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Trade setup for today: Top 15 things to know before the opening bell

Based on the open interest future percentage, a short build-up was seen in 65 stocks including Metropolis Healthcare, Delta Corp, Cholamandalam Investment, HPCL, and Voltas.

May 19, 2022 / 09:40 AM IST

The market turned volatile after a 3 percent rally in the previous two consecutive sessions and closed the day marginally lower on May 18, weighed down by select banking and financial services, technology, power and infra stocks.

The BSE Sensex fell 110 points to 54,209, while the Nifty50 declined 19 points to 16,240 and formed a bearish candle on the daily charts.

"On the daily chart the index formed a bearish candle after facing rejection at 16,400 mark," Malay Thakkar, Technical Research Associate at GEPL Capital said.

He further said that the index has strong support at the 15,900 level. "The short-term trend might remain sideways till the index trades below 16,400 level, which is the previous week's high."

Going ahead traders should keep a watch on the 16,400 mark, and a break above that can increase momentum and take the index higher towards the 16,650 level, he said.

Close

The broader markets also closed moderately lower with the Nifty Midcap 100 and Smallcap 100 indices declining 0.2 percent and 0.4 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

As per the pivot charts, the key support level for the Nifty is placed at 16,168, followed by 16,095. If the index moves up, the key resistance levels to watch out for are 16,356 and 16,472.

Nifty Bank

Nifty Bank fell 138 points to close at 34,164 on Wednesday. The important pivot level, which will act as crucial support for the index, is placed at 33,980, followed by 33,797. On the upside, key resistance levels are placed at 34,501 and 34,839 levels.

Call option data

Maximum Call open interest of 40.25 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the May series.

This is followed by 16,500 strike, which holds 28.63 lakh contracts, and 16,000 strike, which has accumulated 19.2 lakh contracts.

Call writing was seen at 16,500 strike, which added 8.96 lakh contracts, followed by 16,300 strike which added 6.61 lakh contracts and 16,600 strike which added 4.36 lakh contracts.

Call unwinding was seen at 16,100 strike, which shed 2.17 lakh contracts, followed by 16,000 strike which shed 1.46 lakh contracts and 15,900 strike which shed 1.13 lakh contracts.

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Put option data

Maximum Put open interest of 44.74 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the May series.

This is followed by 15,000 strike, which holds 25.93 lakh contracts, and 15,500 strike, which has accumulated 25.26 lakh contracts.

Put writing was seen at 16,300 strike, which added 6.04 lakh contracts, followed by 16,200 strike, which added 4.15 lakh contracts and 15,200 strike which added 2.07 lakh contracts.

Put unwinding was seen at 15,000 strike, which shed 2.16 lakh contracts, followed by 15,500 strike which shed 1.81 lakh contracts, and 16,000 strike which shed 87,500 contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in City Union Bank, Max Financial Services, NTPC, Ipca Laboratories, and SBI Cards and Payment Services, among others.

40 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 including ITC, Chambal Fertilisers, Birlasoft, InterGlobe Aviation, and TVS Motor Company, in which a long build-up was seen.

46 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 including Bank Nifty, ICICI Bank, Apollo Tyres, RBL Bank, and Deepak Nitrite, in which long unwinding was seen.

65 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 including Metropolis Healthcare, Delta Corp, Cholamandalam Investment, HPCL, and Voltas, in which a short build-up was seen.

48 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 including Persistent Systems, L&T Technology Services, Bosch, ACC, and Coal India, in which short-covering was seen.

Bulk deals

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Results on May 19

HPCL, Ashok Leyland, Bosch, Chambal Fertilisers & Chemicals, Container Corporation of India, Endurance Technologies, Gland Pharma, Dr Reddy's Laboratories, Godrej Consumer Products, Novartis India, Ramco Systems, Punjab & Sind Bank, Rossari Biotech, Ujjivan Financial Services, and Suryoday Small Finance Bank will be in focus ahead of March quarter earnings on May 19.

Stocks in News

InterGlobe Aviation: Ronojoy Dutta, the chief executive officer of IndiGo, said he will retire on September 30. The firm also said it has appointed Pieter Elbers as the next chief executive officer. The company has postponed its March quarter earnings announcement and now it will be on May 25.

ITC: Diversified conglomerate ITC reported an 11.8 percent year-on-year (YoY) jump in net profit at Rs 4,191 crore for the fourth quarter ended March 31, 2022 as against Rs 3,755 crore recorded a year ago, due to strong growth across all operating segments. Consolidated revenue rose 15.3 percent on-year to Rs 17,754 crore versus Rs 15,404 crore a year ago. Revenue from cigarette business grew 9.96 percent while non-cigarette FMCG revenue was up 12.32 percent from the corresponding quarter.

Indraprastha Gas: IGL reported a rise in net profit of 9.24 percent to Rs 361.60 crore in the quarter ended March 2022 as against Rs 331.00 crore during the previous quarter ended March 2021. Revenue rose 55.16 percent to Rs 2,405.92 crore in the quarter ended March 2022 as against Rs 1,550.63 crore during the previous quarter ended March 2021. Total cost surged 72 percent YoY to Rs 2,230 crore.

Sugar stocks: Sugar stocks like Triveni Engineering, Uttam Sugar Mills, Bajaj Hindusthan, Balrampur Chini will be in focus after the government approved amendments to the National Policy on Biofuels, 2018, to advance the date by which fuel companies have to increase the percentage of ethanol in fuel to 20 percent, from 2030 to 2025. The policy of introducing 20 percent ethanol will take effect from April 1, 2023.

Manappuram Finance: Manappuram Finance reported a 44 percent decline in its net profit for the March quarter to Rs 261 crore against analysts’ estimates of Rs 451 crore a year ago. Revenue fell 9 percent year-on-year to Rs 1,480 crore. Total cost rose 13 percent to Rs 1,140 crore.

LIC Housing Finance: LIC Housing Finance reported a 174 percent surge in net profit for the March quarter to Rs 1,114 crore from Rs 406 crore a year ago. Revenue for the quarter rose 6.3 percent year-on-year to Rs 5,207.53 crore. Provisions for loan losses for the quarter stood at Rs 177 crore.

Ratnamani Metals & Tubes: The board approved the issue of bonus shares in the ratio of 1 for 2 held. The firm also recommended a dividend of Rs 14 a share for the fiscal year 2022. For Bonus shares the record date will be on July 1, 2022.

Pidilite Industries: The company reported a 17.3 percent decline in its net profit for the March quarter to Rs 254 crore from Rs 308 crore a year ago. Revenue for the quarter rose 12 percent year-on-year to Rs 2,507 crore versus Rs 2,235 crore last year. Total cost rose 18 percent year-on-year to Rs 2,178 crore.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,254.64 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 375.61 crore worth of shares on May 18, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks - Delta Corp, GNFC, Indiabulls Housing Finance, and Punjab National Bank - are under the F&O ban for May 19. 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.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: May 18, 2022 10:50 pm
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