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

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

The market recouped losses in last hour of trade and closed sharply higher for fourth straight day on Wednesday, driven by banking & financials, FMCG and auto stocks. Global indices were also traded in the green after the three-day long meeting between US and China for trade talks concluded.

The 30-share BSE Sensex rallied 231.98 points to 36,212.91 while the Nifty50 climbed 53 points to 10,855.20, forming ‘Long Legged Doji’ kind of pattern on the daily charts.

Considering the volatility followed by positive close for last few sessions, experts advised maintaining cautious stance as the index is expected to be rangebound and Q3 earnings will be closely watched.

“The closing point is almost near to the opening point, but the kind of recovery we had, it certainly bodes well for the bulls. We have been talking about the ‘Triangle’ pattern and we are now on the verge of breaking out in the upward direction,” Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking told Moneycontrol.

He said for the coming session, a move beyond 10,870 would unfold the rally towards 10,940 and beyond levels. “On the flipside, 10,733 has proved its significance and now has become a sacrosanct level for the market.”

A typical long-legged Doji pattern is formed when the opening price is almost equal to the closing price but there was a lot of intraday movement on either side. It also resembles a ‘Dragon Fly Doji’ kind of pattern but this pattern is more relevant when the market is in a downtrend.

Jayant Manglik, President at Religare Broking also said, “In the near term, we continue to remain cautiously optimistic on the Indian markets as we believe volatility and choppiness are likely to remain high.

Domestically, investors’ focus would be on GST council meet scheduled to be held on January 10, announcement of companies’ Q3FY19 results and domestic Marco data (IIP, CPI & WPI), which are likely to dictate the trend of the market in the coming sessions.

The broader markets continued to underperform frontliners as Nifty Midcap and Smallcap indices closed flat. Among sectors, Nifty Bank, Auto, Financial Service, FMCG and Pharma gained 0.5-1 percent.

India VIX fell by 2.74 percent at 15.27 levels. VIX has to continue to hold below 16 zones to again get a bounce back move in the market.

We have collated top 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,855.15 on January 9. According to Pivot charts, the key support level is placed at 10,779.6, followed by 10,704. If the index starts moving upward, key resistance levels to watch out are 10,900.6 and then 10,946.

Nifty Bank

The Nifty Bank index closed at 27,720.40, up 210.90 points on January 9. The important Pivot level, which will act as crucial support for the index, is placed at 27,501.8, followed by 27,283.2. On the upside, key resistance levels are placed at 27,846.7, followed by 27,973.

Call Options Data

Maximum Call open interest (OI) of 38.14 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,200 strike price, which now holds 30.98 lakh contracts in open interest, and 11,100, which has accumulated 29.59 lakh contracts in open interest.

Meaningful Call writing was seen at 11,100, which added 3.94 lakh contracts, followed by 10,900 strike which added 1.47 lakh contracts.

Call unwinding was seen at 11,200 strike, which shed 3.67 lakh contracts, followed by 10,800 strike which shed 3.33 lakh contracts and 10,700 strike which shed 1.14 lakh contracts.

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Put Options data

Maximum Put open interest of 38.25 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 32.98 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 23.94 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,900, which added 2.25 lakh contracts, followed by 10,800 strike which added 0.72 lakh contracts and 10,600 strike which added 0.32 lakh contracts.

Put unwinding was seen at the strike of 10,400, which shed 2.58 lakh contracts, followed by 10,700 strike which shed 1.85 lakh contracts and 10,500 strike which shed 1.3 lakh contracts.

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FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 276.14 crore and Domestic Institutional Investors purchased Rs 439.67 crore worth of shares in the Indian equity market on January 9, as per provisional data available on the NSE.

Fund Flow Picture

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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.

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41 stocks saw a long buildup

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41 stocks saw short covering

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

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57 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.

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62 stocks saw long unwinding

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Bulk Deals on January 9

IOL Chemical: Oregon Public Employees Retirement System bought 3,03,706 shares of the company at Rs 196.88 per share on the NSE.

Rolta India: Central Bank of India (Capital Market Service Branch) sold 16,97,862 shares of the company at Rs 8.6 per share on the NSE.

Shalimar Paints: Equity Intelligence India bought 3,00,000 shares of the company at Rs 67.17 per share while Atul Goel sold 3,35,967 shares at Rs 67.38 per share and Rajasthan Global Securities sold 2,55,334 shares at Rs 67.3 per share on the NSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Shree Pushkar Chemicals & Fertilisers: Officials of the company will be attending the investor conference hosted by HDFC Securities on January 10 in Mumbai.

EPC Industrie: Board meeting is scheduled on January 30 to consider the un-audited financial results for the quarter ended on December 2018.

Stocks in news

Bajaj Finance: Company announced allotment of secured redeemable non-convertible debentures on private placement basis.

2 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.

For January 10, Adani Power and Jet Airways is present in this list.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-01-12 05:02:32

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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