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

Bears retained a tight grip on Dalal Street for the fourth day in a row on September 21, as the Nifty 50 -- after gap up opening -- fell sharply in the afternoon and broke crucial support of 11,000, but managed to pull back some losses in the latter part of the session to close off the day's low.

The free fall in Yes Bank after RBI's decision to end Rana Kapoor's term as CEO, and impact of the weakness in the rupee and hardening bond yield, started reflecting on NBFCs as sentiments were hit across sectors.

The Nifty Midcap index dropped 2.5 percent while Nifty Bank was down 2.6 percent and Realty lost 3.5 percent followed by auto, financial service and pharma.

The Nifty 50 started the day on a strong note at 11,271.30 and hit the day's high of 11,346.80 following positive global cues, and due to short covering, but suddenly crashed in the afternoon to break the 11,000-mark and hit an intraday low of 10,866.45, which last seen on July 9, showing a loss of 368 points intraday.

The index managed to recoup 2/3rd of losses in the last hour of trade to close 91.30 points lower at 11,143.10.

"Nifty 50 witnessed a sudden and surprising flash crash with a 480-point range before signing off the session with a High Wave kind of candle formation. At today’s low of 10866 it not only retraced 62 percent of entire rally from the lows of 10,417 registered in May 2018 but also almost tested 200-Day Moving Average whose value is placed around 10,750 levels," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in told Moneycontrol.

He said usually corrections tend to end with this kind of classic panic and retracement levels, hence it will be too early to conclude on anything.

Going forward, if Nifty 50 sustains above 11,025 levels for couple of trading sessions then we can look for bottoming out process and the strength will be confirmed only on a close above 11,347 levels, he noted.

In case if the support of 11,025 is violated on closing basis, then market participants should prepare for not only a retest of the September 21 low placed around 10,866, but for bigger cut towards 10,750 levels, Mazhar continued.

India VIX moved up sharply by 10.92 percent to 15.53 and during the day it made a high of 16.92 which is the highest level in the last seven months since February 20, 2018.

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 11,143.10 on Friday. According to Pivot charts, the key support level is placed at 10,890.8, followed by 10,638.5. If the index starts moving upwards, key resistance levels to watch out are 11,371.1 and 11,599.1.

Nifty Bank

The Nifty Bank index closed at 25,596.90, down 680.45 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,936.67, followed by 24,276.43. On the upside, key resistance levels are placed at 26,373.77, followed by 27,150.63.

Call Options Data

Maximum call open interest (OI) of 33.69 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the September series.

This was followed by the 11,600 strike price, which now holds 30.26 lakh contracts in open interest, and 11,400, which has accumulated 30.09 lakh contracts in open interest.

Call writing was seen at 11,200 strike, which added 13.77 lakh contracts, followed by 11,100 which added 5.2 lakh contracts.

Highest Call unwinding was seen at the strike price of 11,800 which shed 11.67 lakh contracts, followed by 11,400 which shed 8.99 lakh contracts and 11,500 which shed 8.04 lakh contracts.

Put Options data

Maximum put open interest of 38.38 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the September series.

This was followed by the 11,200 strike price, which now holds 25.78 lakh contracts in open interest, and the 11,100 strike price, which has now accumulated 25.67 lakh contracts in open interest.

Put writing was seen at the strike price of 10,600, which added 2.1 lakh contracts in open interest, followed by 10,900 which added 1.95 lakh contracts and 10,700 strike which added 1.29 lakh contracts.

Put unwinding was seen at the strike price of 11,200, which shed 9.84 lakh contracts in open interest, followed by 11,300 which shed 9.75 lakh contracts and 11,500 which shed 5.65 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 760.7 crore and domestic institutional investors Rs 497.03 crore in the Indian equity market on Friday, 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.

6 stocks saw a long buildup

32 stocks saw short covering

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

52 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.

120 stocks saw long unwinding

Bulk Deals

Bajaj Hindustan Sugar: The Vanguard Group Inc sold 57,36,438 shares of the company at Rs 10.42 per share on the NSE.

BSE Limited: MV SCIF Mauritius bought 2,73,209 shares of the company at Rs 734.3 per share on the NSE.

GPT Infraprojects: Subhlabh Fiscal Services Private Limited sold 1,83,260 shares of the company at Rs 105.01 per share on the NSE.

Indiabulls Real Estate: JNL Mellon Capital Management Emerging Markets Index Fund bought 37,66,168 shares of the company at Rs 126.22 per share on the NSE.

Marksans Pharma: The Vanguard Group Inc sold 23,43,202 shares of the company at Rs 33.23 per share on the NSE.

STL Global: Kalpana Mukesh Mehta bought 2,00,000 shares of the company at Rs 11.67 per share on the NSE.

BC Power Controls: Nehal Kunal Vora bought 5,21,713 shares of the company at Rs 33.88 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Capital First: Company's officials are meeting analysts/investors in IDFC Securities - India Corporate Day, Sydney, Australia on September 27.

Astral Poly Technik: Company's officials are meeting analysts/investors on September 24 and 25.

Trident: Company's officials are attending AMSEC Summit organised by Asian Markets Securities on September 25.

Uflex: Company's official Rajesh Agrawal (Vice President - Investor Relations) will be attending AMSEC Summit - Investor Conference on September 25.

Brigade Enterprises: Company's officials are attending Kotak's India Investment Forum - Asia in Hong Kong and Singapore on September 24 and 25 respectively.

Kaveri Seed Company: G Vijay Kumar, CFO of the company will be participating in a Conference (organised by Kotak Securities) meeting several funds/investors in Hong Kong and Singapore on September 24 and 25 respectively.

Eicher Motors: Company's officials will meet Wells Fargo Asset Management on September 24 and Lazard Asset Management on September 25.

Softsol India: Meeting of the board of directors of the company is scheduled on September 29 to consider investment proposal in the capital of Monet Networks Inc, USA and other similar activity entities.

Kings Infra Ventures: Meeting of the board of directors of the company is scheduled on September 30 to consider and approve general business decisions.

Colgate Palmolive: Meeting of the board of directors of the company will be held on October 29 to approve September quarter results.

Magma Fincorp: HSBC Global Asset Managers and Axis Capital to meet company's officials in Lucknow branch on September 24. Company's officials are also meeting analysts/investors in Philip Capital Conference on September 24.

Galaxy Surfactants: Company's officials will be meeting Investors/Analysts on September 24, 25, 26 and 28.

Automotive Stampings: Meeting of the board of directors of the company is scheduled to be held on October 26 to consider unaudited financial results for the quarter and half year ended September 2018.

Nath Bio-Genes (India): Company is holding analysts/investors meet on September 28 in Mumbai.

Jindal Stainless: Certain funds / investors will be visiting the plant of company situated at Jajpur, Odisha on September 24 and 25.

Suyog Telematics: 23rd Annual General Meeting of the company is scheduled for September 24 to consider the issue of funds raising up to Rs 150 crore by issue of debentures or foreign currency convertible bonds.

V-Guard Industries: Company's officials are meeting analysts/investors in Spark Capital Investors' meet in Singpore/Hong Kong during September 26-28.

Bajaj Finserv: Company officials are meeting with certain institutional investors at non-deal road show organised by India Infoline during September 24-28.

3i Infotech: Board meeting to be held on October 12 to consider unaudited financial results for the quarter and half year ended September 2018.

Stocks in news

Tata Steel and Usha Martin: Usha Martin sold steel business to Tata Steel through a slump sale for Rs 4,300-4,700 crore.

Cipla: Company receives final approval for generic version of Impax Laboratories' Albenza (Albendazole tablets 200mg). It is an anthelmintic drug indicated for use in Treatment of parenchymal neurocysticercosis.

Infosys: Company partners with Google Cloud to develop data native intelligent enterprise.

DHFL: ICRA re-affirmed its credit ratings on company's commercial paper programme of Rs 15,000 crore as A1+; non-convertible debentures of Rs 17,655.12 crore as AAA/Stable; non-convertible debentures (public issue) of Rs 29,000 crore as AAA/Stable; Fixed Deposit Programme of Rs 20,000 crore as AAA/Stable and long term bank facilities of Rs 42,713.80 crore as AAA/Stable.

ICICI Bank: The bank proposed to acquire 8.85 percent stake in Avenues Payment India.

Biocon: Company's drug substance facility in Bangalore completed US FDA inspection with no observations.

Biocon: Company and Mylan said European Medicines Agency's Committee for medicinal products for Human Use (CHMP) has issued a positive opinion recommending approval of Fulphila, a biosimilar to Amgen's Neulasta (pegfilgrastim).

TD Power Systems: Board meeting of the company will be held on September 26 to consider a proposal for buy back of equity shares.

Pioneer Embroideries: Company's Chief Financial Officer (CFO) resigns.

ABB India: Company to enhance power quality for India's longest freight train network.

Nahar Spinning Mills: Meeting of the board of directors of the company is scheduled on September 28 to consider terms and conditions of term loan of Rs 113.00 crores and working capital limit of Rs 25 crore sanctioned by the ICICI Bank.

Dhampur Sugar Mills: CARE Ratings has reaffirmed the credit rating of the company for long term credit facilities from banks and fixed deposits as CARE A-; Negative.

Wipro: Company partners with King's College London and Sheffield Hallam University to strengthen STEM education in the UK.

Indiabulls Housing Finance: ICRA confirmed A1+ rating for company's Rs 25,000 crore commercial paper, and AAA rating for Rs 45,200 crore non-convertible debenture, Rs 15,000 crore retail bonds programme, Rs 5,000 crore subordinated debt programme and Rs 47,000 crore Line of Credit (LoC).

Banks and NBFCs: RBI allowed banks & NBFCs to co-originate loans for creation of priority sector assets.

Kwality: Company has withdrawn its QIP with immediate effect.

Welspun India (WIL): With a view to streamline the promoter holding in WIL and to eliminate layer of promoter shareholder company, the scheme provides for merger of Prasert Multiventure, a promoter company and a shareholder of WIL, into WIL.

Cox & Kings: Company has fixed the record date as October 5 for determining the list of shareholders who are entitled to receive the shares in Cox & Kings Financial Service Limited, (CKFSL/the resulting company) pursuant the demerger scheme.

Orchid Pharma: NCLT approved resolution plan by Ingen Capital Group for company.

ITD Cementation: Company won order worth Rs 845 crore.

Zuari Global: Company entered into a facility agreement with Axis Finance to avail loan facility and an overdraft facility not exceeding Rs 85 crore and an overdraft facility up to an amount not exceeding Rs 5 crore. This facility will be utilised for distillery project of 'Gobind Sugar Mills Limited', through Zuari Investments Limited, wholly owned subsidiary of the company.

IL&FS: Company said it is unable to service obligation of LC payment to IDBI Bank due on September 21. Ramesh Bawa resigned as MD & CEO of IL&FS Financial Services.

IL&FS Transportation Networks: Considering the strategic priority of monetisation of the company's project assets and generating liquidity, the board re-designated Dilip Bhatia, as Chief Strategy Officer responsible for divestment of assets and other strategic initiatives. Company in due course will look for a suitable candidate for appointment as a Chief Financial Officer of the company.

IL&FS Investment Managers: Ramesh Bawa, Managing Director has tendered his resignation to the company.

Andhra Bank: Government appointed J Packirisamy as MD & CEO of the bank.

Central Bank of India: Government appointed Pallav Mohapatra (Deputy MD, SBI), as MD and CEO of the bank.

Dena Bank: Government appointed Karnam Sekar (Deputy MD, SBI) as MD and CEO of the bank.

Sequent Scientific: Company has entered into a business transfer agreement with Solara Active Pharma Sciences to acquire the EU-GMP API facility at Mahad, Maharashtra at total consideration of Rs 46.4 crore on an Enterprise Valuation basis.

Cochin Shipyard: Meeting of board of directors of the company will be held on October 8 to consider the proposal for buy back of the fully paid-up equity shares of the company.

Adani Enterprises: Company has incorporated a wholly owned subsidiary - Bailadila Iron Ore Mining Private Limited.

SAIL: Anil Kurnar Chaudhary, Director (Finance) has joined as Chairman of the company.

Jindal Worldwide: Company has acquired 30 lakh shares at Rs 3 crore of Planet Spinning Mills Private Limited.

including Chuniajhora Tea Estate in West Bengal and entered into a Memorandum of Understanding with Civil Engineers Enterprises.

Inox Leisure: Company has commenced the commercial operations of a multiplex cinema theatre taken on leave and license basis, located at INOX Leisure, Reliance Mega Mall, Surat. Company is now present in 65 cities with 129 multiplexes, 523 screens and a total seating capacity of 1,27,275 seats across India.

Filtra Consultants and Engineers: Board approved incorporation of subsidiary company in India which will import components related to water purification (which will be of majorly of industrial use) and sell as component/assembled & sell on B2B/B2C basis; also approved incorporation of subsidiary company in India which will buy components related to water purification (which will be of majorly of domestic use) and sell as component/assembled & sell on B2B/B2C basis.

South India Projects: Company fixed the record date as October 10 to determine the number of shareholders entitled for Bonus Equity shares.

Ravileela Granites: Company has been granted a term loan of Rs 17.2 crore from State Bank of India towards expansion of their granite business to commission a factory in Ongole—BPSEZ.

Garden Silk Mills: One of the financial creditor, Corporation Bank, a member of consortium of banks, has filed an application with National Company Law Tribunal for initiation of Corporate Insolvency Resolution Process (CIRP) against company.

Welspun Enterprises: Board approved the draft scheme of amalgamation of Anjar Road Private Limited, a promoter company and a shareholder of Welspun Enterprises Limited with Welspun Enterprises.

3 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.