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

Nagaraj Shetti of HDFC Securities said weekly RSI has moved above 60 levels, which is suggesting further strengthening of upside momentum in the market
Nov 8, 2020 / 10:49 PM IST

Bulls retained their control over Dalal Street throughout the week ended November 6. The benchmark indices gained more than a percent on Friday, backed by buying in Reliance Industries and banking and financials stocks.

Positive global cues amid US election results, and consistent FII inflow lifted sentiment during the day. As a result, the benchmark indices closed at highest level since January 17, 2020.

The BSE Sensex climbed 552.90 points, or 1.34 percent, to close at 41,893.06, while the Nifty50 rallied 143.20 points, or 1.18 percent, to 12,263.50 and formed bullish candle on the daily as well as weekly charts. It gained 5.3 percent for the week and now is 1.3 percent away from record high levels.

"Friday's sharp follow-through upmove could confirm a sustainable upside breakout of the recent consolidation pattern. The opening upside gap of Thursday remains unfilled two sessions after its formation. Hence, this gap could be considered as a bullish breakaway gap and this could signal more upside for the market ahead," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

He said weekly RSI has moved above 60 levels, which is suggesting further strengthening of upside momentum in the market.

"One may expect a formation of new all time high soon in the market (above 12,430). A sustainable move above this hurdle could pull Nifty towards 12,600-12,700 levels in the next few weeks. Intra-week dips could be a buying opportunity for the near term. Immediate support is placed at 12,150," he added.

The market breadth remained in favour of advances, while the Nifty Midcap index closed with 0.7 percent of gains and Smallcap 0.6 percent.

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

According to pivot charts, the key support levels for the Nifty is placed at 12,170.07, followed by 12,076.63. If the index moves up, the key resistance levels to watch out for are 12,318.67 and 12,373.83.

Nifty Bank

The Bank Nifty surged 485.90 points or 1.85 percent to 26,799 and outperformed Nifty50 on November 6. The important pivot level, which will act as crucial support for the index, is placed at 26,338.33, followed by 25,877.77. On the upside, key resistance levels are placed at 27,056.43 and 27,313.97.

Call option data

Maximum Call open interest of 17.12 lakh contracts was seen at 12,500 strike, which will act as crucial resistance level in the November series.

This is followed by 13,000 strike, which holds 16.59 lakh contracts, and 12,000 strike, which has accumulated 15.52 lakh contracts.

Call writing was seen at 12,900 strike, which added 3.87 lakh contracts, followed by 12,700 strike which added 2.43 lakh contracts and 12,800 strike which added 2.01 lakh contracts.

Call unwinding was seen at 12,000 strike, which shed 2.62 lakh contracts, followed by 11,900 strike which shed 81,375 contracts and 11,600 strike which shed 59,250 contracts.

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Put option data

Maximum Put open interest of 24.76 lakh contracts was seen at 11,500 strike, which will act as crucial support in the November series.

This is followed by 12,000 strike, which holds 23.13 lakh contracts, and 11,600 strike, which has accumulated 12.04 lakh contracts.

Put writing was seen at 12,000 strike, which added 7.25 lakh contracts, followed by 12,200 strike, which added 4.56 lakh contracts and 12,100 strike which added 2.54 lakh contracts.

Put unwinding was witnessed at 11,300 strike, which shed 16,650 contracts, followed by 11,600 strike which shed 16,050 contracts and 11,700 strike, which shed 4,125 contracts.

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Stocks with a high delivery percentage

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

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60 stocks saw long build-up

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

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10 stocks saw long unwinding

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

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36 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 in which short build-up was seen.

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30 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 top 10 stocks in which short-covering was seen.

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Bulk deals

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(For more bulk deals, click here)

Results on November 9

IndiaMART InterMESH, Oil India, ADF Foods, Bayer Cropscience, Delta Corp, Dredging Corporation of India, Equitas Small Finance Bank, Honeywell Automation, JK Cement, NOCIL, Parag Milk Foods, PC Jeweller, PSP Projects, PTC India, Shankara Building Products, Sun Pharma Advanced Research Company, SREI Infrastructure Finance, Triveni Engineering, Venky's India, VIP Industries and Zuari Agro Chemicals are among 253 companies to declare their quarterly earnings on November 9.

Stocks in the news

Ashok Leyland: Company reported consolidated loss at Rs 146.7 crore in Q2FY21 against profit of Rs 38.9 crore, revenue fell to Rs 2,836.6 crore from Rs 3,929.5 crore YoY.

Bharat Electronics: Company reported higher profit at Rs 397 crore in Q2FY21 compared to Rs 339 crore, revenue jumped to Rs 3,188.7 crore from Rs 2,742.7 crore YoY.

Union Bank of India: Bank has reported net profit at Rs 516.6 crore in Q2FY21 against Rs 332.74 crore, net interest income fell to Rs 6,293 crore from Rs 6,403.2 crore QoQ.

Cipla: Company has reported higher consolidated profit at Rs 661.8 crore in Q2FY21 compared to Rs 480 crore, revenue increased to Rs 5,038.3 crore from Rs 4,395.8 crore YoY.

Vedanta: Company reported lower consolidated profit at Rs 824 crore in Q2FY21 compared to Rs 2,158 crore, revenue fell to Rs 21,107 crore from Rs 21,958 crore YoY.

BHEL: Company reported consolidated loss at Rs 552 crore in Q2FY21 against profit of Rs 121.7 crore, revenue fell to Rs 3,696 crore from Rs 6,226.9 crore YoY.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 4,869.87 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,938.66 crore in the Indian equity market on November 6, as per provisional data available on the NSE.

Stock under F&O ban on NSE

Two stocks - Jindal Steel & Power and SAIL - are under the F&O ban for November 9. 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: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."
Sunil Shankar Matkar
first published: Nov 8, 2020 10:49 pm
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