TRADE SETUP FOR FRIDAY: 15 THINGS TO KNOW BEFORE OPENING BELL
The market may continue to consolidate and may again make an attempt to bounce back in the coming session considering the loss of 758 points on the Nifty 50 in previous four sessions, but overall, the sentiment is expected to be favourable for bears and hence experts advised for sell on rally strategy.
If the index closes below the rising support trendline in the coming sessions, then next immediate support seen at 21,900 and crucial at 21,700 level, but in case of bounce back, the 22,200-22,300 is likely to be hurdle area on the higher side, experts said. It tested rising support trendline intraday.
On April 18, the BSE Sensex declined 455 points to 72,489, while the Nifty 50 fell 152 points to 21,996 and formed long bearish candlestick pattern on the daily charts with above average volumes on the weekly expiry day.
"The index tested the lower end of the ‘Channel’ in which it has been trading since last few weeks and thus, 21,950 is a crucial support for the short term. The RSI oscillator on the daily chart is negative indicating a negative short term momentum," Ruchit Jain, lead research at 5paisa.com said.
He feels if Nifty manages to trade within this channel, then we should see a pullback move from this support and if this is breached, then we could see an extension of this downmove towards the 89 DEMA, which is placed around 21,740. On the flipside, 22,330-22,380 is the immediate resistance on pullback move, he said.
Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, also said on the downside, the Nifty is now approaching the lower end of the rising channel and the 78.6 percent Fibonacci retracement level 22,000 – 21,938. Hence, "it will be a crucial level to watch out for during the next few trading sessions."
Meanwhile, India VIX, the fear index, extended uptrend for four days in a row, rising 3.36 percent to 13.04 level, making the bulls uncomfortable.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance levels on Nifty, and Bank Nifty
The pivot point calculator indicates that the Nifty 50 may take immediate support at the 21,955 level followed by 21,869 and 21,730 levels. On the higher side, the index may face resistance at the 22,234 level followed by the 22,320 and 22,459 levels.
On April 18, the Bank Nifty remained under bears control, with every upward move facing selling pressure, indicating a sell on rise sentiment among traders. The banking index fell 415 points to 47,069, continuing downtrend for fourth session.
"The overall market tone continues to be bearish, and if the selling pressure persists, the index could test its next major support level at 46,500, where the 100-day exponential moving average (EMA) is located," Kunal Shah, senior technical & derivative analyst at LKP Securities said.
He feels the major resistance for the index is positioned at 48,000, where significant Call writing activity has been observed, indicating strong resistance at this level.
According to the pivot point calculator, the Bank Nifty index is expected to take support at 46,970, followed by 46,770 and 46,446. On the higher side, it may see resistance at 47,618, followed by 47,818 and 48,141.
As per the weekly options data, the 22,000 strike owned the maximum Call open interest, with 1.93 crore contracts, which can act as a key level for the Nifty in the short term. It was followed by the 22,200 strike, which had 1.11 crore contracts, while the 22,300 strike had 93.96 lakh contracts.
Meaningful Call writing was seen at the 22,000 strike, which added 1.82 crore contracts followed by 22,100 strike and 22,200 strike, which added 68.18 lakh and 48.48 lakh contracts, respectively.
The maximum Call unwinding was at the 23,000 strike, which shed 31.98 lakh contracts followed by 22,700 and 23,100 strikes, which shed 21.74 lakh contracts and 15.28 lakh contracts, respectively.
On the Put side, the maximum open interest was seen at 22,000 strike, which can act as a key level for the Nifty with 1.62 crore contracts. It was followed by the 22,200 strike comprising 1.29 crore contracts and then the 21,900 strike with 96 lakh contracts.
Meaningful Put writing was at the 22,000 strike, which added 99.16 lakh contracts followed by the 22,200 strike and 21,900 strike adding 75.03 lakh and 47.03 lakh contracts, respectively.
Put unwinding was seen at 21,500 strike, which shed 13.37 lakh contracts followed by 21,300 and 22,700 strikes, which shed 3.97 lakh and 2.79 lakh contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. Godrej Consumer Products, JK Cement, Dabur India, Alkem Laboratories, and Crompton Greaves Consumer Electricals saw the highest delivery among the F&O stocks.
A long build-up was seen in 22 stocks, which included Bharti Airtel, Ipca Laboratories, Infosys, HDFC Life Insurance Company, and Trent. An increase in open interest (OI) and price indicates a build-up of long positions.
Based on the OI percentage, 38 stocks saw long unwinding, which included Deepak Nitrite, Tata Consumer Products, Escorts, Glenmark Pharma, and GNFC (Gujarat Narmada Valley Fertilizers & Chemicals). A decline in OI and price indicates long unwinding.
100 stocks see a short build-up
A short build-up was seen in 100 stocks, including Exide Industries, Indraprastha Gas, Dr Reddy's Laboratories, Titan Company, and Berger Paints. An increase in OI, along with a fall in price points to a build-up of short positions.
Based on the OI percentage, a total of 25 stocks were on the short-covering list which included Vodafone Idea, Bharat Forge, RBL Bank, Manappuram Finance, and Hindustan Petroleum Corporation. A decrease in OI along with a price increase is an indication of short-covering.
The Nifty Put Call ratio (PCR), which indicates the mood of the equity market, jumped to 0.93 on April 18, from 0.76 levels in the previous session.
The increasing PCR or higher than 0.7 or surpassing 1 means the traders are selling more Put options than Calls options, which generally indicates increasing bullish sentiment in the market, whereas the ratio falling below 0.7 or moving down towards 0.5 means that selling in Calls is higher than selling Puts, indicating the bearish sentiment in the market.
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Wipro, HDFC Asset Management Company, Jio Financial Services, Hindustan Zinc, Elecon Engineering, and KP Green Engineering will release their quarterly earnings scorecard on April 19.
Stocks in the news
Infosys: The country's second largest IT services company has recorded consolidated profit at Rs 7,969 crore for quarter ended March FY24, growing 30.5 percent over previous quarter driven by income tax refund, but overall earnings missed analysts' estimates. Revenue from operations fell by 2.3 percent QoQ to Rs 37,923 crore, while revenue in dollar terms declined 2.1 percent and constant currency revenue dropped 2.2 on sequential basis.
Bajaj Auto: The Pune-based two-and-three-wheeler maker has reported standalone net profit at Rs 1,936 crore for March FY24 quarter, growing sharply by 35 percent over a year-ago period. Revenue from operations during the same period increased 29 percent to Rs 11,485 crore, with sales volume rising 24 percent to 10.62 lakh units.
ICICI Securities: The company has reported consolidated net profit at Rs 536.5 crore for quarter ended March FY24, rising 104.3 percent over a year-ago period, with strong topline as well as operating performance. Revenue from operations grew by 74.4 percent to Rs 1,543.2 crore compared to same period last year.
Gokaldas Exports: The company has opened its qualified institutions placement (QIP) issue on April 18. The floor price has been fixed at Rs 789.99 per share.
Housing & Urban Development Corporation: Department of Public Enterprises (OPE) has granted the Navratna Status to HUDCO.
Mahindra Lifespace Developers: The real estate and infrastructure development subsidiary of the Mahindra Group has received booking for more than 150 homes within just 2 days, valuing at Rs 350 crore, after the launch of Bengaluru's 1st net zero waste + energy residential project, Mahindra Zen.
Funds Flow (Rs crore)
Foreign institutional investors (FIIs) net sold shares worth Rs 4,260.33 crore, while domestic institutional investors (DIIs) bought Rs 2,285.52 crore worth of stocks on April 18, provisional data from the NSE showed.
Stock under F&O ban on NSE
The NSE has added Exide Industries to the F&O ban list for April 19, while retaining Balrampur Chini Mills, Bandhan Bank, GNFC, Hindustan Copper, Vodafone Idea, Metropolis Healthcare, National Aluminium Company, Piramal Enterprises, SAIL, and Zee Entertainment Enterprises to the said list.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
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2024-04-18T17:18:23Z dg43tfdfdgfd