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

Bulls charged on D-Street from the word go as they helped Nifty to climb 10,550 as well as 10,600 levels on closing basis. The index which made a bullish candle on the daily charts formed a Hammer-like pattern (not exact) on the weekly charts.

The Nifty is now trading above its crucial short-term moving averages and today’s intraday low of 10,524 will be of big importance in the coming week, suggest experts. A break below this level could again put further pressure on the index amid expiry week volatility.

On the upside, the next target for the index is placed at 10,733 levels but bulls will be able to take full control of the index if it surpasses 10,929 which was recorded on May 15, 2018.

The Nifty which opened at 10,533 slipped marginally to hit an intraday low of 10,524. Bulls took control of the index and pushed Nifty above 10,600 to hit an intraday high of 10,628 before closing the day at 10,605, up 91 points.

“It was heartening to see bullish Hammer formation on weekly charts as markets recouped 100 percent of the losses witnessed in the first three sessions of the week with back to back strong bullish candles of last two sessions. This V-shaped recovery on an accelerated path, after hitting a low of 10,417, is raising hopes of a bottom around 10,417 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Though it will be too early to conclude that bottom is in place at recent low, but the same will be confirmed if Nifty get past 10,929 by next 4 sessions which also coincides with current month expiry,” he said.

Mohammad further added that traders are advised to take a cautious stance if Nifty slips below 10,524 levels in next two sessions. On oscillators front, MACD shied away with an uptick from its equilibrium line on daily charts and this kind of behaviour is usually regarded as a strong bullish sign. The current upmove can initially expect to get extended up to 10,733 levels.

India VIX fell down up by 4.46 percent at 12.55 levels. On the options front, the maximum Put OI is intact at 10,500 followed by 10,400 strikes while the maximum Call OI is placed at 10,800 followed by 11,000 strikes.

Meaningful Put writing is placed at 10,600 and 10,500 strikes which could act as a strong support while Call unwinding is seen at immediate strike prices which give room for further upside.

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

Key support and resistance level for Nifty

The Nifty closed at 10,605.2 on Friday. According to Pivot charts, the key support level is placed at 10,543.47, followed by 10,481.73. If the index starts moving upward, key resistance levels to watch out are 10,647.47 and 10,689.73.

Nifty Bank

The Nifty Bank index closed at 26,273.6. The important Pivot level, which will act as crucial support for the index, is placed at 26,094.8, followed by 25,916.0. On the upside, key resistance levels are placed at 26,389.0, followed by 26,504.4.

Call Options data

In terms of open interest, the 10,800 call option has seen the most call writing so far at 52.95 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 11,000 call option, which has seen 40.27 lakh contracts getting written so far. The 10,700 call option has accumulated 33.95 lakh contracts.

Highest Call writing was seen at the strike price of 10,800, which added 3.52 lakh contracts, followed by 10,900, which added 1.86 lakh contracts.

Call unwinding was seen at the strike price of 10,500, which shed 16.61 lakh contracts, followed by 10,700, which shed 11.82 lakh contracts, and 10,400, which shed 4.73 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 67.36 lakh contracts been added till date. This could be a crucial resistance level for the index in April series.

The 10,000 put option comes next, having added 41.24 lakh contracts so far, and the 10,400 put option, which has now accumulated 36.35 lakh contracts.

Put writing was seen at the strike price of 10,600, which added 17.73 lakh contracts, followed by 10,500, which added 12.12 lakh contracts and 10,000, which added over 1 lakh contracts.

Put unwinding was seen at the strike price of 10,400, which shed 5.97 lakh contracts.

FII & DII data:

Foreign institutional investors (FIIs) sold shares worth Rs 768.29 crore, while domestic institutional investors bought shares worth Rs 887.76 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.

90 stocks saw long buildup:

95 stocks saw short covering:

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

10 stocks saw short build-up:

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

12 stocks saw long unwinding

Bulk Deals:

Money Matters FS: Morgan Stanley has sold 16 lakh shares of the firm at Rs 95 per share.

Just Dial: Crossland Trading traded 6.12 lakh shares at Rs 492-493 apiece.

MCX: Crossland Trading exchanged 5 lakh shares at Rs 787.36 per share.

(For more bulk deals )

Analyst or Board Meet/Briefings:

Havells India: The firm will be meeting multiple investors between May 30 and June 7, 2018.

Indiabulls Real Estate: The company met representatives from ULIK Financial Services on May 25, 2018.

Aarti Industries: The company had a meeting with Aberdeen Asset Management Asia, Manulife Asset Management, along with Nalanda Securities and Emkay Global Financial Services.

Stocks in news:

United Breweries: The firm launched AMSTEL Beer in its super premium strong beer category.

IDBI Bank: The Board has initiated divestment of partial stake in IDBI AMC to a strategic investor.

Jindal Saw: Neeraj Kumar reappointed as Group CEO and Wholetime Director of the company.

Tech Mahindra reports Q4 profit, beats estimates at Rs 1,222 crore.

Sun Pharma Q4 profit up 7% YoY at Rs 1,309 crore, beats estimates

Lakshmi Vilas Bank: Net Loss At Rs 622.2 crore against profit of Rs 52.2 crore YoY.

Sun Pharma: Unit Promuis Pharma Filed Lawsuit For Patent Infringement In US Court

Bank of Baroda: Q4 net loss at Rs 3,102 crore on jump in bad loan provisions

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 28, 2018 stocks such as BEML, DHFL, IDBI, Jet Airways, Jain Irrigation, Just Dial, and Reliance Communications are present in this list.