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

Bulls pushed the Nifty index to a record high of 11,459.95 Wednesday after two straight days of consolidation, but analysts’ feel investors should tread with cautions as the index is near crucial resistance levels.

The index formed a bullish candle on the daily charts after two successive bearish candles. The next crucial resistance for the index is placed at 11,500-11530 while support is placed at 11,330, suggest experts.

The Nifty 50 which opened at 11,412 hit a record high of 11,459. It hit an intraday low of 11,379 before closing the day 60 points higher at 11,450.

The action on the banking space really stood out. Bank Nifty has been making higher lows from last four trading sessions and made a new lifetime high at 28,128 marks.

The index formed a Bullish candle on the daily scale with the highest ever daily closing ahead of weekly expiry day. It has to hold above 27,900 zones to extend its move towards 28,250 zones while major support is seen at 27,650 zones.

“Albeit Nifty50 registered a bullish candle with new life time highs post two trading sessions of consolidation market breadth remained in favour of bears suggesting cautious stance in the broader markets,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Besides momentum oscillators are not registering new swing highs unlike price chart thereby facilitating a negative divergence which can trigger a correction going forward. In case if this rally gets extended into next session then it can test critical resistance placed around 11,530 on long-term charts,” he said.

Mohammad further added that on the downsides 11,330 appears to be a critical support. Considering the fact that market is turning choppy and volatile at higher levels it looks prudent for the short term traders to book profits and wait for a correction towards critical supports rather than chasing the upswing.

India VIX remained flattish at 12.57. Overall, lower volatility suggests that bulls are likely to hold the market.

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 11,450.0 on Wednesday. According to Pivot charts, the key support level is placed at 11,399.53, followed by 11,349.07. If the index starts moving upwards, key resistance levels to watch out are 11,480.23 and 11,510.47.

Nifty Bank

The Nifty Bank index closed at 28,062.4. The important Pivot level, which will act as crucial support for the index, is placed at 27,904.57, followed by 27,746.73. On the upside, key resistance levels are placed at 28,174.46, followed by 28,286.53.

Call Options Data

Maximum call open interest (OI) of 36.46 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for August series.

This was followed by the 11,400 strike price, which now holds 25.74 lakh contracts in open interest, and 11,600, which has accumulated 25.68 lakh contracts in open interest.

Call writing was seen at the strike price of 11,700, which added 2.14 lakh contracts, followed by 11,600 which added 0.92 lakh contracts.

Call unwinding was seen at the strike price of 12,000, which shed 3.13 lakh contracts, followed by 11,400, which shed 2.71 lakh contracts, and 11,500, which shed 2.06 lakh contracts.

Put Options data

Maximum put open interest of 52.48 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 42.01 lakh contracts in open interest, and the 11,300 strike price, which has now accumulated 40.91 lakh contracts in open interest.

Put writing was seen at the strike price of 11,300 which added 7.95 lakh contracts, followed by 11,400 which added 7.87 lakh contracts and 11,500 which added 3.84 lakh contracts.

Put unwinding was seen at the strike price of 10,800 which shed 1.39 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 568.63 crore while domestic institutional investors bought shares worth Rs 30.25 crore in the Indian equity market on Wednesday, 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.

53 stocks saw long buildup

62 stocks saw short covering

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

62 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.

33 stocks saw long unwinding

Bulk Deals

BEML: Shaastra Securities traded over 2.92 lakh shares at Rs 842-843 apiece.

Reliance Communications: Adroit Financial Services traded over 1.3 crore shares at Rs 17.8 epiece.

Selan Exploration: Dolly Khanna purchased 1.04 lakh shares at Rs 244.03 apiece.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Sharda Cropchem: Sameeksha Capital and Steinberg India Fund met the management between August 7 and 8, 2018.

Mahindra Finance: The company will have an interaction with Samlyn Capital on August 9, 2018

IndusInd Bank: Capital Research and Crestwood Capital Management met management on August 8, 2018.

Stocks in news

BPCL: Level- III fire broke out at its plant in Chembur.

Thermax: Q1 profit grows 4 percent to Rs 49 crore.

HPCL: Q1 net profit down 2 percent at Rs 1,719.2 crore.

HCC: Plunges into loss to Rs 19.7 crore against profit last year.

BPCL: Q1 net profit down 14 percent to Rs 2,293 crore.

Adani Enterprises Q1 PAT grows 6 percent to Rs 169 crore

4 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.