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Last Updated : Feb 10, 2019 07:02 PM IST | Source: Moneycontrol.com

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

After the recent selling seen on D-Street, experts advise investors to use the rallies to create short positions unless Nifty recovers and sustains above 11,041 on the upside

Uttaresh Venkateshwaran @UttareshV
 
 
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The Nifty remained in the grip of bears throughout February 8. It closed below its crucial 5-days exponential moving average placed at 10,967 and made a bearish candle after forming a Doji candle that indicated a possible reversal in the trend.

Nifty opened at 11,023 and rose to an intraday high of 11,041, but then bears pushed the index below 11,000 to close at 10,943, down 125 points.

India VIX moved up 0.87 percent at 15.58. VIX needs to hold below 16 to extend Nifty's positive momentum with a hold above 10,985.

The 5-DEMA acted as crucial support for the index soon after it made a bottom around January 29-30. It breached the level on the downside on February 8.

Bank Nifty failed to surpass 27,500 and corrected towards 27,220. It has negated formation of higher lows of the last four sessions and is finding multiple hurdles between 27,500 and 27,750 from five weeks.

After the recent selling seen on D-Street, experts advise investors to use the rallies to create short positions unless Nifty recovers and sustains above 11,041 on the upside.

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

Key support and resistance level for Nifty

The Nifty closed at 10,943.6. According to Pivot charts, the key support level is placed at 10,899, followed by 10,854.4. If the index starts moving upwards, key resistance levels to watch out are 11,014.7 and 11,085.8.

Nifty Bank

The Nifty Bank index closed at 27,294.4. The important Pivot level, which will act as crucial support for the index, is placed at 27,183.03, followed by 27,071.66. On the upside, key resistance levels are placed at 27,443.93, followed by 27,593.46.

Call options data

In terms of open interest, the 11,000 Call option has seen the most call writing so far at 37.30 lakh contracts. This could act as a crucial resistance for the index in the February series.

The second-highest buildup has taken place in the 11,200 Call option, which has seen 27.97 lakh contracts getting added so far. The 11,300 Call option has accumulated 24.09 lakh contracts.

Call writing was seen at the strike price of 11,000, which added 6.73 lakh contracts, followed by 11,200, which added 5.23 lakh contracts, and 11,100 strike price, which added 3.11 lakh contracts.

Meanwhile, Call unwinding was seen at the strike price of 10,800, which shed 1.21 lakh contracts.

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Put options data

Maximum open interest in put options was seen at a strike price of 10,400, in which 31.53 lakh contracts have been added till date. This could be a crucial resistance level for the index in February series.

The 10,400 Put option comes next, having added 31.53 lakh contracts so far, and the 10,700 Put option, which has now accumulated 31.44 lakh contracts. The Put Option of 11,000 added 29.25 lakh contracts.

Put writing was seen at the strike price of 10,600, which added 3.02 lakh contracts.

Put unwinding was seen at the strike price of 11,000, which shed 7.34 lakh contracts, followed by 10,900, which shed 7.21 lakh contracts and 10,500, which shed 6.46 lakh contracts.

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FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 843.73 crore, while domestic institutional investors sold shares worth Rs 960.04 crore in the Indian equity market, as per provisional data available on the NSE.

Fund flow picture

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Stocks with a high delivery percentage

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

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13 stocks saw long buildup

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17 stocks saw short covering

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

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119 stocks saw short build-up:

An increase in open interest along with a decrease in price mostly indicates build-up of short positions.

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52 stocks saw long unwinding

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Bulk Deals

Dewan Housing: Divya Portfolio traded 16.94 lakh shares at Rs 111.57-111.96 apiece.

Jet Airways: Tower Research Capital traded 6.05 lakh shares at Rs 231.5-231.7 apiece.

(For more bulk deals click here)

Analyst or Board Meet/Briefings

Welspun India: Antique Stock Broking will be meeting the company’s representatives on February 11.

Som Distilleries: The company will hold investors call on February 12.

Dwarikesh Sugar: The company met multiple investors on February 8.

Cholamandalam Investment: The company will meet multiple investors between February 11 and March 15.

Stocks in news

Bharti Airtel: Airtel Kenya Signs an agreement with Telkom Kenya to combine operations.

Tata Steel Q3 profit surges 53 percent YoY to Rs 1,751 crore; India biz revenue up 10 percent

RIL says RRVL acquired a further stake of 9.44 percent in Genesis Colors for Rs 45 crore.

Balkrishna Industries Q3

Net Profit down 23.6 percent at Rs 144.7 crore versus Rs 189.5 crore (YoY)

Dr Reddy's: US FDA audit of formulations manufacturing plant-3 at Bachupally, Hyderabad has been completed.

Lupin: US FDA issued 2 observations for Goa unit

6 stocks under ban period on NSE

Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For February 11, stocks such as Adani Enterprises, DHFL, IDBI, Jet Airways, Reliance Capital, Reliance Infra, and Reliance Power are present in this list.
First Published on Feb 10, 2019 07:02 pm
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