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

Maximum call open interest (OI) of 32.18 lakh contracts was seen at the 11,200 strike price. This will act as a crucial resistance level for July series.

After opening higher Wednesday the Nifty50 made multiple attempts to move near its earlier record high amid rangebound trade but failed due to selling pressure. The index ended flat with a negative bias ahead of the expiry of July derivative contracts, forming bearish candle on the daily candlestick charts, which also resembles ‘Spinning Top’ kind of pattern.

Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend as well as in a downtrend.

The Nifty Midcap index also ended flat while the sectoral trend was mixed. The 30-share BSE Sensex managed to end at record closing high again, rising 33.13 points to 36,858.23.

“Nifty50 continued its consolidation phase for second day in a row as it signed off the session with an indecisive formation, forming small bearish candle which also resembles Spinning Top after moving in a 44-point narrow range ahead of the expiry session,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

According to him, a major move in either of the directions can be expected in next couple of trading sessions as we head for a fresh F&O series.

He said on the downsides it looks critical for the indices to sustain above 11,000 as a close below this level may usher in a short term pressure on the markets. “For time being upsides may get capped in the zone of 11,150–11,171 unless market witnesses a strong upswing beyond 11,171. In such a scenario initial target of around 11,250 can be expected.”

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan said the index posted a negative daily close after three consecutive positive sessions. “Nevertheless, overall Technical outlook continues to be in favour of the bulls.”

Once the key hurdle of 11,171 gets taken out, the benchmark index can march towards 11,450 in the short term, he said, adding on the downside, 11,030-11,020 shall act as a key support zone for any minor degree dip.

India VIX fell by 1.18 percent at 12.32 levels. VIX has been falling down from last five sessions and decline in with rising Put Call Ratio suggests that Put writers have taken the market in their tight grip.

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 11,132 on Wednesday. According to Pivot charts, the key support level is placed at 11,111.07, followed by 11,090.13. If the index starts moving upwards, key resistance levels to watch out are 11,155.07 and 11,178.13.

Nifty Bank

The Nifty Bank index closed at 27,031.30, up 56.9 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,955.73, followed by 26,880.17. On the upside, key resistance levels are placed at 27,090.43, followed by 27,149.57.

Call Options Data

Maximum call open interest (OI) of 32.18 lakh contracts was seen at the 11,200 strike price. This will act as a crucial resistance level for July series.

This was followed by the 11,300 strike price, which now holds 21.55 lakh contracts in open interest, and 11,100, which has accumulated 16.67 lakh contracts in open interest.

There was hardly any Call writing seen.

Call unwinding was seen at the strike price of 11,100, which shed 11.35 lakh contracts, followed by 11,000, which shed 6.37 lakh contracts and 10,800 which shed 3.9 lakh contracts.

Put Options data

Maximum put open interest of 49.78 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for July series.

This was followed by the 10,600 strike price, which now holds 33.9 lakh contracts in open interest, and the 10,900 strike price, which has now accumulated 32.94 lakh contracts in open interest.

There was hardly any Put writing seen.

Put Unwinding was seen at 10,700, which shed over 9.08 lakh contracts, followed by 11,000, which shed 5.49 lakh contracts and 10,900 which shed 5.45 lakh contracts.

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,195.75 crore while domestic institutional investors bought shares worth Rs 97.64 crore 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.

26 stocks saw long buildup

59 stocks saw short covering

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

49 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.

73 stocks saw long unwinding

Bulk Deals

Sumeet Industries: Mystique Media Private Limited bought 6,70,364 equity shares of the company at Rs 13.53 per share.

Suumaya Lifestyle: Bimalkumar Rajkumar Bansal purchased 1,44,000 equity shares of the company at Rs 29.13 per share.

Navin Fluorine International: Grantham, Mayo, Van Otterloo & Co LLC sold 3,87,639 shares of the company at Rs 604.07 per share while New World Fund bought 3,84,769 shares at Rs 604.06 per share.

Analyst or Board Meet/Briefings

Orissa Minerals Development Company: Fourth meeting of the Committee of Creditors of the company is scheduled to be held on July 26.

IG Petrochemicals: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on July 31.

NMDC: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 8.

Bank of Maharashtra: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 3.

Great Eastern Shipping: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 10.

Punjab Alkalies & Chemicals: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 14.

Ramco Systems: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 2.

Pfizer: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 2.

Amber Enterprises India: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 7.

Greaves Cotton: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 13.

Suryalakshmi Cotton Mills: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 11.

Mold-Tek Technologies: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 2.

Triveni Engineering: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 1.

Matrimony.com: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 10.

Nestle India: Board meeting for the approval of the unaudited financial results for April-June quarter is scheduled to be held on August 3.

GPT Infraprojects: 38th Annual General Meeting of the company will be held on August 21.

ACC: Company is meeting Ashmore Investments for Investor meeting on July 26.

Piramal Enterprises: Conference call with investors/ analysts is scheduled to be held on July 30.

Finolex Industries: Conference call with investors/ analysts is scheduled to be held on July 27.

Inox Leisure: Company has scheduled an Analyst/Investor Meeting on July 26.

Gateway Distriparks: Investor / Analysts Call is scheduled to be held on August 2.

Reliance Nippon Life Asset Management: Analyst call on the unaudited financial results of the company for the quarter ended June will be on July 26.

Stocks in news

Results on Wednesday: Bharti Airtel, Biocon, Dr Reddy’s Labs, ITC, Maruti Suzuki, Yes Bank, CESC, Ajmera Realty, Alembic Pharmaceuticals, Bayer Cropscience, Bharat Financial Inclusion, Cholamandalam Investment, Colgate Palmolive, Container Corporation, Control Print, Essel Propack, Force Motors, HeidelbergCement, Jammu & Kashmir Bank, Jindal Stainless (Hisar), Lakshmi Vilas Bank, NIIT, Novartis, Orient Green Power, Petronet LNG, Quess Corp, SBI Life Insurance, Schaeffler, Shemaroo, Shriram Transport Finance, Star Cement, Tata Metaliks, Tata Power, Tata Coffee, Tinplate Company, City Union Bank.

Larsen & Toubro: Q1 profit jumps 36.1 percent to Rs 1,215 crore versus Rs 892.5 crore; revenue increases 18.8 percent to Rs 28,283 crore versus Rs 23,811 crore (YoY).

Hero MotoCorp: Q1 profit falls 0.5 percent to Rs 909.2 crore versus Rs 914 crore; revenue rises 10.4 percent to Rs 8,809.8 crore versus Rs 7,980.5 crore (YoY).

Bharti Infratel: Q1 profit rises to Rs 638 crore versus Rs 606 crore; revenue increases 0.3 percent to Rs 3,674 crore versus Rs 3,662 crore (QoQ).

Ambuja Cements: Q2 standalone profit rises 27.3 percent to Rs 499 crore versus Rs 329.3 crore; revenue increases 5.7 percent to Rs 3,016.9 crore versus Rs 2,854.5 crore (YoY).

Canara Bank: Q1 profit rises 11.7 percent to Rs 281.5 crore versus Rs 251.6 crore; NII jumps 43.1 percent to Rs 3,882.9 crore versus Rs 2,713.2 crore (YoY); net NPA at 6.91 percent versus Vs 7.48 percent and gross NPA at 11.05 percent versus 11.84 percent (QoQ).

IRB Infrastructure: Q1 consolidated profit rises 5.2 percent to Rs 250.1 crore versus Rs 238 crore; revenue falls 15.4 percent to Rs 1,537.9 crore versus Rs 1,816.9 crore (YoY).

Reliance Nippon Life: Q1 profit rises to Rs 112 crore versus Rs 109 crore; revenue increases to Rs 394 crore versus Rs 368 crore (YoY).

Shriram City Union Finance: Q1 profit increases to Rs 229.58 crore versus Rs 200.06 crore; revenue rises to Rs 1,401.65 crore versus Rs 1,227.43 crore (YoY).

Sanofi India: Q1 profit jumps to Rs 99.6 crore versus Rs 73.7 crore; revenue increases to Rs 683.6 crore versus Rs 600.6 crore (YoY).

KPIT Technologies: Q1 profit rises 2.6 percent at Rs 78.6 crore versus Rs 76.6 crore; revenue increases 4.9 percent to Rs 1,013.8 crore versus Rs 966.4 crore (QoQ).

Gruh Finance: Q1 profit jumps 20 percent to Rs 115 crore versus Rs 95.8 crore; revenue rises 11.8 percent to Rs 452.2 crore versus Rs 404.4 crore (YoY).

JSW Steel: The company completed acquisition of 100 percent shares of Aferpi S.p.A and Piombino Logistics S.p.A and 69.27 percent of the shares of GSI Lucchini S.p.A.

Punjab National Bank: The bank invited expression of interest towards strategic sale’ process initiated by itself and Quality Investment Holdings in relation to the respective shareholding in PNB Housing Finance.

Hindustan Copper: Board meeting of the company has been convened at short notice on July 26 to review the status of QIP.

Sumeet Industries: Board has has fixed the record date as August 4 for determining the entitlement of members to receive Bonus Equity Shares of the Company in the ratio of 1:4.

Sanofi India: Board declared an interim dividend of Rs 18 per share for the financial year ending December 2018.

Dish TV: World Crest Advisors LLP along the PAC’s has successfully completed the open offer process for acquisition of the equity shares of the company.

Sterling Tools: ICRA revised long term rating of the company to AA- from A+.

Confidence Petroleum: Board approved allotment of 1,50,00,000 equity shares of Rs 1 each at Rs 52 per share on preferential basis.

One 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.

For July 26, Adani Enterprises is present in this list.