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

Based on the open interest future percentage, here are the 108 stocks including ABB India, IndiaMART InterMESH, Bank Nifty, Abbott India, and Container Corporation of India, in which a long build-up was seen.

July 07, 2022 / 08:54 AM IST

The market on July 6 gained more than one percent in a single day for the first time since June 21, supported by buying across sectors and positive European cues with fall in oil prices.

The BSE Sensex jumped more than 600 points to 53,751, while the Nifty50 climbed nearly 180 points to 15,989 and formed bullish candlestick pattern on the daily charts.

"On the daily charts, the Nifty formed bullish candle and sustained above 20 days SMA (simple moving average - 15742) since last 3 days, however, Wednesday's candle is an inside day candle indicating it needs more confirmation to sustain above the previous day's high of 16,025 levels for the continuation of the up move," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.

He further said the immediate resistance levels for the Nifty would be 16,025, the high point on July 5, and 16,172 (gap resistance) and on the other side, it has strong support level placed at 15,742 (20 days SMA) followed by 15,650 (multiple touch point level).

The momentum indicator RSI (relative strength index) is also supporting the positive move of the index by maintaining higher top higher bottom pattern and sustaining above 50 mark.

Close

He feels if the Nifty sustains above 16,025 levels then it will move towards 16,172 mark for filling the gap, which was created on June 13, 2022.

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The buying was also seen in broader space as the Nifty Midcap 100 and Smallcap 100 indices gained 1.9 percent and half a percent respectively, while the volatility index India VIX cooled down to 20.27 levels, down by 2.5 percent, which was a comfort for bulls.

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 15,857, followed by 15,724. If the index moves up, the key resistance levels to watch out for are 16,067 and 16,144.

Nifty Bank

Nifty Bank gained more than 500 points to close at 34,324 on Wednesday, forming bullish candle on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 34,004, followed by 33,684. On the upside, key resistance levels are placed at 34,516 and 34,709 levels.

Call option data

Maximum Call open interest of 23.72 lakh contracts was seen at 16,500 strike, which will act as a crucial resistance level in the July series.

This is followed by 16,000 strike, which holds 22.30 lakh contracts, and 17,000 strike, which has accumulated 21.53 lakh contracts.

Call writing was seen at 16,700 strike, which added 92,200 contracts, followed by 16,200 strike which added 74,700 contracts and 16,300 strike which added 44,600 contracts.

Call unwinding was seen at 15,700 strike, which shed 2.4 lakh contracts, followed by 15,800 strike which shed 2.17 lakh contracts and 15,900 strike which shed 1.57 lakh contracts.

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Put option data

Maximum Put open interest of 34.44 lakh contracts was seen at 15,000 strike, which will act as a crucial support level in the July series.

This is followed by 14,500 strike, which holds 27.89 lakh contracts, and 15,500 strike, which has accumulated 26.69 lakh contracts.

Put writing was seen at 14,500 strike, which added 3.09 lakh contracts, followed by 16,000 strike, which added 1.4 lakh contracts and 15,600 strike which added 1 lakh contracts.

Put unwinding was seen at 15,700 strike, which shed 1.88 lakh contracts, followed by 15,900 strike which shed 37,050 contracts, and 14,600 strike which shed 20,400 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 Muthoot Finance, Atul, Power Grid Corporation of India, Kotak Mahindra Bank, and HDFC Bank, among others.

108 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 ABB India, IndiaMART InterMESH, Bank Nifty, Abbott India, and Container Corporation of India, in which a long build-up was seen.

2 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 2 stocks - NTPC and Power Grid Corporation of India, in which long unwinding was seen.

20 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 10 stocks including Indian Oil Corporation, ONGC, HDFC Life Insurance, Birlasoft, and Coal India, in which a short build-up was seen.

69 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 Nifty Financial, Godrej Consumer Products, SBI Card, AU Small Finance Bank, and Dixon Technologies, in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Investors Meetings on June 7

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CarTrade Tech: Officials of the company will be interacting with investors & analysts

Meghmani Finechem: Officials of the company will meet Taurus Asset Management.

Krishna Institute of Medical Sciences: Officials of the company will meet various investors in Singapore.

Motherson Sumi Wiring India: Officials of the company will meet analysts and investors in non-deal roadshows in UK and Europe.

Eicher Motors: Officials of the company will meet SBI Life Insurance Company.

Gati: Officials of the company will meet DSP Mutual Fund.

Stocks in News

Veljan Denson: The company has signed share purchase agreement to acquire 100% shareholding in Adan Holdings, for 1.4 million pounds. Aban holds stake in hydraulics and engineering companies in UK. The said acquisition will be completed by August 2022.

Equitas Small Finance Bank: The small finance bank reported 22% YoY growth in Q1FY23 gross advances at Rs 21,699 crore and the sequential increase was 5%, while deposits growth was 19% YoY and 8 percent QoQ at Rs 20,386 crore.

Deep Industries: The company has received Letter of Awards from ONGC, for charter hiring of 1000 HP mobile drilling rigs for Ahmedabad asset for a period of 3 years. The total estimated value of the said awards is $19.02 million or Rs 150.24 crore.

PBA Infrastructure: The company said the board has approved voluntary delisting of equity shares of the company from NSE, but equity shares would remain to be listed on the BSE.

East West Holdings: The company has entered into Share Purchase Agreement with Unique Airfreight Express and Logistics Private Limited. It will acquire 37.5% stake in Unique Airfreight Express in the first tranche and the remaining 62.5% stake will be acquired within a period of 1 year. The cost of acquisition is Rs 4 crore.

Titagarh Wagons: HDFC Asset Management Company sold 2.15% stake or 25.7 lakh shares in the company via open market transactions on July 4. With this, HDFC AMC reduced its shareholding in the company to 7.02%, down from 9.17% earlier.

City Union Bank: The bank said the board of directors approved raising further capital through QIP route to the tune of Rs 500 crore subject to shareholder approval.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) turned net sellers, offloading shares worth Rs 330.13 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 1,464.33 crore on July 6, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The National Stock Exchange has not added any stock under its F&O ban list for July 7 as well. 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: Jul 6, 2022 09:33 pm
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