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

One needs to be cautious about long positions above 11,600 levels, according to Nagaraj Shetti of HDFC Securities.

September 02, 2020 / 09:24 PM IST

The last-hour rally after rangebound trade helped the market continue uptrend for the second consecutive session on September 2. Positive global cues, and rally in Auto, IT and Metals stocks supported the market.

The gains in broader markets were higher than benchmark indices as the Nifty Midcap index was up 1.5 percent and Smallcap rose 1.7 percent.

The BSE Sensex climbed 185.23 points to close at 39,086.03, while the Nifty50 rose 64.70 points to 11,535, forming bullish candle on the daily charts, with minor lower shadow which indicates sustaining of bulls above the crucial support.

"Formation of this pattern, after a Doji of September 1, could indicate a minor positive bias for the market. But, the significant bearish pattern (bearish engulfing pattern of August 31) could be intact as long as the market stays below 11,800 levels. The Nifty is currently sustaining above the uptrend line support (connecting recent higher lows) and 20 period EMA around 11,340-11,380 levels," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.

"The minor positive sequence of higher highs and lows is intact and if we consider the recent swing low of 11,326 (low of August 31) as a new higher low of the sequence, then the Nifty should conquer new swing highs above 11,796 levels in the near term. This action seems to be a difficult task as of now. Hence, one needs to be cautious about long positions above 11,600 levels," he said.

Close

Going ahead, the market may look forward for more positive signs of economic recovery and would track the development around the US stimulus announcement, and investors will also keep a close watch on India-China border tensions and global markets for cues, Siddhartha Khemka of Motilal Oswal Financial Services said.

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 are placed at 11,458.67, followed by 11,382.33. If the index moves up, the key resistance levels to watch out for are 11,583.07 and 11,631.13.

Nifty Bank

The Bank Nifty was up 62.50 points at 23,874.50 on September 2. The important pivot level, which will act as crucial support for the index, is placed at 23,596.07, followed by 23,317.53. On the upside, key resistance levels are placed at 24,039.67 and 24,204.73.

Call option data

Maximum Call open interest of 20.26 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the September series.

This is followed by 11,500 strike, which holds 18.17 lakh contracts, and 11,800 strike, which has accumulated 13.47 lakh contracts.

Call writing was seen at 12,000 strike, which added 88,050 contracts, followed by 11,800, which added 77,250 contracts, and 11,300 strike, which added 72,825 contracts.

Call unwinding was seen at 12,100 strike, which shed 30,900 contracts, followed by 11,700 strike, which shed 16,650 contracts.

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Put option data

Maximum Put open interest of 27.48 lakh contracts was seen at 11,000 strike, which will act as crucial support in the September series.

This is followed by 11,500 strike, which holds 18.18 lakh contracts, and 11,300 strike, which has accumulated 15.08 lakh contracts.

Put writing was seen at 11,200 strike, which added 1.18 lakh contracts, followed by 10,900 strike, which added 99,150 contracts.

Put unwinding was witnessed at 11,000, which shed 81,450 contracts, followed by 11,700 strike which shed 36,375 contracts.

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Stocks with a high delivery percentage

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

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66 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.

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5 stocks saw long unwinding

Based on the open interest future percentage, here are the top 5 stocks in which long unwinding was seen.

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26 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.

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41 stock 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.

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Bulk deals

Rossari Biotech: Plutus Wealth Management LLP bought 3 lakh shares in the company at Rs 773.82 per share.

Worth Peripherals: Consortium Securities bought 1,12,109 shares in the company at Rs 47.36 per share.

(For more bulk deals, click here)

Earnings on September 3

Page Industries, Jubilant Industries, Bilcare, Essar Shipping, IL&FS Engineering, MSTC, Panacea Biotec, Zuari Agro Chemicals, etc. will announce their June quarter earnings on September 3.

Stocks in the news

Coal India Q1: Profit at Rs 2,077.5 crore versus Rs 4,630 crore, revenue at Rs 18,486.8 crore versus Rs 24,939 crore YoY.

Sterlite Technologies: Anupam Jindal resigned as Chief Financial Officer.

Bannari Amman Sugars Q1: Profit at Rs 12.8 crore versus Rs 5.55 crore, revenue at Rs 325.8 crore versus Rs 260.8 crore YoY.

Infibeam Avenues Q1: Profit at Rs 11.9 crore versus Rs 28 crore, revenue at Rs 102.66 crore versus Rs 185.5 crore YoY.

Dish TV India Q1: Profit at Rs 75.94 crore versus loss Rs 31.98 crore, revenue at Rs 835.58 crore versus Rs 926.30 crore YoY.

Engineers India: The company received an order worth Rs 450 crore from GAIL.

Edelweiss Financial: Ontario Teachers' partnered with Edelweiss Alternative Asset to invest $350 million in Indian private credit.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 990.57 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 657.48 crore in the Indian equity market on September 2, as per provisional data available on the NSE.

Stock under F&O ban on NSE

Three stocks -- Escorts, Indiabulls Housing Finance and Punjab National Bank -- are under the F&O ban for September 3. 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.
Sunil Shankar Matkar
first published: Sep 2, 2020 08:56 pm
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