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Trade setup for Monday: Top 15 things to know before the opening bell

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The stock market erased all its previous day’s gains and closed six-tenth of a percent lower on December 9, dented by selling pressure in technology, metal, and PSU bank stocks.

The BSE Sensex fell 389 points to 62,181, while the Nifty50 declined 113 points to 18,497 and formed a bearish Engulfing candle on the daily charts, indicating further weakness in the market.

“A long negative candle was formed on the daily chart with a minor lower shadow. Technically, this pattern indicates a downside breakout of the rangebound movement of the last few sessions. This is not a good sign and points towards more weakness in the short term,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

He feels the short-term uptrend status of Nifty seems to have reversed.

“Having moved below the crucial support of 18,550-18,500 levels, the Nifty is expected to slide down to the next key lower support of 18,150-18,100 levels in the near term. Immediate resistance is placed at 18,600-18,650 levels,” the expert said.

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The broader markets were also under pressure with the Nifty Midcap 100 and Smallcap 100 indices falling 0.4 percent and 1.1 percent, respectively.

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

Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.

Key support and resistance levels on the Nifty

As per the pivot charts, the key support level for the Nifty is placed at 18,426, followed by 18,366 & 18,269. If the index moves up, the key resistance levels to watch out for are 18,621 followed by 18,681 and 18,778.

Nifty Bank

The Nifty Bank rose 37 points to end at a record closing high of 43,633, outperforming the broader markets and forming a bearish candle on the daily charts on December 9. The important pivot level, which will act as crucial support for the index, is placed at 43,428, followed by 43,312 and 43,124 levels. On the upside, key resistance levels are placed at 43,804 followed by 43,920 & 44,108 levels.

CALL OPTION DATA

We have seen the maximum Call open interest at 19,000 strike, with 35.75 lakh contracts, which can act as a crucial resistance level in the December series.

This is followed by 20,000 strike, which holds 23.62 lakh contracts, and 18,700 strike, which have more than 22.5 lakh contracts.

Call writing was seen at 18,500 strike, which added 6.4 lakh contracts, followed by 18,600 strike, which added 5.21 lakh contracts, and 18,700 strike which added 4.67 lakh contracts.

Call unwinding was seen at 19,500 strike, which shed 2.69 lakh contracts, followed by 19,200 strike which shed 1.77 lakh contracts and 19,000 strike which shed 1.44 lakh contracts.

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PUT OPTION DATA

We have seen a maximum Put open interest at 18,000 strike, with 33.46 lakh contracts which can act as a crucial support level in the December series.

This is followed by 18,500 strike, which holds 28.54 lakh contracts, and 17,500 strike, which has accumulated 27.4 lakh contracts.

Put writing was seen at 17,500 strike, which added 2.87 lakh contracts, followed by 18,700 strike, which added 2.2 lakh contracts and 17,900 strike which added 1.73 lakh contracts.

Put unwinding was seen at 18,500 strike, which shed 1.59 lakh contracts, followed by 17,200 strike which shed 43,550 contracts and 19,000 strike which shed 34,500 contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in HDFC, HDFC Bank, ICICI Bank, Info Edge, and HDFC Life Insurance Company, among others.

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19 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, we have seen a long build-up in a total of 19 stocks on Friday, including Cummins India, AU Small Finance Bank, Nifty Financial, HDFC, and Gujarat Gas.

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83 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, a total of 83 stocks have seen long unwinding on Friday including Polycab India, Apollo Tyres, Hindalco Industries, Navin Fluorine International, and Coromandel International.

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67 stocks saw short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, we have seen a short build-up in a total of 67 stocks on Friday including HCL Technologies, Punjab National Bank, Metropolis Healthcare, LTI Mindtree, and Honeywell Automation.

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25 stocks witnessed short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, we have a total of 25 stocks in the short-covering list on Friday including Bank of Baroda, Siemens, Bank Nifty, Eicher Motors, and Marico.

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Bulk Deals

Aditya Vision: Ashish Rameshchandra Kacholia acquired 1 lakh shares in the company via open market transactions, at an average price of Rs 1,465.90 per share, which were worth Rs 14.65 crore. Himalaya Finance & Investment Company also bought 1 lakh shares in the company at an average price of Rs 1,466 per share, however, promoter Sunita Sinha sold 2.1 lakh shares at an average price of Rs 1,465.95 per share.

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(For more bulk deals, click here)

Investors Meetings on December 12

Titan Company: Officials of the company will interact with Fidelity International.

Punjab National Bank: Officials of the bank will interact with Motilal Oswal Finance Services.

Nazara Technologies: Officials of the bank will interact with UTI MF.

Stocks in News

Uniparts India: The company will make its debut on bourses on December 12. The issue price is fixed at Rs 577 per share.

Bharti Airtel: After receipt of notice for conversion of FCCBs of principle value of $8.6 million from certain holders of FCCBs, the board members have approved the allotment of 11.88 lakh equity shares at a conversion price of Rs 521 per share to such FCCBs holders.

PTC India Financial Services: The company said the board of directors has sanctioned additional loans of Rs 800 crore to various borrowers. The company is committed to perform better in coming quarters to achieve sustainable growth.

Himatsingka Seide: The board of directors of the company will meet on December 15 to consider fund raising up to Rs 108 crore. They will also consider an issue of non-convertible debentures up to Rs 500 crore, to identified investors.

PSP Projects: The company has received a letter of intent from Nila Spaces for civil constriction of residential project “VIDA” at GIFT City Gandhinagar, Gujarat. The construction order is worth Rs 121.51 crore. With this, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,833.09 crore.

Apar Industries: HDFC Mutual Fund sold 1 lakh shares in the company via open market transactions on December 7. With this, the fund house shareholding in the company reduced to 6.78%, from 7.04% earlier.

Kalpataru Power Transmission: The company has raised Rs 99 crore by allotment of 990 NCDs of the face value of Rs 10 lakh each on private placement basis. The said NCDs will be listed on wholesale debt market segment of BSE.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 158.01 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 501.63 crore on December 9, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The National Stock Exchange has added BHEL, Delta Corp, and Punjab National Bank, and retained GNFC under its F&O ban list for December 12. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.





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