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

One needs to adopt a cautious approach and focus on stocks and sector-specific actions, said Nilesh Jain of Anand Rathi.

December 28, 2020 / 07:12 AM IST

The market gained one percent for the third consecutive session on December 24 amid positive global mood and vaccine developments. Banking & financials and pharma stocks pushed the market higher.

The BSE Sensex was up 529.36 points at 46,973.54, while the Nifty50 jumped 148.20 points to 13,749.30 and formed bullish candle on the daily charts. During the week, the index ended flat and formed Dragon Fly Doji kind of pattern on the weekly scale.

Technically, "while the Nifty has rebounded smartly in the last 3 sessions, the short term trend remains down. This would reverse with a close above the recent highs of 13,778. Immediate supports to watch for resumption of weakness are at 13,626," Subash Gangadharan, Technical and Derivative Analyst at HDFC Securities told Moneycontrol.

"With the intermediate uptrend still intact, we expect the recent correction to be more of a short term nature and may have possibly bottomed out with the strong price action seen in the last three sessions," he said, adding it is important that the recent lows of 13,131 are not broken for the uptrend to sustain.

The momentum indicators and oscillators for the Nifty index have reached the overbought territory on the daily as well as weekly time frame. Thus, "one needs to adopt a cautious approach and focus on stocks and sector-specific actions," said Nilesh Jain of Anand Rathi.

Close

The broader markets underperformed benchmark indices on Thursday. The Nifty Midcap index was up 0.18 percent and Smallcap gained 0.9 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 are placed at 13,660.13, followed by 13,571.07. If the index moves up, the key resistance levels to watch out for are 13,805.03 and 13,860.87.

Nifty Bank

The Nifty Bank surged 518.90 points or 1.74 percent to close at 30,402.20 on December 24. The important pivot level, which will act as crucial support for the index, is placed at 30,091.4, followed by 29,780.6. On the upside, key resistance levels are placed at 30,629.4 and 30,856.6.

Call option data

Maximum Call open interest of 39.77 lakh contracts was seen at 14,000 strike, which will act as a crucial resistance level in the December series.

This is followed by 14,500 strike, which holds 26.89 lakh contracts, and 13,800 strike, which has accumulated 24.32 lakh contracts.

Call writing was seen at 14,000 strike, which added 9.88 lakh contracts, followed by 14,500 strike which added 8.58 lakh contracts and 14,300 strike which added 6.98 lakh contracts.

Call unwinding was seen at 13,500 strike, which shed 8.58 lakh contracts, followed by 13,600 strike which shed 4.9 lakh contracts and 13,400 strike which shed 89,925 contracts.

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Put option data

Maximum Put open interest of 45.24 lakh contracts was seen at 13,000 strike, which will act as crucial support level in the December series.

This is followed by 13,500 strike, which holds 36.56 lakh contracts, and 13,200 strike, which has accumulated 28.86 lakh contracts.

Put writing was seen at 13,700 strike, which added 15.21 lakh contracts, followed by 13,600 strike, which added 9.6 lakh contracts and 13,100 strike which added 3.2 lakh contracts.

Put unwinding was seen at 13,000 strike, which shed 2.7 lakh contracts, followed by 12,700 strike, which shed 35,550 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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30 stocks saw long build-up

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

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32 stocks saw long unwinding

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

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38 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 a short build-up was seen.

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38 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 in which short-covering was seen.

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Bulk deals

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(For more bulk deals, click here)

Analysts/Board Meetings

Advanced Enzyme Technologies: Company's officials will hold conference call with InCred AMC and IIFL AMC on December 28.

South Indian Bank: Company's officials will hold conference call with investors and analysts on December 26 to discuss bank's Vision 2024.

Mishra Dhatu Nigam: Analyst/Investor call with the company is scheduled to be held on December 29.

Symphony: Company's officials will interact with DSP Investment Managers on December 29.

ASM Technologies: Board meeting is scheduled on December 30 to consider a proposal for increase in authorised capital and issue of bonus shares.

ICICI Securities: Board meeting is scheduled on January 25 to consider the audited financial results of the company for the quarter and nine months ended December 31, 2020.

Everest Industries: Board meeting is scheduled on January 20 to consider the audited financial results of the company for the quarter and nine months ended December 31, 2020.

Stocks in the news

DLF: DLF Cyber City to acquire Hines' stake in One Horizon Center for Rs 780 crore.

Central Bank of India: Bank to sell entire 64.4% stake in Cent Bank Home Finance to Centrum Housing Finance.

Lupin: Company received tentative approval from US FDA for generic of Jublia solution.

TD Power Systems: CRISIL upgraded company's long term credit rating to A-/Stable from BBB+/Stable.

JK Cement: SBI Mutual Funds reduced stake in company to 4.97% from 5.89% via market sale.

Balaji Telefilms: Company has entered into collaboration with Ding Infinity to produce premium shows and films.

Coal India: Board accorded approval to venture into aluminium value chain (mining-refining-smelting) and solar power value chain (Ingot-wafer-cell-Module-and-generation).

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,225.69 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,897.92 crore in the Indian equity market on December 24, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - Canara Bank and Punjab National Bank - are under the F&O ban for December 28. 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.
Sunil Shankar Matkar
first published: Dec 27, 2020 05:40 pm

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