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

Key support level for the Nifty is placed at 11,132.73, followed by 11,065.27. If the index moves up, the key resistance levels to watch out for are 11,262.23 and 11,324.27.

August 07, 2020 / 07:42 AM IST

Headline indices -- Sensex and Nifty -- ended with healthy gains on August 6 as the measures announced by Reserve Bank of India (RBI) boosted sentiment.

The central bank announced measures including one-time restructuring of the loans to support non-banking financial companies (NBFCs), housing finance companies (HFCs) and the corporate debt market and relaxed norms on the loan-to-value (LTV) ratio for gold loans.

The Sensex closed 362 points, or 0.96 percent, higher at 38,025.45 and the Nifty ended the day at 11,200.15, up 99 points, or 0.89 percent.

Experts are of the view that the market might continue its positive movement in the near term, with more stock-specific action as the earnings season progresses.

"Investors would now be awaiting the announcement of US stimulus, which could bring cheer to the market. We find the risk-reward unattractive at current levels and would advise investors to remain defensive in their portfolio approach. Traders, on the other hand, are advised to stay cautious and keep booking profit at regular intervals," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said.


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 for the Nifty

According to pivot charts, the key support level for the Nifty is placed at 11,132.73, followed by 11,065.27. If the index moves up, the key resistance levels to watch out for are 11,262.23 and 11,324.27.

Nifty Bank

The Nifty Bank index closed 0.62 percent higher at 21,642.60. The important pivot level, which will act as crucial support for the index, is placed at 21,366.4, followed by 21,090.2. On the upside, key resistance levels are placed at 21,922.7 and 22,202.8.

Call option data

Maximum call OI of nearly 21.05 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the August series.

This is followed by 11,000, which holds 11.54 lakh contracts, and 11,300 strikes, which has accumulated 10.55 lakh contracts.

Call writing was seen at 11,700, which added 55,875 contracts, followed by 11,600 strikes, which added 48,975 contracts.

Call unwinding was seen at 11,500, which shed 1.36 lakh contracts, followed by 11,000 strikes, which shed 1.25 lakh contracts.

Image 1 August 6

Put option data

Maximum put OI of 30.56 lakh contracts was seen at 11,000 strike, which will act as crucial support in the August series.

This is followed by 11,100, which holds 12.75 lakh contracts, and 11,200 strikes, which has accumulated 12.22 lakh contracts.

Put writing was seen at 10,800, which added 2 lakh contracts, followed by 11,200 strikes, which added 1.69 lakh contracts.

Put unwinding was witnessed at 11,700, which shed 675 contracts.

Image 2 August 6

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

High delivey August 6

46 stocks saw long build-up

Based on the OI future percentage, here are the top 10 stocks in which long build-up was seen.

Long buildup August 6

20 stocks saw long unwinding

Based on the OI future percentage, here are the top 10 stocks in which long unwinding was seen.

Long unwinding August 6

34 stocks saw short build-up

An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup August 6

40 stocks witnessed short-covering

A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Short covering August 6

Bulk dealsBulk deals August 6(For more bulk deals, click here)

Results on August 7

Mahindra & Mahindra, Cipla, Siemens, Abbott India, Aditya Birla Capital, Adani Transmission, Alkem Laboratories, Bata India, Alphageo (India), Amara Raja Batteries, Amber Enterprises India, Andhra Paper, Automotive Axles, Balrampur Chini Mills, BEML, Birla Corporation, Container Corporation of India, Emami, Entertainment Network India (ENIL), FDC, Finolex Industries, Indo Rama Synthetics, Kajaria Ceramics, Mahanagar Gas, Nucleus Software Exports, Punjab & Sind Bank, REC, Shipping Corporation of India, Sobha, Sudarshan Chemical Industries, etc.

Stocks in the news

HPCL: Q1 profit at Rs 2,813.8 crore versus Rs 26.8 crore, revenue at Rs 37,721 crore versus Rs 66,154.8 crore QoQ.

Vodafone Idea: Q1 loss at Rs 25,460 crore versus loss Rs 11,643.5 crore, revenue at Rs 10,659.3 crore versus Rs 11,754.2 crore QoQ.

Lupin: Company signed exclusive distribution pact with ForDoz Pharma for two complex injectable assets under development in the US.

Pidilite Industries: Q1 profit at Rs 15.8 crore versus Rs 294.4 crore, revenue at Rs 877.8 crore versus Rs 2,016.2 crore YoY.

Adani Enterprises: Q1 loss at Rs 65.7 crore versus profit Rs 570 crore, revenue at Rs 5,265.2 crore versus Rs 10,561.4 crore YoY.

Deepak Nitrite: Q1 profit at Rs 98.9 crore versus Rs 131.6 crore, revenue at Rs 674.5 crore versus Rs 1,051 crore YoY.

Torrent Power: Q1 profit at Rs 372.7 crore versus Rs 275.3 crore, revenue at Rs 3,007 crore versus Rs 3,736 crore YoY.

Indian Hotels: Q1 loss at Rs 312.60 crore versus profit of Rs 49.8 crore, revenue at Rs 143.6 crore versus Rs 1,020 crore YoY.

Fund flow

Fund Flow August 6

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 637.43 crore while domestic institutional investors (DIIs) sold shares worth Rs 468 crore in the Indian equity market on August 6, as per provisional data available on the NSE.​

Stock under F&O ban on NSECanara Bank is under the F&O ban for August 7. 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.​
Nishant Kumar
first published: Aug 6, 2020 08:53 pm
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