Trade Setup for Monday: Top 15 things to know before Opening Bell
The Nifty which started on a positive note managed to build further momentum towards the closing of the trade and closed its crucial 100-days exponential moving average placed around 10,418 making a strong bullish candle on the daily charts.
However, on a weekly basis, Nifty made a Dragonfly Doji kind of pattern which suggests that a reversal in the trend could be in the offing.
A Dragonfly Doji pattern signals indecision among traders but it also points to the fact that bulls managed to bring the index towards the opening level. The index has to sustain above 10,400 for the bullish sentiment to continue.
Investors are advised to stay long on the index with a strict stop loss below 10,300 levels on closing basis. The March series started with a strong upmove and hopefully, it should take Nifty towards 11,000 levels in near future.
The Nifty which opened at 10,408 rose to an intraday high of 10,499. It slipped marginally below 10,400 to hit its intraday low of 10,396 before closing 108 points higher at 10,491.
“Finally, a much-awaited pullback rally materialised on the last trading session of the week with a robust up move which resulted in a Dragon Fly Doji kind of reversal formation on the weekly charts,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Interestingly, the strength of this up move with broad-based participation as suggested by advance-decline ratio accompanied with a decisive close above its 100-day EMA is pointing towards more upsides which can get extended initially up to 10600 kinds of levels, he said.
Mohammad is of the view that the real test for bulls lies in clearing the hurdle of its 50 days EMA, whose value is placed around 10,559 levels, which offered resistance twice on a pullback attempt from the lows of 10276 levels. “A close above the said average can be an initial sign of strength towards trend reversal in favor of bulls,” he said.
India VIX fell down by 4.25 percent at 14.20. VIX has declined by more than 13 percent in this week which has given a short-term stability to the market.
We have collated the top fifteen data points to help you spot profitable trade:
Key Support & Resistance Level for Nifty
The Nifty closed at 10,491.0. According to Pivot charts, the key support level is placed at 10,425.43, followed by 10,359.87. If the index starts to move higher, key resistance levels to watch out are 10,527.83 and 10,564.67.
The Nifty Bank closed at 25,302.5. Important Pivot level, which will act as crucial support for the index, is placed at 25,061.8, followed by 24,821.1. On the upside, key resistance levels are placed at 25,444.2, followed by 25,585.9.
Call Options Data:
Maximum call open interest (OI) of 30.35 lakh contracts stands at strike price 10,700, which will act as a crucial resistance level for the index in the March series, followed by 10,500, which now holds 28.76 lakh contracts in open interest, and 11,000, which has accumulated 27.23 lakh contracts in OI.
Call writing was seen at a strike price of 10,500, which saw the addition of 8.39 lakh contracts, followed by 10,900, which added 7.59 lakh contracts, and 10,700, which added 5.31 lakh contracts.
Call unwinding was seen at 10,500, which saw shedding of 1.06 lakh contracts, followed by 10,000 at 0.42 lakh contracts.
Put Options Data:
Maximum put OI of 35.73 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in March series, followed by 10,400, which now holds 30.84 lakh contracts and 10,300 which has now accumulated 27.36 lakh contracts in open interest.
Put Writing was seen at the strike price of 10,300, which saw addition of 10.06 lakh contracts, along with 10,400, which added 9.19 lakh contracts and 9,900, which added 6.04 lakh contracts.
There was hardly any Put unwinding seen.
FII & DII Data:
Foreign institutional investors (FIIs) sold shares worth Rs 486.32 crore, while domestic institutional investors bought shares worth Rs 1,514.03 crore in the Indian equity market, as per provisional data available on the NSE.
Fund Flow Picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on the stock.
162 stocks saw long build-up:
32 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
17 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.
Fortis Healthcare: BNP Paribas Arbitrage has bought 42.75 lakh shares at Rs 154.91 apiece.
Crossland Trading traded around 38.31 lakh shares at Rs 154.456 apiece.
Jaiprakash Associates: Adroit share and Stock Broker traded 1.67 crore shares at Rs 18 apiece.
Indus Portfolio bought 1.53 crore shares at Rs 17, while it sold 1.31 crore shares at 18.09.
IndusInd Bank Client A/c sold 1.1 crore shares at Rs 13.65.
Jubilant Life Sciences: Copthall Mauritius Investment bought 27.50 lakh shares at Rs 914.
Jubilant Advisors sold 22.38 lakh shares at Rs 917.43, while Jubilant Consumer Pvt Ltd sold 27.36 lakh shares.
Ruchi Soya: Manav Patel traded 20.85 lakh shares at Rs 17 apiece.
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Investors will be meeting the management of M&M on March 14, 2018.
Aegis Logistics will be having a roadshow between February 26 and 28, 2018 in New York and Boston.
Stocks in news:
Idea Cellular: Raised Rs 3,500 crore through qualified institutional placement (QIP).
DCM Shriram: Second interim dividend declared at 170% i.e Rs 3.40 per equity share of face value Rs 2 for FY 2017-18
IDBI Bank: Shareholders approve shares up to Rs 2,729 crore To government On preferential basis.
Bharti Airtel & Motorola Partner For 4G Smartphones Starting At `3,999
2 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as Fortis and JP Associates.