Trade Setup for Tuesday: Top 15 things to do before Opening Bell

The Nifty started off with a positive bias and built momentum in the second half of the trading session to take the index beyond 10350. The index formed a bullish candle on the daily charts and the Supertrend Indicator gave a buy signal suggesting strength in the market has returned.

As the name suggests, 'Supertrend' is a trend following indicator just like Moving Averages and MACD (Moving Average Convergence Divergence). It is easy to use and give an accurate reading of the current trend.

The buying and selling signals are generated when the indicator starts plotting either on top of closing price or below closing price. On Monday, the price went past the Supertrend indicator line placed around 10,366 which triggered a buy signal on the daily charts.

Both MACD and Supetrend Indicator have given a buy call which suggests strength in the momentum. The index is now trading above its key short and long-term moving averages.

The index opened at 10,333 and rose to an intraday high of 10397. It slipped marginally to hit an intraday low of 10,328 before closing the day at 10,379, up 47 points.

Investors are advised to stay long on the index with a stop loss below 10290 which was the closing of 6 April. Below that strong support is placed around 10200 levels. Fresh momentum on the index can take Nifty towards 10,452 levels, suggest experts.

“Albeit market witnessed somewhat sluggish session, bulls appears to have made up their mind to head to much higher levels as they slowly but steadily inched upwards before signing off the day with a bullish candle formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“In this process, they also cleared an initial hurdle by conquering 50-Day EMA whose value is placed around 10350 levels. Interestingly, after crossing this hurdle on the intraday basis there appeared to be a tug of war between bulls and bears in the zone of 10360 – 390 levels as most of the trading session remained range bound in this zone before a close at 10379 levels,” he said.

Mohammad further added that this rally can be expected to extend itself initially up to 10452 levels and a decisive close above this hurdle shall strengthen the chances of an intermediate trend reversal in favour of bulls. Traders are advised to remain long with a stop below 10350 levels on closing basis.

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 10,379.3 on Monday. According to Pivot charts, the key support level is placed at 10,339.3, followed by 10,299.3. If the index starts moving upwards, key resistance levels to watch out are 10,408.5 and 10,437.7.

Nifty Bank

The Nifty Bank index closed at 25,093.8 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,896.93, followed by 24,700.07. On the upside, key resistance levels are placed at 25,221.73, followed by 25,349.67.

Call Options data

In terms of open interest, the 10,500 call option has seen the most call writing so far at 40.96 lakh contracts. This could act as a crucial resistance level for the index in the April series.

The second-highest buildup has taken place in the 10,700 Call option, which has seen 36.92 lakh contracts getting written so far. The 10,300 Call option has accumulated 32.07 lakh contracts.

Call writing was seen at the strike price of 10,700, which added 3.92 lakh contracts, followed by 10,500, which added 3.66 lakh contracts, and 10,600, which added 2.8 lakh contracts.

Call unwinding was seen at the strike price of 10,300, which shed 2.28 lakh contracts, followed by 10,200, which shed 1.18 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,000, in which 47.08 lakh contracts been added till date. This could be a crucial resistance level for the index in April series.

The 10,200 put option comes next, having added 36.56 lakh contracts so far, and the 10,300 put option, which has now accumulated 32.58 lakh contracts.

During the session, put writing was seen the most at a strike price of 10,300, with 3.86 lakh contracts being added, followed by 10,400, which added 3.28 lakh contracts and 10,100 with 1.96 lakh contracts.

Put unwinding was seen at a strike price of 10,000, in which 2.16 lakh contracts were shed, followed by 9,800, which shed 2.01 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 1,300.93 crore, while domestic institutional investors bought shares worth Rs 359.35 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.

66 stocks saw long buildup

40 stocks saw short covering:

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

67 stocks saw short build-up:

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

38 stocks saw long unwinding

Bulk Deals:

IRB Infrastructure Developers: Ascension Health Master Pension Trust bought 18,62,647 shares at Rs 243 per share

Lemon Tree Hotels Ltd: DB International Asia sold 44,62,331 shares at Rs 62.07 per share while Mirae Asset Asia Sector Leader Equity Fund bought 51,54,716 shares at Rs 65.61 per share.

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Ramco Cements: An investors’ meet is scheduled for the firm between 11 and 13 April, 2018 in Singapore and Hong Kong.

Stocks in news:

Axis Bank: Shikha Sharma asks Board to reconsider period of her re-appointment as Bank Head. Board has accepted Shikha Sharma's request pending approval from RBI.

Wipro: Telecom client in India filed petition to initiate CIRP with NCLT. Company likely to see negative impact of 65-75 bps on net income level

ICICI Bank: Fitch has said that allegations pose reputational risks and will take appropriate action if risks to reputation and financial profile rise.

IDFC Bank: The lender has cut MCLR across all tenors by 5bps effective April 8.

Indian Bank: Has raised MCLR Across All Tenors By 10-15bps

Unitech: It has submitted a List Of Assets As Directed By SC

SpiceJet: The airline said that it is not considering partnership with foreign airline to bid for Air India.

1 stock 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.