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

The Nifty started on a bullish note but failed to hold on to the momentum and closed below its opening level Tuesday making a ‘Bearish Belt Hold’ kind of pattern on daily charts.

The index closed in the green with gains of 2 points but formed a bearish candlestick pattern suggesting momentum seems to be fading. For bulls to take complete control of D-Street, a close above 10,785 is required failing which it could consolidate in a narrow range.

The Nifty opened at 10,757.90 rose marginally to an intraday high of 10,758.55. It slipped towards its crucial 5-days exponential moving average (DEMA) where it took support at 10,691 before bouncing back above 10,700 to close at 10,717.80.

Investors are advised to tread with caution and trade with a trailing stop loss placed below 10,600 levels. A close below this level could extend the selling pressure, suggest experts.

“It appears to be a day of consolidation on the bourses as Nifty moved in a narrow range of around 70 points before signing off the day with a “Bearish Belt Hold kind” of candle formation on candlestick charts as it remained under pressure from the opening tick,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, as market is heading into a major event there is every possibility of slipping into a consolidation range between 10,785 – 10,600 levels. Technically strength shall not resume unless Nifty registers a close above 10785 levels,” he said.

Mohammad further added that only on such a breakout a bigger target towards 10,928 should be expected before the event where as on the downside still 10,600 remains to be a sacrosanct support and breach of which shall enhance selling pressure on markets in the short term.

India VIX moved up by 2.14 percent at 14.05. On the options front, maximum Put OI is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.

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

Key support and resistance level for Nifty

The Nifty closed at 10,717.8 on Tuesday. According to Pivot charts, key support level is placed at 10,685.3, followed by 10,652.8. If the index starts moving upwards, key resistance levels to watch out are 10,754.4 and 10,791.0.

Nifty Bank

The Nifty Bank index closed at 26,090.5. The important Pivot level, which will act as crucial support for the index, is placed at 25,991.33, followed by 25,892.17. On the upside, key resistance levels are placed at 26,152.93, followed by 26,215.37.

Call Options data

In terms of open interest, the 11,000 Call option has seen the most call writing so far at 57.04 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 35 lakh contracts getting added so far. The 10,900 Call option has accumulated 32.37 lakh contracts.

Call writing was seen at the strike price of 11,100, which added 1.21 lakh contracts, followed by 11,200, which added 97,425 contracts.

Meanwhile, Call unwinding was seen at the strike price of 10,900, which shed 1.33 lakh contracts, followed by 10,800, which shed 0.95 lakh contracts, and 10,600, which shed 0.58 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 54.94 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 40.70 lakh contracts so far, and the 10,400 put option, which has now accumulated 38.85 lakh contracts.

Put writing was seen at the strike price of 10,500, which shed 3.15 lakh contracts, followed by 10,700, which added 2.58 lakh contracts and 10,400, which added 1.18 lakh contracts.

Put unwinding was seen at the strike price of 10,900, which shed 1.21 lakh contracts, followed by 11,000, which shed 1 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 97.15 crore, while domestic institutional investors bought shares worth Rs 923.25 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.

52 stocks saw long buildup

42 stocks saw short covering:

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

75 stocks saw short build-up:

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

37 stocks saw long unwinding

Bulk Deals:

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

Eveready Industries India: Amansa Holding Private Ltd. sold 4,18,000 shares at Rs 291.81 per share

PC Jeweller Ltd: Genuine Stock Brokers Pvt Ltd sold 35,32,034 shares at Rs 209.71 per share

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

Sunil Hitech: Moneywise Financial Services Private Ltd sold 34,71,392 shares at Rs 4.70 per share

(For more bulk deals )

Analyst or Board Meet/Briefings:

Tata Communications: The firm will hold an analysts’ meet on May 11, 2018

Greaves Cotton: The company will be meeting multiple investors on May 9 and 10, 2018.

ICICI Prudential Life Insurance: The company will met multiple investors in Paris on May 7, 2018.

IIFL Holdings: The company will be meeting Capital Investment Trust on May 9, 2018.

Stocks in news:

SBI Life: Company posts net profit of Rs 396 crore for FY18 on one-time gain

Bombay Burmah: The Board will meet on May 17, 2018 to discuss financial results and recommend a dividend.

Quess Corp: The firm has completed acquisition of 90 percent equity in Greenpiece Landscapes India.

Lupin Submits New Drug Application For Etanercept Biosimilar In Japan, which is used to treat arthritis and psoriasis.

Dalmia Bharat likely to move Supreme Court in Binani Cement case, CNBC-TV18 reported.

Wockhardt seeks shareholders' nod for raising more capital worth up to Rs 1,500 crore

Sintex: Net profit for Q4 has risen 16 percent to Rs 57.4 crore.

Whirlpool Q4 net up 23% at Rs 91 cr

ABB India Q1 profit rises 14% to Rs 102 cr

Blue Dart Q4 net rises to Rs 34 cr

Mahindra Holidays Q4 net up 21.2% at Rs 38.5 crore

Indostar Capital garners Rs 553 cr from anchor investors

Lupin, its JV submit new drug application for Etanercept biosimilar in Japan

Dewan Housing seeks Sebi's nod to raise up to Rs 15,000-cr via NCDs

6 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 9, 2018 stocks such as Balrampur Chini, DHFL, IRB, Jet Airways, Just Dial and Wockhardt are present in this list.