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

While the market would remain volatile in the near future, the 17,650-17,750 level would be the key resistance level for traders while 17,400-17,300 could act as sacrosanct support for positional traders, says Shrikant Chouhan of Kotak Securities.

October 03, 2021 / 10:42 PM IST

Bears retained charge at Dalal Street for fourth straight day. The market closed with around half a percent loss on October 1, the first day of October series, as the selling pressure was seen in banking & financials and technology stocks.

The BSE Sensex fell 360.78 points to close at 58,765.58, while the Nifty50 declined 86.20 points to 17,532 and formed Doji kind of pattern on the daily charts. The index witnessed bearish candle formation on the weekly scale as it was down 1.8 percent for the week.

"After a spectacular rally last week, the index has formed a bearish candle and on intraday charts, it has maintained lower top series formation which indicates temporary weakness," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

He further said while the market would remain volatile in the near future, the 17,650-17,750 level would be the key resistance level for traders while 17,400-17,300 could act as sacrosanct support for positional traders.

Contra traders may take contra bet near 17,300 support with strict support stop loss at 17,250, he advised. On the flip side, partial profit booking is advisable between 17,650 to 17,750 levels, he said.

Close

The performance was better in broader markets compared to benchmark as the Nifty Midcap 100 index gained 0.04 percent and Smallcap 100 index was up 0.13 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 17,470.94, followed by 17,409.77. If the index moves up, the key resistance levels to watch out for are 17,575.24 and 17,618.37.

Nifty Bank

The Nifty Bank also continued to witness selling pressure, down 199.20 points at 37,225.90 on October 1. The important pivot level, which will act as crucial support for the index, is placed at 36,968.4, followed by 36,710.9. On the upside, key resistance levels are placed at 37,391.4 and 37,556.9 levels.

Call option data

Maximum Call open interest of 19.57 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the October series.

This is followed by 17500 strike, which holds 12.53 lakh contracts, and 17800 strike, which has accumulated 10.12 lakh contracts.

Call writing was seen at 17500 strike, which added 4.66 lakh contracts, followed by 18000 strike, which added 2.22 lakh contracts and 17400 strike which added 1.51 lakh contracts.

Call unwinding was seen at 17700 strike, which shed 13,200 contracts, followed by 17000 strike, which shed 4,050 contracts, and 16800 strike which shed 550 contracts.

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Put option data

Maximum Put open interest of 29.90 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the October series.

This is followed by 17500 strike, which holds 24.90 lakh contracts, and 17200 strike, which has accumulated 13.53 lakh contracts.

Put writing was seen at 17000 strike, which added 2.9 lakh contracts, followed by 17500 strike which added 2.13 lakh contracts and 17200 strike which added 1.73 lakh contracts.

Put unwinding was seen at 17900 strike, which shed 97,800 contracts, followed by 17800 strike which shed 68,250 contracts, and 17700 strike which shed 62,450 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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62 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.

Image212102021

21 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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70 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 10 stocks in which a short build-up was seen.

Image232102021

22 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.

Image242102021

Bulk deals

India Glycols: WHV-EAM International Small Cap Equity Fund acquired 1,86,947 equity shares in the company at Rs 830.22 per share on the NSE, the bulk deals data showed.

Just Dial: Nalanda India Equity Fund sold additional 5,97,482 equity shares in the company at Rs 990.01 per share on the NSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting

Meghmani Finechem: The company's officials will meet Ventura Securities on October 4.

Tata Motors: The company's officials will meet ICICI Prudential MF on October 4, and Point72 Asset Management on October 5.

Stocks in News

CSB Bank: Total deposits (provisional) at Rs 19,061.62 crore grew 9.12% YoY and gross advances at Rs 14,304.14 crore increased by 12.09% YoY in September 2021 quarter.

Hero Motocorp: The company dispatched 5,30,346 units of motorcycles and scooters in September 2021 against 7,15,718 units sold in September 2020.

KPI Global Infrastructure: The company has signed an O & M Agreement & Land Lease Agreement for the period of 25 years, aggregating amount of Rs 39 crore with Anupam Rasayan India for 12.50 MW solar power plant under CPP category.

JSW Steel: The company acquired 80% of the issued and paid-up equity share capital and zero coupon CCDS of Neotrex Steel.

NIIT: The company acquired 70% stake in RPS Consulting to strengthen its training solutions in emerging digital technologies.

Tech Mahindra: The company through its wholly owned subsidiary Tech Mahindra GmbH approved the proposal to acquire 100% equity shares in Beris Consulting GmbH.

Eicher Motors: The company sold 33,529 motorcycles in September 2021, down from 60,331 motorcycles sold in September 2020.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 131.39 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 613.08 crore in the Indian equity market on October 1, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Not a single stock is under the F&O ban for October 4. 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 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: Oct 3, 2021 10:14 pm
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