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

The Nifty 50 ended the volatile session sharply lower on October 9, weighed down by rupee's new low and crude volatility. The index made a bearish candle formation on the daily charts resembling a 'Bearish Engulfing' pattern.

A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle. A bearish candlestick pattern suggests bears were able to regain control after the index moved in a narrow range for the past few sessions.

The Nifty 50 opened sharply higher at 10,390.30 and touched an intraday high of 10,397.60, but gradually wiped out gains in morning trade itself to trade lower. In the last hour of trade, it rebounded, but within a few minutes of trade, it caught in a bear trap again and fell sharply to hit day's low of 10,279.35. The index closed 47 points lower at 10,301 amid volatility.

"Market continued to remain volatile as pull back attempt was aborted almost around Monday’s high of 10,398 levels before signing off the session with a bearish candle which resembles a Bearish Engulfing formation as today's candle body engulfed the candle body of Monday's session," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said albeit intraday pull back attempts can be expected going forward they shall remain untradeable as indices are yo-yoing in both directions and Nifty50 may not gain sufficient strength unless it registers a close above 10,550 levels.

On the downsides, he feels, breach of 10,198 can give enough impetus to bears once again to push the indices below 10,000 levels. Hence, it looks prudent on the part of traders to stay away from this market till volatility subsides, Mazhar advised.

India VIX fell by 1.93 percent to 19.75 levels. Overall higher volatility suggests a bear grip but a cool off in VIX with a topping out formation could form a short term bottom in 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 50 closed at 10,301 on Tuesday. According to Pivot charts, the key support level is placed at 10,254.33, followed by 10,207.67. If the index starts moving upwards, key resistance levels to watch out are 10,372.63 and 10,444.27.

Nifty Bank

The Nifty Bank index closed at 24,527.65, down 90.70 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,408.43, followed by 24,289.17. On the upside, key resistance levels are placed at 24,703.43, followed by 24,879.17.

Call Options Data

Maximum Call open interest (OI) of 31.66 lakh contracts was seen at the 10,800 strike price. This will act as a crucial resistance level for the October series.

This was followed by the 10,500 strike price, which now holds 29.97 lakh contracts in open interest, and 10,700, which has accumulated 27.76 lakh contracts in open interest.

Call writing was seen at 10,400 strike, which added 3.82 lakh contracts, followed by 10,600 which added 3.27 lakh contracts and 10,800 which added 2.85 lakh contracts.

Call unwinding was seen at the strike price of 10,000, which shed 0.24 lakh contracts.

Put Options data

Maximum Put open interest of 41.64 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the October series.

This was followed by the 10,500 strike price, which now holds 32.33 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 31.36 lakh contracts in open interest.

Put writing was seen at the strike price of 10,000, which added 2.27 lakh contracts in open interest, followed by 9,800 which added 0.86 lakh contracts and 10,700 strike which added 0.75 lakh contracts.

Put unwinding was seen at the strike price of 10,600, which shed 0.76 lakh contracts in open interest, followed by 10,400 which shed 0.64 contracts and 10,900 which shed 0.35 contracts.

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,242.46 crore while domestic institutional investors bought shares worth Rs 1,526 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.

Fund Flow Picture:

Stocks with a high delivery percentage

High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.

38 stocks saw a long buildup

50 stocks saw short covering

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

69 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.

47 stocks saw long unwinding

Bulk Deals

TD Power Systems: MSD India Fund sold 2,36,012 shares of the company at Rs 96.79 per share on the NSE.

India Finsec: Rudraveerya Developers bought 1,38,037 shares of the company at Rs 54.87 per share on the BSE.

TCNS Clothing: Fidelity Funds - Emerging Markets Fund bought 3,50,000 shares of the company at Rs 590 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Khadim India: Board meeting is scheduled for November 2 to consider unaudited financial results for the quarter and half year ended September 2018.

Dhanlaxmi Bank: Board meeting is scheduled for November 2 to consider unaudited financial results for the quarter and half year ended September 2018.

Wendt (India): Board meeting is scheduled for October 23 to consider unaudited financial results for the quarter and half year ended September 2018.

Tata Metaliks: Board meeting is scheduled on October 23 to consider unaudited financial results for the quarter and half year ended September 2018.

Setco Automotive: Board meeting is scheduled for October 23 to consider unaudited financial results for the quarter and half year ended September 2018.

Raymond: Board meeting is scheduled for October 25 to consider unaudited financial results for the quarter and half year ended September 2018.

Jammu & Kashmir Bank: Board meeting is scheduled for October 16 to consider unaudited financial results for the quarter and half year ended September 2018.

5paisa Capital: Board meeting is scheduled for October 17 to consider unaudited financial results for the quarter and half year ended September 2018.

PNB Housing Finance: Board meeting is scheduled for November 5 to consider unaudited financial results for the quarter and half year ended September 2018.

Balmer Lawrie: Board meeting is scheduled for November 12 to consider unaudited financial results for the quarter and half year ended September 2018.

Coromandel Engineering Company: Board meeting is scheduled for October 24 to consider unaudited financial results for the quarter and half year ended September 2018.

NALCO: Board meeting is scheduled for October 12 to consider the proposal for buyback of the fully paid-up equity shares of the company.

Responsive Industries: Board meeting is scheduled to be held on October 17 to consider unaudited financial results (standalone) for the quarter and half year ended September 2018 and to consider a proposal to buy-back of paid-up equity shares of the company.

Finolex Industries: Company's officials will be meeting Emkay Global Financial Services on October 10.

MCX: Company's officials will be meeting Valiant Capital on October 10.

Tata Coffee: Analyst call in respect of the financial results for the quarter ended September 2018 is scheduled to be held on October 26.

Mahindra Logistics: A one-on-one meeting is scheduled to be held with DSP Mutual Fund on October 15.

Jubilant Foodworks: Conference call for analysts and investors to be held on October 24 to discuss the financial performance for Q2 & H1 FY 2019.

South Indian Bank: Board meeting is scheduled on October 15 to consider the issue of Basel III compliant Tier II Bonds in one or more tranches, on such terms and conditions as it may deem fit.

Zenith Health Care: Board meeting is scheduled on October 19 to consider the proposal for the amalgamation.

Stocks in news

Dr Reddy's Laboratories: Company launched Colesevelam HCI tablets, a therapeutic equivalent generic version of Welchol (colesevelam HCI) tablets in the United States. The Welchol brand and generic had US sales of approximately $471 million MAT for the most recent twelve months ending in August 2018 according to IMS Health.

NLC India: Board approved a proposal to buyback shares worth up to Rs 1,249 crore. It plans a buyback of 14.2 crore shares (representing 9.28 percent of total paid-up equity) at Rs 88 per share.

Tata Motors: Group global wholesales in September 2018, including Jaguar Land Rover, were at 1,23,577 numbers, higher by 6 percent compared to September 2017.

Bharat Gears: Board approved the Rights issue of equity shares upto Rs 15 crore to the existing shareholders of the company.

Indian Overseas Bank: CRISIL has assigned its rating of 'A+/Stable' for the proposed issue of Rs 300 crore Tier II Bonds (under Basel III).

Millitoons Entertainment: Company fixed record date as October 23 for consolidation of shares.

Jindal Worldwide: Board approved November 1 as the record date in respect to the sub-division of the face value of the company from Rs 5 to Re 1.

Padmanabh Industries: Padmanabh Sports Pvt Ltd, a wholly owned subsidiary of the company, who owns Team 'Ahmedabad Smash Masters' under the franchise name of Premier Badminton League, acquired players through bid System.

Voltas: Company launched Amazon Alexa compatible air conditioners.

Bharat Forge and NTPC: BF-NTPC Energy Systems (BF-NTPC) is a 51:49 joint venture company between Bharat Forge and NTPC (JV Partners), incorporated in June 2008 for the business of manufacturing, buying & selling equipment relating to the power sector. Since its incorporation BF-NTPC has not commenced any business activity, both JV Partners have decided to close down BF-NTPC. Accordingly, BF-NTPC has initiated a voluntary liquidation process under Insolvency and Bankruptcy Code.

Rane Holdings: ICRA re-affirmed rating assigned to Rs 50 crore Line of Credit (LOC) at AA- with outlook as 'stable'; and the re-affirmed rating assigned to Rs 10 crore Commercial Paper (CP) at A1+.

Gujarat Gas: CARE revised rating on company's long-term/short term bank facilities worth Rs 2,000 crore to AA; Positive/A1+ from AA; Stable/A1+.

Glenmark Pharma: Shareholders' approved business purchase agreement for the transfer of the company's API business to Glenmark Life Sciences Limited, a wholly owned subsidiary, has been executed on October 9, 2018. The transaction is expected to be completed in the next 2-3 months.

MEP Infrastructure: Sudha D Mhaiskar has received 8,753,589 shares from Late Dattatray P Mhaiskar by way of transmission of shares. Sudha D Mhaiskar already formed part of Promoter Group.

Scan Steels: Company announced one-time settlement With IDBI Bank, Central Bank Of India And Bank Of India.

Uniworth: In view of industrial unrest and violence at company's plant at Raipur, the board approved suspension of work at the company's plant with effect from October 8.

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