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

The Nifty50 after opening above psychological 11,000-mark hit a fresh five-month high following strong global cues, but saw some profit booking in later part of the session on Thursday.

The index formed a ‘Shooting Star’ kind of pattern on the daily charts. Traders turned cautious ahead of June retail inflation and May industrial output data due later in the day.

A ‘Shooting Star’ pattern is formed when the index comes under selling pressure as traders start booking profits at higher levels.

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.

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

The BSE Sensex surpassed its previous life time high of 36,443 and made a new record high of 36,699 levels intraday, before ending at all-time closing high of 36,548.41 (up 282.48 points).

The Nifty50 after opening at 11,006.95 rallied 130 points to hit a fresh five-month high of 11,078.30, but traders preferred to book some profits in later part of the session. It closed 74.90 points higher at 11,023.20 and is 148 points away from its all-time high of 11,171.55 seen in January.

Some profit booking at higher levels made traders cautious about coming sessions. Hence the index needs to hold 11,000-mark for further uptrend but if it falls below that level, then there could be some selling pressure, experts said.

“Five consecutive positive closes appears to have provided a good opportunity for short term traders to go for profit booking as indices traded above psychologically important resistance level of 11,000 which resulted in Shooting Star kind of formation with a long upper shadow,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said weakness after such formations will get materialised if indices trades below the low point of such a session. “Hence, Nifty50 can come under selling pressure if it trades below 10,999 in next trading session. However, Thursday’s bullish gap zone between 10,999–10,976 can be expected to offer support on corrections.”

On breach of 10,976 indices may initially extend their downswing upto 10,900 levels, he said, adding upsides shall once again resume on a close above 11,078 which shall then lead to retest of life time highs.

India VIX fell 1.58 percent to 12.57 levels.

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 11,023.20 on Thursday. According to Pivot charts, the key support level is placed at 10,989.17, followed by 10,955.13. If the index starts moving upwards, key resistance levels to watch out are 11,067.77 and 11,112.33.

Nifty Bank:

The Nifty Bank index closed at 27,026.55, up 210.35 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 26,920.2, followed by 26,813.8. On the upside, key resistance levels are placed at 27,148.9, followed by 27,271.2.

Call Options Data

Maximum call open interest (OI) of 38.32 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for July series.

This was followed by the 11,100 strike price, which now holds 28.73 lakh contracts in open interest, and 10,800, which has accumulated 27.01 lakh contracts in open interest.

Call writing was seen at the strike price of 11,200, which added 5.91 lakh contracts, followed by 11,100, which added 3.93 lakh contracts and 11,400 which added 2.85 lakh contracts.

Call unwinding was seen at the strike price of 10,900, which shed 8.09 lakh contracts, followed by 11,000, which shed 4.75 lakh contracts and 10,800 which shed 2.93 lakh contracts.

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Put Options data

Maximum put open interest of 51.57 lakh contracts was seen at the 10,600 strike price. This will act as a crucial support level for July series.

This was followed by the 10,700 strike price, which now holds 48.75 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 46.14 lakh contracts in open interest.

Put Writing was seen at the strike price of 11,000, which added 15.47 lakh contracts, followed by 10,900, which added 7.43 lakh contracts and 11,100, which added 4.63 lakh contracts.

Put Unwinding was seen at 10,500, which shed over 1.79 lakh contracts, followed by 10,400, which shed 1.35 lakh contracts.

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FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 742.63 crore while domestic institutional investors purchased shares worth Rs 366.4 crore in the Indian equity market on Thursday, as per provisional data available on the NSE.

Fund Flow Picture:

FII&DII

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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42 stocks saw long buildup

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51 stocks saw short covering

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

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73 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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41 stocks saw long unwinding

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Bulk Deals

Coffee Day Enterprise: Icici Lombard General Insurance Company Limited sold 17,67,207 shares at Rs 270 per share

Ruchi Soya: JM Financial Products Limited sold 18,00,000 shares at Rs 11.37 per share

Suumaya Lifestyle Limited: L R Commodities Private Limited bought 4,64,000 shares at Rs 18.25 per share

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

HT Media: Board meeting for announcement of June quarter earnings to be held on July 18.

High Energy Batteries: Board meeting for announcement of June quarter earnings to be held on July 28.

KRBL: Board meeting for announcement of June quarter earnings to be held on July 24.

Gujarat Narmada Valley Fertilizers & Chemicals: Board meeting for announcement of June quarter earnings to be held on August 9.

Vikas EcoTech: Board meeting for announcement of June quarter earnings to be held on July 19.

Pioneer Embroideries: Board meeting for announcement of June quarter earnings to be held on July 23.

Abhinav Capital Services: Board meeting for announcement of June quarter earnings to be held on August 8.

Tejas Networks: Board meeting for announcement of June quarter earnings to be held on July 23.

Control Print: Board meeting for announcement of June quarter earnings to be held on July 26.

Kapashi Commercials: Board meeting for announcement of June quarter earnings to be held on July 20.

Mercury Trade Links: Board meeting for announcement of June quarter earnings to be held on July 23.

Narayana Hrudayalaya: 18th Annual General Meeting to be held on August 3.

Renaissance Jewellery: Annual General Meeting to be held on August 7.

Diamines & Chemicals: Annual General Meeting to be held on August 6.

Investment & Precision Castings: 43rd Annual General Meeting to be held on August 9.

Captain Polyplast: Board meeting to be held on July 28 to consider sub division of equity shares of the company.

Nucleus Software Exports: Investor/ Analyst Earning Conference Call of the company would be held on July 18.

Endurance Technologies: Telephonic discussion with analysts/ institutional investor is scheduled on July 13.

Gabriel India: Officials of the company will be attending the meeting with investor and analysts on July 13.

Stocks in news

Cyient: Q1 net profit at Rs 82.5 crore; revenue at Rs 1,097 crore

Vakrangee: Company entered an alliance with Reliance Nippon Life Asset Management, which through company’s Nextgen Vakrangee Kendras shall offer distribution of mutual fund products to the Citizens on PAN India basis.

Allahabad Bank: Bank proposes to sell its non-core assets including divestments of its stake in joint ventures, associates, selling some of the immovable properties.

SRS Real Infrastructure: Board appointed Dheeraj Kumar as CFO of the company

Hubtown: Board approved preferential issue of upto 3,09,89,459 warrants, convertible into equivalent number of equity shares to the Promoters/promoter Group entities.

Talwalkars Lifestyles: Board has recommended a dividend at 10 percent of face value per share (Re 1- per equity share of Rs 10).

Diksat Transworld: Board approved allotment of 3.29 lakh shares to non-promoter Krishnan Naranapatty on preferential basis and acquisition of 51 percent stake in Adfarm Private Limited.

Glenmark Pharma: Fitch Ratings, as part of their annual review cycle, has reaffirmed the company’s credit rating at BB, outlook ‘stable’.

Themis Medicare: Company has received a letter from the Food and Drug Administration (FDA) directing, not to manufacture a key product till deciding of the matter. The company has been given an opportunity to be heard and is taking necessary steps to suitably reply to the said letter. The product is being manufactured and marketed by the company as also supplied to a Pharma Company on Principal to Principal basis.

HealthCare Global Enterprises: Board appointed V Srinivasa Raghavan as chief financial officer of the company.

HIL: Board has accorded its approval for acquisition of 100 percent stake in Parador Holdings GmbH, Germany.

Sanghvi Movers: ICRA has reaffirmed the long term rating for line of credit of the company at A and also reaffirmed the short term rating for letter of credit at A1.

MAS Financial Services: CARE Ratings assigned rating for long term bank facilities at A+/stable and short term bank facilities at A1+.

Allahabad Bank mulls reducing stakes in JV, associate cos to trim bad assets

Sterlite Power Wins 6 New Transmission Projects in Brazil

Ashok Leyland, HPCL launch co-branded fuel card

1 stock under ban period on NSE

Securities in ban period for the next day’s trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

source: moneycontrol


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