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

The present weakness is expected to be over in the next 1-2 sessions and the market could bounce back again from the lows, said Nagaraj Shetti of HDFC Securities.

June 24, 2021 / 07:08 AM IST

The market erased all its opening gains to trade lower for major part of the session amid volatility on June 23, ahead of expiry of June futures & options contracts.

The BSE Sensex fell 282.63 points to close at 52,306.08, due to selling pressure in metals, IT, select banking & financials, FMCG and pharma stocks. The Nifty50 dropped 85.80 points to 15,687 and formed bearish candle on the daily charts as closing was lower than opening levels.

"A long negative candle was formed, which engulfed the previous small negative candle of Tuesday. This signal weakness with rangebound action. Wednesday's pattern seems to have confirmed the double top formation as per intraday (60 min) timeframe chart. The negative implication of this intraday double top seems to have priced in partially and some more weakness could be in store," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Shetty said the short term trend of Nifty is weak with rangebound action. "The overall market breadth and broad market indices are showing resilience compared to benchmark Nifty. The present weakness is expected to be over in the next 1-2 sessions and the market could bounce back again from the lows. Immediate support is placed at 15,600 levels," he said.

The broader markets also corrected with the Nifty Midcap 100 and Smallcap 100 indices falling 0.2 percent and 0.52 percent, respectively.

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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 15,619.67, followed by 15,552.33. If the index moves up, the key resistance levels to watch out for are 15,808.67 and 15,930.33.

Nifty Bank

The Nifty Bank declined 171 points to close at 34,574 on June 23. The important pivot level, which will act as crucial support for the index, is placed at 34,420.4, followed by 34,266.8. On the upside, key resistance levels are placed at 34,832.6 and 35,091.2 levels.

Call option data

Maximum Call open interest of 82.05 lakh contracts was seen at 15,800 strike, which will act as a crucial resistance level in the June series.

This is followed by 15,900 strike, which holds 65.40 lakh contracts, and 16,000 strike, which has accumulated 57.19 lakh contracts.

Call writing was seen at 15,800 strike, which added 30.37 lakh contracts, followed by 15,700 strike which added 16.98 lakh contracts, and 15,900 strike which added 7.7 lakh contracts.

Call unwinding was seen at 16,000 strike, which shed 10.75 lakh contracts, followed by 16,400 strike which shed 1.47 lakh contracts, and 15,500 strike which shed 1.03 lakh contracts.

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Put option data

Maximum Put open interest of 53.60 lakh contracts was seen at 15,500 strike, which will act as a crucial support level in the June series.

This is followed by 15,600 strike, which holds 47.15 lakh contracts, and 15,000 strike, which has accumulated 32.6 lakh contracts.

Put writing was seen at 15,600 strike, which added 14.39 lakh contracts, followed by 15,500 strike which added 12.05 lakh contracts, and 15,300 strike which added 3.11 lakh contracts.

Put unwinding was seen at 15,800 strike which shed 8.17 lakh contracts, followed by 15,000 strike which shed 6.48 lakh contracts and 14,900 strike which shed 4.7 lakh 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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18 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.

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82 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.

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

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32 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.

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Bulk deals

One Point One Solutions: Jyotika Deepak Shenoy acquired additional 1.39 lakh equity shares in the company at Rs 24.65 per share on the NSE, the bulk deals data showed.

UFO Moviez India: P5 Asia Holding Investments (Mauritius) sold 21,34,452 equity shares in UFO at Rs 92.55 per share on the NSE, and 5.4 lakh shares at Rs 92.4 per share on the BSE. Visa Capital Partners acquired 2.5 lakh shares at Rs 95.7 per share on the NSE, the bulk deals data showed.

Nureca: Hornbill Orchid India Fund bought 1,95,766 equity shares in Nureca at Rs 1,549.97 per share on the BSE, the bulk deals data showed.

Starlog Enterprises: Subrata Kumar Sao acquired 2,07,000 equity shares in the company at Rs 11.82, whereas Eastspring Investments India Infrastructure Equity Open sold 3,17,431 equity shares at Rs 11.43 per share on the BSE, the bulk deals data showed.

United Breweries: Heineken International B V acquired 3,96,44,346 equity shares in UBL at Rs 1,471.25 per share. However, Recovery Officer I DRT II was the seller in a deal on the BSE, the bulk deals data showed.

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(For more bulk deals, click here)

Results on June 24, and Analysts/Investors Meeting

Results on June 24: Oil and Natural Gas Corporation, Ashok Leyland, Allied Computers International, Bodal Chemicals, CL Educate, Deep Industries, Everest Kanto Cylinder, Essar Shipping, Future Supply Chain Solutions, Mishra Dhatu Nigam, Mudra Financial Services, PTC India, South India Paper Mills, Sundaram Multi Pap, Take Solutions, Thangamayil Jewellery, and West Coast Paper Mills will release their quarterly earnings on June 24.

Gokaldas Exports: The company's officials will meet Abakkus Invest, Canara HSBC Life, and PGIM on June 24.

Matrimony.com: The company's officials will meet analysts/investors at Motilal Oswal Ideation Conference on June 24.

Sastasundar Ventures: The company's officials will meet analysts/investors at Motilal Oswal Ideation Conference on June 24.

Blue Star: The company's officials will meet analysts/investors at Centrum Securities Roadshow Virtual Meeting on June 24.

Hindalco Industries: The company's officials will meet Franklin Templeton Asset Management on June 24.

Rajratan Global Wire: The company's officials will meet Kotak Mutual Fund on June 24.

PNC Infratech: The company's officials will meet Dolat Analysis & Research Themes (DART) on June 28.

Stocks in News

Sharda Motor Industries: The company reported consolidated profit of Rs 25.91 crore for Q4FY21 against Rs 6.19 crore in Q4FY20, revenue jumped to Rs 604.16 crore from Rs 237.07 crore YoY. The company approved the joint venture between Sharda Motor Industries, and Kinetic Green Energy and Power Solutions.

Andrew Yule & Company: The company reported consolidated loss at Rs 16.56 crore in Q4FY21 against loss of Rs 30.34 crore in Q4FY20, revenue jumped to Rs 57.99 crore from Rs 41.92 crore YoY.

Allcargo Logistics: The company reported lower consolidated profit at Rs 5.91 crore in Q4FY21 against Rs 54.06 crore in Q4FY20, revenue jumped to Rs 3,349.31 crore against Rs 1,870.96 crore YoY.

Speciality Restaurants: The company reported consolidated profit of Rs 8.43 crore in Q4FY21 against loss of Rs 37.11 crore in Q4FY20, revenue fell to Rs 65.42 crore from Rs 75.41 crore YoY.

Godawari Power and Ispat: Government of India, Ministry of Environment & Forests & Climate Change, Impact Assessment Division has accorded its environment clearance for enhancement of iron ore production capacity from 1.405 MTPA to 2.35 MTPA in Ari Dongri Iron Ore Mines at Chhattisgarh, and for setting up of beneficiation plant of 0.6 MTPA capacity.

Orchid Pharma: Promoter Dhanuka Laboratories proposed to sell 32,80,115 equity shares, representing 8.04% of total paid-up equity via offer for sale, on June 24 and June 25.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 3,156.53 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,317.20 crore in the Indian equity market on June 23, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - Vodafone Idea, and Sun TV Network - are under the F&O ban for June 24. 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: Jun 23, 2021 10:12 pm
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