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

The sharp decline of Friday seems to be a one day drop in the market as per the symmetrical chart pattern of daily and we expect Nifty to show upside bounce to retest the new high of 14,653 in the next week, said Nagaraj Shetti of HDFC Securities.

January 18, 2021 / 07:25 AM IST

The market fell sharply on the last day of the week with the benchmark indices as well as broader indices down 1 percent each due to weak global cues on January 15.

The BSE Sensex corrected 549.49 points to close at 49,034.67 though managed to hold on to 49,000-mark while the Nifty50 declined 161.90 points to 14,433.70 and formed bearish candle on the daily charts as closing was lower than opening levels. The index gained 0.6 percent for the week and formed Doji kind of pattern on the weekly scale as the closing was near its opening levels.

"A long negative candle was formed with minor lower shadow. Technically, this pattern could indicate profit booking from the highs. Friday's weakness was resulted in Nifty to rest on an immediate support of 10-day EMA at 14,350," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

"Friday's sharp one day drop came after the consumption of 17 sessions post last one day drop. Previously, in many occasions Nifty witnessed upside bounces after one day sharp declines. Having declined steeply on Friday, the odds of upside bounce back is high in the market by next week," he said.

"The sharp decline of Friday seems to be a one day drop in the market as per the symmetrical chart pattern of daily and we expect Nifty to show upside bounce to retest the new high of 14,653 in the next week. On the flip side, a sharp follow-through weakness in the next 1-2 sessions is expected to negate this pattern. Immediate support is placed at 14,350," he added.

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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 14,321.83, followed by 14,209.97. If the index moves up, the key resistance levels to watch out for are 14,581.53 and 14,729.37.

Nifty Bank

The Nifty Bank declined 273 points to close at 32,246.80 on January 15. The important pivot level, which will act as crucial support for the index, is placed at 32,012.47, followed by 31,778.13. On the upside, key resistance levels are placed at 32,512.97 and 32,779.13.

Call option data

Maximum Call open interest of 24.86 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the January series.

This is followed by 14,500 strike, which holds 16.81 lakh contracts, and 14,600 strike, which has accumulated 14.56 lakh contracts.

Call writing was seen at 14,600 strike, which added 3.56 lakh contracts, followed by 14,500 strike which added 3.41 lakh contracts and 14,700 strike which added 3.09 lakh contracts.

Call unwinding was seen at 14,000 strike, which shed 1.12 lakh contracts, followed by 14,300 strike which shed 20,100 contracts and 13,900 strike which shed 19,275 contracts.

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Put option data

Maximum Put open interest of 31.07 lakh contracts was seen at 14,000 strike, which will act as crucial support level in the January series.

This is followed by 13,500 strike, which holds 20.69 lakh contracts, and 13,900 strike, which has accumulated 18.12 lakh contracts.

Put writing was seen at 14,200 strike, which added 1.19 lakh contracts, followed by 13,600 strike, which added 74,625 contracts and 13,800 strike which added 68,100 contracts.

Put unwinding was seen at 13,700 strike, which shed 2.55 lakh contracts, followed by 13,900 strike, which shed 1.44 lakh contracts and 14,500 strike which shed 1.26 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.

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14 stocks saw long build-up

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

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64 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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58 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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6 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 6 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 January 18

Mindtree, Indiabulls Real Estate, IndiaMART InterMESH, IRB Infrastructure Developers, Majesco, Rallis India, Alok Industries, Deccan Gold Mines, Hindustan Media Ventures, Alexander Stamps, I-Power Solutions India, Maharashtra Scooters, Modern Converters, Sagarsoft (India), Shree Ganesh Remedies, Shakti Pumps, Snowman Logistics, Suraj, Trident, Ultracab (India), Vishwaraj Sugar Industries will announce their quarterly earnings on January 18.

Stocks in the news

Vikas EcoTech: Albula Investment Fund reduced its shareholding in the company to 0.98% from 8.3% earlier via market sale.

InterGlobe Aviation: IndiGo market share in December was unchanged at 53.9% compared to November 2020, while passenger load factor in December stood at 71.5% against 74.0% in November.

SpiceJet: The company's market share in December 2020 stood at 13.0% against 13.2% in November 2020, while passenger load factor increased to 78.0% from 77.7% in same periods.

Banking Stocks: RBI said the bank loan growth hit 9-month high of 6.7% for the week ended January 1. As per RBI Data, bank credit growth was last at 6.8% in April 2020.

Vedanta: The voluntary open offer for acquisition of over 37.17 crore shares will open on March 4 and close on March 18, 2021.

Wipro: Fiat Chrysler Automobiles partnered with Wipro to establish its first Global Digital Hub in India.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 971.06 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 942.07 crore in the Indian equity market on January 15, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - BHEL, Vodafone Idea and SAIL - are under the F&O ban for January 18. 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: Jan 17, 2021 04:04 pm
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