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

The daily price action has formed a bullish candle near the multiple support zone of 14,300-14,200 levels, which remains a crucial support zone to watch out for, said Rajesh Palviya of Axis Securities.

April 22, 2021 / 11:39 PM IST

The market rebounded in late morning deals and extended gains to settle above 14,400 levels on April 22, led by positive global cues. Banking & financials, and metals stocks drove the rally.

The BSE Sensex gained 374.87 points to 48,080.67, while the Nifty50 rallied 109.80 points to 14,406.20 and formed a bullish candle which resembles bullish Piercing Line kind of pattern on the daily charts.

"The daily price action has formed a bullish candle near the multiple support zone of 14,300-14,200 levels, which remains a crucial support zone to watch for," Rajesh Palviya, Head - Technical and Derivative Research at Axis Securities told Moneycontrol.

"Since the past seven trading sessions, the index continues to consolidate within 14,700-14,200 levels, representing a rangebound movement. Hence, any either side breakout of the mentioned range may signal further direction," he said.

On the daily chart, the index continues to trend lower forming a lower Top and lower Bottom formation indicating short term down trend, Palviya added.

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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 are placed at 14,230.13, followed by 14,054.07. If the index moves up, the key resistance levels to watch out for are 14,503.53 and 14,600.87 levels.

Nifty Bank

The Nifty Bank index surged 669.90 points or 2.15 percent to 31,782.60 on April 22. The important pivot level, which will act as crucial support for the index, is placed at 30,947.03, followed by 30,111.46. On the upside, key resistance levels are placed at 32,226.33 and 32,670.07 levels.

Call option data

Maximum Call open interest of 41.43 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the April series.

This is followed by 14,500 strike, which holds 24.93 lakh contracts, and 14,800 strike, which has accumulated 24.76 lakh contracts.

Call writing was seen at 15,000 strike, which added 11.84 lakh contracts, followed by 15,200 strike which added 11 lakh contracts and 14,800 strike which added 9.16 lakh contracts.

Call unwinding was seen at 14,000 strike, which shed 38,325 contracts, followed by 13,800 strike which shed 150 contracts.

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Put option data

Maximum Put open interest of 48.52 lakh contracts was seen at 14,000 strike, which will act as a crucial support level in the April series.

This is followed by 14,200 strike, which holds 25.86 lakh contracts, and 14,500 strike, which has accumulated 23.51 lakh contracts.

Put writing was seen at 14,000 s-trike, which added 12.15 lakh contracts, followed by 14,200 strike which added 6.71 lakh contracts and 14,400 strike which added 6.14 lakh contracts.

Put unwinding was seen at 14,900 strike, which shed 11,175 contracts, followed by 14,600 strike which shed 5,325 contracts.

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Stocks with a high delivery percentage

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

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57 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, here are the top 10 stocks in which a long build-up was seen.

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14 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, here are the top 10 stocks in which long unwinding was seen.

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50 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 a short build-up was seen.

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34 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.

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Bulk deals

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(For more bulk deals, click here)

Results on April 23

HCL Technologies, Indiabulls Real Estate, Mahindra & Mahindra Financial Services, Aditya Birla Money, Bombay Wire Ropes, Control Print, GNA Axles, Integrated Capital Services, Medinova Diagnostic Services, Oriental Hotels, Pranavaditya Spinning Mills, Radix Industries (India), Shiva Cement, Smruthi Organics and Wendt (India) will release their quarterly numbers on April 23.

Stocks in News

Cyient: The company reported higher consolidated profit at Rs 103.1 crore in Q4FY21 against Rs 95.4 crore in Q3FY21; revenue rose to Rs 1,093.1 crore from Rs 1,044.3 crore in the previous quarter.

Tata Motors: JLR is currently experiencing some COVID-19 supply chain disruption. As a result, JLR have adjusted production schedules for certain vehicles which means that the Castle Bromwich and Halewood manufacturing plants will be operating a limited period of non production from Monday, April 26. Manufacturing continues at the Solihull plant.

Indus Towers: The company reported higher profit at Rs 1,363.8 crore in Q4FY21 against Rs 1,360 crore in Q3FY21, revenue fell to Rs 6,491.8 crore from Rs 6,736.1 crore QoQ.

Wonderla Holidays: The company announced closure of its Kochi and Hyderabad parks till April 29 or until further notice due to the current COVID-19 situation. This decision was taken to contain the spread of COVID-19 and to ensure the safety of the customers.

Visaka Industries: The company reported sharply higher consolidated profit at Rs 30.87 crore in Q4FY21 against Rs 6.85 crore in Q4FY20, revenue rose to Rs 354.18 crore from Rs 227.7 crore reported in the year-ago period.

Rallis India: The company reported a sharp increase in its consolidated profit at Rs 8.12 crore for Q4FY21 against Rs 0.68 crore posted in Q4FY20. Revenue rose to Rs 471.26 crore from Rs 346.29 crore reported in the corresponding quarter of the previous fiscal.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 909.56 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 849.98 crore in the Indian equity market on April 22, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - Indiabulls Housing Finance, SAIL and Sun TV Network - are under the F&O ban for April 23. 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.
Sunil Shankar Matkar
first published: Apr 22, 2021 09:51 pm
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