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

The top 10 stocks in which short-covering was seen including Power Grid Corporation, Cummins India, ONGC, RBL Bank, Coromandel International, Tata Motors and Alkem Labs.

February 28, 2022 / 12:43 PM IST

Bulls made a remarkable comeback on the Street on Friday. The market reversed half of the previous day's massive loss and clocked 2.5 percent gains on February 25 as the buying was seen across sectors.

The BSE Sensex surged 1,329 points to 55,858, while the Nifty50 jumped 410 points to 16,658 and formed bullish candle on the daily charts, but the index needs to surpass and stay above 200-day exponential moving average for few days to gain strength.

"There seems to be multiple hurdles in the zone of 16,800 – 17,065 levels which not only includes bearish gap zone but also 200-day exponential moving average whose value is placed around 16,720 levels," says Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.

He feels for the next couple of sessions, Nifty needs to sustain above 16,478 levels to develop sideways to positive bias. "In that scenario initially it can head into the zone of 16,800 – 16,850."

Contrary to this if Nifty fails to sustain above 16,478 levels then eventually it may slip towards 16,200 levels, according to the expert. For the time being, Mazhar advises, that it looks prudent to wait for more signs of stability on the index before initiating a trade.

Close

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The broader markets also joined bulls' party and outperformed frontline indices. The Nifty Midcap 100 index was up 4.2 percent and Smallcap 100 index climbed 4.8 percent.

The volatility also declined sharply but it has to go below 20 mark to get some stability in the market, otherwise the trend could remain in favour of bears. The India VIX fell 16.4 percent to 26.74 levels on Friday.

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

As per the pivot charts, the key support levels for the Nifty are placed at 16,508, followed by 16,358. If the index moves up, the key resistance levels to watch out for are 16,779 and 16,899.

Nifty Bank

The Nifty Bank was one of the lead contributors to the rally on Friday, climbing 1,203 points or 3.4 percent to 36,431. The important pivot level, which will act as crucial support for the index, is placed at 35,904, followed by 35,378. On the upside, key resistance levels are placed at 36,821 and 37,211 levels.

Call option data

Maximum Call open interest of 18.74 lakh contracts was seen at 17000 strike, which will act as a crucial resistance level in the March series.

This is followed by 18000 strike, which holds 18.56 lakh contracts, and 17500 strike, which has accumulated 16.25 lakh contracts.

Call writing was seen at 17500 strike, which added 2.34 lakh contracts, followed by 17800 strike which added 1.78 lakh contracts, and 17000 strike which added 1.72 lakh contracts.

Call unwinding was seen at 16500 strike, which shed 1.62 lakh contracts, followed by 16400 strike which shed 52,000 contracts, and 16200 strike which shed 20,300 contracts.

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Put option data

Maximum Put open interest of 50.22 lakh contracts was seen at 16500 strike, which will act as a crucial support level in the March series.

This is followed by 16000 strike, which holds 42.02 lakh contracts, and 15500 strike, which has accumulated 34.80 lakh contracts.

Put writing was seen at 16300 strike, which added 3.56 lakh contracts, followed by 16500 strike, which added 2.13 lakh contracts, and 16400 strike which added 1.52 lakh contracts.

Put unwinding was seen at 17000 strike, which shed 64,350 contracts, followed by 17500 strike which shed 33,150 contracts, and 16900 strike which shed 30,550 contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. HDFC Bank, Alkem Labs, HDFC Life, Ipca Labs and Kotak Mahindra Bank witnessed high delivery on Friday.

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118 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 including Dalmia Bharat, Punjab National Bank, Indus Towers, Bank Nifty, Nippon Life and GMR Infrastructure.

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No stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. But on first day of March series, there was not a single stock which saw long unwinding.

6 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 six stocks - Metropolis Healthcare, HPCL, Britannia, IndiaMART InterMESH, HUL, and Nestle India - in which a short build-up was seen.

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76 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 including Power Grid Corporation, Cummins India, ONGC, RBL Bank, Coromandel International, Tata Motors and Alkem Labs.

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Bulk deals

Beardsell: Promoter Anumolu Bharat sold additional 10,91,247 equity shares in the company via open market transactions at an average price of Rs 12.56 per share on the NSE. He had held 5.4 percent stake in the company as of December 2021, of which during the current quarter, he offloaded 4.8 percent so far.

Nuvoco Vistas Corporation: An institutional broker BofA Securities Europe SA sold 30,62,024 equity shares or 0.85 percent stake in the company via open market transactions. These shares were sold at an average price of Rs 303 per share. BofA Securities had 1.52 percent shareholding in the cement company as of December 2021.

Steel Exchange India: France-based financial services company Societe Generale acquired 5.3 lakh equity shares or 0.6 percent stake in the company via open market transactions at an average price of Rs 214.48 per share. The stock was rallied 5 percent.

Advanced Enzyme Technologies: Former Warburg Pincus executive Pulak Chandan Prasad-owned Nalanda India Equity Fund bought 1.1 percent stake in the company via open market transactions on Friday. It acquired 5.65 lakh equity shares on the NSE at an average price of Rs 289.86 per share, and 7.08 lakh shares on the BSE at Rs 289.61 per share. The fund already had 4.74 percent stake in the company. The stock surged 18 percent on Friday to close at Rs 309 on the BSE.

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(For more bulk deals, click here)

Analysts/Investors Meetings

MCX India: The company's officials will meet Schroders Investment Management SG, and Citigroup Global Markets on February 28.

Shriram City Union Finance: The company's officials will meet Ruane Cunniff and Goldfarb Inc on February 28.

Tata Motors: The company's officials will meet DAM Capital Advisors on February 28; and T Rowe Price on March 3.

Escorts: The company's officials will meet Skale Investments on February 28.

Dhanvarsha Finvest: The company's officials will attend Valorem March Conference - 2022 - India Metamorphosis on February 28.

Gland Pharma: The company's officials will meet State Street Global Advisors, & Franklin Templeton Asset Management on March 1; and Axis Capital on March 3.

Stocks in News

Mahindra Lifespace Developers: Kotak Mahindra Mutual Fund bought additional 2.19 lakh equity shares via open market transactions on February 23. With this, its shareholding in the company stands at 5.13 percent now, up from 4.98 percent earlier. The stock gained 3 percent on Friday to close at Rs 292.

Rain Industries: The company posted loss of Rs 72.3 crore for the quarter ended December 2021 against profit of Rs 322 crore in year-ago period, as there was abnormal fall in net realisable value of inventories after change in the macro-economic conditions like effect of COVID-19 and fall in crude oil prices. However, revenue grew sharply by 52 percent year-on-year to Rs 4,026 crore in Q4CY21.

Bharti Airtel: The company is going to buy 4.7 percent stake in Indus Towers, from Vodafone. It has entered into an agreement with Euro Pacific Securities Ltd, an affiliate of Vodafone Group Plc for acquisition of stake in the tower infrastructure company.

Hindalco Industries: The aluminium major has entered into a share purchase agreement with Brazilian firm Terrabel Empreedimentos Ltda, to divest entire equity shareholding in Hindalco Do Brazil Industria Comercia de Alumina LTDA (HDB), the wholly owned step down subsidiary.

Fortis Healthcare: Rating agency CRISIL has upgraded long term rating to 'AA-, from 'A+' for the private hospitals chain, and placed rating on watch with developing implications. Further, the short-term rating has been upgraded to A1+, from 'A1' and placed rating on watch with developing implications.

Hinduja Global Solutions: Subsidiary HGS International Mauritius has completed the acquisition of Australian company Diversify. In January, its arm entered into a definitive agreement to acquire 100% equity stake in Diversify Offshore Staffing Solutions Pty Ltd, Australia.

SJVN: The government has granted in-principle approval for development of 400MW solar park at Kinnaur, to SJVN. These projects will assist SJVN in achieving its ambitious shared vision of 5000 MW by 2023, 25000 MW by 2030 and 50000 MW by 2040.

Fund Flow

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FII and DII data

The relentless selling by foreign institutional investors (FIIs) continued in Indian equities amid geopolitical tensions and global growth worries, as they have net sold Rs 4,470.70 crore worth of shares. However, domestic institutional investors (DIIs) have managed to compensate the FII outflow by buying shares worth Rs 4,318.24 crore on February 25, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

As we are in the beginning of March series, we don't have any stock that is under the F&O ban for February 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.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Sunil Shankar Matkar
first published: Feb 27, 2022 03:41 pm
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