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Trade Setup for Thursday: Top 15 things to know

Yatheendradas C.k. at 09:32 PM - Jun 13, 2018 ( ) Views: 310

Last Updated : Jun 13, 2018 08:01 PM IST | Source: Moneycontrol.com

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

It looks prudent on the part of short-term traders to focus on individual stock specific opportunities with a stop below 10,800 on closing basis.

Uttaresh Venkateshwaran   Sandip Das

The Nifty which started on a positive note failed to hold on to momentum and witnessed profit booking near 10,900 levels and made a bearish candle on an intraday basis.

Traders preferred to book profits ahead of the crucial US Fed outcome but the positive takeaway is that the index managed to close above 10,850 levels which was the intraday high recorded earlier this week on Monday.

The Nifty index opened gap-up but failed to hold above 10,888 and consolidated in a narrow range with a support placed at 10,850-10,800 levels. On the higher side, resistance is placed at 10,930 levels.


Bank Nifty remained range bound for the most part of the trading session but trading range is slightly shifting higher towards immediate hurdle of 26,750 zones. 

The Nifty which opened at 10,887 rose to an intraday high of 10,893 but failed to hold on to morning gains and slipped towards 10,850. The index closed 13.85 points higher at 10,856.70.

“Despite a strong gap-up opening, bulls appears to have adopted a cautious stance ahead of the US Fed event as during the course of the day they have given up all the gains which resulted in a small bearish candle formation on intraday basis,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.

“Though imminent weakness is not visible, as all short term oscillators on lower time frame charts are in still buy mode, a close below 10,800 may set the tone for bear domination. On the other hand a close above 10,930 shall confirm strength there by paving

the way for retest of life time highs present around 11,170 levels,” he said.

It looks prudent on the part of short-term traders to focus on individual stock specific opportunities with a stop below 10,800 on closing basis.

India VIX fell down by 1.65 percent at 12.52 levels. On the options front, maximum Put OI is placed at 10,700 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,900 strikes.

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

Key Nifty support and resistance levels

The Nifty closed at 10,856.7 on Wednesday. According to Pivot charts, its key support is placed at 10,835.2, followed by 10,813.7. If the index starts moving upward, key resistance levels to watch out are 10,885.7 and 10,914.7.

Nifty Bank

The Nifty Bank index closed at 26,642.8. The important Pivot level, which will act as a crucial support for the index, is placed at 26,572.21, followed by 26,501.6. Key resistance levels are placed at 26,739.41, followed by 26,836.0.

Call options data

In terms of open interest, the 11,000 Call Option has seen the most call writing so far, with 38.52 lakh contracts being written. This level could act as a crucial resistance for the index in the June series.

The second-highest buildup was seen in the 10,900 call option, which has seen 30.17 lakh contracts getting written so far. The 10,800 call option has accumulated 27.62 lakh contracts.

The most call writing was seen at the strike price of 11,100, which saw 4.03 lakh contracts getting written.

Call unwinding was seen at the strike price of 10,800, which shed 2.10 lakh contracts, followed by 10,700, which shed 1.15 lakh contracts.


Put options data

Maximum open interest in put options was seen at the 10,700 strike price, in which 51.67 lakh contracts have been added till date. This level could be a crucial support for the index in the June series.

The 10,600 put option comes next, with 48.77 lakh contracts being added so far, followed by the 10,800 put option, which has now accumulated 36.95 lakh contracts.

Maximum put writing was seen at the strike prices of 10,700, which added 32.54 lakh contracts, followed by 10,800, which added 31.08 lakh contracts, and 10,600, which added 4.83 lakh contracts.

Put unwinding was seen at the strike price of 11,000, which shed 1.75 lakh contracts.


FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 70.77 crore, while domestic institutional investors bought shares worth Rs 486.78 crore in the Indian equity market, as per provisional data available on the National Stock Exchange.

Fund flow picture:


Stocks with higher delivery percentage

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


49 stocks saw long build-up


37 stocks saw short covering:

A decrease in open interest along with an increase in prices is generally indicative of short covering.


83 stocks saw short build-up

An increase in open interest along with a decrease in prices generally indicates a buildup of short positions.


41 stocks saw long unwinding


Bulk deals:

Dish TV India: Rare Enterprises bought 130,00,000 shares at Rs 71.30 per share

Kwality: Sicom Limited sold 44,00,000 shares at Rs 26.48 per share

Ruchi Soya: Evershine Oleochem sold 25,00,000 shares at Rs 12.66 per share

Supreme Industries: Smallcap World Fund INC sold 13,00,000 shares at Rs 1250.20 per share


Analyst or board meet/briefings:

CEAT: The firm will be meeting investors at an event on June 14, 2018.

Allcargo: Envision Capital, Consilium Investment Management and IIFL will meet the firm in separate meetings on June 14 and 19, 2018.

Eicher Motors: The firm will be meeting Franklin Templeton, HSBC, and Motilal Oswal AMC on June 14, 2018.

Stocks in the news:

Tata Power: It has signed a power purchase agreement with GE for 5 MW solar projects.

City Union Bank: The bank allotted 6.23 lakh shares under the ESOP scheme.

Adani Transmission: The firm has received a letter of intent of one Intra State Transmission Project in Uttar Pradesh

Bank of Maharashtra: R Thamodharan appointed as elected Director of the Bank.

Canara Bank: Vinay Mohta appointed as company secretary from June 13, 2018.

Lupin: Launches Generic Tobramycin Inhalation Solution USP In The US. It is used to treat lung infections.

HDFC Bank: The Cabinet has approved HDFC Bank's Rs 24,000 crore FDI Proposal.

Dish TV India: Rare Enterprises bought 130,00,000 shares at Rs 71.30 per share

4 stocks under ban period on the NSE

Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For June 14, Balrampur Chini, DHFL, Jet Airways and Just Dial are present in the F&O ban list.

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