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

The firm Asian cues and buying in technology stocks helped the market close higher on Wednesday, but the Nifty50's failure to hold on to its 200-DMA due to profit booking at higher levels indicated that traders turned cautious ahead of expiry of November futures & options contracts on Thursday.

The 30-share BSE Sensex was up 203.81 points at 35,716.95 and the 50-share NSE Nifty rose 43.30 points to 10,728.90, but the broader markets underperformed frontliners with the Nifty Midcap index falling nearly a percent on weak breadth.

About three shares declined for every share rising on the NSE. The Nifty IT index rallied 2.9 percent while other major sectoral indices either closed flat or in a negative terrain.

The profit booking at higher levels, and selling & muted trade in major sectors indicated that the market internal picture remained very weak, experts said, adding one can avoid creating fresh longs.

The Nifty index formed a 'Shooting Star' kind of pattern on the daily candlestick charts. This pattern is usually formed in an uptrend and is treated as a reversal pattern, but it would require confirmation before we can conclude that the trend will get reversed in near future.

"The Nifty index closed positive but formed a Shooting Star candle on daily scale which indicates that follow up is missing at higher levels to surpass recent swing high of 10,774 zones," Chandan Taparia, Associate Vice President | Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.

He said the index requires a decisive range breakout above 10,774 zone to commence the next move else it may again stuck in broader trading range.

Sahaj Agrawal, Derivatives Analyst, Kotak Securities expectss some resistance at 10,900-11,000 levels from where a meaningful correction towards 10,400-10,500 cannot be ruled out.

According to him, multiple domestic and global events are expected to keep volatility high in the first half of December. He suggests buying on dips as the trend continues to remain positive.

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 10,728.90 on Wednesday. According to Pivot charts, the key support level is placed at 10,699.8, followed by 10,670.8. If the index starts moving upwards, key resistance levels to watch out are 10,757.8 and then 10,786.8.

Nifty Bank

The Nifty Bank index closed at 26,457.95, up 14.85 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,390.1, followed by 26,322.3. On the upside, key resistance levels are placed at 26,555.3, followed by 26,652.7.

Call Options Data

Maximum Call open interest (OI) of 28.62 lakh contracts was seen at the 10,800 strike price. This will act as a crucial resistance level for the November series.

This was followed by the 11,000 strike price, which now holds 26.41 lakh contracts in open interest, and 10,700, which has accumulated 19.75 lakh contracts in open interest.

Meaningful Call writing was seen at 10,800, which added 4.72 lakh contracts.

Maximum Call unwinding was seen at the strike price of 10,700, which shed 6.55 lakh contracts, followed by 10,600 which shed 4.04 lakh contracts and 10,500 which shed 3.25 lakh contracts.

Put Options data

Maximum Put open interest of 34.59 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the November series.

This was followed by the 10,600 strike price, which now holds 31.70 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 23.46 lakh contracts in open interest.

Put writing was seen at the strike price of 10,700, which added 10.79 lakh contracts, followed by 10,800 strike which added 0.90 lakh contracts.

Put unwinding was seen at the strike price of 10,400, which shed 4.32 lakh contracts, followed by 10,500 which shed 3.79 lakh contracts and 10,600 which shed 3.58 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 961.26 crore while domestic institutional investors sold Rs 330.29 crore worth of shares 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.

22 stocks saw a long buildup

35 stocks saw short covering

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

61 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.

90 stocks saw long unwinding

Bulk Deals

Fortis Healthcare: UBS Principal Capital Asia Limited bought 1,52,00,000 shares of the company at Rs 146 per share on the NSE while York Asian Strategic Metric Master LP sold 1,27,00,000 shares at Rs 146 per share.

GSS Infotech: Sarvottam Securities Private Limited sold 1,00,000 shares at Rs 123.75 per share on the NSE.

Powerful Technologies: Finshore Management Services sold 1,32,000 shares of the company at Rs 22.09 per share on the NSE.

Shankara Building Products: Amansa Holdings Private Limited purchased 1,23,628 shares of the company at Rs 676.24 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Mahindra & Mahindra: Company's official will be meeting JP Morgan Asset Management on November 30, meeting several funds/investors in Nomura Investor Conference via video conference on December 3, Stewart Investors on December 3 and Highclere International Investors on December 4.

Tamil Nadu Newsprint and Papers: Company's officials will be meeting IFB Automotive Pvt.Ltd on November 29.

Tata Chemicals: Company's officials will be meeting Reliance Mutual Funon November 29; and Securities lnvestment Manaqement Pvt Ltd and Tata AIG General lnsurance on November 30.

Ramco Cements: Investors' meet is scheduled on December 5 at Mumbai.

Nestle India: Board will consider declaration of third interim dividend for the year 2018, if any, on December 5.

Manappuram Finance: Company's officials will be meeting Edelweiss Wealth, ICICI Securities, CDC and IIFL Wealth on November 30.

Pidilite Industries: Company's officials will be meeting TT International Ltd on November 30, Universities Superannuation Scheme on December 3, and Generation Investment Management LLP on December 10.

Hinduja Global Solutions: Company is organising Analyst & Investor Meet in Mumbai on December 6.

Kaya: Company's official will be meeting Sundaram Mutual Fund on November 29.

Stocks in news

TCS: Company acquired the business of BridgePoint Group, LLC, a US management consulting firm catering to the financial services industry, and specialising in retirement services, through the purchase of select company assets.

Sical Logistics: The company has been awarded with a Letter of Acceptance by Mahanadi Coalfields Limited for extraction of coal / coal measure strata and allied transportation activities at Hingula OCP, Hingula Area for a contract price of Rs 363.38 crore for extraction of 16.20 million Cu.M over a period of 3 years.

Cosmo Films: The company, in April 2017, had announced setting up of new production line for Specialized Polyester (BOPET) Film at Aurangabad, Maharashtra. The line has been ordered but due to adverse market conditions, the company has decided to postpone the delivery & commissioning by 8-10 quarters. This has no impact on current operations of the company.

IDBI Bank: Bank confirmed that Competition Commission of India granted approval to LIC to acquire the bank.

Bharat Financial Inclusion: Company assigned a pool of receivables of an aggregate value of Rs 827.76 crore to one of the largest private sector banks on a direct assignment basis. This is the third direct assignment transaction in FY19. With this transaction, the company has completed direct assignment transactions worth Rs 2,181.75 crore in FY19.

Gammon India Q4FY18: Loss at Rs 165.24 crore versus loss of Rs 1,412.11 crore; revenue rises to Rs 144.30 crore versus Rs 71.28 crore YoY.

Jindal Stainless: India Ratings & Research assigned long-term issuer rating of BBB (Outlook: Stable).

Mercator: The company as a part of its strategic plan has sold its old vessel M T Vedika Prem, built 1993, for a total consideration of Rs 28.54 crore and the proceeds of which would be used to meet its debt obligations/ liabilities.

Mawana Sugars: Board approved the proposal of availment of the soft loan of Rs 146 crore granted by Uttar Pradesh Co-operative Bank to clear the outstanding dues of the farmers for the crushing season 2017-18 to its units Mawana Sugars Works and Nanglamal Sugar Complex as required by the state government of Uttar Pradesh.

Jindal Leasefin: Rachit Singhal, Managing Director has resigned from the services of the company and Surender Kumar Jindal has been appointed as Managing Director in his place w.e.f. November 28, 2018 for a period of 5 years.

Vanta Bioscience: Board approved the allotment of 5,84,000 equity shares of Rs 10 each at a premium of Rs 75 each on preferential basis.

IKF Technologies: Arun Kumar Agarwal, Chief Financial Officer (CFO) of the company has resigned from his duties due to some unavoidable circumstances.

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.