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

Any sustainable move above 17,450 levels may cause upside momentum towards 17,500-17,600 levels, says Rajesh Palviya of Axis Securities.

December 03, 2021 / 03:57 AM IST

The market maintained strong northward journey for second consecutive session of the current month on December 2, with the Nifty50 adding more than 400 points in these two days. The uptrend in index heavyweights (Reliance Industries, HDFC and HDFC Bank), technology, auto, financial services, FMCG and metals stocks helped the market gain more than one percent on Thursday.

The BSE Sensex surged 776.50 points or 1.35 percent to 58,461.29, while the Nifty50 jumped 234.80 points or 1.37 percent to 17,401.70 and formed bullish candle on the daily charts.

"The daily price action has formed a sizable bullish candle and surpassed the past four session's multiple highs of 17,350 on a closing basis, indicating positive bias. The buying support was observed around the 100-day SMA (17,150), which remains a positive sign. Any sustainable move above 17,450 levels may cause upside momentum towards 17,500-17,600 levels," says Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities.

On the flip side, "17,300 levels are likely to act as a support zone, and any violation of this may cause further weakness towards 17,200-17,100 levels. Nifty is trading below 20 and 50-day SMA representing near-term bearish bias," he says.

One should use any pullback towards 17,500-17,600 levels as a selling opportunity with a stop loss of 17,650, Palviya advises.

Close

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The broader markets also ended higher with the Nifty Midcap 100 and Smallcap 100 indices rising 1.14 percent and 0.61 percent, respectively.

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 17,227.23, followed by 17,052.77. If the index moves up, the key resistance levels to watch out for are 17,498.23 and 17,594.77.

Nifty Bank

The Nifty Bank rose 143.35 points to 36,508.25 on December 2. The important pivot level, which will act as crucial support for the index, is placed at 36,262.1, followed by 36,016. On the upside, key resistance levels are placed at 36,658.9 and 36,809.6 levels.

Call option data

Maximum Call open interest of 33.11 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the December series.

This is followed by 17000 strike, which holds 20.21 lakh contracts, and 17500 strike, which has accumulated 20.06 lakh contracts.

Call writing was seen at 17300 strike, which added 1.6 lakh contracts, followed by 18000 strike which added 1.53 lakh contracts, and 18200 strike which added 1.46 lakh contracts.

Call unwinding was seen at 17200 strike, which shed 88,850 contracts, followed by 17100 strike which shed 67,850 contracts and 17000 strike which shed 24,075 contracts.

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Put option data

Maximum Put open interest of 52.47 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the December series.

This is followed by 16000 strike, which holds 32.05 lakh contracts, and 16500 strike, which has accumulated 23.07 lakh contracts.

Put writing was seen at 17300 strike, which added 4.63 lakh contracts, followed by 17000 strike which added 2.73 lakh contracts and 16800 strike which added 1.94 lakh contracts.

Put unwinding was seen at 18000 strike, which shed 12,250 contracts, followed by 18200 strike which shed 2,250 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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93 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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5 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 5 stocks in which long unwinding was seen.

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15 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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78 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

Karda Constructions: Societe Generale acquired 36 lakh equity shares in the company at Rs 16.65 per share on the NSE, the bulk deals data showed.

Kirloskar Oil Engines: Franklin Templeton Mutual Fund India Taxshield Open bought 10 lakh shares and Franklin Templeton Mutual Fund India Prima Plus acquired 30 lakh shares in the company at Rs 180 per share, however, Nalanda India Equity Fund sold 22,28,570 equity shares and Nalanda India Fund offloaded 29,71,430 equity shares in the company at Rs 180.92 per share on the NSE, the bulk deals data showed.

Redington India: Marina IV (Singapore) Pte Limited sold 54.4 lakh equity shares in the company at Rs 150.42 per share on the BSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting

SRG Housing Finance: The company's officials will meet several investors and analysts on December 3.

UltraTech Cement: The company's officials will participate in 'Jefferies India ESG Summit' virtual conference on December 3.

Nuvoco Vistas Corporation: The company's officials will meet Principal Mutual Fund, and DAM Capital on December 3.

Indian Railway Finance Corporation: The company's officials will meet institutional investors on December 3.

Puravankara: The company's officials will meet India Capital Fund, Old Bridge Capital Management, Premji Invest, Tata Mutual Fund, and Value Quest Investment Advisors on December 3.

Kalyan Jewellers India: The company's officials will meet Rare Enterprises on December 6.

Accelya Solutions India: The company's officials will meet Nirmal Bang Securities on December 7.

Matrimony.com: The company's officials will attend 6th Edition of Ambit Capital's Emerging Giants Virtual Conference, 2021 on December 7.

Stocks in News

Prataap Snacks: SBI Funds Management sold 9,948 equity shares in the company via open market transaction on December 1, reducing shareholding to 3.39% from 3.43% earlier.

Aarti Industries: HDFC Asset Management Company sold 1,74,221 equity shares in the company via open market transactions on November 30, reducing shareholding to 3.04% from 3.09% earlier.

Punjab Alkalies & Chemicals: The company approved sub-division of each equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each subject to the approval of shareholders.

Rushil Decor: The company's medium density fibre board manufacturing unit (MDF plant) at Chikmagalur, Karnataka has again started the commercial operation partially. Further, it will start the regular commercial operation on or before December 6, 2021.

Tantia Constructions: The company has received a Letter of Allotment for a bid value amounting to Rs 6.79 crore from Government of Tripura, against a contract work for 'construction of RCC Bridge (Length 140 m.) over river Manu on Sonaimuri-Telia road.

ABB India: The company completed the sale of the Dodge Business to Dodge Industrial India, an affiliate of RBC Bearings Incorporated (Dodge India).

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 909.71 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,372.65 crore in the Indian equity market on December 2, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - Indiabulls Housing Finance and Vodafone Idea - are under the F&O ban for December 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.

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

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Sunil Shankar Matkar
first published: Dec 2, 2021 11:10 pm
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