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

Nagaraj Shetti of HDFC Securities believes the short term trend of Nifty is in a strong mode and the broad market indices were also in driver's seat.

September 04, 2021 / 07:52 PM IST

After a day of correction, the market rebounded to cross another milestone of 17,200 mark on the Nifty and ended at fresh record closing high on September 2. All sectoral indices, barring Auto and PSU Bank, participated in the run.

The BSE Sensex climbed 514.33 points to 57,852.54, while the Nifty50 rose 157.90 points to 17,234.20 and formed bullish candle on the daily charts as the closing was higher than opening levels.

"A long bull candle was formed on the daily chart, that surpassed a reasonable negative candle of Wednesday and closed above it. This pattern has nullified a minor negative/consolidation pattern on the daily chart and this display a strength of upside momentum in the market. This is positive indication and one may expect more upside in the short term," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

He believes the short term trend of Nifty is in a strong mode and the broad market indices were also in driver's seat. "One may expect further upside in the next 1-2 sessions, before showing another round of consolidation or minor profit booking from the new highs. The next upside levels to be watched around 17,500 and immediate support is placed at 17,150," he said.

The broader markets also joined the party with the Nifty Midcap and Smallcap 100 indices rising 1 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 are placed at 17,114.1, followed by 16,994. If the index moves up, the key resistance levels to watch out for are 17,299.9 and 17,365.6.

Nifty Bank

The Nifty Bank jumped 257 points to 36,831.30 on September 2. The important pivot level, which will act as crucial support for the index, is placed at 36,568.34, followed by 36,305.37. On the upside, key resistance levels are placed at 36,994.94 and 37,158.57 levels.

Call option data

Maximum Call open interest of 16.41 lakh contracts was seen at 17500 strike, which will act as a crucial resistance level in the September series.

This is followed by 17000 strike, which holds 15.81 lakh contracts, and 16500 strike, which has accumulated 15.19 lakh contracts.

Call writing was seen at 17200 strike, which added 2.25 lakh contracts, followed by 17400 strike, which added 93,450 contracts and 17600 strike which added 79,450 contracts.

Call unwinding was seen at 17100 strike, which shed 85,600 contracts, followed by 17000 strike, which shed 76,900 contracts, and 16700 strike which shed 41,800 contracts.

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Put option data

Maximum Put open interest of 28.77 lakh contracts was seen at 16500 strike, which will act as a crucial support level in the September series.

This is followed by 17000 strike, which holds 27.29 lakh contracts, and 16700 strike, which has accumulated 16.62 lakh contracts.

Put writing was seen at 17200 strike, which added 6.06 lakh contracts, followed by 17100 strike which added 2.6 lakh contracts, and 17000 strike which added 2.19 lakh contracts.

Put unwinding was seen at 16600 strike, which shed 13,850 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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92 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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11 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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22 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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47 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

Kaveri Seed Company: The company acquired 3,19,144 equity shares of itself at Rs 583.78 per share on the NSE, the bulk deals data showed.

McDowell Holdings: Recovery Officer I DRT (Debt Recovery Tribunal) II sold 1,10,561 equity shares in the company at Rs 37.75 per share on the NSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting

Syngene International: The company's officials will meet PGIM MF on September 3.

UltraTech Cement: The company's officials will meet Avendus Capital on September 3.

Adani Ports: The company's officials will meet HSBC Asset Management Company on general business update, on September 3.

Kalyan Jewellers India: The company's officials will meet Infusive Asset Management, & Quantum Advisors on September 3; Ashmore Group Plc, & Wellington Asset Management on September 6, and Dimensional Securities on September 8.

Sanghi Industries: The company's officials will meet Ventura Securities on September 6.

KEI Industries: The company's officials will meet institutional investors on September 8.

Stocks in News

Jammu & Kashmir Bank: The bank approved raising of equity share capital upto Rs 1,000 crore in one or more tranches, and Rs 1,000 crore by way of non-convertible debentures on a private placement basis.

Rossari Biotech: The company has completed the acquisition of the first tranche of 76% of Tristar Intermediaries.

GOCL Corporation: The company completed acquisition of APDLE Estates from Hinduja Realty Ventures.

IRB Infrastructure Developers: The company has emerged as a preferred bidder for Chittoor - Thachur Six Laning Highway Hybrid Annuity Project in Tamil Nadu.

Salzer Electronics: The company has incorporated a joint venture Salzer Emarch Electromobilidy to make electric conversion kits for auto-rickshaws, cars and buses and also manufacture novel electric driven utility vehicles and other allied activities.

Wockhardt: Promoter entity Themisto Trustee Company created a pledge on 12.4 lakh equity shares and with that, the percent of pledged shares now increased to 28.40 percent.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 348.52 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 381.70 crore in the Indian equity market on September 2, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - Indiabulls Housing Finance - is under the F&O ban for September 3. 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: Sep 2, 2021 08:52 pm