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

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

Late recovery helped the market close higher for the sixth consecutive session on March 18, but the Nifty50 failed to hold on to 11,500 levels due to some profit booking.

Positive Asian cues, and buying in banking and financials and FMCG stocks pushed the BSE Sensex 70.75 points higher to 38,095.07 while the Nifty50 climbed 35.35 points to 11,462.20 and formed Long-Legged Doji pattern on daily charts.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol that though weakness in the price action is looking apparent, bulls at this juncture appear to be in no mood to give up their bets as by the end of the day, the index closed in positive terrain, adding some gains to its kitty.

He said that the sell signal on the lower time frame charts accompanied with negative advance-decline ratio for the second day in a row is pointing towards creeping weakness in broader markets.

As far as Nifty options activities are concerned, fresh writing took place in 11,500-11,700 call options. On the other side, open interest addition was seen in 11,400 and 11,500 put options. Now, the maximum open interest concentration for March series is placed at 11,500 call and 11,000 put options.

“Since the beginning of the March series, we have been witnessing huge amount of long formation and now it seems we are long heavy. At present, around 11,500 is the immediate hurdle; whereas, 11,250-11,300 shall act as a support,” Sneha Seth, Derivatives Analyst at Angel Broking said.

As the outstanding contracts in futures segment is heavy now, she would advise traders to lighten up their positions in index and prefer trading in individual counters for better risk reward ratio.

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

Key support and resistance level for Nifty

The Nifty closed at 11,462.20 on March 18. According to the Pivot charts, the key support level is placed at 11,406.4, followed by 11,350.6. If the index starts moving upward, key resistance levels to watch out are 11,524.1 and 11,586.

Nifty Bank

The Nifty Bank index closed at 29,596.10, up 214.65 points on March 18. The important Pivot level, which will act as crucial support for the index, is placed at 29,367.86, followed by 29,139.63. On the upside, key resistance levels are placed at 29,818.16, followed by 30,040.23.

Call options data

Maximum Call open interest (OI) of 25.39 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the March series.

This was followed by the 11,600 strike price, which now holds 20.18 lakh contracts in open interest, and 11,700, which has accumulated 16.54 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 11,600, which added 6.53 lakh contracts, followed by 11,700 strike, which added 4.44 lakh contracts, and 11,500 strike, which added 1.93 lakh contracts.

Call unwinding was seen at the strike price of 11,400 that shed 4.37 lakh contracts, followed by 11,300 strike that shed 4.16 lakh contracts and 11,000 strike, which shed 1.08 lakh contracts.

Image618032019

Put options data

Maximum Put open interest of 38.26 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the March series.

This was followed by the 11,300 strike price, which now holds 23.64 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 21.33 lakh contracts in open interest.

Put writing was seen at the strike price of 11,500, which added 3.41 lakh contracts, followed by 11,400 strike that added 2.6 lakh contracts and 11,600 strike that added 0.57 lakh contracts.

Put unwinding was seen at the strike price of 11,200, which shed 4.79 lakh contracts, followed by 11,100 strike, that shed 3.36 lakh contracts and 11,300 strike, which shed 1.35 lakh contracts.

Image718032019

FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 1,822.99 crore while Domestic Institutional Investors (DIIs) sold Rs 1,268.91 crore worth of shares in the Indian equity market on March 18, as per provisional data available on the NSE.

Fund flow picture

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Stocks with a high delivery percentage

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

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72 stocks saw a long buildup

Image1018032019

52 stocks saw short covering

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

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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.

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22 stocks saw long unwinding

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Bulk Deals on March 18

NSE

DHFL: PGGM World Equity BV bought 25,16,898 shares of the company at Rs 136.55 per share

Mindpool Technologies: Keyur Bipinkumar Shah purchased 24,000 shares of the company at Rs 16.5 per share

Reliance Communications: IndusInd Bank Client A/C sold 2,76,05,034 shares of the company at Rs 4.04 per share.

Reliance Infrastructure: PGGM World Equity BV bought 14,60,946 shares of the company at Rs 135.93 per share.

Suumaya Lifestyle: Newedge Vinimay Private Limited sold 3,20,000 shares of the company at Rs 29.9 per share.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

The New India Assurance Company: Board meeting is scheduled on March 27 to consider general matters of the company.

Stocks in news

Orbit Exports: Board approved the buy-back of fully paid up equity shares for an amount upto Rs 10 crore at a price upto Rs 130 per share.

Seven 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 March 19, Adani Enterprises, BEML, IDBI Bank, Jet Airways, Just Dial, Reliance Capital and Reliance Power are present in this list.

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

2019-03-19 10:57:48

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

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