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

Finally! Some green on D-Street but the Nifty failed to close above its crucial 200-days exponential moving average placed around 10,163 on Tuesday. The index formed a bullish candle on the daily close above 10,100 but below its 200-DEMA placed around 10,163.

After falling for five consecutive sessions, the Indian market witnessed some bit of value buying along with short coverings at lower levels. However, the way Nifty corrected from its intraday high, shows the pain may not be over for markets but a pullback rally might be on the cards.

For bulls to remain in control, Nifty has to cross 10,141 levels and then 10,163 which is the crucial 200-DEMA in the next few trading sessions. If the index manages to hold above these levels then a rally could stretch towards 10,276 levels.

The Nifty50 opened at 10,051 and rose to an intraday high of 10,155. It slipped to an intraday low of 10,049 before closing the day 30 points higher at 10,124.

“Bulls appear to have made a genuine attempt to pull back from the intraday low of 10049 levels which is close to critical support zone of 10040 – 9980 levels and went on to sign off the day with an opening Marubozu kind of technical formation in which opening and low point of the day are same,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Besides, momentum oscillators are not making new swing low along with new swing low made by Nifty50 which facilitated a positive divergence on daily RSI chart after Tuesday’s positive close,” he said.

Technical chartists suggest that as Bank Nifty also refrained from making new swing low along with Nifty50 there can be a higher possibility of it registering a double bottom around 24000 kinds of levels.

“Even if Nifty Bank breaches 24000 level then also downsides for this index appears to be limited as critical support on long-term charts is placed in the zone of 23900 – 800 levels where we expect it to bottom out. Hence, based on this technical evidence traders should not be surprised if Nifty50 stages a pullback rally from current levels,” said Mohammad.

India VIX fell down by 1.34 percent at 15.60. A pause in the upswing of volatility has given some stability to market but VIX has to decline below 13.50 to see the change in market trend, suggest experts.

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 10124.3 on Tuesday. According to Pivot charts, the key support level is placed at 10,063.7, followed by 10,003.1. If the index starts moving upwards, key resistance levels to watch out are 10,170.3 and 10,216.3.

Nifty Bank

The Nifty Bank index closed at 24,168.2 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,048.83, followed by 23,929.47. On the upside, key resistance levels are placed at 24,321.63, followed by 24,475.06.

Call Options data

In terms of open interest, the 10,500 call option has seen the most call writing so far at 64.70 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 50.73 lakh contracts getting written so far. The 10,300 Call option has accumulated 42.69 lakh contracts.

During the session, Call writing was most seen at the strike price of 10,100, which saw an addition of 6.84 lakh contracts, followed by 10,300, in which 2.6 lakh contracts were added, and 10,200, in which 1.34 lakh contracts were added.

Call unwinding seen was seen at the strike price of 10,400, which shed 4.86 lakh contracts, followed by 10,700, which shed 2.07 lakh contracts and 10,500, which shed 1.3 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,000, in which 68.16 lakh contracts have 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 49.07 lakh contracts so far, and the 10,200 put option, which has now accumulated 28.14 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,100, with 6.67 lakh contracts being added, followed by 10,000, which added 5.19 lakh contracts, and 9,900, which added 2.89 lakh contracts.

Put unwinding was seen at a strike price of 10,300, in which 2.43 lakh contracts were shed, followed by 10,400, in which 1.49 lakh contracts were shed. The 10,200 put option saw 1.42 lakh contracts getting shed.

FII & DII data:

Foreign institutional investors (FIIs) bought shares worth Rs 344.16 crore, while domestic institutional investors purchased shares worth Rs 731.17 crore in the Indian equity market, as per provisional data available on the NSE.

Fund flow picture:

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.

97 stocks saw long build-up:

47 stocks saw short covering:

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

58 stocks saw short build-up:

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

48 stocks saw long unwinding:

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

Bulk Deals:

Jindal Cotex Ltd: Buddhisagar Shares and Services Private Limited bought 4,50,000 shares at Rs 7.10 per share

Milton Industries Limited: Corporate Capital Ventures Private Limited bought 2,00,000 shares at Rs 24.40 per share

Shyam Century Ferrous Ltd: Shyam Sel & Power Limited sold 87,63,260 shares at Rs 9.80 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Ambuja Cement: L&T Mutual Fund met the management of the firm on March 20, 2018.

BKT: The company is meeting investors at its Bhuj plant in Gujarat on March 21, 2018

Bank of India: The bank has met representatives of Tata AMC on March 20, 2018.

Tata Steel: HSBC Global Research will meet the management of the firm on March 21, 2018.

Stocks in news:

MOIL: Sunil Porwal has been appointed as the government nominee director on the firm’s Board.

Equitas: The firm will allot 1,59,798 shares at Rs 10 each under ESOP scheme.

Sterlite Power: The firm has acquired Rs 1,500 crore Goa-Tamnar project.

UltraTech Cement: According to a PTI report, the company may get support from Binani creditors.

Ashok Leyland: The company will be supplying 50 e-buses for Ahmedabad’s BRT corridor, according to a report in The Hindu BusinessLine.

Larsen & Toubro: The company is set to win EPC contract for new dry dock in Kochi, The Hindu BusinessLine reported.

Eight 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.