5.4 C
Sunday, December 10, 2023

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

Must read

The market rebounded smartly and recouped all its losses in the previous session, resulting in the formation of a bullish candlestick pattern on the daily charts on March 21. The rally was driven by banking and financial services stocks and positive global cues.

The BSE Sensex climbed 446 points to 58,075, while the Nifty50 jumped 119 points to 17,108, making a higher high higher low formation on the daily charts.

“A small positive candle was formed on the daily chart with a gap-up opening. The Nifty is currently placed at the crucial overhead resistance of around 17,150-17,200 levels and the market is now showing signs of an upside breakout of the hurdle,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.

He believes that the lower bottom reversal seems to have been confirmed at Monday’s low of 16,828 levels and one may expect further upside in the short term towards the lower top formation.

“A decisive move above the hurdle of 17,200 levels is likely to bring sharp upside momentum for the Nifty in the near term. Immediate support is at 16,950 levels,” the market expert said.

The broader markets also traded in line with frontline indices. The Nifty Midcap 100 and Smallcap 100 indices gained around six-tenth of a percent each.


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 the current month.

Key support and resistance levels on the Nifty

As per the pivot charts, the Nifty has support at 17,041, followed by 17,015 and 16,972. If the index moves up, the key resistance levels to watch out for are 17,126, followed by 17,153 and 17,195.

Nifty Bank

The Bank Nifty surged 533 points or 1.35 percent to close at 39,895 and formed a bullish candle on the daily charts after a Hammer kind of pattern in the previous sessions.

The Bank Nifty has given a consolidation breakout on the daily chart, suggesting a rise in optimism. “The momentum oscillator has entered a bullish crossover. Over the short term, the trend in the banking space is likely to remain positive as long as it remains above 39,500,” Rupak De, Senior Technical Analyst at LKP Securities said.

On the higher end, immediate resistance is placed at 40,000, and a move above 40,000 may induce a rally towards 41,000, he added.

The important pivot level, which will act as a support, is at 39,513, followed by 39,370 and 39,139. On the upside, key resistance levels are 39,975, followed by 40,118, and 40,349.


Call option data

On a weekly basis, the maximum Call open interest (OI) was seen at 17,800 strike, with 96.11 lakh contracts, which is expected to be a crucial resistance for the Nifty in coming sessions.

This is followed by a 17,200 strike, comprising 75.87 lakh contracts, and a 17,500 strike, where there are more than 72.06 lakh contracts.

Call writing was seen at 17,800 strike, which added 35.46 lakh contracts, followed by 17,600 strike, which gave an addition of 17.33 lakh contracts, and 17,400 strike which saw 16.12 lakh contracts addition.

We have seen Call unwinding at 16,900 strike, which shed 12.28 lakh contracts, followed by 17,000 strike which shed 12.08 lakh contracts, and 18,000 strike which shed 6.29 lakh contracts.


Put option data

On a weekly basis, we have seen the maximum Put OI at 17,000 strike, with 81.72 lakh contracts, which is expected to be a crucial support level for coming sessions.

This is followed by the 16,900 strike, comprising 53.15 lakh contracts, and the 16,800 strike, where we have 47.1 lakh contracts.

Put writing was seen at 17,000 strike, which added 38.72 lakh contracts, followed by 17,100 strike with 30.22 lakh contracts, and 16,900 strike with 8.88 lakh contracts.

We have seen Put unwinding at 16,100 strike, which shed 5.75 lakh contracts, followed by 16,000 strike which shed 2.72 lakh contracts, and 16,200 strike which shed 2.64 lakh contracts.


Stocks with high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Infosys, Dr Reddy’s Laboratories, Colgate Palmolive, Syngene International, and Sun Pharmaceuticals, among others.

63 stocks see a long build-up

An increase in open interest (OI) and an increase in price mostly indicate a build-up of long positions. Based on the OI percentage, 63 stocks including Bajaj Auto, IndiaMART InterMESH, Indraprastha Gas, SRF, and State Bank of India, witnessed a long build-up.

26 stocks see long unwinding

In most cases, a decline in OI and a decrease in price indicate a long unwinding. Based on the OI percentage, 26 stocks including Cummins India, Biocon, BPCL, Persistent Systems, and Dabur India, witnessed a long unwinding.

38 stocks see a short build-up

An increase in OI accompanied by a decrease in price mostly indicates a build-up of short positions. Based on the OI percentage, 38 stocks including Voltas, Navin Fluorine International, Glenmark Pharma, Britannia Industries, and Apollo Hospitals, saw a short build-up.

63 stocks see short-covering

A decrease in OI along with an increase in price is an indication of short-covering. Based on the OI percentage, 63 stocks were on the short-covering list. These included Nestle India, HDFC AMC, Bank of Baroda, Bajaj Finance, and RBL Bank.

Bulk Deals

Devyani International: Dunearn Investments Mauritius Pte Limited, a wholly-owned subsidiary of Temasek Holdings, sold 3.44 crore equity shares or 2.85 percent stake in the quick service restaurants chain operator via open market transactions at an average price of Rs 145.04 per share, amounting to Rs 499.4 crore. However, Franklin Templeton Mutual Fund via Franklin India Flexi Cap Fund bought 62 lakh shares or 0.51 percent stake in the largest franchisee of Yum Brands in India, at an average price of Rs 145, amounting to Rs 89.9 crore.

Greenlam Industries: Asiana Fund I has bought 33.42 lakh shares or 2.63 percent stake in the company via open market transactions at an average price of Rs 306 per share, amounting to Rs 102.29 crore shares. However, investor Smiti Holding and Trading Company was the seller, offloading 33.42 lakh shares in the company at the same average price.

(For more bulk deals, click here)

Investors’ meetings on March 22

Zomato, One 97 Communications: The companies’ officials will participate in Credit Suisse Asian Investment Conference.

Blue Star: The officials of the company will meet Kotak Mutual Fund.

Five-Star Business Finance: The company’s officials will interact with C Worldwide Asset Management, Girik Capital, and Capital Group.

Ramkrishna Forgings: The officials of the company will interact with Old Bridge Capital Management.

Landmark Cars: The company’s officials will interact with ICICI Securities.

UltraTech Cement: The officials of the company will meet APG Asset Management.

Stocks in the news

Tata Motors: The country’s largest commercial vehicle manufacturer will be implementing a price increase of up to 5 percent on its commercial vehicles starting from April 1, 2023. The decision to increase prices is a result of the company’s efforts to comply with the more stringent BS6 phase II emission norms. The price increase will be applied across the entire range of commercial vehicles.

Ashiana Housing: In the current month, the company has crossed its annual booking value guidance of Rs 1,100 crore for the year 2022-23. The total booking value for FY23 (up to March 20) stood at Rs 1,278.84 crore with a booking area of 25.21 lakh square feet. Further, it has also received 351 expressions of interest (EOIs) in phase 2 of ‘Ashiana Amarah’ project at Gurugram (Haryana), which consists of 224 units with a saleable area of 3.77 lakh square feet and the tentative sale value stood at Rs 290 crore. The conversion of EOI into booking will commence in April 2023.

Cholamandalam Investment and Finance Company: The Board of Directors has appointed Ajay Bhatia as the Chief Risk Officer of the company for three years effective April 1, 2023, in place of Shankar Subramanian. Subramanian completes his term as Chief Risk Officer on March 31.

H G Infra Engineering: The company has been declared the L-1 bidder by DYCE-C-CNB-Engineering/North Central Railway for the redevelopment of Kanpur Central railway station at Kanpur on engineering, procurement and construction mode in Uttar Pradesh. The project bid cost is Rs 677 crore and the construction period for said project is 36 months.

BL Kashyap and Sons: The civil engineering and construction company has secured a new order from domestic unrelated client ‘Railways Land Development Authority’ worth Rs 313 crore. The project includes the development of Bijwasan railway station, which is expected to be completed within 15 months from the date of award. The company’s total order book as on date stands at Rs 2,402 crore.

Emami: The board of directors will meet on March 24 to consider a proposal for buyback of equity shares of the company.

Zydus Lifesciences: Zydus has received final approval for Tofacitinib tablets, 5 mg and tentative approval for Tofacitinib tablets, 10 mg from the United States Food and Drug Administration (USFDA). Zydus was one of the first ANDA applicants to submit a substantially complete ANDA with a paragraph IV certification for Tofacitinib tablets, 5 mg and therefore is eligible for 180 days of shared generic drug exclusivity. Tofacitinib is indicated for the treatment of adult patients with moderately to severely active rheumatoid arthritis and for the treatment of adult patients with active psoriatic arthritis.

Indian Oil Corporation: Indian Oil has received ‘in-principle’ approval from the board to carry out pre-project activities including the preparation of a detailed feasibility report for setting up the Paradip petrochemical complex at Paradip, Odisha at an estimated project cost of Rs 61,077 crore. The project will improve the Petrochemical Intensity Index of the company and de-risk its fossil fuel business.

Tata Power Company: Subsidiary Tata Power Renewable Energy has received the ‘Letter of Award’ (LoA) from Maharashtra State Electricity Distribution Company (MSEDCL) to set up a 200 MW solar PV project in Solapur, Maharashtra. The project will be commissioned within 18 months from the PPA execution date.

Fund Flow


FII and DII data

Foreign institutional investors (FII) sold shares worth Rs 1,454.63 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,946.06 crore on March 21, the National Stock Exchange’s provisional data showed.

Stocks under F&O ban on NSE

The National Stock Exchange has retained Biocon and Indiabulls Housing Finance on its F&O ban list for March 22. Securities 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 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.

Source link

- Advertisement -

More articles

Leave a Reply

- Advertisement -

Latest article