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

The Nifty, which started on a strong note on Friday, failed to hold on to its momentum and quickly pared gains to closed just above its crucial support level of 10,600. For the week, the index ended 0.7 percent lower.

The index was largely dominated by the bears and closed near its intraday low, making a ‘Bearish Belt Hold’ kind of pattern on the daily charts. On the weekly charts, the Nifty formed a bearish candle after closing in the green for the past five weeks.

The Nifty, after breaking below 10,650, got some support at its 13-day exponential moving average (DEMA) to close at 10,618, down 61.40 points. The index opened at 10,700.45, which was also the intraday high. The bears pushed it to an intraday low of 10,601.60, which was within touching distance of its crucial support placed around 10,600.

Investors are advised to stay cautious as the weekly chart pattern suggests a pause in momentum, at least for the time being. A firm close below 10,600 could fuel selling pressure in the Nifty, while a close above 10,700 could put the bulls back in charge, experts suggested.

"The Nifty50 registered a Bearish Belt Hold formation to sign off the last session of the week suggesting pressure on the market from the word go. However, on the weekly charts the bearish candle, when read with positive close of preceding week, resembles a Dark Cloud Cover kind of bearish pattern which shall have negative repercussions going forward which will be confirmed if Nifty50 closes below 10,600 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

"As the technical picture on the short-term charts is slowly tilting in favour of bears traders are advised to remain cautious as we enter into the news-driven week in the form of State election," he said.

Mohammad added that unless the Nifty registers a strong close above 10,700, the bulls will continue to remain under pressure as the bears try to tighten their grip on the markets once again.

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

Key support and resistance level for Nifty

The Nifty closed at 10,618.30 on Friday. According to Pivot charts, the key support level is placed at 10,579.70, followed by 10,541.20. If the index starts moving upward, key resistance levels to watch out are 10,678.60, followed by 10,739.

Nifty Bank

The Nifty Bank index closed at 25,645.40, up 0.16 percent, on Friday. The important Pivot level, which will act as a crucial support for the index, is placed at 25,561.93, followed by 25,478.46. On the upside, key resistance levels are placed at 25,704.63, followed by 25,763.87.

Call Options data

In terms of open interest, the 11,000 call option has seen the most call writing so far at 57.92 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 38.04 lakh contracts getting added so far. The 10,900 call option has accumulated 33.33 lakh contracts.

Call writing was seen at the strike price of 10,700, which added 3.6 lakh contracts, followed by 10,900, which added 1.43 lakh contracts and 11,200, which added 1.32 lakh contracts.

Call unwinding was seen at the strike price of 11,000, which shed over 1.79 lakh contracts, followed by 10,000, which shed 0.61 lakh contracts, and 11,100, which shed 0.38 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 48.08 lakh contracts been added till date. This could be a crucial resistance level for the index in May series.

The 10,400 put option comes next, having added 41.03 lakh contracts so far, and the 10,600 put option, which has now accumulated 34.24 lakh contracts.

Put writing was seen at the strike price of 10,400, which added 6.82 lakh contracts, followed by 10,500, which added 3.05 lakh contracts and 10,300, which added 2.38 lakh contracts.

Put unwinding was seen at the strike price of 10,000, which shed 2.31 lakh contracts, followed by 10,700, which shed 1.87 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 1,628.23 crore, while domestic institutional investors bought shares worth Rs 1,084.09 crore in the Indian equity market on Friday, 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

25 stocks saw short covering:

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

99 stocks saw short build-up:

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:

Gitanjali Gems: Morgan Stanley France SAS sold 6,67,164 shares at Rs 2.8 per share while J M Global Equities Private Limited bought 7,00,000 shares at Rs 2.86 per share

NIIT Technologies: N.K. Securities bought 3,39,815 shares at Rs 1045.8 per share while Way2wealth Securities P Ltd sold 6,22,653 shares at Rs 1028.36 per share

PC Jeweller: Way2wealth Securities P Ltd bought 23,24,599 shares at Rs 150.25 per share while Vaibhav Stock & Derivatives Broking Pvt. Ltd bought 78,45,565 shares at Rs 153.55 per share. Also, Shaastra Securities Trading Private Limited bought 51,13,746 shares at Rs 148.26 per share.

Ruchi Soya: Padmavati Investment bought 50,37,651 shares at Rs 13 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

PC Jeweller: Board Meeting to be held on May 10, 2018 to consider the proposal for buy back of fully paid-up equity shares of the company.

Oriental Bank of Commerce: The Board meeting to consider and approve the audited financial results of the bank has been rescheduled to May 12, 2018.

Stocks in news:

Wockhardt Q4: Loss at Rs 154 crore versus loss of Rs 174 crore; revenue up 17.6 percent at Rs 1,018 crore versus Rs 865.5 crore (YoY).

R Systems International Q4: Profit falls to Rs 3.85 crore from Rs 7.32 crore, revenue from operations decliend marginally to Rs 152.2 crore from Rs 155.5 crore (YoY).

Avenue Supermarts: Q4FY18 standalone net profit rises 72.86 percent YoY to Rs 167.10 crore

Voith Paper Fabrics India Q4: Profit dips to Rs 4.5 crore versus Rs 5.2 crore; revenue from operations falls to Rs 23.8 crore from Rs 24.5 crore (YoY).

SQS India BFSI Q4: Profit after tax rises to Rs 10.4 crore from Rs 5.5 crore, aided by a forex gain of Rs 2.9 crore; operating revenue jumps to Rs 75.6 crore versus Rs 70.4 crore (YoY).

Teesta Agro Industries Q4: Profit falls to Rs 5 lakh from Rs 38 lakh; revenue from operations jumps to Rs 23.66 crore from Rs 14.70 crore (YoY).

BASF India Q4: Profit jumps to Rs 66 crore versus Rs 42.55 crore; revenue from operations slips to Rs 1,343.56 crore versus Rs 1,392.62 crore (YoY).

Indo Count Industries Q4: Profit dips to Rs 26.79 crore versus Rs 48.80 crore; revenue from operations falls to Rs 405.94 crore versus Rs 467.51 crore (YoY).

Nitta Gelatin India Q4: Profit jumps to Rs 5.48 crore versus Rs 4.01 crore; revenue from operations rises to Rs 88.64 crore versus Rs 78.39 crore (YoY).

Great Eastern Shipping Q4: Loss widens to Rs 418.2 crore versus Rs 34.16 crore; revenue from operations increases to Rs 768.90 crore versus Rs 746.52 crore (YoY).

LS Industries Q4: Net profit at Rs 26.14 lakh versus loss of Rs 9.18 lakh; revenue from operations jumps to Rs 4.2 crore from Rs 1.9 crore (YoY).

Triton Valves Q4: Profit falls to Rs 1.23 crore versus Rs 2.48 crore; revenue from operations increases to Rs 54.9 crore versus Rs 48.7 crore (YoY).

Nocil Q4: Profit rises to Rs 50.95 crore versus Rs 20.91 crore; revenue from operations jumps to Rs 275.87 crore versus Rs 209.78 crore (YoY).

Indbank Merchant Banking Services Q4: Loss at Rs 2.5 crore versus profit at Rs 1.07 crore; revenue from operations rises to Rs 2.7 crore versus Rs 2.35 crore (YoY).

Lloyds Steels Industries Q4: Profit jumps to Rs 99.84 crore from Rs 12.03 crore; revenue from operations rises to Rs 63.4 crore versus Rs 39.4 crore (YoY).

Elecon Engineering Q4: Profit rises to Rs 53.38 crore versus Rs 30.04 crore; revenue from operations falls to Rs 437.14 crore from Rs 446.64 crore (YoY).

Kaya Q4: Loss at Rs 7.8 crore versus loss of Rs 4.52 crore; revenue from operations dips to Rs 97.38 crore versus Rs 114.4 crore (YoY).

Fortis Healthcare: Appointed Arpwood Capital Private Limited as financial advisor to the board of directors of the company to provide its independent opinion on (a) the offers received or to be received from bidders for a potential significant equity investment and/or acquisition or restructuring of its assets, and (b) on the appropriateness of the process put into place for dealing with the said offers.

Indiabulls Ventures: To capitalise and fund IVL Finance Limited and Indiabulls Asset Reconstruction Company, subsidiaries of the company, for meeting their business requirements and to support the future growth of their businesses and to further augment the long-term financial resources of the company, Indiabulls Ventures' board of directors approved the preferential offer and issue of upto 4,58,39,888 equity shares at an issue price of Rs 450 per share, for cash consideration aggregating to approximately Rs 2,063 crore, to certain foreign investors.

Thomas Cook India: CRISIL revised its outlook of the credit rating assigned to long-term instruments of the company amounting to Rs 200 crore.

Larsen & Toubro: Subsidiary company, L&T Infrastructure Development Projects (L&TIDPL) transferred its stake in five subsidiary companies to Indinfravit Trust through the infrastructure investment trust (InvIT) route on May 4, 2018. Accordingly, these companies cease to be subsidiary companies of the company.

Bank of Baroda: Keeps marginal cost of funds based lending rate (MCLR) at existing level across the tenors.

Cadila Healthcare: Zydus receives final approval for Succinylcholine Chloride injection USP and tentative approval for Plerixafor injection from the USFDA.

Smartlink Holdings: Board of directors of Smartlink Holdings Limited (formerly known as Smartlink Network Systems) has approved the buyback of 56 lakh equity shares of Rs 2 at a price of Rs 120 per share under tender offer route.

Bodal Chemicals: Company had started the process for acquisition of land aggregating to about 4.82 lakh square metres from the Gujarat Industrial Development Corporation (GIDC) authority, Ankleshwar for future expansion and new projects.

Punjab National Bank: Hiroo Mirchandani, Director under shareholder category, ceased to be director on the board of the bank on completion of her tenure.

PNC Infratech: CARE has assigned credit rating on the long term bank facilities of subsidiary, PNC Khajuraho Highways Private Limited to A-; stable.

Benares Hotels: Ashwani Anand has resigned as the chief executive officer (CEO) of the company.

Pankaj Polymers: Board of directors approved sale of assets of the company located at Nagpur Unit.

Manomay Tex India: Commercial production at Denim Plant situated at Gangrar (Raj) successfully commenced.

Otco International: To consider splitting up of face value of equity shares of the company from of Rs 10 each.

A Infrastructure: Board has given consent for execution of a memorandum of understanding (MOU) for purchase of land, building and plant & machinery used for distillery owned by J R Organics Limited for Rs 28.50 crore.

James Hotels: Committee of Creditors decided that in the absence of any viable resolution plan, the company will be liquidated in terms ofthe provisions ofthe Insolvency and Bankruptcy Code.

5 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.