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Last Updated : Aug 23, 2019 11:29 AM IST | Source: Moneycontrol.com

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

Ajit Mishra of Religare Broking suggests continuing with 'sell on rise' approach and focusing more on stock selection now.

Sunil Shankar Matkar

The market plunged sharply, losing 1.6 percent on August 22 as bears tightened their grip over Dalal Street in the second half of the session as hopes for a stimulus dimmed. Selling was seen across sectors with Bank, Auto, Metal and Realty falling between 1.7 to 6.2 percent.

The benchmark BSE Sensex declined 587.44 points to 36,472.93 while the Nifty 50 fell to new corrective swing low of 10,718, before closing 177.30 points lower at 10,741.40.

Experts feel the selling pressure is likely to continue in the short term and advised using sell on a rise strategy.

Close

"The overall chart pattern indicates the occurrence of sharp selling enthusiasm in the market. The next lower supports to be watched at 10,600-10,580 levels," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

He said the present strength of the downside momentum is not likely to reverse completely unless the market sees a confirmation of decisive upside reversal from near the supports. "In the present circumstance, any upside bounce from near the supports could be an opportunity to sell on a rise," he added.

Ajit Mishra Vice President, Research, Religare Broking said the recent fall is a result of growing uneasiness among the participants keenly awaiting government action to boost market sentiment. Feeble global cues are adding to the negativity. He suggests continuing with a 'sell on rise' approach and focusing more on stock selection now.

We have collated 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

Nifty closed at 10,741.35 on August 22. According to the pivot charts, key support level is placed at 10,670.33, followed by 10,599.37. If the index starts moving upward, key resistance levels to watch out for are 10,860.23 and 10,979.17.

Nifty Bank

Nifty Bank closed at 27,034.20, down 684.85 points on August 22. The important pivot level, which will act as crucial support for the index, is placed at 26,776.5, followed by 26,518.8. On the upside, key resistance levels are placed at 27,491.0 and 27,947.8.

Call options data

Maximum Call Open Interest (OI) of 44.98 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in the August series.

This is followed by 11,500 strike price, which now holds 27.91 lakh contracts in open interest, and 11,100, which has accumulated 27.49 lakh contracts in open interest.

Significant Call writing was seen at the 11,000 strike price, which added 11.70 lakh contracts, followed by 10,800 strike price, which added 9.64 lakh contracts and 10,900 strike which added 9.05 lakh contracts.

Call Unwinding was seen at 10,000 strike price, which shed 0.15 lakh contracts.

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Put options data

Maximum Put Open Interest of 25.18 lakh contracts was seen at 10,500 strike price, which will act as crucial support in August series.

This is followed by 10,700 strike price, which now holds 23.26 lakh contracts in Open Interest, and 10,600 strike price, which has now accumulated 19.45 lakh contracts in open interest.

Put writing was seen at the 10,700 strike price, which added 3.91 lakh contracts, followed by 10,500 strike, which added 3.57 lakh contracts and 10,400 strike, which added 2.36 lakh contracts.

Put unwinding was seen at the 11,000 strike price, which shed 7.93 lakh contracts, followed by 10,800 strike that shed 4.07 lakh contracts and 11,100 strike price which shed 1.83 lakh contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.

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8 stocks saw a long buildup

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17 stocks that saw short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short covering.

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67 stocks saw a short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.

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70 stocks saw long unwinding

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Analyst or Board Meetings/Briefings

Great Eastern Shipping: Company's officials will meet B&K Securities on August 28.

Vakrangee: Annual General Meeting to be held on September 25.

NMDC: Company's officials will meet Emkay Global Financial Services on August 23.

Heidelbergcement India: AGM is scheduled to be held on September 19.

Astron Paper & Board Mill: Annual General Meeting is scheduled to be held on September 25.

Heidelbergcement India: Company's representatives Jamshed Naval Cooper, Managing Director; Anil Sharma, CFO and Amit Angra, VP - Finance will be participating in the IIFL Investor Conference on August 23 in Gurugram.

Reliance Nippon Life Asset Management: 24th Annual General Meeting will be held on September 23.

Shemaroo Entertainment: Management of the company is scheduled to meet the analysts from the investor community on August 23.

Technocraft Industries: 27th Annual General Meeting to be held on September 20.

Stocks in the news

Results on August 23: Technofab Engineering, Vadilal Industries, Vadilal Enterprises, Bharat Bhushan Share, Golechha Global Finance

HDFC Bank: Lender appointed Srinivasan Vaidyanathan as CFO.

Kennametal India June Quarter: Consolidated profit rises to Rs 21.5 crore versus Rs 13.7 crore, revenue increases to Rs 250.1 crore versus Rs 234.6 crore QoQ. Board appointed Bidadi Anjani Kumar, Independent Director of the company, as the Chairman.

Somany Ceramics: Board approved the draft Scheme of Amalgamation of Schablona India with the company.

Gillette India: Company declared a final dividend of Rs 25 per share (nominal value of Rs 10 each) for the financial year ended June 2019.

Shreeji Translogistics: Board to consider interim dividend & bonus issue, and migration of the company from SME Platform to the Main Board of BSE on August 27.

Shivam Autotech: CARE downgraded its credit rating on the company's long term bank facilities to BBB with negative outlook from BBB+ with a stable outlook.

Commercial Syn Bags: Company recommended a dividend of 80 paise per share on the equity shares of Rs 10 each for the financial year 2018-19.

Supreme Infrastructure India: Company postpones the announcement of March quarter earnings.

BHEL: CRISIL revised its outlook on the company's long-term bank facilities to negative from stable while reaffirmed the rating at 'AA+'. The rating on the short-term bank facilities have been reaffirmed at 'A1+'

AXISCADES Engineering Technologies: Company has received a resignation letter from Anees Ahmed, Executive Director, stepping down from the office of directorship, owing to his full-time preoccupation with Mistral Solutions, a subsidiary company.

Kamdhenu: Company has started partial manufacturing operations at the paints factory (stainer division) at Rajasthan where the manufacturing operations were disrupted due to a fire incident in April.

TCS: Company launched an enhanced version of its unique diagnostic solution, the TCS intelligent Cloud Migration Continuum (iCMC).

Rapicut Carbides: CARE placed its credit rating of BBB/A3+ on the company's long term/short term bank facilities on credit watch with developing implications.

Rashtriya Chemicals & Fertilizers: ICRA assigned credit rating on the company's long term bank facilities worth Rs 5,100 crore at AA with a negative outlook.

Premier: Company has paid in full a one-time settlement amount of Rs 31.17 crore consisting of the principal amount to the Corporation Bank as a full and final settlement of their dues. As a result, the necessary consent terms have been filed before the NCLT, Mumbai, resulting in disposal of the petition by NCLT.

Dabur India: Subsidiary Dabur International acquired management control of a new company Excel Investments (FZE) in Sharjah, UAE which had acquired 99.99 percent shareholding of Dabur Pakistan (Private) Limited and Asian Consumer care Pakistan (Private) Limited from Dabur International.

Infosys: Company and the University of Illinois Urbana-Champaign entered a strategic partnership for precision medicine.

Shree Renuka Sugars: India Ratings and Research placed the company's Long-Term Issuer Rating of 'BBB+' on Rating Watch Negative (RWN).

Bulk deals

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(For more bulk deals, click here)

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth net Rs 902.99 crore, while Domestic Institutional Investors (DIIs) bought net Rs 1,719.07 crore worth of shares in the Indian equity market on August 22, as per provisional data available on the NSE.

Fund Flow Picture

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Two stocks under F&O ban period on NSE

For August 23, DHFL & IDBI are under the F&O ban period.

Securities in 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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First Published on Aug 22, 2019 08:09 pm
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