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

It was a volatile day for Indian markets despite starting on a positive note. The Nifty index reclaimed 10,200 but profit booking at higher levels pushed the Nifty below 200-DMA for the third consecutive day in a row and made a bearish candle on Thursday.

Broader markets continue to underperform: the S&P BSE Smallcap index closed 1 percent lower while the S&P BSE Midcap index ended 0.7 percent down.

The Nifty50 witnessed profit booking decline soon after it reclaimed 10200. The index has crucial support around 200-DEMA but one thing is clear that the current market structure closely resembles sell on rallies kind of markets.

The index witnessed selling pressure in three out of four days when the index rose above 10,200 levels. Hence, for bulls to regain control, 10,200 is crucial for the bulls, suggest experts.

The Nifty index which opened at 10105 rose to an intraday high of 10207 before bears mauled the D-Street. The index slipped to an intraday low of 10105. The index closed 40 points lower at 10,114.

“It is looking like a day of consolidation on the bourses as Nifty50 moved in a one percent range in both the directions before signing off the day with an indecisive formation a bearish candle which closely resembles a Spinning Top for the second session in a row,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, bears at this juncture, appears to have lost momentum as selling pressure on the downside is remaining tepid as Nifty50 appears to be drawing support from its 200-Day Exponential Moving Average for last 4 trading sessions as it is successfully defending this level,” he said.

Mohammad further added that technical picture on momentum oscillators is slowly tilting in favour of bulls though a stronger confirmation in this regard shall come only on a close above 10200 levels. For any reason, if weakness persists in next session below 10100 levels then it may initially lead to a retest of recent lows

“The intensity of selling pressure shall get accelerated on a close below 10049 levels which may open up more downsides for the index. Hence, at this juncture it looks prudent for traders to remain sidelines and just wait for appropriate clues before initiating the trade,” said Mohammad.

India VIX move up by 0.93% at 15.24. On the options front, maximum Put open interest is placed at 10000 followed by 10100 strikes while maximum Call open interest is at 10500 followed by 10400 and 10200 strikes.

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 10,114.8 on Thursday. According to Pivot charts, the key support level is placed at 10,077.53, followed by 10,040.27. If the index starts moving upwards, key resistance levels to watch out are 10,179.93 and 10,245.07.

Nifty Bank

The Nifty Bank index closed at 24,141.5 on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 24,052.74, followed by 23,963.97. On the upside, key resistance levels are placed at 24,272.34, followed by 24,403.17.

Call Options data

In terms of open interest, the 10,500 call option has seen the most call writing so far at 62.85 lakh contracts. This could act as a crucial resistance level for the index in the March series.

The second-highest buildup has taken place in the 10,400 Call option, which has seen 45.85 lakh contracts getting written so far. The 10,200 Call option has accumulated 45.35 lakh contracts.

During the session, Call writing was most seen at the strike price of 10,200, which saw an addition of 6.67 lakh contracts, followed by 10,100, which added 5.49 lakh contracts, and 10,400, which added 2.42 lakh contracts.

Call unwinding seen was seen at the strike price of 10,700, which shed 2.32 lakh contracts, followed by 10,300, which shed 2.16 lakh contracts and 10,600, which shed 2.02 lakh contracts.

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Put Options data

Maximum open interest in put options was seen at a strike price of 10,000, in which 58.84 lakh contracts been added till date. This will act as a crucial base for the index in the March series.

The 10,100 put option comes next, having added 47.50 lakh contracts so far, and the 10,200 put option, which has now accumulated 30.83 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,100, with 4.52 lakh contracts being added, followed by 9,800, which added 3.3 lakh contracts, and 9,900, which added 2.72 lakh contracts.

Put unwinding was seen at a strike price of 10,600, in which 3.16 lakh contracts were shed, followed by 10,200, in which 1.97 lakh contracts were shed. The 10,300 put option saw 1.85 lakh contracts getting shed.

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FII & DII data:

Foreign institutional investors (FIIs) bought shares worth Rs 161.11 crore, while domestic institutional investors purchased shares worth Rs 409.89 crore in the Indian equity market, 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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17 stocks saw long build-up:

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33 stocks saw short covering:

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

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79 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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82 stocks saw long unwinding:

Long unwinding happens when there is a decrease in OI as well as in price.

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Bulk Deals:

HCC: Shaastra Securities traded over 88 lakh shares at Rs 25.31 apiece.

Jubilant Foodworks: William Blair and Co LLC purchased 3.7 lakh shares at Rs 2260.0 apiece.

Milton Industries: Nadiya Khodidas sold 4.92 lakh shares at Rs 23.55

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Yes Bank: Goldman Sachs AMC met the management on March 21.

Mahanagar Gas: The management will be meeting ICICI Securities on March 26, 2018.

IndusInd Bank: Lloyd George Management met the bank on March 22, 2018.

PSP Projects: ASK Investment Managers will meet the company on March 23, 2018.

ACC: Capital World, Capital Research and FMR will meet the management on March 23, 2018.

Stocks in news:

Allahabad Bank: Bijaya Kumar Sahoo, Sarath Sura and Parthapratim Pal assume office as directors from March 22, 2018.

AIA Engineering: Declares dividend of Rs 8 per equity share in its meeting held on March 22.

Sundaram Fasteners: Suresh Krishna to retire as MD

United Spirits: The firm will consider sub-division of equity shares.

Indraprastha Gas: Announces Reduction In CNG Price In Uttar Pradesh

Idea Cellular: Existing leadership teams to continue to manage their separate businesses.

Union Bank of India: CBI registers a case on a complaint filed by bank against Totem Infra.

Tata Sons: Appoints Tanmoy Chakrabarty as its govt affairs officer

Hero MotoCorp: The firm has hiked stake in Colombian jt venture to 68%

Cox & Kings: The company has sold 11.58% stake in subsidiary

Suven Life: The company got a patent from Norway, S Korea, Singapore

IRB Infra: It has bagged Rs 3,400-cr project in UP, according to Hindu Business Line report.

Mahindra, Ford to jointly develop SUVs, electric vehicle

Infosys invests $1.5 mn in Waterline Data Science

United Spirits board to consider stock split

Seven 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.

Securities which are banned for trading include names such as HDIL, IDBI, IFCI, Jet Airways, Jindal Steel, JP Associates, and Reliance Communications.moneycontrol

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