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

The Nifty 50 opened above the 11,400-level for the first time and maintained positive momentum throughout the session on August 6. However, it failed to hold on to opening levels, forming a small bearish candle in intraday trade, resembling a Spinning Top kind of a pattern on daily charts.

The index closed higher, but closing value was lower than opening, which indicated that traders preferred to book profits at higher levels. It has to hold 11,400 levels on closing basis, only then strong momentum would be possible, experts said.

The Nifty index opened the gap up and made a new life time high of 11,428 by surpassing recent high of 11,390 levels. However, it failed to hold half of the gains and witnessed some profit booking to decline from higher levels.

The Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend and a downtrend.

The Nifty 50 after opening at 11,401.50 gained more strength to touch an intraday record high of 11,427.65, but it wiped out some gains in afternoon trade to hit the day's low of 11,370.60. The index closed 26.30 points higher at 11,387.10.

"Nifty50 appears to have witnessed a profit booking as it traded into uncharted territory with a gap up opening before signing off the session with a small bearish candle," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He added, in the next session if the said index consistently trades below 11,368 levels at least for one hour, then it can come under pressure for the day. "In such a scenario test of recent low of 11,234 can’t be ruled out going forward as bulls try to consolidate their position further before resuming their upmove," he noted.

However, for the time being as upsides appear to be capped in the zone of 11,450–11,500 levels it looks prudent on the part of traders to book profits and wait directional clarity or a dip towards 11,250 kind of levels, Mazhar advised.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan said in terms of the wave structure, with today’s move, the index has entered into a fifth leg of an Impulse on the upside. "The internal structure of the fifth leg, however, shows that it is not yet complete."

This means that the Nifty has a potential to tap at the short term target of 11,450, he feels.

India VIX moved up by 3.39 percent to 12.49. Overall, lower volatility suggests that bulls are likely to hold the market on declines near to major support zones.

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

Key support and resistance level for Nifty

The Nifty closed at 11,387.10 on Monday. According to Pivot charts, the key support level is placed at 11,362.57, followed by 11,338.03. If the index starts moving upwards, key resistance levels to watch out are 11,419.67 and 11,452.23.

Nifty Bank

The Nifty Bank index closed at 27,898.50, up 203 points. The important Pivot level, which will act as crucial support for the index, is placed at 27,778.4, followed by 27,658.3. On the upside, key resistance levels are placed at 28,006.3, followed by 28,114.1.

Call Options Data

Maximum call open interest (OI) of 34.57 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the August series.

This was followed by the 11,400 strike price, which now holds 26.46 lakh contracts in open interest, and 11,600, which has accumulated 21.51 lakh contracts in open interest.

Call writing was seen at the strike price of 11,500, which added 3.16 lakh contracts, followed by 11,600 which added 2.81 lakh contracts and 12,000 which added 1.77 lakh contracts.

Call unwinding was seen at the strike price of 11,400, which shed 0.77 lakh contracts, followed by 11,200, which shed 0.63 lakh contracts.

Put Options data

Maximum put open interest of 50.83 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for August series.

This was followed by the 11,200 strike price, which now holds 40.17 lakh contracts in open interest, and the 11,300 strike price, which has now accumulated 31.61 lakh contracts in open interest.

Put writing was seen at the strike price of 11,400 which added 4.58 lakh contracts, followed by 11,300 which added 3.93 lakh contracts and 11,200 which added 2.34 lakh contracts.

Put unwinding was seen at the strike price of 10,800 which shed 0.30 lakh contracts, followed by 10,900 which shed 0.14 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 248.7 crore and domestic institutional investors Rs 218.64 crore in the Indian equity market on Monday, 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.

61 stocks saw long buildup

53 stocks saw short covering

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

54 stocks saw a short build-up

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

41 stocks saw long unwinding

Bulk Deals

Mahindra Lifespace Developers: First State Investment (Hong Kong) A/C First State Indian Sub Continent Fund bought 4,64,556 equity shares of the company at Rs 500 per share while Smaller Cap World Fund Inc sold 26,17,310 shares at Rs 501.75 per share.

TCI Express: Manulife Global FD-India Equity Fund sold 2,26,090 shares at Rs 697.03 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Sadbhav Engineering: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

JMT Auto: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Sakthi Sugars: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Gujarat Industries Power: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Jain Irrigation Systems: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Future Enterprises: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Aarti Drugs: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Tilaknagar Industries: The meeting of the board of directors is scheduled on August 13 to approve unaudited financial results for the quarter ended June.

Arshiya: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

A2Z Infra Engineering: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Zen Technologies: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Infibeam Incorporation: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Golden Tobacco: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Simbhaoli Sugars: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

MIC Electronics: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Tanla Solutions: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

DB Realty: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Manaksia Aluminium Company: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Hanung Toys & Textiles: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

Atlanta: The meeting of the board of directors is scheduled on August 14 to approve unaudited financial results for the quarter ended June.

BLS International Services: Company scheduled a conference call with Centrum Broking on August 9.

Thomas Cook: Conference call for the analysts is scheduled to be held on August 8.

Manappuram Finance: Q1FY19 investors earnings call to be held on August 9.

Indian Hotels: Analyst meet will be held on August 10.

T D Power Systems: A conference call relating to the un-audited financial results for June quarter is scheduled on August 9 for analyst and investors.

Capacite Infraprojects: Conference Call for investors and analysts is scheduled to be held on August 10 to discuss the corporate performance during Q1FY19.

Balaji Telefilms: Company's management will meet UBS - Indian OTT , Telecom and Media Day on August 7.

Manpasand Beverages: Schedule of analyst meet with the company is to be held on August 7.

Wonderla Holidays: Analysts/ Investors conference call is scheduled on August 8.

KEC International: Company's management will meet SPI Caps Securities on August 8.

Ester Industries: Company will organise a conference call for investors and analysts on August 16 to discuss the financial performance of quarter ended June.

Stocks in news

Results on Tuesday: M&M, Punjab National Bank, TVS Motor, Motherson Sumi, Adani Enterprises, Mphasis, AU Small Finance, Adani Transmission, Kalpataru Power Transmission, eClerx Services, PNC Infratech, Inox Wind, SRF, PTC India, Edelweiss Financial Services, GSK Consumer, Thomas Cook, Future Lifestyle Fashions, Asahi India Glass, Birla Corp, Bombay Dyeing, Sobha, Gulf Oil Lubricants India, ISGEC Heavy Engineering, Trident, Somany Ceramics, Merck, Prataap snacks, Future Supply Chain, Hawkins Cookers, Mirza international, Alembic, Electrosteel Castings, Transpek Industry, Southern {etrochemicals, Mercator, Shree Pushkar Chemicals, JK Agri Genetics, Dhampur Sugar Mills, Goodricke Group, RSWM, Nitin Spinners, Shiva Cement, Steelcast, Dwarikesh Sugar Industries, CSL finance, Lovable Lingerie, Dhunseri Tea, Garden Silk Mills.

Adani Ports: Q1 profit falls 9.1 percent to Rs 697.4 crore versus Rs 767.5 crore; revenue declines 12.2 percent to Rs 2,411 crore versus Rs 2,745.1 crore (YoY).

Adani Power: Q1 net loss at Rs 825.2 crore versus loss of Rs 452.8 crore; revenue falls to Rs 3,829.7 crore versus Rs 5,543.4 crore (YoY).

Ujjivan Financial Services: Q1 consolidated profit at Rs 45 crore versus loss of Rs 75 crore; net interest income jumps 60.9 percent to Rs 222.4 crore (YoY).

Syndicate Bank: Q1 loss widens to Rs 1,281.77 crore versus Rs 263.19 crore, net interest income falls 5.9 percent to Rs 1,505.85 crore versus Rs 1,600.58 crore (YoY); gross NPA at 12.59 percent versus 11.53 percent, net NPA at 6.64 percent versus 6.28 percent QoQ; provisions at Rs 2,326.82 crore versus Rs 3,937.30 crore (QoQ) and Rs 1,333.88 (YoY).

Alphageo India: Q1 consolidated profit rises to Rs 17.35 crore versus Rs 15.47 crore; revenue increases to Rs 130.53 crore versus Rs 114.5 crore (YoY).

Honeywell Automation: Q1 profit jumps to Rs 91.71 crore versus Rs 55.37 crore; revenue rises to Rs 770.37 crore versus Rs 655.53 crore (YoY).

Nava Bharat Ventures: Q1 consolidated profit surges to Rs 115.35 crore versus Rs 19.09 crore; revenue increases to Rs 740.75 crore versus Rs 359.27 crore (YoY).

Visa Steel: Q1 loss at Rs 27.85 crore versus loss of Rs 49.24 crore; revenue rises to Rs 403.84 crore versus Rs 401.08 crore (YoY).

Max Financial Services: Q1 profit increases to Rs 75.44 crore versus Rs 67.19 crore; revenue rises to Rs 128.98 crore versus Rs 94 crore (YoY).

Dalmia Bharat Sugar: Q1 profit rises to Rs 62.04 crore versus Rs 55.10 crore; revenue increases to Rs 653.30 crore versus Rs 636.55 crore (YoY).

Dixon Technologies: Q1 consolidated profit rises to Rs 12.76 crore versus Rs 10.83 crore; revenue falls to Rs 592.68 crore versus Rs 684.55 crore (YoY).

Omaxe: Q1 consolidated profit slips to Rs 8.65 crore versus Rs 24.97 crore; revenue drops to Rs 173.53 crore versus Rs 482.48 crore (YoY).

Nahar Spinning Mills: Q1 profit at Rs 13.83 crore versus loss at Rs 20 crore; revenue jumps to Rs 582.5 crore versus Rs 488.20 crore (YoY).

Avanti Feeds: Q1 profit slips to Rs 89.99 crore versus Rs 148.84 crore; revenue rises to Rs 1,040.24 crore versus Rs 998.2 crore (YoY).

Unichem Laboratories: Company's API manufacturing facility at Roha inspected by US FDA from July 30-August 3 and received 4 observations but company's business not impacted.

Sun Pharma: Company launches hypertension drug Kapspargo Sprinkle in US.

Suryachakra Power Corporation: Company received notice from NCLT (National Company Law Tribunal) on initiating insolvency proceedings. Financial creditor SBI filed application to initiate insolvency process.

Kridhan Infra: Associate company Vijay Nirman Company Private Limited has been awarded a new project worth Rs 132.6 crore.

2 stocks under ban period on NSE

Securities 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.