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

Bulls took control of D-Street from bears and pushed the index firmly above 10,700 levels but failed to close near day’s high on Wednesday. A breakout above 10,785 or a breakdown below 10,600 levels will confirm the next directional move for markets.

The Nifty formed a bullish candle after forming a bearish candle on the daily candlestick charts on Tuesday. Investors are advised to remain neutral on markets and adopt a stock specific approach.

The Nifty which opened at 10,693.35 rose to an intraday high of 10,766.25. It slipped below its 5-DEMA to hit an intraday low of 10,689.85. It finally closed 23.90 points higher at 10,741.70.

“Albeit Nifty’s price action appears to be somewhat positive, its inability to get past its recent corrective swing high of 10784 is clearly suggesting that market is adopting a cautious stance and may remain range bound for a couple of sessions going forward,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

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

Key support and resistance level for Nifty

The Nifty closed at 10,741.7 on Wednesday. According to Pivot charts, key support level is placed at 10,698.93, followed by 10,656.17. If the index starts moving upwards, key resistance levels to watch out are 10,775.33 and 10,808.97.

Nifty Bank

The Nifty Bank index closed at 26,154.4. The important Pivot level, which will act as crucial support for the index, is placed at 25,998.3, followed by 25,842.2. On the upside, key resistance levels are placed at 26,258.5, followed by 26,362.6.

Call Options data

In terms of open interest, the 11,000 Call option has seen the most call writing so far at 53.88 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 33.13 lakh contracts getting added so far. The 10,900 Call option has accumulated 33.10 lakh contracts.

There was hardly any Call writing seen.

Meanwhile, Call unwinding was seen at the strike price of 11,000, which shed 3.16 lakh contracts, followed by 10,800, which shed 1.87 lakh contracts, and 11,200, which shed 1.11 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 57.14 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 43.6 lakh contracts so far, and the 10,400 put option, which has now accumulated 40.11 lakh contracts.

Put writing was seen at the strike price of 10,700, which shed 4.38 lakh contracts, followed by 10,600, which added 2.9 lakh contracts and 10,500, which added 2.19 lakh contracts.

Put unwinding was seen at the strike price of 11,000, which shed 1.53 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 704.03 crore, while domestic institutional investors bought shares worth Rs 664.92 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.

65 stocks saw long buildup

17 stocks saw short covering:

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

112 stocks saw short build-up:

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

15 stocks saw long unwinding

Bulk Deals:

Alok Industries Limited: Catalyst Trusteeship Limited sold 222,85,607 shares at Rs 1.87 per share

PNB Housing: Quality Investment Holdings sold 40,00,000 shares at Rs 1280.41 per share

Shree Renuka Sugars: Khandepar Investments Private Limited sold 204,57,738 shares at Rs 15.50 per share

Ruchi Soya: Disha Foundation sold 20,94,451 shares at Rs 13.04 per share

Sundaram Multi Pap Ltd: LTS Investment Fund Ltd sold 68,50,000 shares at Rs 3 per share

(For more bulk deals )

Analyst or Board Meet/Briefings:

Aarti Industries: The firm will be meeting analysts on May 14, 2018.

JSPL: The firm’s earnings conference call will be held at 11 am on May 10, 2018.

Vardhman Special Steels: Multiple investors met the firm on May 8, 2018.

Mphasis: A meeting of analysts will be held on May 11, 2018.

Aditya Birla Fashion: The firm will have analysts call on May 11, 2018.

Stocks in news:

EID Parry: Company's Q4 net profit down 86.43 percent

Federal Bank: Q4 profit down 44% YoY at Rs 145 cr on jump in provisions, bad loans

Eicher Motors: Flat growth in Q4 net profit at Rs 461.5 crore.

JSPL: Widens net loss to Rs 426.4 crore for the March quarter.

7 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.

For May 10, 2018 stocks such as Balrampur Chini, DHFL, IRB, Jet Airways, Just Dial, PC Jeweller, and Wockhardt are present in this list.