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

Based on the open interest future percentage, a short-covering was seen in 139 stocks including Indiabulls Housing Finance, ONGC, City Union Bank, Container Corporation of India, and Mahindra & Mahindra

July 29, 2022 / 08:23 AM IST

The market extended a strong rally for the second consecutive session with the benchmark indices closing at a nearly three-month high on July 28, the monthly expiry day for July F&O contracts. The rally was backed by buying across sectors after Federal Reserve hiked interest rates by 75 bps, which was on expected lines.

The BSE Sensex jumped 1,041.5 points or 1.87 percent to 56,858, while the Nifty50 rose 288 points or 1.73 percent to 16,930 and formed a bullish candle on the daily charts.

"A long bull candle was formed on the daily chart with a gap-up opening, which displays sharp upside momentum in the market. The Nifty witnessed upside breakout of the crucial overhead resistance of 16,800 levels, resistance as per the concept of change in polarity," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Shetti believes that as per the theories of upside breakout of crucial resistance, unfilled opening gaps and the positive chart pattern like higher tops and bottoms are all indicating more upside ahead for the market. The next upside target to be watched is around 17,500 levels and immediate support is placed at 16,800-16,750 levels, the market expert said.

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Close

The Nifty Midcap 100 and Smallcap 100 indices have gained 0.8 percent each, while the India VIX, the fear index, fell by 6.16 percent to 17.01 levels, favouring bulls.

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 16,801, followed by 16,673. If the index moves up, the key resistance levels to watch out for are 17,003 and 17,076.

Nifty Bank

The Nifty Bank jumped 594 points or 1.62 percent to 37,378 on Thursday, 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 37,133, followed by 36,888. On the upside, key resistance levels are placed at 37,519 and 37,660 levels.

Call option data

Maximum Call open interest of 99.93 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the August series.

This is followed by 17,100 strike, which holds 47.85 lakh contracts, and 16,900 strike, which has accumulated 40.82 lakh contracts.

Call writing was seen at 17,600 strike, which added 80,950 contracts, followed by 18,400 strike which added 8,100 contracts.

Call unwinding was seen at 16,800 strike, which shed 43.54 lakh contracts, followed by 16,700 strike which shed 40.69 lakh contracts and 16,600 strike which shed 37.85 lakh contracts.

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Put option data

Maximum Put open interest of 83.33 lakh contracts was seen at 16,900 strike, which will act as a crucial support level in the August series.

This is followed by 16,000 strike, which holds 68.2 lakh contracts, and 16,500 strike, which has accumulated 66.85 lakh contracts.

Put writing was seen at 16,900 strike, which added 82.22 lakh contracts, followed by 16,800 strike, which added 50.28 lakh contracts and 16,700 strike which added 25.71 lakh contracts.

Put unwinding was seen at 16,000 strike, which shed 31.35 lakh contracts, followed by 16,300 strike which shed 28.5 lakh contracts, and 16,200 strike which shed 22.27 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 Crompton Greaves Consumer Electricals, Ambuja Cements, Power Grid Corporation of India, Siemens, and ICICI Lombard General Insurance, among others.

Rollovers

Here are the top 10 stocks which saw the highest rollovers on expiry day including Nifty Financial which witnessed 100 percent rollovers, followed by Adani Ports, JSW Steel, Bharti Airtel, and HDFC AMC with 98-99 percent rollovers.

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 6 stocks including SBI Card, Laurus Labs, Astral, HDFC Life Insurance Company, and Balrampur Chini Mills, in which a long build-up was seen.

44 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 Coal India, ACC, Atul, Indus Towers, and MCX India, in which long unwinding was seen.

7 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 7 stocks including Biocon, Dixon Technologies, M&M Financial Services, Shree Cements, and Tata Motors, in which a short build-up was seen.

139 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 Indiabulls Housing Finance, ONGC, City Union Bank, Container Corporation of India, and Mahindra & Mahindra, in which short-covering was seen.

Bulk Deals

Delta Corp: BofA Securities Europe SA sold 16.05 lakh equity shares in the company via open market transactions. These shares were sold at an average price of Rs 192.56 per share.

(For more bulk deals, click here)

Results on July 29 and July 30

Results on July 29: HDFC, NTPC, Sun Pharma, Cipla, Indian Oil Corporation, Ashok Leyland, DLF, Emami, Exide Industries, Nazara Technologies, Piramal Enterprises, CARE Ratings, CarTrade Tech, Cholamandalam Investment, CreditAccess Grameen, Deepak Fertilisers, Easy Trip Planners, 3i Infotech, Great Eastern Shipping, GMR Infrastructure, Godrej Agrovet, Heritage Foods, JK Paper, Mahindra Logistics, Metro Brands, Rain Industries, Route Mobile, Strides Pharma Science, Star Health and Allied Insurance Company, Torrent Pharmaceuticals, VST Industries, and Zydus Wellness will be in focus ahead of June quarter earnings on July 29.

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Results on July 30: Bank of Baroda, DCB Bank, Godfrey Phillips India, IDFC First Bank, Indian Bank, Multi Commodity Exchange of India, Mahindra Holidays & Resorts India, and Venus Remedies will be in focus ahead of June quarter earnings on July 30.

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Stocks in News

Dr Reddy's Laboratories: The pharma company recorded a 108 percent year-on-year growth in consolidated profit at Rs 1,187.60 crore for the quarter ended June 2022, backed by healthy operating performance and higher other income. Revenue grew by 6 percent YoY to Rs 5,215.40 crore in Q1FY23 due to tepid growth in North America and Europe but India growth was strong at 26 percent YoY.

Jubilant FoodWorks: The company acquired 40 percent stake in Roadcast Tech Solutions Private Limited that offers a logistics platform for the management of last-mile delivery operations. The acquisition cost is Rs 14.98 crore.

Indus Towers: Bimal Dayal has resigned as Managing Director and CEO of the company. He has decided to pursue opportunities outside Indus Towers.

TVS Motor Company: The two-and-three-wheeler maker reported a consolidated profit of Rs 296.75 crore for the quarter ended June 2022, against a loss of Rs 14.72 crore in the same period last year, supported by top line and operating performance. Q1FY22 performance was affected by the second COVID wave. Revenue grew by 56 percent YoY to Rs 7,315.70 crore in Q1FY23. The board has approved the issue of non–convertible debentures (NCDs) aggregating up to Rs 125 crore on a private placement basis.

Chalet Hotels: The company has received a contract from Delhi International Airport Limited (DIAL) to develop a hotel at the T3 Terminal of Indira Gandhi International Airport (IGIA). With this, Chalet will enter the north Indian market. The upcoming terminal hotel will be the company's 9th hospitality property in the country and first in northern India. The hotel will have 350-400 rooms positioned in the 5-star deluxe space. The hotel is expected to be commissioned in FY26 or earlier. Chalet posted a consolidated profit of Rs 28.5 crore for the quarter ended June 2022, against a loss of Rs 41.66 crore in the year-ago period due to the second COVID wave. Revenue from operations grew by 275.2 percent to Rs 253 crore during the same period.

SBI Life Insurance Company: The life insurance company recorded a 17.78 percent year-on-year growth in profit at Rs 262.85 crore for the quarter ended June 2022. Net premium income grew significantly by 32.76 percent YoY to Rs 11,036 crore compared to the corresponding period of last fiscal, but the income from investments came in at negative Rs 6,405.66 crore for the June FY23 quarter against income of Rs 7,409.91 crore YoY.

Vedanta: The company recorded a six percent year-on-year increase in consolidated profit at Rs 5,593 crore for the quarter ended June 2022, impacted by higher input cost and power and fuel cost. Revenue grew by 35 percent YoY to Rs 39,355 crore during the same period.

RITES: The transport infrastructure consultancy and engineering firm recorded an 85.8 percent YoY increase in profit at Rs 145 crore for the quarter ended June 2022 and revenue grew by 68.8 percent to Rs 637 crore during the same period. RITES declared an interim dividend of Rs 4 per share.

Sapphire Foods India: Nippon Life India Trustee bought 21.23 lakh equity shares or a 3.34 percent stake in the company via open market transactions during January 7-July 26. With this, its shareholding in Sapphire increased to 5.03 percent, up from 1.69 percent earlier.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 1,637.69 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 600.29 crore on July 28, as per provisional data available on the NSE.

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: Jul 28, 2022 10:23 pm
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