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

Based on the open interest future percentage, here are the 110 stocks including Petronet LNG, Navin Fluorine International, AU Small Finance Bank, Voltas, and Indus Towers, in which a short build-up was seen.

June 17, 2022 / 12:37 PM IST

The market has seen heavy selling pressure with benchmark indices breaching 52-week low on June 16 after the Federal Reserve hiked interest rate by 75 basis points in its June policy meeting and hinted at another 50-75 bp hike in July policy meeting to arrest inflation.

The BSE Sensex plunged 1,046 points or 2 percent to 51,496, while the Nifty50 fell 332 points or 2.11 percent to 15,361, the lowest level since May 2021, and formed Long Black Day candle on the daily charts.

"A long bear candle was formed on the daily chart after opening higher (long bear candle within a high low range of around 520 points). This candle has broken decisively below the important support band of 15,700-15,600 levels and closed lower. This downside breakout of the support could hint more downside for the market ahead and any upside bounce from here could be a sell on rise opportunity," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.

The long term support of 20 month exponential moving average (EMA) as per monthly timeframe chart has been broken on the downside at 15700 levels in this month, which was holding for past 3-4 months. This is not a good sign for the market ahead, the expert said.

Hence, he said one may expect Nifty to slide to the next lows of around 15,000-14,800 in the near term.

Close

On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices have corrected 2.3 and 3.4 percent respectively, as about eight shares declined for every share rising on the NSE.

Volatility remained above 20 levels, which experts feel can create swings in the market and keep trend favourable for bears. India VIX, which measures the expected volatility in the market, closed at 22.87 levels, up 3.25 percent.

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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 15,176, followed by 14,992. If the index moves up, the key resistance levels to watch out for are 15,704 and 16,048.

Nifty Bank

Nifty Bank also traded in line with broader space, falling 722 points or 2.17 percent to close at 32,617 on Thursday. The important pivot level, which will act as crucial support for the index, is placed at 32,185, followed by 31,752. On the upside, key resistance levels are placed at 33,403 and 34,189 levels.

Call option data

Maximum Call open interest of 26.57 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the June series.

This is followed by 17,000 strike, which holds 23.39 lakh contracts, and 16,500 strike, which has also accumulated 22.93 lakh contracts.

Call writing was seen at 15,500 strike, which added 13.97 lakh contracts, followed by 15,600 strike which added 10.14 lakh contracts and 16,000 strike which added 5.44 lakh contracts.

Call unwinding was seen at 17,000 strike, which shed 2.52 lakh contracts, followed by 16,600 strike which shed 1.35 lakh contracts and 17,400 strike which shed 1.34 lakh contracts.

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Put option data

Maximum Put open interest of 42.74 lakh contracts was seen at 15,500 strike. This is followed by 14,500 strike, which holds 33.21 lakh contracts, and 15,000 strike, which has accumulated 33.15 lakh contracts.

Put writing was seen at 14,500 strike, which added 7.48 lakh contracts, followed by 15,500 strike, which added 7.06 lakh contracts and 15,600 strike which added 4.96 lakh contracts.

Put unwinding was seen at 15,700 strike, which shed 10 lakh contracts, followed by 15,800 strike which shed 3.7 lakh contracts, and 16,000 strike which shed 2.08 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 ICICI Lombard General Insurance, Page Industries, Indus Towers, Infosys, and HDFC AMC, among others.

2 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 two stocks - Nestle India and Britannia Industries, in which a long build-up was seen.

85 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 Hindustan Aeronautics, Apollo Hospitals Enterprises, Strides Pharma Science, Max Financial Services, and RBL Bank, in which long unwinding was seen.

110 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 Petronet LNG, Navin Fluorine International, AU Small Finance Bank, Voltas, and Indus Towers, in which a short build-up was seen.

4 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 four stocks - Coforge, Abbott India, Crompton Greaves Consumer Electricals, and Dabur India, in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Investors Meetings on June 17

Investor 1706_001

Ador Welding: Officials of the company will meet ICICI Mutual Fund, Nippon Mutual Fund, Kotak Mutual Fund, L&T Mutual Fund, Tata Mutual Fund, Sundaram Mutual Fund, and DSP Mutual Fund.

UltraTech Cement: Officials of the company will meet Manulife Asset Management, Amundi Asset Management, Pictet Asset Management, Universities Superannuation Scheme, and Sephira Investment Advisors.

Graphite India, Voltas, Shree Cement, Aarti Industries, Vedanta, Mahindra Finance: Officials of the companies will meet various investors at PhillipCapital “Ground View Conference 2022.

Gokaldas Exports: Officials of the company will meet Motilal Oswal Financial Services, and Kotak Life Insurance Company.

Syngene International: Officials of the company will meet Goldman Sachs Asset Management, Baring Asset Management, Orbimed, HSBC, and ICICI Prudential MF.

ADF Foods: Officials of the company will meet PineBridae Investments, and Accendo Capital Management.

Persistent Systems: Officials of the company will meet Invesco Oppenheimer.

Brigade Enterprises: Officials of the company will meet Kotak offshore, AIA Investment Management, and Oak Tree Capital.

Timken India: Officials of the company will meet SBI Mutual Fund, and HDFC Mutual Fund.

eMudhra: Officials of the company will meet Abakkus Growth Fund-2.

Ashiana Housing: Officials of the company will meet Antique Stock Broking, Edelweiss Broking, HSBC Securities and Capital Markets (India).

Manappuram Finance: Officials of the company will meet ICICI Pru Mutual Fund, and SMDS Asset management.

Arvind: Officials of the company will meet Tata Investment Corporation.

Nuvoco Vistas Corporation: Officials of the company will meet DAM Capital.

DCM Shriram: Officials of the company will meet CX Advisors LLP.

Redington: Officials of the company will meet Strategic Growth Advisors.

Garware Technical Fibres: Officials of the company will meet Kabouter Management, LLC.

Max Financial Services: Officials of the company will meet Manas Capital, and Arohi Capital.

Stocks in News

Wipro: Eros Investments has signed an alliance agreement with Wipro, to evolve and scale the artificial intelligence (AI) and machine learning (ML) based content localization solution. The joint content localization service will be available to media and entertainment companies in two deployment models: platform-as-a-service and private cloud deployment.

Dr Reddy's Laboratories: Life Insurance Corporation of India acquired additional 2 percent equity stake in the company via open market transactions. With this, LIC's shareholding in the company stands increased to 5.646 percent, up from 3.644 percent earlier.

Vakrangee: Vakrangee, having 84 percent of Vakrangee Kendra outlets in Tier-4 and 6 towns, has entered into a seller agreement with Decathlon Sports India, a world leader in sports equipments, to offer a complete range of sports equipments and products to the unserved and underserved population of India. Company through its Nextgen physical Kendras and BharatEasy Mobile Superapp will now be able to provide sports equipment’s & products in remote areas of the country.

Fineotex Chemical: Promoter Sanjay Tibrewala acquired additional 1 lakh shares in the company via open market transactions on June 15. With this, his shareholding in the company stands increased to 3.06 percent, up from 2.97 percent earlier.

Prime Focus: Subsidiary DNEG (technology-enabled visual effects and animation company), and Sports Ventures Acquisition Corp have mutually agreed to terminate their previously announced business combination agreement, effective immediately, due to current unfavourable SPAC market conditions and other factors.

Nuvoco Vistas Corporation: Mirae Asset Mutual Fund bought additional 6.5 lakh equity shares in the company via open market transactions on June 15. After this, the fund house's shareholding in the company increased to 5.139 percent, up from 4.957 percent earlier.

RITES: The company has secured a business for operation and maintenance of 20 numbers of shunting locomotives for the period of 10 years from Container Corporation of India for Rs 364.56 crore.

Dhruv Consultancy Services: The company has received the Letter of Acceptance for the project management consultancy services for upgradation to 2/4/6 paved shoulders project on newly declared road project in Andhra Pradesh. The company bagged project by making joint bid agreement with Geo Designs & Research (P) Ltd & in association with Kaius Consulting. Consultancy services fees for the said project will be Rs 18.29 crore and the contract period will be of 102 months.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold Rs 3,257.65 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,929.14 crore worth of shares on June 16, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - Indiabulls Housing Finance, RBL Bank, and Delta Corp - remained under the NSE F&O ban for June 17 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: Jun 17, 2022 08:13 am
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