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

Rajesh Palviya of Axis Securities said any pullback towards 14,620-14,570 (gap area) in Nifty should be used as a buying opportunity.

April 05, 2021 / 07:05 AM IST

The market rebounded sharply after a day of steep correction and gained a percent on April 1, backed by positive global cues following Joe Biden's spending plan and buying in banking and metals stocks.

The BSE Sensex surged 520.68 points or 1.05 percent to 50,029.83, while the Nifty50 rose 176.70 points or 1.20 percent to 14,867.40 and formed a bullish candle which resembles of Hanging Man pattern on the daily charts. For the week, the 50-share index gained 2.5 percent and witnessed a small bullish candle formation on the weekly scale.

"The Nifty index has closed above the previous two session's high, indicating strength in the near term. Nifty has recaptured the 20-DMA (14,836) and 50-DMA (14,786), indicating confidence is being built among the bulls. The next higher levels to be watched are around 14,900-15,100," Rajesh Palviya, Head - Technical and Derivative Research at Axis Securities told Moneycontrol.

"Any pullback towards 14,620-14,570 (gap area) should be used as a buying opportunity. The daily RSI has turned upward and has given positive crossover to its reference line, indicating more bullishness ahead in the near term," he said.

The broader markets outpaced benchmark indices. The Nifty Midcap 100 index jumped 1.8 percent and Smallcap 100 index gained 2.09 percent.

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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 14,745.47, followed by 14,623.63. If the index moves up, the key resistance levels to watch out for are 14,936.17 and 15,005.03.

Nifty Bank

The Nifty Bank index climbed 554.10 points or 1.66 percent to 33,858 on April 1. The important pivot level, which will act as crucial support for the index, is placed at 33,394.84, followed by 32,931.67. On the upside, key resistance levels are placed at 34,135.14 and 34,412.27 levels.

Call option data

Maximum Call open interest of 20.41 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the April series.

This is followed by 15,500 strike, which holds 13.73 lakh contracts, and 14,500 strike, which has accumulated 11.35 lakh contracts.

Call writing was seen at 15,600 strike, which added 1.02 lakh contracts, followed by 14,900 strike which added 94,725 contracts and 15,400 strike which added 61,050 contracts.

Call unwinding was seen at 14,800 strike, which shed 1.77 lakh contracts, followed by 14,700 strike which shed 1.27 lakh contracts and 15,000 strike which shed 1.06 lakh contracts.

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Put option data

Maximum Put open interest of 39.39 lakh contracts was seen at 14,000 strike, which will act as a crucial support level in the April series.

This is followed by 14,500 strike, which holds 28.84 lakh contracts, and 14,700 strike, which has accumulated 15.03 lakh contracts.

Put writing was seen at 14,000 strike, which added 2.25 lakh contracts, followed by 14,400 strike which added 1.02 lakh contracts and 14,300 strike which added 46,350 contracts.

Put unwinding was seen at 14,800 strike, which shed 69,750 contracts, followed by 14,700 strike which shed 31,950 contracts and 14,600 strike which shed 6,075 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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84 stocks saw long build-up

An increase in open interest, along with a rise in price, mostly indicates a build-up of long positions. 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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4 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the 4 stocks in which long unwinding was seen.

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16 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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55 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

Torrent Power: The company's officials will interact with Capital World on April 5.

Olectra Greentech: The company's officials will attend Electric Vehicles Virtual conference organised by Systematix Institutional Equities, on April 5.

Garware Polyester: The company's officials will interact with Unique Asset Management LLP through its representatives, on April 5.

Swaraj Engines: The meeting of the board of directors of the company will be held on April 20 to consider the audited financial results of the company for the year ended March 2021 and to recommend equity dividend, if any, for the said year.

Gland Pharma: The meeting of board of directors of the company is scheduled on May 17 to consider the audited financial results for the quarter and financial year ended March 2021.

Stocks in the news

JTL Infra: ERW steel tubes and pipes producer said it registered a healthy sales volume of 38,715 metric tonne in Q4 FY21. The volume increased by 98.42% QoQ and 66.41% YoY whereas it registered a robust growth of 73.66% on yearly basis, sales volume of FY21 is 82,710 metric tonne as compared to 47,627 metric tonne in FY20.

Olectra Greentech: Olectra Greentech and Evey Trans received letter of award for 50 electric buses from one of the state transport authorities under FAME-II scheme of Government of India. These buses will be delivered over a period of 12 months.

Ashiana Housing: Ashiana Housing said the 8.31 lakh square feet of area has been booked in Q4FY21 against 4.14 lakh square feet in Q4FY20, while the value of area sold was worth Rs 299.71 crore in Q4FY21 against Rs 145.96 crore in the corresponding period. "1,131 number of units were booked in FY21 vis-a-vis 1,505 units booked in FY20," said the company in its BSE filing.

Britannia Industries: The company has declared an interim dividend at 6,200% i.e., Rs 62 per equity share for the financial year 2020-21. The record date for determining the eligibility of shareholders for payment of interim dividend has been fixed as April 10.

Adani Enterprises: Adani Enterprises along with its wholly-owned subsidiary company, Gare Palma II Collieries Private Limited has signed coal mining agreement with Maharashtra State Power Generation Company (MAHAGENCO) for development and operation of Gare Palma Sector II coal mine.

Maruti Suzuki India: Suzuki Motor Gujarat (SMG), a 100% subsidiary of Suzuki Motor Corporation for the production of automobiles in India, has completed construction of the plant C, and started production from April 2021. "With production starting at the Plant C, which has an annual production ability of 2,50,000 units, together with Plant A and Plant B, the total ability of SMG will be 750,000 units," said the company in its BSE filing.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 149.41 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 296.84 crore in the Indian equity market on April 1, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - SAIL - is under the F&O ban for April 5. 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: Apr 4, 2021 05:45 pm
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