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

The bulls remained in control of markets which rose half a percent on July 21, continuing the uptrend for the fifth consecutive session. It so far rallied more than 9 percent from its 52-week lows touched in June.

All sectors, barring pharma, contributed to the rally. The BSE Sensex climbed 284 points to 55,682, while the Nifty50 jumped 84.5 points to 16,605 and formed a bullish candle which resembles a Bullish Engulfing kind of pattern formation on the daily charts.

"Nifty managed to sustain above the crucial hurdle of 200-days EMA around 16,520 levels on Thursday. The opening upside gap of July 20 around 16,360-16,490 levels is intact after 2 days of its formation," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

As per gap theory, if the said gap remains unfilled in the next couple of sessions, then that gap could be considered as a bullish runaway gap and that could possibly suggest the market is in the midway of trend, he added.

He feels the recent opening upside gap and a negation of the small negative candle of Wednesday signal a possibility of further upside in the short term. "The next upside resistance could be watched around 16,800 levels. Immediate support is placed at 16,480 levels," the market expert added.

The broader space also participated in the market run as the Nifty Midcap 100 index gained 1.4 percent and Smallcap 100 index rose 0.77 percent, while the volatility index India VIX remained supportive for bulls, though it rose by 0.2 percent to 16.86 levels.

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 16,517, followed by 16,429. If the index moves up, the key resistance levels to watch out for are 16,660 and 16,715.

Nifty Bank

The Nifty Bank climbed 229 points to close at 36,201, the highest closing level since April 28, and formed a bullish candle on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 35,948, followed by 35,696. On the upside, key resistance levels are placed at 36,393 and 36,584 levels.

Call option data

Maximum Call open interest of 44.11 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the July series.

This is followed by 16,500 strike, which holds 33.81 lakh contracts, and 16,600 strike, which has accumulated 29.46 lakh contracts.

Call writing was seen at 17,300 strike, which added 15.22 lakh contracts, followed by 16,600 strike which added 14.48 lakh contracts and 17,200 strike which added 12.73 lakh contracts.

Call unwinding was seen at 16,000 strike, which shed 1.18 lakh contracts, followed by 16,100 strike which shed 21,500 contracts and 15,900 strike which shed 15,050 contracts.

Put option data

Maximum Put open interest of 45.68 lakh contracts was seen at 15,500 strike, which will act as a crucial support level in the July series.

This is followed by 16,500 strike, which holds 45.59 lakh contracts, and 16,000 strike, which has accumulated 41.46 lakh contracts.

Put writing was seen at 16,500 strike, which added 25.42 lakh contracts, followed by 15,500 strike, which added 21.42 lakh contracts and 16,400 strike which added 17.42 lakh contracts.

Put unwinding was seen at 18,000 strike, which shed 15,700 contracts, followed by 17,500 strike which shed 2,200 contracts, and 17,800 strike which shed 800 contracts.

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 Abbott India, Power Grid Corporation of India, PFC, REC, and HDFC, among others.

107 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 Nifty Financial, ABB India, PVR, IndiaMART InterMESH, and Cummins India, in which a long build-up was seen.

7 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 7 stocks including Crompton Greaves Consumer Electricals, ONGC, JSW Steel, Torrent Pharma, and SBI Life Insurance Company, in which long unwinding was seen.

22 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 Atul, Astral, Firstsource Solutions, Voltas, and Escorts, in which a short build-up was seen.

60 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 NBCC, UltraTech Cement, City Union Bank, Polycab India, and Coforge in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Results on July 22, July 23, July 24

Reliance Industries, UltraTech Cement, JSW Steel, HDFC Asset Management Company, Bandhan Bank, Coforge, Crompton Greaves Consumer Electricals, Finolex Industries, Andhra Cements, Atul, Bharat Gears, Gokaldas Exports, Greenpanel Industries, HFCL, Huhtamaki India, Mahindra CIE Automotive, Meghmani Organics, Sigachi Industries, Supreme Petrochem, Tinplate Company of India, Ugro Capital, and Zenotech Laboratories will be in focus ahead of June 2022 quarter earnings on July 22.

ICICI Bank, Kotak Mahindra Bank, Yes Bank, Karnataka Bank, Coastal Corporation, D-Link (India), eMudhra, Kewal Kiran Clothing, Navin Fluorine International, Steel Exchange India, Surana Telecom and Power, and Uttam Galva Steels will be in focus ahead of quarterly earnings on July 23.

The country's second largest IT services provider Infosys will announce its June 2022 quarter earnings on July 24.

Stocks in News

NLC India: The company said the board has approved an investment proposal for establishing Mine III (peak capacity-11.50 MTPA & normative capacity- 8.71 MTPA) in Neyveli, Tamil Nadu at an estimated cost of Rs 3,755.71 crore, and also an investment proposal of establishing TPS II, the second expansion of thermal power station (2 X 660 MW) at Neyveli, Tamil Nadu for Rs 11,189.20 crore.

ICICI Securities: The company recorded a 12 percent year-on-year decline in consolidated profit at Rs 273.6 crore for the quarter ended June 2022 and profit before tax was also lower by 12 percent at Rs 367 crore. Revenue grew by 6.5 percent YoY to Rs 793.55 crore supported by interest income and income from services, but impacted by lower brokerage income.

Biocon: The US Food and Drug Administration has concluded a pre-approval inspection for Site 3 of Biocon at Hyderabad in Telangana on July 20, with three observations. The company will be addressing within the stipulated time and stands committed to the quality, safety & efficacy of its products.

JSW Energy: The energy company recorded a 179 percent year-on-year increase in consolidated profit at Rs 560 crore for the quarter ended June 2022, backed by exceptional income and strong operating income as well as topline performance. Revenue grew by 67.5 percent YoY to Rs 3,115 crore and EBITDA increased by 34 percent to Rs 1,111 crore for the quarter.

IndiaMART InterMESH: The company reported a 47 percent YoY decline in consolidated profit at Rs 47 crore on lower operating income. Revenue grew by 7 percent YoY to Rs 226 crore and EBITDA fell by 28 percent to Rs 64 crore in quarter ended June 2022. EBITDA margin contracted to 29 percent from 49 percent YoY.

Cyient: The company clocked a 0.9 percent year-on-year growth in profit at Rs 116.1 crore for the quarter ended June 2022, while group revenue at Rs 1,250.1 crore grew by 5.8 percent QoQ and 18.1 percent YoY. Constant currency revenue growth stood at 4.4 percent QoQ and 15.8 percent YoY. Group and services order intake grew by 18 percent YoY.

RBL Bank: The private sector lender has reported a profit of Rs 201 crore for the quarter ended June 2022, against a loss of Rs 459 crore in the same period last year, aided by 82 percent decline in provisions. Net interest income grew by 6 percent YoY to Rs 1,028 crore, but other income fell 6 percent to Rs 614 crore for the quarter. Advances grew by 7 percent and deposits registered a 6 percent growth YoY.

SRF: The chemical company said profit after tax (PAT) increased by 54 percent YoY to Rs 608 crore in Q1FY23, backed by revenue and operating performance. Consolidated revenue grew by 44 percent YoY to Rs 3,895 crore in Q1FY23, and earnings before interest and tax (EBIT) increased 58 percent YoY to Rs 938 crore during the quarter.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net purchased shares worth Rs 1,799.32 crore, continuing buying for the fourth consecutive session, whereas domestic institutional investors (DIIs) net sold shares worth Rs 312.29 crore on July 21, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - RBL Bank and Delta Corp - are under the NSE F&O ban list for July 22. 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.

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