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

The market mood remained positive for the fourth consecutive session with the Nifty 50 closing a tad below 11,950 level on July 4. The index rallied more than 150 points in four straight days ahead of Union Budget.

Volatility is highly likely on Budget day on July 5 but any strong surprise can take it towards a record high of around 12,100. Otherwise, there could be profit booking, experts feel.

The BSE Sensex gained 68.81 points to close at 39,908.06 while the Nifty 50 rose 30 points to 11,946.80 and formed small bullish candle on daily charts.

"The index formed a small bullish candle on the daily scale and continued forming higher highs from past four trading sessions which indicate overall bias could remain positive to rangebound," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.

He said now the index has to continue to hold above 11,850 zones to witness an upmove towards 12,000 then 12,040 zones while supports are shifting higher at 11,850 then 11,777 zones.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities said all eyes on Union Budget 2019, which is going to be a key trigger for the market direction.

"We are likely to see an emergence of high volatility in the market in coming sessions," he added.

The broader markets ended mixed with the Nifty Midcap index falling 0.03 percent while Smallcap index gained 0.5 percent. Among sectors, PSU Bank index gained over a percent on the hope of a bigger amount towards recapitalisation from the government in Union Budget.

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

Key support and resistance level for Nifty

The Nifty closed at 11,946.75 on July 4. According to Pivot charts, the key support level is placed at 11,923.93, followed by 11,901.07. If the index starts moving upward, the key resistance levels to watch out are 11,969.43 and 11,992.07.

Nifty Bank

The Nifty Bank closed at 31,471.85, up 89.55 points on July 4. The important Pivot level, which will act as crucial support for the index, is placed at 31,397.17, followed by 31,322.53. On the upside, key resistance levels are placed at 31,577.37, followed by 31,682.94.

Call options data

Maximum Call open interest (OI) of 17.59 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.

This is followed by 12,500 strike price, which now holds 15.99 lakh contracts in open interest, and 12,400, which has accumulated 12.85 lakh contracts in open interest.

Significant Call writing was seen at 12,100 strike price, which added 2.41 lakh contracts, followed by a 12,500 strike price which added 2.31 lakh contracts and 12,000 strike which added 2.22 lakh contracts.

There was hardly any Call unwinding seen.

Put options data

Maximum Put open interest of 17.51 lakh contracts was seen at the 11,500 strike price. It will act as a crucial support level for the July series.

This was followed by 11,300 strike price, which now holds 13.43 lakh contracts in open interest and 11,800 strike price, which has now accumulated 12.76 lakh contracts in open interest.

Put writing was seen at the 11,900 strike price, which added 4.34 lakh contracts, followed by 11,800 strike price that added 2.35 lakh contracts and 11,700 strike which added 1.03 lakh contracts.

There was hardly any Put unwinding seen.

Stocks with a high delivery percentage

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

39 stocks saw a long buildup

45 stocks that saw short covering

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

46 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.

32 stocks saw long unwinding

Analyst or Board Meetings/Briefings

L&T Finance Holdings: Company will hold a conference call with institutional investor/analyst on July 22 at Mumbai, to discuss Q1 FY20 financial performance and provide an update on strategy.

Gujarat Ambuja Exports: 28th AGM of members of the company to be held on August 3.

Bandhan Bank: Company will announce its June quarter earnings on July 19.

Tech Mahindra: Company will announce its June quarter earnings on July 30.

Reliance Industrial Infrastructure: Company will announce its June quarter earnings on July 12.

Coromandel International: Company will announce its June quarter earnings on July 22.

Sandhar Technologies: Company will announce its June quarter earnings on August 3.

Inox Leisure: Company will be meeting analysts/investors on July 5 in a non-deal road show organised by Edelweiss in London.

Thyrocare Technologies: Representative(s) of Baring Private Equity Asia, would be having a meeting with the company on July 5.

Stocks in news

Sobha: Q1FY20 sales were at Rs 778 cr, up 2 percent YoY. The average realisation was Rs 7,312 per square feet against Rs 7,941 per square feet YoY. Sales volume rose 11 percent on year. The company expects current momentum to continue for the whole of FY20.

Eveready Industries: Yes Bank acquired a 9.47 percent stake in the company.

DLF: Company fixed July 23 as the record date for determining entitlement of shareholders for dividend for FY19.

GMR Infrastructure: Group sold an entire stake of 47.62 percent in GMR Chhattisgarh Energy to Adani Power.

L&T Finance Holdings: Company will receive $550 million in an ECB investment round anchored by IFC, a member of the World Bank Group, and BNP Paribas, Citibank, and DBS Bank Limited.

Commercial Syn Bags: Company received a letter of intent from Madhya Pradesh Industrial Development Corporation (MPIDC), for allotment of leasehold land admeasuring 40000 square metre in Industrial Area Pithampur- 6 District Dhar (M.P.) for a new project.

Agarwal Industrial Corporation: CARE for the first time assigned to the company 'BBB' rating for bank facilities (short term) for an aggregate amount of Rs 100 crore.

Rain Industries: India Ratings revised the outlook to ‘stable' from 'positive'.

CRISIL: Company is in pact with Bank Of Baroda to rate SMEs.

Usha Martin: Company has completed the transfer of the operative iron-ore mine and coal mine under development to Tata Sponge Iron.