Trade Setup for Friday: Top 15 things to know before Opening Bell
Uttaresh Venkateshwaran and Sandip Das
The bulls failed to remain in control of the market on Thursday amid weak global cues, after the US Federal Reserve raised its fed funds rate by 25 basis points on Wednesday.
The Nifty held on to its crucial support of around 10,800, and made a bearish 'Hammer'-like pattern on the daily chart.
A Hammer, which is a bullish reversal pattern, is formed after a decline, while a Hanging Man is a bearish reversal pattern. A Hammer consists of no upper shadow, a small body, and a long lower shadow.
The long lower shadow of the Hammer signifies that the index tested its support, where demand was located, and then bounced back. The index bounced back near its crucial support of around 10,770.
Investors are advised to remain cautious as a decisive breach of 10,767 on Friday could extend the decline. Resistance is placed at 10,900-10,930, experts said.
The Nifty, which opened at 10,832, rose marginally to hit an intraday high of 10,833.70. It hit an intraday low of 10,773.55 before ending the session at 10,808, down 48 points.
"At this juncture, technical set up is looking somewhat neutral as Nifty recouped most of the intraday losses to register Hammer formation on candlestick charts despite witnessing a Gap down opening," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
"This kind of price action can also be a result of a knee-jerk reaction to the negative global cues which by the end of the day failed to have a bigger negative impact on bourses. Hence, any follow-through buying in next trading session may reinstate the bullish sentiment once again whereas a close below 10,767 in next session shall confirm bearish formation paving the way for bigger correction," he said.
Mohammad added that based on larger trends, as long as Nifty sustains below 10,930, the threat of a big fall continues to loom large. "Hence, it looks inevitable for the bulls to register a breakout above 10,930 levels to usher in a sustainable upmove," he said.
India VIX fell by 4.31 percent to 12.09. The Bank Nifty has been forming small-bodied candles from the last couple of sessions, indicating the absence of follow through on both sides. It has to continue to hold above 26,500 to witness an up move towards 26,750, experts said.
We have collated the top 15 data points to help you spot profitable trades:
Key Nifty support and resistance levels
The Nifty closed at 10,808.0 on Thursday. According to Pivot charts, its key support is placed at 10,776.43, followed by 10,744.87. If the index starts moving upward, key resistance levels to watch out are 10,836.63 and 10,865.27.
The Nifty Bank index closed at 26,562.2. The important Pivot level, which will act as a crucial support for the index, is placed at 26,502.47, followed by 26,442.73. Key resistance levels are placed at 26,622.57, followed by 26,682.93.
Call options data
In terms of open interest, the 11,000 Call Option has seen the most call writing so far, with 41.42 lakh contracts being written. This level could act as a crucial resistance for the index in the June series.
The second-highest buildup was seen in the 10,900 call option, which has seen 35.69 lakh contracts getting written so far. The 10,800 call option has accumulated 31.32 lakh contracts.
Call writing was seen at the strike price of 10,900, which added 5.51 lakh contracts, followed by 10,800, which added 3.7 lakh contracts, and 11,000, which added 2.89 lakh contracts.
The most call unwinding was seen at the strike price of 10,600, which saw 1.19 lakh contracts getting shed, followed by 11,300, which shed over 50,000 contracts.
Put options data
Maximum open interest in put options was seen at the 10,700 strike price, in which 49.55 lakh contracts have been added till date. This level could be a crucial support for the index in the June series.
The 10,600 put option comes next, with 43.34 lakh contracts being added so far, followed by the 10,500 put option, which has now accumulated 36.07 lakh contracts.
There was hardly any put writing seen.
Put unwinding was seen at the strike price of 10,600, which shed 5.43 lakh contracts, followed by 10,200, which shed 4.03 lakh contracts and 10,800, which shed 3.27 lakh contracts.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,372.84 crore, while domestic institutional investors bought shares worth Rs 576.19 crore in the Indian equity market, as per provisional data available on the National Stock Exchange.
Fund flow picture:
Stocks with higher delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means that they are bullish on it.
50 stocks saw long build-up
42 stocks saw short covering:
A decrease in open interest along with an increase in prices is generally indicative of short covering.
81 stocks saw short build-up
An increase in open interest along with a decrease in prices generally indicates a buildup of short positions.
33 stocks saw long unwinding
Gitanjali Gems: J M Global Equities bought 9,00,000 shares at Rs 4.92 per share
Indiabulls Real Estate: Company bought 32,41,225 shares at Rs 172.63 per share
KSK Energy Ventures: Punwani Vinod Hashmatrai sold 31,00,000 shares at Rs 2.70 per share
Sonam Clock: Arcadia Share & Stock Brokers bought 4,38,000 shares at Rs 37.03 per share
(For more bulk deals, click here)
Analyst or board meet/briefings:
Indiabulls Housing Finance: The firm met Bayard AMC on June 14, 2018.
Avenue Supermarts: The management’s representatives met Nomura AMC, HDFC AMC, Axis AMC, and ICICI Prudential AMC.
Axis Bank: Ambit Capital, Investec Capital Services and HSBC Global AMC met the firm’s representatives on June 14, 2018.
Tejas Network: The company will be holding an analysts’ day on June 15, 2018.
IndusInd Bank: The company met multiple investors on June 14, 2018.
Stocks in the news:
Thomas Cook: The firm has granted options under the ESOP scheme 2018.
Punj Lloyd: The firm said that ICICI Bank has filed application before NCL under IBC code.
Blue Star: Company eyes 10 percent market share in water purifier business
Maruti Suzuki: Company stops production of diesel version of Ignis
Lupin: Company gets USFDA approval for generic contraceptive drug
ICICI Bank mulls exercising oversubscription option to sell additional 1.43 crore shares in ICICI Prudential Life.
Wipro: Company awarded air cargo management contract from LATAM cargo and supply chain management contract from Nokia.
Tamil Nadu Newsprint & Papers: Company to expand pulp mill capacity of 400TPD and 1.65L MT of printing and writing paper for Rs 2520 crore.
Transcorp International: Company mulls issuing bonus at 1:4, record date being June 20.
4 stocks under ban period on the NSE
Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For June 15, Balrampur Chini, DHFL, Jet Airways and Just Dial are present in the F&O ban list.