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

Bulls failed to hold momentum after a strong start on Tuesday as Nifty closed with an indecisive candle ‘Doji’ on the daily candlestick charts.

The Nifty took support at its 5-days exponential moving average (DEMA) before bouncing back above its crucial 200-DMA placed at 10,177.

Doji is more of an indecisive pattern where both bulls, as well as bears, fail to regain control. Formation of a Doji after a ‘Long White Day’, a Doji pattern signals nervousness on D-Street and we could see the index turning volatile on the expiry day as well.

The Nifty index witnessed selling pressure near its crucial resistance levels around 10,200 levels. But, nevertheless, it was a strong day on D-Street as market gains for the 2nd day in a row to close at over 1-week high. More than two shares advanced for every share falling on the BSE.

The index which opened at 10,188 rose to an intraday high of 10207 before bears took and control and pushed the index below 10,200. The Nifty hit an intraday low of 10,139 before closing the day at 10,184, up 53 points.

“Albeit Nifty witnessed a strong opening, as bulls failed to capitalise on the same, at the end of the day market registered indecisive formation called Doji which is a cause of a concern. Usually, in normal market conditions this kind of pattern shall lead to short-term weakness if followed by a weak trading session,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, on the intraday basis if it consistently trades below 10139, for atleast one hour, then it may lead to intraday selling pressure whereas a close below 10114 shall strengthen bears once again,” he said.

Mohammad further added that unless a fresh round of short covering is seen on expiry session with a close above 10227 the chances of a strong come back for bulls shall fade away in the near term.

India VIX moved down by 1.10 percent at 15.02. On the options front, maximum Put open interest is placed at 10,000 followed by 10,100 strikes while maximum Call open interest is at 10,200 followed by 10,500 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 10,184.2 on Tuesday. According to Pivot charts, the key support level is placed at 10,146.63, followed by 10,109.07. If the index starts moving upwards, key resistance levels to watch out are 10,214.83 and 10,245.47.

Nifty Bank

The Nifty Bank index closed at 24,434.2 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,301.43, followed by 24,168.67. On the upside, key resistance levels are placed at 24,531.93, followed by 24,629.67.

Call Options data

In terms of open interest, the 10,500 call option has seen the most call writing so far at 46.04 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 10,500 Call option, which has seen 43.84 lakh contracts getting written so far. The 10,400 Call option has accumulated 38.84 lakh contracts.

Call writing was seen at the strike price of 10,200, which added 9.9 lakh contracts, followed by 10,300, which added 4.77 lakh contracts.

Call unwinding seen was seen at the strike price of 10,000, which shed 7.68 lakh contracts, followed by 10,100, which shed 7.57 lakh contracts and 10,500, which shed 4 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,000, in which 48.26 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 40.60 lakh contracts so far, and the 9,900 put option, which has now accumulated 34.10 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,200, with 9.43 lakh contracts being added, followed by 10,100, which added 4.71 lakh contracts.

Put unwinding was seen at a strike price of 10,000, in which 13.12 lakh contracts were shed, followed by 9,900, in which 4.77 lakh contracts were shed. The 9,800 put option saw 3.59 lakh contracts getting shed.

FII & DII data:

Foreign institutional investors (FIIs) bought shares worth Rs 1,063.12 crore, while domestic institutional investors bought shares worth Rs 2,172.91 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.

158 stocks saw long build-up:

3 stocks saw short covering:

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

49 stocks saw short build-up:

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

High rollover percentage:

Bulk Deals:

Bandhan Bank Limited: Nomura India Investment Fund Mother Fund bought 83,34,456 shares at Rs 478.76 per share

Bharat Road Network Ltd: Santosh Industries Ltd. bought 4,55,000 shares at Rs 189.99 per share

Karnataka Bank Limited: JM Financial Capital Limited sold 16,75,000 shares at Rs 119.63 per share

MT Educare Ltd: Rajasthan Global Securities Pvt Ltd. bought 3,02,493 shares at Rs 70.01 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Biocon: SPA Securities met the management in Bengaluru on March 26, while Jupiter Asset Management met the firm on March 27.

Blue Star: Enam Asset Management Company will be meeting the firm on March 28, 2018.

Shriram Transport Finance: Prabhudas Lilladher will be meeting the management on March 28, 2018.

Mahindra Logistics: The company met representatives from Enam Holdings on March 27, 2018.

Eris Lifesciences: IIFL Institutional Equities will be meeting the management of the company on March 28, 2018.

Stocks in news:

Tejas Networks: The company has won an expansion order of Rs 336 crore from BSNL for BharatNet.

Lupin: It has received US FDA nod for generic of Clobex Spray.

SBI: The bank is mulling possibility of merging SBI Card JV entities with itself.

Dena Bank: Gets shareholders' nod for issue of shares worth Rs 3,045 crore to the government.

Maruti Suzuki: According to a Hindu Business Line report, the new Swift has clocked over 1 lakh bookings in 10 weeks.

Ashok Leyland: It will be increasing vehicle prices by at least 2% from April.

Four 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.