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Last Updated : Dec 29, 2019 07:07 PM IST | Source: Moneycontrol.com

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

The key support level for Nifty is placed at 12,182.97, followed by 12,120.13. If the index continues moving up, key resistance levels to watch out for are 12,283.57 and 12,321.33.


Benchmark indices Sensex and Nifty started the January futures and options series on a strong note on December 27, due to healthy gains in banking and financial stocks and positive global cues.

The Sensex settled 411 points, or 1 percent, higher at 41,575 while the Nifty shut shop at 12,246, up 119 points, or 0.98 percent. The BSE Midcap and Smallcap indices closed 0.87 percent and 0.84 percent higher, respectively.

"State-run banks helped the market to trade higher after consecutive days of weakness. Another announcement of the bond sale next week from the central bank lifted the financial stocks higher, while positive sentiments in global markets on easing trade concerns fuelled a broad-based rally," said Vinod Nair, Head of Research at Geojit Financial Services.

Close

The Nifty rebounded sharply on December 27 after witnessing a correction in the last couple of sessions. This shows that the underlying tone for the market continues to be bullish, said experts.

Participation was seen in the broader market as well, which augurs well for the overall rally in the market.

"On the weekly chart, Nifty has formed an inside bar. The breakout level for the bar pattern is at 12,294. So, traders can initiate a fresh long position once the swing high of 12,294 gets taken out. On the higher side, 12,350-12,400 will be the key short-term target area to watch out for. On the flip side, the support zone now shifts higher to 12,150-12,100," said

Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas.

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

Key support and resistance level for Nifty

According to the pivot charts, the key support level for Nifty is placed at 12,182.97, followed by 12,120.13. If the index continues moving up, key resistance levels to watch out for are 12,283.57 and 12,321.33.

Nifty Bank

Nifty Bank closed 1.30 percent higher at 32,412.35. The important pivot level, which will act as crucial support for the index, are placed at 32,164.06, followed by 31,915.83. On the upside, key resistance levels are placed at 32,552.66 and 32,693.03.

Call options data

Maximum call open interest (OI) of 19.19 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.

This is followed by the 12,200 strike price, which holds 18.53 lakh contracts in open interest, and 12,700, which has accumulated 13.66 lakh contracts in open interest.

Significant call writing was seen at the 12,700 strike price, which added 4.86 lakh contracts, followed by 12,500 strike price that added 4.1 lakh contracts and the 12,300 strike, which added 2.88 lakh contracts.

A minor call unwinding was witnessed at 11,900 strike price, which shed 5,400 contracts.

Image 1

Put options data

Maximum put open interest of 34.12 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.

This is followed by 12,200 strike price, which holds 17.8 lakh contracts in open interest, and 11,800 strike price, which has accumulated 11.48 lakh contracts in open interest.

Put writing was seen at the 12,000 strike price, which added 7.32 lakh contracts, followed by 12,200 strike, which added 4.98 lakh contracts and 12,100, which added 3.07 lakh contracts.

No put unwinding was seen on December 27.

Image 2

Stocks with a high delivery percentage

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

High delivery

114 stocks saw long buildup

Based on open interest (OI) future percentage, here are the top 10 stocks in which long buildup was seen.

Long Buildup

No long unwinding

There was not a single stock that witnessed long unwinding on December 27.

25 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 open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup

7 stocks witnessed short-covering

As per available data, 7 stocks witnessed a short-covering on December 27. A decrease in open interest, along with an increase in price, mostly indicates a short covering.

Short covering

Bulk deals

bulk Deals

(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings

The respective boards of Axita Cotton, Meera Industries and Balmer Lawrie will meet on December 30 to consider and approve the bonus issue.

The boards of NHPC, Golden Tobacco, Kavita Fabrics, Milestone Global, Prism Medico & Pharmacy and Quantum Digital Vision (India) will meet on December 30 for general purposes.

Stocks in the news

The board of Piramal Enterprises approved the issue of secured, rated, unlisted, redeemable non-convertible debentures (NCDs) aggregating up to Rs 2,750 crore on a private placement basis.

Oricon Enterprises has prepaid the term loan of Rs 300 crore to Indiabulls Housing Finance.

Urja Global's chief financial officer Sakshi Gupta resigned with effect from December 26, 2019.

Skipper becomes the first company in India to have successfully designed, fabricated and type tested a 765 kV S/C Monopole.

CARE Ratings reaffirmed 'CARE A' with a stable outlook rating to the long-term bank facilities of Precision Wires India.

Cadila Healthcare has clarified it had no plans to sell two of its divisions.

PI Industries has said lsagro (Asia) Agrochemicals Private Limited has become its wholly-owned subsidiary.

Gateway Distriparks has entered into a share purchase agreement to sell its entire stake of 40.25 percent in Snowman Logistics to Adani Logistics for Rs 295.92 crore.

The board of directors of RITES has declared an interim dividend of Rs 6 per share of Rs 10 each.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 81.37 crore, while domestic institutional investors (DIIs), too, bought shares of worth Rs 125.77 crore in the Indian equity market on December 27, provisional data available on the NSE showed.

Fund flow

Fund Flow

No stock under F&O ban on NSE

There is no stock under the F&O ban for December 30. 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.

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First Published on Dec 29, 2019 06:59 pm
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