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

The Nifty picked up pace in the last one hour of trading session to reclaim 10,700 levels on Thursday which made a strong bullish candle on the daily candlestick charts. Traders are advised to remain long on the index and trade with a stop below 10,600.

The index managed to register a breakout above 10,700 levels but Nifty rollovers stood at 58 percent which was slightly below 72 percent recorded in April expiry and was lower than the 3-month average of 67.3 percent.

Analysts advise investors to remain cautious because despite witnessing a breakout the broader market closed in red, and the advance-decline ratio was also largely skewed in favour of bears. Follow up buying is required for an index to sustain momentum.

The Nifty which opened at 10,670.15 slipped marginally to 10,620.40 before bulls took control of D-Street. The index hit an intraday high of 10,763.80 before closing the day 121.80 points higher at 10,736.15.

“Albeit Nifty registered a breakout above 10,717 levels, it appears to be a move which is mostly propelled by expiry related factors. Hence, a follow-through buying in the next session is required to confirm real upward strength in Nifty as the advance-decline ratio was also largely skewed in favour of bears with almost 2 stocks declining for single stock which closed in positive terrain,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

“In case the strength continues, the next logical target for Nifty can be around 10,826 levels. In between, 10,777 may act as a supply point but if there is inherent strength present in the current move then eventually this hurdle should be cleared without any difficulty,” he said.

Mohammad further added that on the downside, if Nifty slips below 10,620 levels, then once again short term trend shall turn sideways to negative. Hence, traders are advised to place a stop of 10,600 and remain on the long side of the trade.

The Nifty future closed with the gains of 1.11 percent at 10,736 while Bank Nifty closed with the gains of 7.78 percent in the entire May series. Options data is scattered at all the immediate strikes being the beginning of June Series.

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

Key support and resistance level for Nifty

The Nifty closed at 10,736.2 on Thursday. According to Pivot charts, the key support level is placed at 10,649.8, followed by 10,563.4. If the index starts moving upward, key resistance levels to watch out are 10,793.2 and 10,850.2.

Nifty Bank

The Nifty Bank index closed at 26,956.2. The important Pivot level, which will act as crucial support for the index, is placed at 26,485.67, followed by 26,015.13. On the upside, key resistance levels are placed at 27,295.67, followed by 27,635.13.

Call Options data

In terms of open interest, the 10,800 Call option has seen the most call writing so far at 47.57 lakh contracts.

The second-highest buildup has taken place in the 11,000 call option, which has seen 27.87 lakh contracts getting written so far. The 10,900 call option has accumulated 17.96 lakh contracts.

There was hardly any Call writing seen.

Call unwinding was seen at the strike price of 10,700, which shed 30.81 lakh contracts, followed by 10,600, which shed 22.07 lakh contracts, and 10,500, which shed 5.22 lakh contracts.

Put Options data

Maximum open interest in put options was seen at a strike price of 10,500, in which 59.30 lakh contracts have been added till date.

The 10,600 put option comes next, having added 46.93 lakh contracts so far, and the 10,300 put option, which has now accumulated 27.63 lakh contracts.

Put writing was seen at the strike price of 10,600, which added 15.33 lakh contracts, followed by 10,700, which added 8.15 lakh contracts and 10,500, which added 1.38 lakh contracts.

Put unwinding was seen at the strike price of 10,800, which shed 2.97 lakh contracts and 10,300, which shed 2.50 lakh contracts along with 10,400, which shed 2.25 lakh contracts.

FII & DII data:

Foreign Institutional Investors (FIIs) sold shares worth Rs 15.31 crore, while domestic institutional investors bought shares worth Rs 266.02 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.

Stocks with highest rollovers:

86 stock saw short covering:

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

5 stocks saw short build-up:

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

120 stocks saw long unwinding:

Bulk Deals:

Career Point: Bhatia Suresh HUF sold 157,000 shares at Rs 108.3 per share

KSK Energy Ventures: BP Fintrade bought 2,637,207 shares at Rs 3.26 per share

(For more bulk deals click here)

Analyst or Board Meet/Briefings:

TVS Motor: Multiple fund houses will be meeting representatives of the firm on June 5, 2018.

Manappuram Finance: The company has meetings with two investors on June 1, 2018.

Mahanagar Gas: Paradice Investment Management and HDFC MF will meet the firm’s management on June 4 and 12, 2018.

Capacite Infraprojects: Sundaram Mutual Fund and Unilazer Ventures will have a meeting on June 1, 2018.

Stocks in news:

NCC: The firm has bagged a package of 3 Mumbai-Nagpur expressway contracts

Idea Cellular: It has completed sale of standalone tower business to ATC Telecom Infra

Fortis Healthcare: Fortis Healthcare International, wholly owned subsidiary of Fortis Healthcare sold off 18.2 million units of RHT Health Trust

No 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.

However, for June 1, 2018 no stocks were under the ban period.