology stocks on rupee recovery also hit market sentiment.

The index closed way below its 200-day moving average, down 107.20 points at 10,656.20 and formed 'Bearish Belt Hold' kind of pattern on the daily charts.

A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.

"The key moving average that was acting as a resistance for the last few sessions is now acting as a support as per the principle of role reversal. The hourly chart reveals that the selling pressure abated as the Nifty approached the junction of 40 hour exponential moving average & the hourly lower Bollinger Band," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said.

He further said overall 10,650-10,630 is a crucial support zone for the index where multiple parameters are lying to offer support. Thus the Nifty seems to be on a spring board, which has a potential to throw the index higher, he added.

From trading perspective, one can take a cautiously bullish stance for the near term targets of 10,821 & 10950, according to him. "An intermediate hurdle is placed at 10,775."

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 10,656.20 on Tuesday. According to pivot charts, the key support level is placed at 10,617.73, followed by 10,579.27. If the index starts moving upwards, key resistance levels to watch out are 10,717.73 and then 10,779.27.

Nifty Bank

The Nifty Bank index closed at 26,113.35, down 187.35 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,016.93, followed by 25,920.57. On the upside, key resistance levels are placed at 26,234.53, followed by 26,355.77.

Call Options Data

Maximum Call open interest (OI) of 36.14 lakh contracts was seen at the 10,800 strike price. This will act as a crucial resistance level for the November series.

This was followed by the 11,000 strike price, which now holds 34.26 lakh contracts in open interest, and 10,700, which has accumulated 27.80 lakh contracts in open interest.

Maximum Call writing was seen at the strike price of 10,800, which added 2.08 lakh contracts, followed by 11,100, which saw the addition of 1.73 lakh contracts and 10,900 which added 1.69 lakh contracts.

Maximum Call unwinding was seen at the strike price of 11,200, which shed 1.20 lakh contracts, followed by 10,500 which shed 0.45 lakh contracts and 10,400 which shed 0.37 lakh contracts.

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Put Options data

Maximum Put open interest of 35.01 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the November series.

This was followed by the 10,200 strike price, which now holds 31.44 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 26.48 lakh contracts in open interest.

Put writing was seen at the strike price of 10,500, which added 1.68 lakh contracts.

Put unwinding was seen at the strike price of 10,200, which shed 6.04 lakh contracts, followed by 10,700 which shed 3.53 lakh contracts and 10,300 which shed 2.76 lakh contracts.

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FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 753.17 crore and domestic institutional investors Rs 44.06 crore worth of shares in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture

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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.

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11 stocks saw a long buildup

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22 stocks saw short covering

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

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99 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.

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74 stocks saw long unwinding

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Bulk Deals

Den Networks: Shailender Nath Sharma sold 10,00,000 shares of the company at Rs 68 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Sumeet Industries: Board meeting is scheduled on November 30 to consider the resignation of Dipesh Shashikant Dasadia, as an independent director of the company.

Hikal: Company's officials will be attending investors conference organised by IDFC Securities on November 21.

Shankara Building Products: Company's officials will be attending investors conference organised by IDFC Securities on November 21.

Shoppers Stop: Company's officials will be meeting Jyotiraj Sarma, Vice President, Corporate Finance from Ambit Capital Pvt. Ltd. on November 21 and Rita J Spitz, Principal from William Blair on December 3. Officials of the company will be attending Batlivala & Karani Securities conference scheduled to be held on December 5.

CRISIL: Company's officials will be meeting Matthews India Fund on November 22, Panah Fund on November 23 and Enam Asset Management on November 28.

Varun Beverages: Representatives of the company will meet Institutional Investors in Mumbai on November 22.

Mahindra Logistics: Company's officials will be meeting Reliance Nippon Life AMC on November 27 and Motilal Oswal AMC on December 3.

Sunil Hitech Engineers: Interim Resolution Professional, on November 27, will consider the unaudited financial results for the quarter and half year ended on September 2018.

Speciality Restaurants: Company's officials will be meeting Seers Advisors on November 21.

Mahindra & Mahindra Financial Services: Company's officials will be meeting group of investors at ICICI Securities : Investor Conference on November 21, and Stewart Investors and Pacific Assets Trust Board of Directors on December 3.

Ravalgaon Sugar Farm: Board meeting is scheduled to be held on November 27 to sale of fixed assets & approve capital expenditure.

Nahar Capital & Financial Services: Company will be submitting the financial results for the quarter ended September 2018 before December 14.

The Byke Hospitality: Conference Call is scheduled to be held on November 22 to discuss the unaudited financial results for quarter and half year ended September 2018.

Tata Steel: Company's officials will be meeting BFAM Partners on November 21 and BlackRock on December 4.

Stocks in news

HDFC Bank: The bank acquired 4 percent equity stake in Clearing Corporation of India from Bank of Baroda for Rs 124 crore. It is proposed to increase the stake in CCIL from the current 5 percent to 9 percent from an investment perspective.

Excel Industries: CRISIL upgraded rating on long term bank loan facilities of the company to A+/ Stable from A/Stable and reaffirmed rating on short term bank loan facilities at CRISIL A1. The rating on fixed deposits has been withdrawn as the company has discontinued acceptance and renewal of the fixed deposits.

Dolphin Offshore Enterprises: Its wholly owned subsidiary, Dolphin Offshore Enterprises (Mauritius) Pvt. Ltd. won an arbitration award against Alcock Ashdown (Gujarat) Limited. The total award amount including interest till date will be around $1 million.

NBCC: Company has submitted the Expression of Interest (EoI) for submitting Resolution Plan for Jaypee Infratech (JIL) and the company has been provisionally shortlisted by Resolution Professional of JIL as Prospective Resolution Applicant.

Minda Corporation: Company has entered into definitive agreements with its joint venture partner, Furukawa Group of Japan, for change in equity structure of Minda Furukawa Electric Private Limited (JVCO). As per the proposed realignment, the equity stake of joint-venture partner in the JVCO will change from 49 percent to 75 percent and stake of Minda Corporation Ltd. will change from existing 51 percent to 25 percent.

Suzlon Energy: As first part of the transaction, Canadian Solar disposal acquired 49 percent stake in company's subsidiaries Amun and Avighna respectively for a combined cash consideration of Rs 26.42 crore. And as second part of the transaction, Canadian Solar acquired balance 51 percent stake in Amun and Avighna respectively for a combined cash consideration of Rs 28.11 crore.

IL&FS Engineering: Company filed application to SEBI requesting extension of time to file financial results.

5 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 November 21, 2018, Adani Enterprises, Adani Power, DHFL, Jet Airways and PC Jeweller are present in this list.
First Published on Nov 20, 2018 07:41 pm
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