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Last Updated : Sep 15, 2019 06:36 PM IST | Source:

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

Market is expected to undergo profit booking from current levels and any upmove could be a bull trap, say analysts

Nishant Kumar @Nishantopines

Indian equity benchmarks closed with healthy gains on September 13, on hopes of fresh stimulus from the government amid positive global cues.

In a bid to arrest the current economic slowdown, Finance Minister Nirmala Sitharaman on September 14 announced further relief measures with a focus on reviving the housing and export sectors.

In her previous two press conferences, FM Sitharaman had taken stock of the slowdown in the auto sector, the cash strapped non-bank financial companies (NBFCs), and had also announced the mega-bank merger along with upfront recapitalisation.


After range-bound trade for most part of the day, markets recovered sharply in the late afternoon session and gained nearly a percent amid volatility on September 13.

Sensex closed the day at 37,384.99, up 281 points, or 0.76 percent, with 25 stocks in the green and five -- Bharti Airtel, Sun Pharma, HDFC Bank, ITC and Hindustan Unilever -- in the red.

The Nifty index closed 93 points, or 0.85 percent, higher at 11,075.90, with 41 stocks up and 9 down.

BSE Midcap (up 0.41 percent) underperformed Sensex whereas BSE Smallcap (up 0.82 percent) outperformed the equity benchmark.

Among the sectoral indices on BSE, only BSE Telecom and BSE Healthcare settled with losses, falling 0.53 percent and 0.38 percent, respectively.

The breadth of the market remained in the favour of gainers as 1,513 stocks logged gains against 960 that suffered losses on BSE.

On a weekly basis, both Sensex and Nifty advanced by over a percent.

Analysts say the market is expected to undergo profit booking from the current levels and any upmove could be a bull trap as it is unlikely that bourses will move substantially higher in the short term.

"Even though there has been incremental fresh long open interest build-up, the velocity is still subdued in the stock movement which means that at higher levels bears are selling in the markets. But when the tide in the markets turn the fall will be with greater force. Financial services, private and public banks, infrastructure, commodities are all sectors to be

avoided for longs for now as they may face selling pressure at higher levels," said Jimeet Modi, Founder & CEO of SAMCO Securities & StockNote.

We have collated 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

According to the pivot charts, key support level for Nifty is placed at 10,986.3, followed by 10,896.7. If the index remains on upward trajectory, key resistance levels to watch out for are 11,125.0 and 11,174.1.

Nifty Bank

The Nifty Bank closed at 11,075.90, up 0.85 percent on September 13. The important pivot level, which will act as crucial support for the index, is placed at 27,739.2, followed by 27,379.6. On the upside, key resistance levels are placed at 28,292.6 and 28,486.4.

Call options data

Maximum call open interest (OI) of 25.95 lakh contracts was seen at the 11,200 strike price. It will act as a crucial resistance level in the September series.

This is followed by 11,300 strike price, which now holds 22.50 lakh contracts in open interest, and 11,500, which has accumulated 21.96 lakh contracts in open interest.

Significant call writing was seen at the 11,200 strike price, which added 6.70 lakh contracts, followed by 11,400 strike price that added 3.87 lakh contracts and 11,300 strike which added 2.15 lakh contracts.

Call unwinding was seen at 11,000 strike price, which shed 4.82 lakh contracts, followed by 10,800 strike, which shed 1.03 lakh contracts.

Put options data

Maximum put open interest of 31.11 lakh contracts was seen at 10,800 strike price, which will act as crucial support in September series.

This is followed by 11,000 strike price, which holds 30.22 lakh contracts in open interest, and 10,600 strike price, which has accumulated 26.51 lakh contracts in open interest.

Put writing was seen at the 10,900 strike price, which added 3.35 lakh contracts, followed by 11,000 strike, which added 2.22 lakh contracts and 10,800 strike which added 2.19 lakh contracts.

Put unwinding was seen at the 11,300 strike price, which shed 45,375 contracts.

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

81 stocks saw long buildup

6 stocks saw long unwinding

Long unwinding

48 stocks saw short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short covering.

27 stocks saw short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.

Bulk deals

(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings:

Allahabad Bank: The board of directors will meet on September 16 to consider amalgamation of Allahabad Bank with Indian Bank.

Arcee Industries: The board of directors are scheduled to meet on September 16 for general purpose.

G-Tech Info-Training: The company's board will meet on September 16 for general purpose.

Parth Industries: The board of the auto parts and equipment maker will meet on September 16 for general purpose.

SBC Exports: The board of directors will meet on September 16 to consider and approve annual financial results of the financial year ended on March 31, 2019.

Stocks in news:

Indian Bank: India Ratings & Research has placed the long term issuer rating of the bank on rating watch evolving (RWE), following the recent announcement by Ministry of Finance regarding the proposed amalgamation of Allahabad Bank into Indian Bank.

On the other hand, CARE Ratings has placed the ratings assigned to various debt instruments of the Bank on credit watch with developing implications, the bank said in a regulatory filing.

Reliance Home Finance: The company said in a regulatory filing that CARE Ratings (CARE) has downgraded the rating to "D" for the company's long-term debt programme, market-linked debentures, subordinated debt, non-convertible debentures (NCDs) and upper Tier-11 NCDs. CARE has stated this action is primarily due to delay in servicing of principal on one of the

NCDs of the company.

Dynacons Systems & Solutions: Credit rating agency Acuite Ratings & Research has upgraded the company's long term instruments of worth Rs 35 crore from "ACUITE BBB-" to "ACUITE BBB" with stable outlook, and short term instruments of worth Rs 20 crore to "ACUITE A3+" from "ACUITE A3".

Omax Autos: India Ratings and Research (Ind-Ra) has downgraded the company's long-term issuer rating as ’IND BBB+’ from 'IND A—'. The outlook is stable.

Usha Martin: The company said its non- executive director, Prashant Jhawar, has resigned on September 13.

Monsanto India and Bayer CropScience: The National Company Law Tribunal (NCLT) has on September 13, approved the scheme of amalgamation of Monsanto India with Bayer CropScience.

Piramal Enterprises: Board approves raising Rs 500 crore via NCDs.

SML Isuzu: Company will shut operations at Nawanshahr's chassis division for 6 days.

PVR: Company received notice from GST Anti-profiteering Body on August 31.

TV Today Network: HDFC MF bought 2.1 percent stake in the company on September 12.

Canara Bank: Board in-principle approved merger with Syndicate Bank and the government will infuse up to Rs 9,000 crore via equity.

Ester Industries: Rating agency Brickwork Ratings India has upgraded the company's long term facility from "BWR BBB" to "BWR BBB+" with stable outlook, and short term facilities from "BWR A3+" to "BWR A2".

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 405.45 crore, while domestic institutional investors (DIIs) bought Rs 209.56 crore worth of shares in the Indian equity market on September 13, as per provisional data available on the NSE.

Fund Flows

No stock under ban period on NSE

For September 16, not a single stock is under F&O ban. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

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First Published on Sep 15, 2019 06:36 pm
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