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

Key support level for the Nifty is placed at 11,487, followed by 11,424.4. If the index moves up, the key resistance levels to watch out for are 11,587 and 11,624.4.

August 26, 2020 / 09:45 PM IST

The Indian market managed to end with decent gains on August 26 despite a dull first half.

After opening on a positive note, the market traded in a tight range. However, healthy buying interest in select index majors in the latter half helped the Nifty settle around 11,550 levels.

The Sensex closed 230 points, or 0.59 percent, up at 39,073.92 and the Nifty settled 77 points, or 0.67 percent, higher at 11,549.6.

"With upbeat global cues and sustained recovery in banking majors, we expect the Nifty to test our immediate target of 11,600 levels soon," said Ajit Mishra, VP - Research, Religare Broking.

"Though all the sectors are contributing to the move on a rotational basis, traders may find it difficult to choose stocks after the substantial surge. We prefer private banking, FMCG and select counters from the energy and IT space for fresh buying," Mishra added.

Close

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 is placed at 11,487, followed by 11,424.4. If the index moves up, the key resistance levels to watch out for are 11,587 and 11,624.4.

Nifty Bank

The Bank Nifty outperformed the Nifty, closing 1.39 percent higher at 23,414.20. The important pivot level, which will act as crucial support for the index, is placed at 23,187.13, followed by 22,960.06. On the upside, key resistance levels are placed at 23,547.33 and 23,680.47.

Call option data

Maximum Call OI of 33.41 lakh contracts was seen at 11,600 strike, which will act as crucial resistance in the August series.

This is followed by 11,500, which holds 32.25 lakh contracts, and 11,700 strikes, which has accumulated 31.07 lakh contracts.

Call writing was seen at 11,700, which added 1.24 lakh contracts, followed by 11,100, which added 38,250 contracts, and 12,000 strikes, which added 35,325 contracts.

Call unwinding was seen at 11,800, which shed 9.61 lakh contracts, followed by 11,500 strikes, which shed 8.83 lakh contracts.

Image 1 August 26

Put option data

Maximum Put OI of 40.33 lakh contracts was seen at 11,000 strikes, which will act as crucial support in the August series.

This is followed by 11,500, which holds 39.88 lakh contracts, and 11,400 strikes, which has accumulated 39.85 lakh contracts.

Put writing was seen at 11,500, which added 24.50 lakh contracts, followed by 11,400, which added 6.42 lakh contracts, and 11,600 strikes, which added 4.49 lakh contracts.

Put unwinding was witnessed at 11,100, which shed 4.51 lakh contracts, followed by 11,000, which shed 3.38 lakh contracts.

Image 2 August 26

Stocks with a high delivery percentage

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

High delivery August 26

24 stocks saw long build-up

Based on the open interest future percentage, here are the top 10 stocks in which long build-up was seen.

Long buildup August 26

48 stocks saw long unwinding

Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.

Long unwinding August 26

16 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 top 10 stocks in which short build-up was seen.

Short buildup August 26

52 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.

Short covering August 26

Bulk deals

Birla Mutual Fund sold 3,00,000 shares of Atul Auto at an average price of Rs 197.26 per share via a bulk deal on NSE.

French firm Societe Generale sold 22,19,200 shares of Equitas Holdings at an average price of Rs 55.36 per share via a bulk deal on NSE.

HDFC Mutual Fund bought 1,57,337 shares of Ramco Systems at an average price of Rs 240 per share via a bulk deal on NSE.

Plutus Wealth Management bought 7,35,000 shares of CEAT at an average price of Rs 900 per share via a bulk deal on BSE. On the other hand, HSBC Bank Mauritius AC Jwalamukhi Investment Holdings sold 7,24,949 shares of the company at an average price of Rs 900 per share.

(For more bulk deals, click here)

Earnings on August 27

Edelweiss Financial Services, NMDC, ARSS Infrastructure Projects, Avanti Feeds, BFL Asset Finvest, BL Kashyap, Chennai Ferrous Industries, Gayatri Projects, GMR Infrastructure, HCC, ICRA, IDFC, PNC Infratech, etc.

Stocks in the news

Jindal Stainless: The board has approved raising funds up to Rs 162.80 crore through the issue of convertible equity warrants on a preferential basis.​

Mishtann Foods: Q1 revenue from operation at Rs 26.98 crore against Rs 125.91 crore YoY. Net profit came in near Rs 10 lakh against Rs 3.14 crore YoY.

Ansal Housing: Q1 consolidated revenue from operations stood at Rs 24.62 crore against Rs 60.23 crore YoY. The company reported a loss of Rs 4.16 crore against Rs 5.16 crore YoY.

Gillette India: Net profit fell to Rs 44.97 crore from Rs Rs 45.82 YoY. Total income declined to Rs 352.74 crore from Rs 466.39 crore a year ago. The company follows July to June as its financial year.

Allcargo Logistics: The board of directors will meet on August 27 to consider and approve the voluntary delisting of shares.

Hindustan Aeronautic: The government will sell up to 15 percent stake in the stock via an offer for sale (OFS). The floor price for the offer has been fixed at Rs 1,001 per equity share.

Telecom stocks: Major loss in subscriber base was recorded in the mobile telephony segment in May, with Bharti Airtel and Vodafone Idea losing around 47 lakh mobile customers each. The total wireless customer base of Airtel and Vodafone Idea dipped to 31.7 crore and 30.9 crore, respectively.

Fund flow

Fund Flow August 26

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 1,581.31 crore, whereas domestic institutional investors (DIIs) sold shares worth Rs 1,194.62 crore in the Indian equity market on August 26, as per provisional data available on the NSE.

Stock under F&O ban on NSETen stocks -- Ashok Leyland, Bharat Heavy Electricals (BHEL), Canara Bank, GMR Infra, Indiabulls Housing Finance, Vodafone Idea, LIC Housing Finance, Punjab National Bank, Steel Authority of India (SAIL) and Vedanta -- are under the F&O ban for August 27. 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.​​
Nishant Kumar
first published: Aug 26, 2020 09:16 pm
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