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

Bears gained control over D-Street right at the onset and pushed the Nifty50 below its crucial psychological support level of 10,700 on Thursday making a bearish candle on the daily candlestick charts.

The Nifty50 closed tad below its crucial support placed at 10,680 which is also its 5-day exponential moving average (DEMA). The index opened at 10,720 and slipped to an intraday low of 10,647.45 to close 38 points lower at 10,679.

Formation of a bearish candle after a Bearish Belt Hold does not augur well for the bulls but as long as Nifty trades above 10,600 levels, bulls have nothing to fear, suggest experts. Investors can keep a stop below this level (10,600) for all the long positions.

“It was heartening to see Nifty50 registering a bearish candle which is similar to a Hammer kind of formation as it recoiled after testing the gap zone of 10,647 – 10,628 levels registered on the 27th of April,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“This bounce is a vindication of the fact that the uptrend is still intact and as long as Nifty50 sustains above 10600 levels on the closing basis one can look for much higher targets placed towards 10900 levels. However, in between recent high of 10,784 can act as a resistance and once that is conquered on closing basis momentum in the index shall pick up in no time,” he said.

It looks prudent for the traders to make use of the dips to create fresh longs with a stop below 10,600 on a closing basis, he added.

We have collated top 15 data points to help you spot profitable trade:-

Key support and resistance level for Nifty

The Nifty closed at 10,679.70 on Thursday. According to Pivot charts, the key support level is placed at 10,644.6, followed by 10,609.5. If the index starts moving upwards, key resistance levels to watch out are 10,717.7 and 10,755.7.

Nifty Bank

The Nifty Bank index closed at 25,605.25, up 0.14 percent. The important Pivot level, which will act as crucial support for the index, is placed at 25,498.4, followed by 25,391.6. On the upside, key resistance levels are placed at 25,682.7, followed by 25,760.2.

Call Options data

In terms of open interest, the 11,000, call option has seen the most call writing so far at 59.71 lakh contracts. This could act as a crucial resistance level for the index in the May series.

The second-highest buildup has taken place in the 10,800 call option, which has seen 36.98 lakh contracts getting added so far. The 10,900 call option has accumulated 31.90 lakh contracts.

Call writing was seen at the strike price of 10,900, which added 4.23 lakh contracts, followed by 10,800, which added 2.74 lakh contracts and 11,100, which added 1.53 lakh contracts.

Call unwinding was seen at the strike price of 10,600, which shed over 0.774 lakh contracts, followed by 10,500, which shed 0.77 lakh contracts, and 11,000, which shed 0.63 contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 45.03 lakh contracts been added till date. This could be a crucial resistance level for the index in May series.

The 10,600 put option comes next, having added 34.56 lakh contracts so far, and the 10,400 put option, which has now accumulated 34.21 lakh contracts.

Put writing was seen at the strike price of 10,400, which added 2.1 lakh contracts, followed by 10,600, which added 1.31 lakh contracts and 10,300, which added 1.029 lakh contracts.

Put unwinding was seen at the strike price of 10,500, which shed 0.66 lakh contracts, followed by 10,700, which shed 0.54 contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 148.42 crore, while domestic institutional investors offloaded shares worth Rs 578.92 crore in the Indian equity market on Thursday, 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.

31 stocks saw long buildup

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

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

54 stocks saw long unwinding

Bulk Deals:

Bartronics India Limited: BP Fintrade Private Limited bought 2,20,967 shares at Rs 14.95 per share

Fortis Healthcare Limited: UBS Principal Capital Asia Limited sold 282,31,975 shares at Rs 157 per share while York Asian Strategic Metric Master L.P bought 157,70,492 shares at Rs 157 per share

PC Jeweller Ltd: Alphagrep Commodities Private Limited sold 73,77,741 shares at Rs 108.47 per share and Vaibhav Stock & Derivatives Broking sold 80,10,569 shares at Rs 112.72 per share

Sumeet Ind Limited: Niraj Laherchand Modi bought 10,00,000 shares at Rs 15.55 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

Aarti Industries Ltd: A meeting is scheduled to be held on May 11, 2018 to consider, approve and take on record audited financial results for the quarter and year ended March 31, 2018.

Himachal Futuristic Communication: A meeting held on May 3, 2018, decided that the company will submit the quarterly/year to date standalone financial result of the company for financial year 2018-19.

Stocks in news:

Hexaware Tech: The company has declared payment of interimdividend at Re 1 per share on equity shares of Rs 2 each. The record date for interim dividend is fixed as May 15, 2018 to ascertain the number of shareholders of the Company entitled for the payment of interim dividend.

PNB Housing Finance: Q4 consolidated net profit up 0.8 percent at Rs 219.2 cr; revenue up 9.1 percent at Rs 1,570 cr YoY

L&T Finance Holdings: Q4 profit up 30 percent at Rs 409 cr; revenue up 27 percent at Rs 2,748.34 crore YoY; gross NPA at 4.80 percent versus 5.49 percent and net NPA at 2.34 percent versus 2.87 percent QoQ

Vedanta: Q4 net profit up 34.3 percent at Rs 5,675 crore; revenue up 22.7 percent at Rs 27,630 crore YoY

Thirumalai Chemicals: Q4 consolidated net profit at Rs 39.7 crore versus Rs 19.1 crore; revenue up 7.9 percent at Rs 330.7 crore versus Rs 306.6 crore YoY; recommends stock split from Rs 10 to Re 1 and dividend of Rs 20 per share

Nucleus Software: Q4 net profit down 15.2 percent at Rs 17.3 crore; revenue up 10.3 percent at Rs 111 crore YoY

Trent: Q4 net profit down 53.8 percent at Rs 11.7 crore; revenue up 17.9 percent at Rs 528.7 crore YoY

Matrimony.com: Q4 net profit up 90.9 percent at Rs 16.8 crore; revenue up 84.4 percent at Rs 84.4 crore YoY

HCC: Q4 consolidated loss at Rs 1,090 crore versus loss of Rs 982.6 crore; revenue up 2.7 percent at Rs 10,132 crore YoY

Emami: Q4 consolidated net profit down at Rs 60.9 crore versus Rs 83.3 crore; revenue up 8.2 percent at Rs 617 crore YoY; board approves bonus issue of 1:1

Adani Ports: Q4 net profit down 20.6 percent at Rs 926.8 crore; revenue up 42.6 percent at Rs 3,182.9 crore YoY

JSW Energy: Q4 consolidated net loss at Rs 480 crore versus profit of Rs 24.8 crore; revenue down 4.7 percent at Rs 1,775 crore versus Rs 1,862 crore YoY

Lanco Infratech: Bankers reject resolution application by Thriveni Earthmovers to acquire company

Peninsula Land: Company has further entered into agreements for acquiring indirect control over the special purpose vehicles (SPVs) namely - Goodhome Realty Limited (GRL), Rockfirst Real Estate Limited (RREL), RR Mega City Builders Limited (RRMCBL) and Truewin Realty Limited (TRL), through investment in the units of PReF Indigo Scheme floated by Peninsula Realty Fund (PRF).

Fortis Healthcare: Meeting of the board of directors to consider and decide on various bids/proposals received by the company w.r.t. the ongoing fund raising, re-structuring, etc. and such related activities on May 10

J Kumar Infra: Bags order worth Rs 445 crore for the Pune Metro Rail Project

Force Motors: April domestic sales 1,804 units, exports 20 units, production 1,876 units

VST Tillers: April sales of power tillers at 668 units versus 1,163 units, tractors at 350 units versus 801 units YoY

Minal Industries: Approves appointment of Chief Financial Officer Harshala Karangutkar

Aditya Birla Capital: Board of directors to consider fund raising options on May 8, 2018

Oscar Investments: The company has withdrawn the petition for amalgamation of Healthfore Technologies Limited with itself.

4 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.