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

Shrikant Chouhan of Kotak Securities says if the Nifty50 trades above 17,700, the uptrend texture will continue up to 17,800-17,950 levels. Contra traders can take a long bet near 17,350 with a strict 17,300 support stop-loss.

September 19, 2021 / 10:11 PM IST

The market continued to hit fresh record highs but the selling pressure and profit booking in the afternoon pulled the benchmark indices lower on September 17. Metals, Pharma, PSU Bank, and select FMCG and IT stocks weighed down the market.

The BSE Sensex corrected 125.27 points to close at 59,015.89, while the Nifty50 fell 44.30 points to 17,585.20 and formed a bearish candle on the daily charts. However, the index gained over a percent during the week and saw bullish candle formation on the weekly scale.

"Technically, benchmark Nifty maintained uptrend continuation formation which is broadly positive but due to temporary overbought situation, bulls may prefer to take a cautious stance near the 17,800 resistance level. For Nifty, 17,700 would be the immediate resistance level traders will have to look at, and below the same, the correction wave is likely to continue up to 17,450-17,350 levels," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

"If the index trades above 17,700, the uptrend texture will continue up to 17,800-17,950 levels. Contra traders can take a long bet near 17,350 with a strict 17,300 support stop-loss," he added.

The broader markets also slipped into the red as the Nifty Midcap 100 index fell 1.27 percent and the Smallcap 100 index dipped 0.73 percent.

Close

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 17,484.3, followed by 17,383.4. If the index moves up, the key resistance levels to watch out for are 17,739.5 and 17,893.8.

Nifty Bank

The Nifty Bank extended gains, rising 143.35 points to 37,811.95 on September 17. The important pivot level, which will act as crucial support for the index, is placed at 37,434.4, followed by 37,056.9. On the upside, key resistance levels are placed at 38,151.1 and 38,490.3 levels.

Call option data

Maximum Call open interest of 16.58 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the September series.

This is followed by 17500 strike, which holds 14.29 lakh contracts, and 17800 strike, which has accumulated 14.28 lakh contracts.

Call writing was seen at 18100 strike, which added 3.99 lakh contracts, followed by 17700 strike, which added 3.87 lakh contracts and 17900 strike which added 2.61 lakh contracts.

Call unwinding was seen at 17300 strike, which shed 1.8 lakh contracts, followed by 17400 strike, which shed 1.57 lakh contracts, and 17000 strike which shed 1.07 lakh contracts.

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Put option data

Maximum Put open interest of 32.47 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the September series.

This is followed by 17500 strike, which holds 23.51 lakh contracts, and 17600 strike, which has accumulated 17.74 lakh contracts.

Put writing was seen at 17700 strike, which added 9.82 lakh contracts, followed by 18100 strike which added 5.76 lakh contracts, and 17600 strike which added 5.51 lakh contracts.

Put unwinding was seen at 17400 strike, which shed 5.24 lakh contracts, followed by 17000 strike which shed 2.56 lakh contracts and 17100 strike which shed 1.52 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

An increase in open interest, along with an increase 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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76 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 top 10 stocks in which long unwinding was seen.

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56 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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29 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

Aster DM Healthcare: The Vanguard Group Inc A/C Vanguard Total International Stock Index Fund (P8) acquired 26,59,223 equity shares in healthcare company Aster DM Healthcare at Rs 216.42 per share on the NSE, the bulk deals data showed.

KEI Industries: The Vanguard Group Inc A/C Vanguard Total International Stock Index Fund (P8) & Vanguard Emerging Markets Stock Index Fund A Series of V I E I F together bought 9,86,771 equity shares in cable manufacturer KEI Industries at Rs 847.56 per share on the NSE, the bulk deals data showed.

KPIT Technologies: The Vanguard Group Inc A/C Vanguard Total International Stock Index Fund (P8) & Vanguard Emerging Markets Stock Index Fund A Series of V I E I F together purchased 45,83,295 equity shares in IT firm KPIT Technologies at Rs 319.77 per share on the NSE. However, Acacia Conservation Fund LP sold 17,39,440 equity shares in KPIT at Rs 319.9 per share, the bulk deals data showed.

Praj Industries: The Vanguard Group Inc A/C Vanguard Total International Stock Index Fund (P8) acquired 9,24,961 equity shares in process and project engineering company Praj Industries at Rs 341.71 per share, but Singapore-based investment company Integrated Core Strategies (Asia) Pte Ltd sold 10,23,015 equity shares in Praj at Rs 341.63 per share on the NSE, the bulk deals data showed.

Balaji Amines: Integrated Core Strategies (Asia) Pte Ltd offloaded 1,83,126 equity shares in chemical manufacturing company Balaji Amines at Rs 4,779.1 per share on the NSE, the bulk deals data showed.

Carborundum Universal: Integrated Core Strategies (Asia) Pte Ltd sold 13,42,012 equity shares in Murugappa Group company Carborundum Universal at Rs 858.04 per share on the NSE, the bulk deals data showed.

Reliance Power: Integrated Core Strategies (Asia) Pte Ltd sold 2,04,35,178 equity shares in Reliance Power at Rs 13.75 per share on the NSE, the bulk deals data showed.

SKF India: Integrated Core Strategies (Asia) Pte Ltd offloaded 2,74,928 equity shares in automotive and industrial engineered solution company SKF India at Rs 3,033.16 per share on the NSE, the bulk deals data showed.

Surya Roshni: Employees Retirement System of Texas - Self Managed Portfolio bought 4,27,789 equity shares in lighting company Surya Roshni at Rs 720.83 per share on the NES, the bulk deals data showed.

Thirumalai Chemicals: WHV-EAM International Small Cap Equity Fund acquired 14,45,016 equity shares in Thirumalai Chemicals at Rs 258.52 per share on the NSE, the bulk deals data showed.

Fairchem Organics: High Conviction Fund - Series 1 purchased 1.15 lakh equity shares in Fairchem Organics at Rs 1,925 per share, whereas Banbridge Limited sold the same number of shares in the company at the same price, the NSE bulk deals data showed.

HFCL: Keventer Capital Limited sold 70 lakh equity shares in telecom company HFCL at Rs 73.33 per share on the NSE, the bulk deals data showed.

Karur Vysya Bank: Dovetail India Fund Class 6 Shares sold 82.5 lakh shares in Karur Vysya Bank at Rs 45.75 per share on the NSE, the bulk deals data showed.

Inox Wind: Promoter Inox Wind Energy sold 14,73,873 equity shares in Inox Wind at Rs 104.34 per share on the BSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting

IIFL Finance: The company's officials will meet Evli group on September 20.

Zee Entertainment Enterprises: The company's officials will meet investors and analysts in JP Morgan's India Investor Summit on September 20.

Cipla: The company's officials will meet investors in JP Morgan's India Investor Summit on September 20, and meet Ambit Capital & Premji Invest on September 21.

Poonawalla Fincorp: The company's officials will meet Amansa Capital and International Finance Corporation on September 20, and IDFC Mutual Fund on September 21.

Eicher Motors: The company's officials will meet Segantii Capital and Invesco-Oppenheimer Fund on September 20, and Hillfort Capital on September 21.

Punjab Chemicals & Crop Protection: The company's officials will meet Envision Capital on September 20.

Nazara Technologies: The company's officials will meet Dalal & Broacha PMS on September 20, and Malabar Investments on September 22.

Rossari Biotech: The company's officials will meet investors in Phillip Capital - Resurgent India virtual conference on September 21.

Tata Chemicals: The company's officials will meet HDFC Life Insurance Company on September 21.

Nitin Spinners: The company's officials will meet investors and analysts in Monarch Networth Conference Opportunities Unlimited on September 22.

Stocks in News

Orissa Minerals Development Company: The company received Stage - II/Final approval of the Ministry of Environment, Forest & Climate Change for diversion of 21.52 hectares of forest land in Uliburu Reserve Forest (including 2.107 hectares of safety zone) for iron ore mining in Bagiaburu iron ore mines in Keonjhar district, Odisha during 3rd RML period.

IRB Infrastructure Developers: Subsidiary IRB Sindhudurg Airport Private Limited has received an Aerodrome licence from the Director-General of Civil Aviation.

Cadila Healthcare: Zydus Cadila received final approval from USFDA for Vortioxetine tablets which are used to treat depression.

HLE Glascoat: The company signed definitive agreements to acquire the global business of Thaletec GmbH, Germany as well as its subsidiary Thaletec USA, as a part of its strategy to strengthen its position further in the global markets with innovative technology.

Zee Entertainment Enterprises: BlackRock Inc. (on behalf of discretionary management clients) picked more than 3.01 lakh equity shares in the company via open market transaction, increasing shareholding to 5.01 percent from 4.98 percent earlier.

Nazara Technologies: NODWIN Gaming, an independent subsidiary of Nazara Technologies, acquired the Gaming and adjacent IP business of OML Entertainment for Rs 73 crore.

Ruchi Soya Industries: SBICAP Trustee Company released a pledge on the company's 29.25 crore equity shares (98.87 percent stake) on September 16.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,552.59 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 1,398.55 crore in the Indian equity market on September 17, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Eight stocks - Escorts, Exide Industries, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban for September 20. 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: The views and investment tips expressed by the investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Sep 19, 2021 08:04 pm
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