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

The Nifty reversed gains in the second half of the session to close below its crucial support placed at 11,400 levels on Thursday. It made a bearish candle on the daily candlestick charts.

The index slipped below its 5-exponential moving average (EMA) placed at 11,401, but above 13-EMA placed at 11,349. For the momentum to continue on Friday, the index should stay above 11,366 and climb above 11,400 levels, suggest experts.

Failure of the index to hold above 11,366 which was the intraday low of Thursday, could drag the index towards 11,230 levels, they say.

The Nifty50 which opened at 11,397 rose to an intraday high of 11,449.85. It slipped below 11400 to hit an intraday low of 11,366 before closing at 11,385, down 50 points.

“Lack of follow through to Tuesday’s strong up move is clearly suggesting that Nifty50 is in a consolidation mode in a band of 11,500 – 11,340 levels as it signed off the session on a negative note with a bearish candle which resembles inverted Hammer kind of formation with a long upper shadow,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“On Friday, if the index consistently trades below 11366 levels, atleast for one hour, then selling pressure shall get accentuated further breaching the recent low of 11,340 levels which should result in a bigger damage to the index going forward with a downside target placed around 11,230 levels,” he said.

Mohammad further added that contrary to this any strength on upside shall initially take the indices towards 11,500 mark and unless a fresh breakout is registered above this critical resistance point further upsides shall not be expected.

Bank Nifty formed a Bearish Belt Hold candle and corrected towards 27,779 marks. The index has to hold above 28,000 zones to witness an up move towards 28,128 then 28,333 levels while on the downside it may drift towards 27,650 then 27,440 zones, suggest experts.

India VIX moved up by 2.73 percent at 13.64 levels. On the options front, maximum Put OI is placed at 11,000 followed by 11,200 strikes while maximum Call OI is placed at 11,500 followed by 11,400 strikes.

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 11,385.0 on Thursday. According to Pivot charts, the key support level is placed at 11,350.87, followed by 11,316.73. If the index starts moving upwards, key resistance levels to watch out are 11,434.47 and 11,483.93.

Nifty Bank

The Nifty Bank index closed at 27,826.6. The important Pivot level, which will act as crucial support for the index, is placed at 27,733.04, followed by 27,639.47. On the upside, key resistance levels are placed at 27,966.64, followed by 28,106.67.

Call Options Data

Maximum call open interest (OI) of 45.49 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 32.07 lakh contracts in open interest, and 11,600, which has accumulated 31.57 lakh contracts in open interest.

Call writing was seen at the strike price of 11,500, which added 3.34 lakh contracts, followed by 12,000 which added 3.14 lakh contracts and 11,400 which added 2.85 lakh contracts.

There was hardly any Call unwinding seen.

Put Options data

Maximum put open interest of 48.15 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the August series.

This was followed by the 11,200 strike price, which now holds 44.57 lakh contracts in open interest, and the 11,300 strike price, which has now accumulated 40.02 lakh contracts in open interest.

There was hardly any Put writing seen.

Put unwinding was seen at the strike price of 11,000, which shed over 3.15 lakh contracts, followed by 11,500, which shed 2.17 lakh contracts and 11,400, which shed 1.94 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 825.08 crore while domestic institutional investors bought shares worth Rs 133.78 crore in the Indian equity market on Thursday, 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.

41 stocks saw long buildup

39 stocks saw short covering

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

92 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.

32 stocks saw long unwinding

Bulk Deals

HDIL: Adroit Financial Services traded over 58 lakh shares at Rs 28.7 apiece.

RCom: Shaastra Securities traded over 2.3 crore shares at Rs 19.64 apiece.

Ruchi Soya: Disha Foundation sold 16.79 lakh shares at Rs 9.8 apiece.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

IndusInd Bank: Aditya Birla Sun Life Insurance Company met the management on August 16, 2018.

Phoenix Mills: The company will meet Deutsche Bank on August 17, 2018.

Biocon: The management met officials from Evercore ISI on August 15, 2018.

ICICI Lombard: IIFL Institutional Equities met the management on August 16, 2018.

Dixon Technologies: Invesco Mutual Fund, Reliance Nippon Life AMC, SBI MF, Kotak MF, ICICI Prudential Life Insurance, Tata AIA Life, ICICI Pru MF will be meeting the management on August 17, 2018.

Stocks in news

BEML: The company flagged off the nation’s first 150T electric dump truck.

Maruti Suzuki: The company has hiked car prices by up to Rs 6,100 (ex-showroom Delhi) effective August 16.

Bank of India: The lender has put up 50 non performing accounts with Rs 5,557.73 crore outstanding for sale.

4 stocks under ban period on NSE

Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.