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Last Updated : Sep 22, 2019 11:17 PM IST | Source: Moneycontrol.com

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

In the next couple of trading sessions, owing to a huge upmove of 5 percent on September 20, there should be some profit booking which should ideally pull down the index

Nishant Kumar @Nishantopines

The Indian stock market posted its biggest single-day gains in 10 years on September 20 after Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates.

The Sensex closed with a massive gain of 1,921 points, or 5.32 percent, at 38,014.62, with 25 stocks in the green and 5 in the red. Meanwhile, the Nifty50 closed at 11,274.20, up 569 points or 5.32 percent. Among the 50 stocks in the index, 44 logged gains and only six closed with losses.

BSE Midcap outperformed the Sensex, ending with a gain of 6.28 percent. However, the Smallcap index underperformed the benchmark closing 3.94 percent up.

Close

The sharp rally in equities made investors richer by Rs 6.83 lakh crore in a single day as the cumulative market capitalisation of BSE listed firms jumped to Rs 1,45,37,378.01 crore from Rs 1,38,54,439.41 crore on the previous session.

Nifty formed a long bull candle on September 20 which engulfed the range of the last four weeks in a single day. The key overhead resistance of 11,150 levels has been broken on the upside and the Nifty closed above it.

"We observe an upside breakout as per weekly timeframe chart, after the consolidation movement of the last one month. The near term trend of the Nifty seems to have reversed sharply and more upside could be in store in the coming weeks. Having reached the swing high of 11,381 in Friday's session, one may expect next upside targets of 11,600 for the next one-two

weeks," said Nagaraj Shetti – Technical & Derivative Analyst, HDFC securities.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in said going forward, the Nifty needs to sustain above its 50-day moving average at 11,117 to confirm strength.

However, in the next couple of trading sessions, owing to this huge up move of 5 percent, there should be some profit booking which should ideally pull down the index, he added.

He advised traders to wait for some correction before initiating long positions without chasing the index at this point in time. On corrections, as of now, it looks that the zone of 11,180–11,140 can be an ideal opportunity to go long.

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 10,849.5, followed by 10,424.8. If the index extends its upward march, key resistance levels to watch out for are 11,540.4 and 11,806.6.

Nifty Bank

The Nifty Bank closed with a massive gain of 8.31 percent at 28,981.55 on September 20. The important pivot level, which will act as crucial support for the index, is placed at 27,333.17, followed by 25,684.73. On the upside, key resistance levels are placed at 30,024.47 and 31,067.33.

Call options data

Maximum call open interest (OI) of 27.43 lakh contracts was seen at the 11,500 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 24.68 lakh contracts in open interest, and 11,400 which has accumulated 22.96 lakh contracts in open interest.

Call writing was seen at the 10,500 strike price, which added 9.82 lakh contracts, followed by 11,400 strike price that added 9.16 lakh contracts and 11,300 strike which added 7.91 lakh contracts.

Significant call unwinding was witnessed at 11,000 strike price, which shed 24.49 lakh contracts, followed by 10,800 which shed 20.53 lakh contracts and 10,900 strike price which shed 16.43 lakh contracts.

Put options data

Maximum put open interest of 48.54 lakh contracts was seen at 11,000 strike price, which will act as crucial support in September series.

This is followed by 10,800 strike price, which holds 35.52 lakh contracts in open interest, and 11,100 strike price, which has accumulated 25.03 lakh contracts in open interest.

Put writing was seen at the 11,000 strike price, which added 26.49 lakh contracts, followed by 11,200 strike, which added 19.14 lakh contracts and 11,100 strike which added 19.02 lakh contracts.

Put unwinding was seen at 11,500 strike price, which shed 82,050 contracts.

Stocks with a high delivery percentage

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

75 stocks saw long buildup

As many as 75 stocks saw long buildup on September 20. Based on open interest (OI) future percentage, here are the top 15 stocks in which long build-up was seen.

5 stocks saw long unwinding

7 stocks saw short build-up

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

77 stocks witnessed short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short covering. Based on open interest (OI) future percentage, here are the top 15 stocks in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings:

The board of Ador Fontech will meet on September 23 to consider bonus issue.

The board of directors of Kaveri Seed Company will meet on September 24 to consider share buyback.

The AGM of Tamilnadu Jai Bharat Mills is scheduled on September 26.

The AGM of Glittek Granites is scheduled on September 26.

Stocks in news:

Reliance Capital: Credit rating agency CARE downgraded the rating to "CARE D" for the company’s long-term debt program, market linked debentures and subordinated debt of the Company, due to an alleged “delay” in payment of interest by one day.

"The company made a stock exchange filing on September 11 stating that the interest payment for NCDs, which was due on September 9, was duly activated on the due date, but the same could not go through owing to a technical glitch in bank servers on that date and the payment went through on the very next bank working day on September 11," the company

said in a BSE filing.

Edelweiss Financial Services: Brickwork Ratings has revised the credit rating assigned to the seemed non-convertible debenture programme of Rs 50 crore of the company from 'BWR AA+' to 'BWR AA' with the outlook remaining unchanged as 'negative'.

Future Consumer: CARE Ratings has re-affirmed its rating assigned to the company's bank facilities, non- convertible debentures and commercial paper.

HEG: Promoter sold 19 crore shares (0.41 percent equity) of the company on September 18.

Adani Ports: Promoter created a pledge on 1.05 crore shares (0.5 percent equity) of the company on September 16.

Commercial Engineers & Body Builders: Formed a joint venture company, Jupiter Kovis India, with Jupiter Wagons Limited, KOVIS D.O.O and KOVIS IND D.O.O. for manufacturing and sale of brake discs.

Punjab National Bank: ICRA revised rating on lender's Basel III Compliant Tier II bonds to AA-(hyb) (placed on rating watch with positive implications) from AA-(hyb) (Stable).

Canara Bank: ICRA has placed rating of the bank's Basel III Compliant Tier II Bonds and additional Tier-I bonds, on "ratings watch with developing implications".

Sakthi Sugars: The company agreed for one-time settlement (OTS) with one of the lenders, viz. Bank of India.

Rama Steel Tubes: RST International Trading FZE, Dubai, a wholly owned subsidiary of the company, has incorporated 'RST Industries Limited', as subsidiary company in the Federal Republic of Nigeria to tap business opportunities and to cater diversified demand of the customers in that region.

Arvind: CARE revised the company's long-term facilities, NCDs to "AA-" from "AA" with a stable outlook.

Alkem Laboratories: The company has acquired an undertaking as a whole and on a going and running concern basis from Cachet Pharmaceuticals Private Limited, a subsidiary of the Company.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 35.78 crore, while domestic institutional investors (DIIs) bought Rs 3,001.32 crore worth of shares in the Indian equity market on September 20, as per provisional data available on the NSE.

Fund flow

No stock under ban period on NSE

There is no stock under F&O ban for September 23. 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 22, 2019 06:04 pm
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