Moneycontrol
Last Updated : Nov 27, 2018 09:35 PM IST | Source: Moneycontrol.com

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

Once the Nifty takes out the swing high of 10,774 then the index can march towards 11,000-11,140 in the short term, according to Gaurav Ratnaparkhi of Sharekhan.

Sunil Shankar Matkar

The market opened flat but an afternoon rally helped it gain for the second consecutive session on November 27, forming bullish candle on the daily charts.

The rally was largely driven by index heavyweights Reliance Industries (up 1.66 percent), HDFC Bank (0.7 percent), HDFC (0.9 percent), Infosys (2.81 percent) and TCS (2.39 percent).

The 30-share BSE Sensex was up 159.06 points at 35,513.14 while the 50-share NSE Nifty closed 57 points higher at 10,685.60 and is now comfortably above its crucial short-term moving averages.

"Nifty index finally negated its lower highs-lower lows formation after four trading sessions and continued its positive momentum. It formed a bullish candle on a daily scale which suggests that bulls are not loosening their grip in the market," Chandan Taparia, Associate Vice President | Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said the minor degree correction, which the index witnessed in the last week, looks done at the recent low of 10,489 & the Nifty looks poised to take out the swing high of 10,774 in order to form the next leg up.

Once the Nifty takes out the swing high of 10,774 then the index can march towards 11,000-11,140 in the short term, he added.

Thus, he advised traders to position themselves on the long side of the trade and can increase their exposure on the buy side once the Nifty crosses 10,774.

Despite this bullishness for the second day in a row advance-decline ratio still remains a concern as it is still favouring bears for the second day in a row.

About 921 shares declined against 792 advancing shares on the National Stock Exchange.

India VIX fell sharply by 10.94 percent to 18.17 levels. Sudden fall in VIX might provide short term stability in 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 10,685.60 on Tuesday. According to Pivot charts, the key support level is placed at 10,622.87, followed by 10,560.13. If the index starts moving upwards, key resistance levels to watch out are 10,721.77 and then 10,757.93.

Nifty Bank

The Nifty Bank index closed at 26,443.10, up 77.50 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,310.8, followed by 26,178.5. On the upside, key resistance levels are placed at 26,533.3, followed by 26,623.5.

Call Options Data

Maximum Call open interest (OI) of 28.64 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the November series.

This was followed by the 10,700 strike price, which now holds 27.35 lakh contracts in open interest, and 10,800, which has accumulated 24.26 lakh contracts in open interest.

Meaningful Call writing was seen at 10,900, which added 0.91 lakh contracts, followed by 11,100 which added 0.14 lakh contracts.

Maximum Call unwinding was seen at the strike price of 10,500, which shed 5.34 lakh contracts, followed by 10,700 which shed 5.18 lakh contracts and 10,800 which shed 4.38 lakh contracts.

Image227112018

Put Options data

Maximum Put open interest of 39.94 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 10,600 strike price, which now holds 36.52 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 26.84 lakh contracts in open interest.

Put writing was seen at the strike price of 10,600, which added 5.76 lakh contracts, followed by 10,700 strike which added 3.18 lakh contracts and 10,300 strike which added 0.74 lakh contracts.

Put unwinding was seen at the strike price of 10,500, which shed 2.38 lakh contracts, followed by 10,200 which shed 1.21 lakh contracts.

Image327112018

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 811.52 crore and domestic institutional investors purchased Rs 31.21 crore worth of shares in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture

Image1027112018

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.

Image427112018

58 stocks saw a long buildup

Image527112018

70 stocks saw short covering

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

Image627112018

38 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.

Image727112018

39 stocks saw long unwinding

Image827112018

Bulk Deals

Agro Phos India: DK Investments purchased 1,20,000 shares of the company at Rs 43.6 per share on the NSE.

Sumeet Industries: Somani Overseas Private Limited bought 7,00,000 shares of the company at Rs 4.42 per share on the NSE.

Veto Switchgear Cable: Pushpa Devi Gurnani purchased 1,67,098 shares of the company at Rs 86.81 per share on the NSE.

Umiya Tubes: Vijaysinh Khumansinh Makwana bought 1,47,660 shares of the company at Rs 25.48 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Rural Electrification Corporation: Board meeting will be held on December 5 to consider the un-audited (standalone) financial results of the company for the second quarter ended September 2018.

India Green Reality: Board meeting will be held on December 4 to issue equity share on Preferential basis to the promoter and/or non-promoters.

Ravalgaon Sugar Farm: Board meeting is scheduled on December 5 to consider the sale of fixed assets & approve the capital expenditure.

Titan Company: Company's officials will be meeting Macquarie Funds Management Hong Kong Ltd on December 3 and Generation Investment Management on December 13.

Pfizer: Company's officials will be meeting Batlivala & Karani Securities India Private Limited and its clients on November 28.

PI Industries: Company's official will be meeting Quest Investment Advisors and Darkhouse Capital on November 28; Ocean Dial Asset Management on November 29 and Barings Asset Management on December 3.

Dabur India: Officials of the company will participate in Morgan Stanley's Seventeenth Annual Asia Pacific Summit on November 29-30; and Nomura's Annual India Corporate Day on December 3-4.

Jindal Stainless: Company's officials will be meeting several funds / investors on November 28.

Sandhar Technologies: Company's officials will be meeting Mahesh Bendre of Karvy and Dharmendra Dave of JM Financial Services on November 28.

Vyapar Industries: Board meeting is scheduled on November 30 to consider the proposal for buyback of equity shares of the company.

Cummins India: Company's officials will be meeting HSBC on November 28 and Fidelity on November 30.

Stocks in news

Punjab National Bank: Fitch ratings affirmed PNB's Long-Term Issuer Default Rating (IDR) at BBB- and its Viability ratings at 'b' while removing it from Rating Watch Negative.

Yes Bank: Moody's Investors Service downgraded bank's foreign currency issuer ratings to Bal from Baa3 with changing the outlook to negative from stable.

Yes Bank: Rana Kapoor & Madhu Kapur draw up a draft proposal for mutual reconciliation - CNBC-TV18 Sources.

Lupin: Ramesh Swaminathan resigns as the Chief Financial Officer of the company.

Coal Block case: Fresh plea in Supreme Court places Adani JV under the judicial scanner and SC seeks reply on allegations in the plea from Adani-led JV - CNBC-TV18.

Reliance Capital Q2: Standalone profit at Rs 197 crore versus loss at Rs 417 crore; revenue increases to Rs 991 crore versus Rs 417 crore YoY.

Inox Wind: Company signed an exclusive agreement with AMSC, a global solutions provider serving the wind and power grid industry, to launch the 3 MW wind turbine which is especially suitable for low wind regimes in India.

Atul Auto: Company signed the term-sheet with JBM Industries for entering into a Joint Venture Agreement with an object to expand/ develop the business of three wheeler electric autos with the blend of respective expertise.

Axiscades Engineering Technologies: Subsidiary Axiscades Aerospace & Technologies wins $20 million contracts.

Orient Electric: Company entered into a strategic partnership with De'Longhi Group, Italy.

Gillanders Arbuthnot: CARE revised its rating for long term bank facilities to BBB+/Stable from BBB+/Negative.

HCL Infosystems: Transaction for sale of the entire ownership and control held by Nurture Technologies FZE in its direct subsidiaries namely Gibraltar Technologies LLC (Dubai) and Gibraltar Technologies LLC (Abu Dhabi) including in its step-down subsidiary namely Gibraltar Technologies WLL (Qatar) has been closed.

Hinduja Ventures: Company's Investment Committee approved the disinvestment of 1 crore equity shares of Rs 10 each held by the company in Hinduja Leyland Finance Limited as per Independent Valuation of Rs 153.56 per share.

Suditi Industries: Company executed the Retail Product License agreement with NBA Properties, Inc. The USA for commercial use. Accordingly, the company can manufacture apparels/garments as stated above and sell them in the domestic market (Indian Market) and the contract is valid up to 31/12/2023.

Aurionpro Solutions: Company opens a new experience centre in Navi Mumbai.

3 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 28, 2018, Adani Enterprises, Adani Power and Jet Airways are present in this list.
First Published on Nov 27, 2018 09:34 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant