Moneycontrol
Last Updated : Jan 08, 2019 08:47 PM IST | Source: Moneycontrol.com

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

The broader indices closed mixed and the market breadth was balanced. The Nifty Midcap index fell 0.13 percent while Smallcap gained 0.25 percent.

Sunil Shankar Matkar

The market closed volatile session on a positive note Tuesday, led by the smart recovery in the last couple of hours of trade. Banking & financials, auto, metals and pharma stocks supported the Nifty 50.

Progress in NPA resolution and positive global cues amid trade talks between the US & China lifted market sentiment.

The 30-share BSE Sensex was up 130.77 points at 35,980.93 while the Nifty 50 climbed 30.40 points to close at 10,802.20 and formed small bullish candle which resembles a 'Hammer' kind of pattern on the daily charts.

"The Nifty index remained volatile and declines were being bought as it managed to hold above its 50 DEMA on the daily scale. Now it has to hold above 10,750-10,777 zones to witness an up move towards 10,850 then 10,929 while on the downside support exists at 10,650 then 10,600 levels," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.

The broader indices closed mixed and the market breadth was balanced. The Nifty Midcap index fell 0.13 percent while Smallcap gained 0.25 percent.

Among sectors, Nifty PSU Bank rallied the most, up 2.77 percent on improving NPA resolution along with capital infusion and depressed valuation. Pharma index climbed 1.5 percent while Bank, Auto, Financial Service and Metal indices gained 0.4-0.8 percent.

India VIX fell by 3.68 percent to 15.70 levels. VIX needs to hold below 16 zones to again get a bounce back move in the market else roller coaster ride could continue.

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

Key support and resistance level for Nifty

The Nifty closed at 10,802.20 on January 8. According to Pivot charts, the key support level is placed at 10,750.77, followed by 10,699.33. If the index starts moving upward, key resistance levels to watch out are 10,836.07 and then 10,869.93.

Nifty Bank

The Nifty Bank index closed at 27,509.50, up 204.95 points on January 8. The important Pivot level, which will act as crucial support for the index, is placed at 27,266.8, followed by 27,024.1. On the upside, key resistance levels are placed at 27,647.3, followed by 27,785.1.

Call Options Data

Maximum Call open interest (OI) of 38.61 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,200 strike price, which now holds 34.65 lakh contracts in open interest, and 11,300, which has accumulated 26.84 lakh contracts in open interest.

Meaningful Call writing was seen at 11,100, which added 0.67 lakh contracts.

Call unwinding was seen at 11,000 strike, which shed 1.4 lakh contracts, followed by 11,200 strike which shed 1.29 lakh contracts and 10,900 strike which shed 1.07 lakh contracts.

Image108012019Put Options data

Maximum Put open interest of 39.55 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 34.84 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 23.58 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,700, which added 3.15 lakh contracts, followed by 10,400 strike which added 2.14 lakh contracts and 10,500 strike which added 1.03 lakh contracts.

Put unwinding was seen at the strike of 10,300, which shed 0.35 lakh contracts, followed by 11,000 strike which shed 0.18 lakh contracts.

Image208012019

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 553.78 crore while Domestic Institutional Investors bought Rs 698.17 crore worth of shares in the Indian equity market on January 8, as per provisional data available on the NSE.

Fund Flow Picture

Image808012019

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.

Image308012019

82 stocks saw a long buildup

Image408012019

47 stocks saw short covering

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

Image508012019

52 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.

Image608012019

19 stocks saw long unwinding

Image708012019

Bulk Deals on January 8

CL Educate: ICICI Lombard General Insurance Company Limited sold 76,644 shares of the company at Rs 115 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

India Grid Trust: Board meeting is scheduled on January 15 to consider the unaudited financial statements of the company for quarter ended December 2018.

R&B Denims: Company's official will attend Exchange Connect Events Presents - HEM Securities SME Full Day Investor Conclave 2019 on January 11.

Marg: Board meeting is scheduled on January 11 to consider the allotment of 1,26,99,533 equity shares to non promoters on preferential basis.

Den Networks: Board meeting is scheduled on January 15 to consider the unaudited financial results of the company for the quarter and nine months ended December 2018.

Karnataka Bank: Bank proposes to conduct a Conference Call with investors/analysts on January ll after Q3 results.

R Systems International: Board meeting is scheduled on January 15 to consider the proposal for buyback of equity shares of the company.

Mangalam Organics: Board meeting is scheduled on January 17 to consider the unaudited financial results of the company for the third quarter and nine months ended December 2018.

Kedia Construction: Board meeting is scheduled on January 14 to consider the sub division of equity shares.

Navneet Education: Management of the company will participate in meeting with Fund Manager/Analyst on January 9 to understand business of the company.

L&T Finance Holdings: Company will hold conference call with institutional investor / analyst on January 22 to discuss Q3FY19 financial performance.

Galaxy Surfactants: Officials of the company will be meeting investors and analysts on January 9 in Mumbai.

Sterlite Technologies: Company 'Tech Day' organised by Emkay on January 9 in Gurgaon.

Orient Paper & Industries: Board meeting is scheduled on January 23 to consider the unaudited quarterly financial results of the company for the quarter ended December 2018.

Zensar Technologies: Board meeting is scheduled to be held on January 21 to consider the unaudited (standalone and consolidated) financial results for the quarter and nine months ended December 2018 and a proposal for payment of interim dividend for the financial year 2018-19.

Transcorp International: Board meeting is scheduled on February 2 to consider the unaudited financial results for the quarter and nine months ended December 2018.

Intellect Design Arena: Board meeting is scheduled on January 28 to consider the unaudited financial results of the company for the quarter ended December 2018.

DCB Bank: Board meeting is scheduled on January 16 to consider the unaudited financial results (provisional) for the 3rd quarter and the nine months ended December 2018.

Infosys: Board will consider proposal(s), including but not to limited to, buyback of fully paid-up equity shares of the company, payment of special dividend, for implementation of the Capital Allocation Policy at its meeting to be held on January 11.

TVS Motor Company: Conference call with the analysts / fund houses post results will be held on January 22 to discuss the financial performance of the company for the third quarter ended December 2018.

Eicher Motors: Company's officials will be meeting SBI Life Insurance on January 9.

Godrej Properties: Board meeting is scheduled to be held on January 28 to consider the unaudited financial results of the company for the quarter ended December 2018.

Newgen Software Technologies: Board meeting is scheduled on January 24 to consider the unaudited standalone and consolidated financial results of the company for the quarter ended December 2018.

Century Textiles & Industries: Board meeting is scheduled on January 28 to consider the unaudited standalone financial results of the company for the quarter ended December 2018.

Zee Media Corporation: Board meeting is scheduled on January 24 to consider financial results of the company (on standalone and consolidated operations) for the quarter and nine months ended on December 2018.

NIIT Technologies: Board meeting is scheduled on January 18 to consider the un-audited financial results for the quarter/nine months ended December 2018.

Mahindra & Mahindra: Company's officials will be meeting Briarwood Chase Management on January 10 and Torq Capital on January 11.

Subex: Board meeting is scheduled on January 29 to consider the unaudited financial results (standalone & consolidated) for the quarter/nine-months ended December 2018.

Rallis India: Board meeting is scheduled on January 17 to consider the unaudited financial results of the company for the quarter and nine months ended December 2018.

Stocks in news

Results on Wednesday: IndusInd Bank, Bajaj Corp, Delta Corp

Indian Bank: Board approved raising of capital funds by way of equity including Employees Share Purchase Scheme and / or AT1 and Tier 2 Bonds.

Transgene Biotek: United States of America granted patent on technology for oral delivery of insulin and insulin analogues.

NMDC: The board approved the proposal to buyback of not exceeding 10,20,40,815 equity shares (representing 3.23 percent of the total paid-up share capital) at a price of Rs 98 per equity share. Company fixed record date for buyback of equity shares as January 18.

Tata Steel: Total sales (provisional) in Q3FY19 fall to 6.77 million tonnes versus 7.36 million tonnes YoY.

Oriental Bank of Commerce: Bank sold 0.8425 percent equity stake in NSDL e-Governance Infrastructure out of 3.125 percent equity stake.

Oriental Bank of Commerce: Board approved the proposal for raising capital for an amount upto Rs 5,500 crore through issuance of equity shares to the government on preferential basis.

Kridhan Infra: Singapore Subsidiary Swee Hong wins order worth Rs 167 crore.

PMC Fincorp: Vishnu Bhagwan Aggarwal, Director of the company has tendered his resignation.

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 January 9, Adani Power and Jet Airways is present in this list.
First Published on Jan 8, 2019 08:27 pm
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