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

Based on the open interest future percentage, a short build-up was seen in 122 stocks including Sun TV Network, Hindustan Copper, Dr Reddy's Laboratories, Nifty, and Chambal Fertilizers

June 23, 2022 / 08:29 AM IST

The market was completely caught in a bear trap after a day of rally and fell more than one percent on June 22, dragged by selling across sectors and weak global cues.

The BSE Sensex tanked more than 700 points or 1.35 percent to 51,823, while the Nifty50 plunged 225.50 points or 1.44 percent to 15,413 and formed a bearish candle on the daily charts.

"After a sustainable upside bounce on Tuesday, the Nifty showing immediate reaction on the downside in the subsequent session indicates a lack of strength in the market to sustain the upside bounces," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Now, one may expect the Nifty to slide down to the important support area of 15,200 levels in the next few sessions, the market expert said, adding that immediate resistance is placed at 15,560.

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Close

The selling was also seen in broader space on weak market breadth. The Nifty Midcap 100 index fell 1.63 percent and Smallcap 100 index declined 1.4 percent. About five shares declined for every two advancing shares on the NSE.

The volatility increased a bit but sustaining above the 20 mark is likely to remain discomfort for bulls, experts said. India VIX, the fear index, rose by 0.74 percent to 21.3 levels.

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 15,344, followed by 15,275. If the index moves up, the key resistance levels to watch out for are 15,524 and 15,634.

Nifty Bank

Nifty Bank also witnessed selling pressure, falling 346 points or 1 percent to close at 32,845 on Wednesday. The important pivot level, which will act as crucial support for the index, is placed at 32,700, followed by 32,555. On the upside, key resistance levels are placed at 33,049 and 33,252.

Call option data

Maximum Call open interest of 35.21 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the June series.

This is followed by 15,500 strike, which holds 32.07 lakh contracts, and 16,500 strike, which has accumulated 25.42 lakh contracts.

Call writing was seen at 15,500 strike, which added 11.07 lakh contracts, followed by 16,000 strike which added 9.47 lakh contracts and 15,400 strike which added 7.43 lakh contracts.

Call unwinding was seen at 15,300 strike, which shed 93,350 contracts, followed by 17,000 strike which shed 88,950 contracts and 16,800 strike which shed 51,750 contracts.

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Put option data

Maximum Put open interest of 49.09 lakh contracts was seen at 15,500 strike. This is followed by 14,000 strike, which holds 37.48 lakh contracts, and 14,500 strike, which has accumulated 36.39 lakh contracts.

Put writing was seen at 14,000 strike, which added 11.63 lakh contracts, followed by 14,600 strike, which added 6.19 lakh contracts and 15,400 strike which added 6.14 lakh contracts.

Put unwinding was seen at 15,600 strike, which shed 3.3 lakh contracts, followed by 16,000 strike which shed 1.82 lakh contracts, and 15,700 strike which shed 1.61 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. The highest delivery was seen in Hindustan Unilever, ICICI Lombard General Insurance, HDFC, Max Financial Services, and Power Grid Corporation, among others.

16 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 Honeywell Automation, PVR, TCS, HPCL, and Indraprastha Gas, in which a long build-up was seen.

56 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 United Breweries, Hindustan Aeronautics, Ashok Leyland, Federal Bank and Astral, in which long unwinding was seen.

122 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 Sun TV Network, Hindustan Copper, Dr Reddy's Laboratories, Nifty, and Chambal Fertilizers, in which a short build-up was seen.

7 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 7 stocks including Birlasoft, Balkrishna Industries, RBL Bank, Vodafone Idea, and Crompton Greaves Consumer Electricals, in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Investors Meetings on June 23

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Escorts: Officials of the company will meet Segantii Capital.

KEI Industries: Officials of the company will meet Elara Capital (India).

Trent: Officials of the company will meet Arisaig Partners.

Maharashtra Seamless: Officials of the company will meet Way2Wealth Brokers, and Kotak Mahindra Asset Management Company.

Voltas: Officials of the company will meet Elara Capital.

Adani Transmission: Officials of the company will attend Barclays EM ESG Corporate Day.

Tata Chemicals: Officials of the company will meet Morgan Stanley India Company.

Brigade Enterprises: Officials of the company will meet Investec Capital Services (India), Motilal Oswal Asset Management, Canara Robeco, Star Union Dai-ichi Life Insurance Company, Aviva Life Insurance, Premji Invest, Navi Mutual Fund, and Mirabilis Investment Trust.

Polycab India: Officials of the company will meet SBI Life Insurance and Tata Asset Management.

MCX India: Officials of the company will meet Mirae Asset Management.

Centum Electronics: Officials of the company will attend Yes Securities - Defence Conference'22.

Visaka Industries: Officials of the company will meet DNS Investments.

Persistent Systems: Officials of the company will meet Union Mutual Fund.

Ajmera Realty & Infra India: Officials of the company will meet Dolat Capital.

Nuvoco Vistas Corporation: Officials of the company will meet TT International.

Stocks in News

DCB Bank: The private sector lender has appointed Satish Gundewar as its Chief Financial Officer and Key Managerial Personnel, after the retirement of Bharat Laxmidas Sampat from the said position.

Imagicaaworld Entertainment: The company has completed its debt resolution successfully and inducted new promoters on the board of directors. The board has approved the allotment of equity shares and 0.01 percent redeemable non-convertible preference shares on a preferential basis as part of the resolution plan agreed by the lenders under the RBI Prudential Framework.

Vodafone Idea: The telecom operator said the board approved raising of funds up to Rs 436.21 crore from promoter Euro Pacific on a preferential basis. The board also approved the convening of an Extraordinary General Meeting of the company on July 15 to seek approval of shareholders for the said preferential issue.

Bajaj Auto: The automobile company informed exchanges that the board of directors will meet on June 27 to further deliberate on the proposal for the buyback of equity shares of the company.

IRB Infrastructure Developers: IRB Infrastructure received 75 percent of the arbitration award of Rs 419 crore from IRB Pathankot Amritsar Toll Road Ltd, an SPV of IRB InvIT Fund. The Court has upheld Arbitral Tribunal's Order and directed NHAI to release 75 percent of the arbitration award amount, i.e. Rs 308 crore, to the company. IRB Infra was the EPC contractor for the Pathankot-Amritsar BOT project.

GPT Infraprojects: The company has bagged an order worth Rs 292 crore for the execution of viaducts, major bridges, ROBs, supply of vehicles, site facilities and other allied works for Khurda Road-Bolangir New BG link project of East Coast Railway. This contract is a joint venture.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold Rs 2,920.61 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,859.07 crore worth of shares on June 22, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - Indiabulls Housing Finance, RBL Bank, and Sun TV Network - are under the NSE F&O ban for June 23. 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: Jun 22, 2022 10:47 pm
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