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

Currently, the index is close to the 61.8 percent Fibonacci retracement level (15,671-18,114), and the 16,600 level would be critical. A break below 16,600 can drag the index lower towards 16,450 followed by 16,200 levels, says Malay Thakkar, Technical Research Associate at GEPL Capital.

May 06, 2022 / 08:23 AM IST

The market witnessed a strong opening on May 5 after a day of crash but erased most of the gains in the last hour of trade to end flat with a positive bias, supported by technology, select metal, and auto stocks. However, the selling in select banks, FMCG and pharma names capped gains.

The BSE Sensex rose 33 points to 55,702, while the Nifty50 fell from 16,950 levels to close with 5 points gains at 16,683 and formed a bearish candle on the daily charts.

"On the daily charts, the index formed a bearish candle within the previous day's candle range after facing rejection near the 16,950 level. Looking at the price action, we can see that the index has a strong hurdle near the 16,900-16,950 levels and till the index trades below this level, the sentiment might remain negative," Malay Thakkar, Technical Research Associate at GEPL Capital said.

Thakkar further said currently the index is close to the 61.8 percent Fibonacci retracement level (15,671-18,114) and the 16,600 level would be critical, a break below 16,600 can drag the index lower towards 16,450 followed by 16,200 levels.

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Close

The market breadth was negative as about 1,100 shares declined for 826 advancing scrips on the NSE. The Nifty Smallcap 100 index slipped 0.75 percent, but the Nifty Midcap 100 index gained 0.1 percent.

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

As per the pivot charts, the key support level for the Nifty is placed at 16,574, followed by 16,466. If the index moves up, the key resistance levels to watch out for are 16,868 and 17,054.

Nifty Bank

Bank Nifty was down 32 points to close at 35,233 on Thursday. The important pivot level, which will act as crucial support for the index, is placed at 34,933, followed by 34,633. On the upside, key resistance levels are placed at 35,734 and 36,235 levels.

Call option data

Maximum Call open interest of 28.25 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the May series.

This is followed by 17,500 strike, which holds 22.44 lakh contracts, and 18,000 strike, which has accumulated 20.23 lakh contracts.

Call writing was seen at 16,800 strike, which added 1.88 lakh contracts, followed by 17,500 strike which added 1.76 lakh contracts and 16,700 strike which added 1.46 lakh contracts.

Call unwinding was seen at 17,700 strike, which shed 1.13 lakh contracts, followed by 17,100 strike which shed 49,150 contracts and 16,600 strike which shed 19,550 contracts.

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Put option data

Maximum Put open interest of 38.43 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the May series.

This is followed by 16,000 strike, which holds 37.11 lakh contracts, and 17,000 strike, which has accumulated 26.6 lakh contracts.

Put writing was seen at 15,500 strike, which added 1.12 lakh contracts, followed by 16,700 strike, which added 74,150 contracts and 16,800 strike which added 71,050 contracts.

Put unwinding was seen at 17,000 strike, which shed 3.15 lakh contracts, followed by 16,000 strike which shed 3.01 lakh contracts, and 16,200 strike which shed 99,300 contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Ipca Laboratories, Syngene International, Whirlpool of India, SBI Cards and Payment Services, and Honeywell Automation, among others.

35 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 including ABB India, Federal Bank, Honeywell Automation, Ashok Leyland, and Tata Chemicals, in which a long build-up was seen.

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 including M&M Financial Services, Rain Industries, ACC, The Ramco Cements, and Bank Nifty, in which long unwinding was seen.

61 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 including Firstsource Solutions, Syngene International, Tata Consumer Products, Power Grid Corporation of India, and Exide Industries, in which a short build-up was seen.

58 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 including Oracle Financial Services Software, Shriram Transport Finance, Siemens, Dixon Technologies, and Polycab India, in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Results on May 6

Reliance Industries, Canara Bank, Sundaram-Clayton, Tata Power Company, CSB Bank, Federal Bank, Great Eastern Shipping Company, Bajaj Consumer Care, Apollo Pipes, Apollo Tricoat Tubes, Greenpanel Industries, Grindwell Norton, Hariom Pipe Industries, Kokuyo Camlin, Shipping Corporation of India, Paisalo Digital, Paushak, Reliance Home Finance, Vesuvius India, and Vikas EcoTech will release their quarterly earnings on May 6.

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Stocks in News

Blue Dart Express: The express air and integrated transportation company posted a growth of 20.7 percent YoY in its standalone profit after tax of Rs 135 crore for Q4FY22 as compared to a profit of Rs 89 crore during the same period last year. The growth in profit was aided by higher revenues and cost efficiency initiatives that improved margins. Revenue from operations for the quarter for the quarter jumped 21 percent on year to Rs 1,166 crore as compared to Rs 966 crore in the year ago period. Growth in revenues was driven by volume growth and better realizations. The company declared a total dividend of Rs 60 per equity share for FY21-22.

DCM Shriram: DCM Shriram declare a 73 percent increase in its net profit at Rs 401 crore for Q4FY22 as compared to Rs 232 crore during the same period last year. Its net revenue from operations grew 28 percent on year to Rs 2,796 crore as compared to Rs 2,191 crore last year driven by growth across its businesses of Chemicals, Vinyl, Fertilizers, Fenesta and Farm Solutions. Sugar revenues were down during the quarter. Higher realizations for the above businesses aided the growth in the profit for the quarter. The company declared a final dividend of 245 percent taking the total dividend for the year to 735 percent.

Ceat: Ceat posted a decline of 83 percent in its consolidated net profit for Q4FY22 to Rs 25.25 crore as compared to Rs 153 crore during the same period last year. The surge in cost of raw materials resulted in the decline in profits. The revenues however increased 13 percent on year to Rs 2,592 crore. For the full year period, the profit was lower by 84 percent to Rs 71 crore compared to Rs 432 crore in FY21. Revenues for FY22 increased 23 percent to Rs 9,363 crore. The company declared a dividend of Rs 3 per equity share for FY22.

Tribhovandas Bhimji Zaveri: Profit after tax for the quarter declined 72 percent to Rs 2.43 crore as compared to Rs 8.6 crore reported during the same period last year due to the impact of the pandemic and geo-political crisis on the overall demand. The revenues however improved 18 percent on year to Rs 431 crore compared to Rs 366 crore during last year quarter. For FY22, profit has declined by 60 percent to Rs 17 crore from Rs 43 crore in FY21. Full year revenue increased 37 percent to Rs 1,844 crore. The company has declared a dividend of Re 1 per equity share for FY22.

Blue Star: Consolidated net profit for the quarter increased by 12 percent on year to Rs 76.27 crore compared to Rs 68.09 crore during the same period a year ago. Revenue from operations for the company jumped 39.5 percent to all-time high of Rs 2,247.58 crores compared to Rs 1,611.56 crore in Q4FY21. Net Profit for the year was Rs 168.00 crores compared to Rs 100.66 crores in FY21, representing a growth of 66.9 percent. Revenue from Operations of Rs 6,045.58 crores for the year grew 41.8 percent compared to Rs 4,263.59 crore during FY21. The company recommended a dividend of Rs 10 per equity share of Rs 2 each for FY22.

Sona BLW Precision Forgings: Profit after tax for the quarter surged 76 percent to Rs 105 crore as compared to Rs 60 crore reported during the same period last year due to lower employee cost and tax credit pertaining to previous years. The revenues however improved 2 percent on year to Rs 550 crore compared to Rs 539 crore during last year quarter. For FY22, profit increased by 68 percent to Rs 362 crore from Rs 215 crore in FY21. Full year revenue increased 36 percent to Rs 2,130 crore. The company has declared a dividend of Re 0.77 per equity share for FY22

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net offloaded shares worth Rs 2,074.74 crore, whereas domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,229.31 crore worth of shares on May 5, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The NSE has not put any stock under the F&O ban for May 6 as well. 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.
Sunil Shankar Matkar
first published: May 5, 2022 10:37 pm
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