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

Rajesh Palviya of Axis Securities feels the overall short-term trend is still intact upward. One should use any pullback rally towards 17,600-17,500 levels as a buying opportunity with a stop-loss of 17,400 with an upside towards 18,000-18,200 levels, he advised.

January 06, 2022 / 11:51 PM IST

The market snapped four-day winning streak and corrected one percent on January 6, as the selling pressure was seen banking & financials, FMCG, IT, Metals and Pharma stocks, after the correction in global peers as FOMC minutes indicated a faster-than-expected rate hikes. The rising coronavirus cases also dented sentiment.

BSE Sensex fell 621.31 points to close at 59,601.84, while the Nifty50 declined 179.40 points to 17,745.90 and formed bearish candle on the daily charts.

"The index opened sharply lower with a downward gap and remained consolidated within a narrow range throughout the session. The daily price action has formed a small bearish candle forming lower High-Low compared to the previous session and has also closed below the previous session's low, indicating weakness. Hence, any breakout of Doji's high-low range may signal further direction," says Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities.

However, he feels the overall short-term trend is still intact upward. One should use any pullback rally towards 17,600-17,500 levels as a buying opportunity with a stop-loss of 17,400 with an upside towards 18,000-18,200 levels, he advised.

Palviya further advised short-term traders and investors to book partial profits near the supply zone of 18,000-18,200 levels.

Close

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The broader markets outperformed frontline indices as the Nifty Midcap 100 and Smallcap 100 indices gained 0.13 percent and 0.21 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 17,668.37, followed by 17,590.83. If the index moves up, the key resistance levels to watch out for are 17,810.67 and 17,875.43.

Nifty Bank

The Nifty Bank slipped 205.65 points to close at 37,490.25 on January 6. The important pivot level, which will act as crucial support for the index, is placed at 37,114.9, followed by 36,739.6. On the upside, key resistance levels are placed at 37,809 and 38,127.8 levels.

Call option data

Maximum Call open interest of 20.79 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the January series.

This is followed by 17500 strike, which holds 14.68 lakh contracts, and 18500 strike, which has accumulated 11.84 lakh contracts.

Call writing was seen at 17700 strike, which added 2.12 lakh contracts, followed by 17800 strike which added 1.89 lakh contracts, and 18400 strike which added 1.24 lakh contracts.

Call unwinding was seen at 17500 strike, which shed 80,050 contracts, followed by 17200 strike which shed 34,750 contracts and 17000 strike which shed 33,200 contracts.

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Put option data

Maximum Put open interest of 33.51 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the January series.

This is followed by 17500 strike, which holds 30.91 lakh contracts, and 17200 strike, which has accumulated 15.60 lakh contracts.

Put writing was seen at 17400 strike, which added 3.68 lakh contracts, followed by 17500 strike, which added 3.38 lakh contracts, and 17700 strike which added 2.17 lakh contracts.

Put unwinding was seen at 17200 strike, which shed 1.38 lakh contracts, followed by 17900 strike which shed 1.09 lakh contracts, and 17000 strike which shed 75,350 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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53 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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41 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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77 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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27 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

Zee Learn: Spring Ventures acquired 50 lakh equity shares in the company at Rs 19.57 per share, however, IndusInd Bank Ltd Client A/C sold 71,32,775 equity shares in the company at Rs 17.77 per share, and Morgan Stanley Asia (Singapore) Pte - ODI offloaded 47,69,108 equity shares in the company at Rs 18.44 per share on the NSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting; and Results on January 7 and January 8

Results on January 7: GM Breweries, and SPS International will release quarterly earnings on January 7.

Results on January 8: Avenue Supermarts, Advik Laboratories, Earum Pharmaceuticals, Fraser and Company, Suraj Industries, and Yuranus Infrastructure will release quarterly earnings on January 8.

Krsnaa Diagnostics: To meet Edelweiss Broking, and Khambatta Securities on January 7.

Capital Trust: To meet Incofin Investment Management on January 7.

Antony Waste Handling Cell: To meet investors and analysts on January 7.

Allcargo Logistics: To meet Sell Side Analyst on January 7.

Motherson Sumi Systems: To meet investors on January 7.

Stocks in News

HCL Technologies: The company completed acquisition of 51% stake in German IT Consulting Company, Gesellschaft für Banksysteme GmbH (GBS).

Ujjivan Small Finance Bank: Gross loan book increased 22% YoY to Rs 16,600 crore, and disbursements rose 120% YoY to Rs 4,800 crore, while total deposits jumped 34% to Rs 15,600 crore in Q3FY22.

Anand Rathi Wealth: The company has declared an interim dividend of 100%, i.e. Rs 5 per equity share, for FY22. The company reported consolidated profit at Rs 32.03 crore in Q3FY22 against Rs 13.12 crore in Q3FY21 and revenue jumped to Rs 105.69 crore from Rs 68.08 crore YoY in the same period.

Reliance Industries: Dunzo, India’s leading quick commerce player, has raised $240 million in its latest round of funding. The investment was led by Reliance Retail Ventures, with participation from existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital. With an investment of $200 million, Reliance Retail will own 25.8% stake in Dunzo on a fully diluted basis.

Godrej Consumer Products: At a consolidated level, the company expects to deliver close to high single-digit sales growth in Q3FY22. On the profitability front, it expects quality of profits to improve with sequentially expanding gross margins, however, lower on a year-over-year basis due to unprecedented cost inflation.

Titan Company: Jewellery business grew by 37% in Q3FY22 YoY, watches & wearables increased by 28%, eye wear by 27% and other businesses grew by 44%.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,926.77 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 800.91 crore in the Indian equity market on January 6, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - RBL Bank - is under the F&O ban for January 7. 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 those 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: Jan 6, 2022 10:30 pm
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