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Trade setup for today: Top 15 things to know before the opening bell

Based on the open interest future percentage, here are the 126 stocks including Adani Ports, Astral, HDFC AMC, HPCL, and Nifty, in which a short build-up was seen.

May 20, 2022 / 06:19 AM IST

The bears were in full control of the Dalal Street on May 19 as the benchmark indices fell more than 2.6 percent after a downtick in global counterparts amid growth concerns and inflation worries. The selling pressure was also seen in broader space as the Nifty Midcap 100 index fell 3 percent and Smallcap 100 index tanked 2.7 percent.

The BSE Sensex plunged 1,416 points or 2.6 percent to 52,792, while the Nifty50 declined 431 points or 2.65 percent to 15,809 and formed a bearish candle on the daily charts.

"Zooming into the 15-minute chart, we see that Nifty has reversed the recent pullback rally and has now closed near the recent lows of 15,735. The 20-period moving average (MA) on the 15 minutes chart is now below the 50 periods MA indicating a negative moving average crossover. A fresh down move is likely once the support of 15,735 is broken," Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities said.

He feels the daily timeframe of the Nifty also gives a weak outlook for the coming sessions. "Nifty has been trending lower for the last few weeks and making lower tops and lower bottoms in the process. And Nifty has been moving lower after the recent breakdown from 16,824-17,415 trading range," Gangadharan said.

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Close

The market breadth was largely in favour of bears as five shares declined for every share rising on the NSE.

India VIX, which measures the expected volatility in the market, jumped 10.14 percent to 24.56 levels, indicating more volatile swings going ahead and the tread may remain in favour of bears.

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 15,728, followed by 15,647. If the index moves up, the key resistance levels to watch out for are 15,938, followed by 16,066.

Nifty Bank

Nifty Bank plunged 848 points or 2.5 percent to close at 33,316, as all banking stocks closed in the red on Thursday. The important pivot level, which will act as crucial support for the index, is placed at 33,120, followed by 32,923. On the upside, key resistance levels are placed at 33,573 and 33,830 levels.

Call option data

Maximum Call open interest of 86.15 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the May series.

This is followed by 16,000 strike, which holds 47.61 lakh contracts, and 16,500 strike, which has accumulated 43.2 lakh contracts.

Call writing was seen at 17,000 strike, which added 45.9 lakh contracts, followed by 16,000 strike which added 28.41 lakh contracts and 16,100 strike which added 28.26 lakh contracts.

Call unwinding was seen at 17,600 strike, which shed 57,250 contracts, followed by 14,500 strike which shed 7,300 contracts and 14,300 strike which shed 100 contracts.

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Put option data

Maximum Put open interest of 46.03 lakh contracts was seen at 15,000 strike, which will act as a crucial support level in the May series.

This is followed by 15,800 strike, which holds 39.59 lakh contracts, and 15,500 strike, which has accumulated 39.27 lakh contracts.

Put writing was seen at 15,000 strike, which added 20.1 lakh contracts, followed by 15,800 strike, which added 19.06 lakh contracts and 15,200 strike which added 16.48 lakh contracts.

Put unwinding was seen at 16,200 strike, which shed 6.63 lakh contracts, followed by 16,300 strike which shed 5.87 lakh contracts, and 16,000 strike which shed 5.49 lakh 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 Infosys, ICICI Bank, ICICI Lombard General Insurance, HDFC, and HCL Technologies, among others.

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6 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 six stocks - City Union Bank, Dr Reddy's Laboratories, PI Industries, Abbott India, Ambuja Cements, and Hindustan Aeronautics, in which a long build-up was seen.

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63 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 Coromandel International, Delta Corp, Persistent Systems, Balrampur Chini Mills, and Intellect Design Arena, in which long unwinding was seen.

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126 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 Adani Ports, Astral, HDFC AMC, HPCL, and Nifty, in which a short build-up was seen.

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3 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 three stocks - ITC, Metropolis Healthcare, and Power Grid Corporation of India, in which short-covering was seen.

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Bulk deals

Go Fashion (India): India Advantage Fund S4 I sold 18,11,478 equity shares in the company at an average price of Rs 1,050, while SBI Mutual Fund was the buyer in this deal, acquiring 18,10,983 equity shares at same price via open market transactions.

IndiaNivesh: Rahul Agarwal bought 11 lakh equity shares in the company via open market transactions, at an average price of Rs 55.15 per share. However, investor Anjali Credit Private Limited sold 4 lakh shares at an average price of Rs 55.45 per share, and investor Suhani Homes Private Limited offloaded 6.5 lakh shares at Rs 55 per share.

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(For more bulk deals, click here)

Results on May 20

NTPC, One 97 Communications (PayTM), Amara Raja Batteries, Gati, HeidelbergCement India, Indiabulls Housing Finance, IDFC, Indigo Paints, Indian Railway Finance Corporation, JK Tyre and Industries, CE Info Systems, Metro Brands, Narayana Hrudayalaya, Nuvoco Vistas Corporation, Paras Defence and Space Technologies, Pfizer, SML Isuzu, Sobha, Thermax, and Zydus Lifesciences will report their March quarter earnings on May 20.

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Stocks in News

Equitas Small Finance Bank: Veteran banker P N Vasudevan has resigned as the managing director and chief executive officer of Equitas Small Finance Bank, the lender informed the stock exchanges. Vasudevan, in his resignation letter, said he wants to devote his time towards social welfare through his public charitable trust.

HPCL: State-run oil refiner and marketer Hindustan Petroleum Corporation posted a 34 percent decline in consolidated net profit in the March quarter to Rs 2,019 crore from Rs 3,061 crore in the year-ago period due to rise in total cost. Revenue for the quarter stood at Rs 1.07 trillion, up 24.2 percent from Rs 85,755 crore last year. Total cost rose 28 percent to Rs 1.05 trillion from Rs 81,717 crore a year ago. Operating margin for the quarter contracted sharply to 1.57 percent from 4.46 percent last year. Average gross refining margin during the year ended March 2022 was $7.19 per barrel as against $3.86 per bbl during the corresponding previous year.

Godrej Consumer Products: Godrej Consumer reported a 1 percent fall in net profit for the March quarter to Rs 363 crore year-on-year as a slowdown in consumption and high commodity inflation weighed. Revenue rose 7 percent from a year ago to Rs 2,920 crore. Total cost rose 12 percent year-on-year to Rs 2,540 crore.

Gland Pharma: Gland Pharma's net profit rose 10 percent to Rs 285.90 crore in the quarter ended March 2022 as against Rs 260.41 crore during the same quarter previous fiscal. Net sales rose 24.25 percent to Rs 1,103.01 crore as against Rs 887.75 crore a year ago. EBITDA margin contracted sharply to 35 percent from 40 percent year-on-year.

Ashok Leyland: The company reported a 274 percent YoY jump in net profit at Rs 901.4 crore for the fourth quarter of FY22. Total income stood at Rs 8,744.3 crore during the quarter, up 24.9 percent against Rs 7,000.5 crore in the corresponding period of the preceding fiscal. Its truck market share for Q4 FY22 has improved to 30.6 percent against 28.9 percent in Q4 FY21, this is the highest market share seen in the last 11 quarters.

Biocon: Subsidiary Biocon Biologics, and Viatris Inc. announced that Abevmy (bBevacizumab) is now available in Canada. Abevmy, co-developed by Biocon Biologics and Viatris, is a biosimilar to Roche’s Avastin (Bevacizumab) and has been approved by Health Canada across four oncology indications.

Eros International: Its board approved raising Rs 405 crore by issuing 13.50 crore warrants at a price of Rs 30 a share.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 4,899.92 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,225.54 crore worth of shares on May 19, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks - Delta Corp, GNFC, Indiabulls Housing Finance, and Punjab National Bank - remained under the F&O ban for May 20. 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 19, 2022 11:17 pm
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