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

The market witnessed profit booking after hitting fresh record high levels in early trade and closed the session with moderate gains on December 3. The selling in HDFC Group and select technology stocks capped the gains, but the rally in auto, metals, pharma and PSU banks stocks supported the market.

The BSE Sensex rose 14.61 points to 44,632.65, while the Nifty50 rose 20.10 points to 13,133.90 and formed a bearish candle on the daily charts.

"A reasonable negative candle was formed at the new highs and the market is now placed at the edge of the support of previous swing highs of 13,140-13,130 levels as per the concept of change in polarity. But, it failed to show any convincing upmove from the support. This action could be a cause of concern at the highs," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.

"The negative divergence pattern continued on the daily chart (higher high in the Nifty and lower high in the RSI), which could signal tiredness of the market at the new highs and the profit booking could emerge from near all-time highs," he said, adding immediate supports could be watched at 13,000 levels and on the upper side, 13,250 could act as a key overhead resistance.

The broader markets outperformed benchmark indices with the Midcap and Smallcap indices rising 0.6 percent each.

 

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

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

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty is placed at 13,089, followed by 13,044.1. If the index moves up, the key resistance levels to watch out for are 13,197.7 and 13,261.5.

Nifty Bank

The Bank Nifty fell 14.40 points to 29,448.80 on December 3. The important pivot level, which will act as crucial support for the index, is placed at 29,281.14, followed by 29,113.47. On the upside, key resistance levels are placed at 29,714.74 and 29,980.67.

Call option data

Maximum Call open interest of 27.17 lakh contracts was seen at 13,000 strike, which will act as a crucial level in the December series.

This is followed by 13,500 strike, which holds 19.37 lakh contracts, and 14,000 strike, which has accumulated 16.53 lakh contracts.

Call writing was seen at 13,200 strike, which added 1.92 lakh contracts, followed by 13,800 strike which added 61,725 contracts and 13,300 strike which added 56,025 contracts.

Call unwinding was seen at 13,000 strike, which shed 33,675 contracts, followed by 13,100 strike which shed 20,175 contracts and 12,900 strike which shed 19,725 contracts.

Put option data

Maximum Put open interest of 31.52 lakh contracts was seen at 12,000 strike, which will act as a crucial support in the December series.

This is followed by 13,000 strike, which holds 28.89 lakh contracts, and 12,500 strike, which has accumulated 22.28 lakh contracts.

Put writing was seen at 12,800 strike, which added 1.76 lakh contracts, followed by 13,000 strike, which added 1.67 lakh contracts and 13,200 strike which added 1.53 lakh contracts.

Put unwinding was seen at 12,400 strike, which shed 10,800 contracts, followed by 14,000 strike, which shed 2,100 contracts.

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

50 stocks saw long build-up

Based on the open interest future percentage, here are the 10 stocks in which long build-up was seen.

18 stocks saw long unwinding

Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.

17 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, here are the top 10 stocks in which short build-up was seen.

52 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, here are the top 10 stocks in which short-covering was seen.

Bulk deals

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Analysts Meets/Board Meetings

Redington India: The company's officials will meet JP Morgan India on December 8 and December 9 via video conference.

Stocks in the news

PSU Banks: Fitch affirmed Bank of Baroda, Bank of India, State Bank of India and Punjab National Bank's IDR rating at 'BBB-', with Negative outlook. Fitch also affirmed IDBI Bank's IDR rating at 'BB+' with Negative outlook, but upgraded viability rating to 'ccc+'.

Granules India: The company received approval from US FDA for generic of Cuprimine, Penicillamine capsules.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 3,637.42 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,439.74 crore in the Indian equity market on December 3, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Not a single stock is under the F&O ban for December 4. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.