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

Based on the open interest future percentage, there were 103 stocks including IndiaMART InterMESH, Astral, Gujarat State Petronet, Syngene International, and Dalmia Bharat, in which short-covering was seen.

July 28, 2022 / 08:55 AM IST

The market showcased a strong performance on July 27 as the benchmark indices clocked a percent gain, thanks to across-the-board buying. It recouped all the previous day's losses, ahead of expiry of July futures & options contracts.

The BSE Sensex jumped 548 points to 55,816, while the Nifty50 rose 158 points to 16,642 and formed a Bullish Engulfing candlestick pattern on the daily charts.

"On the daily charts, the Nifty took strong support at 16,483 levels which is a multiple touch point level and bounced back and formed Bullish Engulfing candle pattern which is a strong bullish reversal candle pattern. It seems that the Nifty has completed its short term correction and resumed its primary uptrend," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.

Sawant further said the momentum indicator RSI (relative strength index) is giving bullish signals near 60 levels and has moved up, indicating the index is gaining positive momentum once again.

The Nifty has an immediate resistance levels at 16,793 (swing high) followed by 17,000 (key resistance) and on the other side, it has strong support level placed at 16,483 (multiple touch point level) followed by 16,359 (gap support).

Close

As per the overall chart set up, Sawant feels that the Nifty has resumed its uptrend and it may move upside till 16,793 followed by 17,000 mark in the coming future. "Our bullish view will be negated if it sustains below 16,483 levels on the closing basis."

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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 16,503, followed by 16,363. If the index moves up, the key resistance levels to watch out for are 16,717 and 16,793.

Nifty Bank

The Nifty Bank rallied 375 points or 1 percent to close at 36,784 on Wednesday, and formed a Bullish Engulfing pattern on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 36,419, followed by 36,054. On the upside, key resistance levels are placed at 36,979 and 37,173 levels.

Call option data

Maximum Call open interest of 1.13 crore contracts was seen at 17,000 strike, which will act as a crucial resistance level in the July series.

This is followed by 16,900 strike, which holds 69.51 lakh contracts, and 16,800 strike, which has accumulated 60.92 lakh contracts.

Call writing was seen at 16,900 strike, which added 25.09 lakh contracts, followed by 17,000 strike which added 4.68 lakh contracts and 17,100 strike which added 2.48 lakh contracts.

Call unwinding was seen at 16,500 strike, which shed 20.02 lakh contracts, followed by 16,700 strike which shed 19.33 lakh contracts and 16,600 strike which shed 15.18 lakh contracts.

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Put option data

Maximum Put open interest of 99.55 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the July series.

This is followed by 16,500 strike, which holds 83.12 lakh contracts, and 16,400 strike, which has accumulated 73.47 lakh contracts.

Put writing was seen at 16,000 strike, which added 35.17 lakh contracts, followed by 16,500 strike, which added 32.79 lakh contracts and 16,600 strike which added 28.44 lakh contracts.

Put unwinding was seen at 15,800 strike, which shed 8.69 lakh contracts, followed by 15,900 strike which shed 1.47 lakh contracts, and 17,000 strike which shed 1.12 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 Power Grid Corporation of India, SBI Life Insurance Company, Crompton Greaves Consumer Electricals, HDFC AMC, and Kotak Mahindra Bank, among others.

68 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 GNFC, Coromandel International, Bank Nifty, Oberoi Realty, and GMR Infrastructure, in which a long build-up was seen.

15 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 NBCC, City Union Bank, Voltas, India Cements, and Bajaj Auto, in which long unwinding was seen.

11 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 Oracle Financial, M&M Financial Services, United Spirits, Muthoot Finance, and Shriram Transport Finance, in which a short build-up was seen.

103 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 IndiaMART InterMESH, Astral, Gujarat State Petronet, Syngene International, and Dalmia Bharat, in which short-covering was seen.

Bulk Deals

(For more bulk deals, click here)

Results on July 28

Results 2807_001

Dr Reddy's Laboratories, Nestle India, SBI Life Insurance Company, Shree Cement, Jubilant FoodWorks, Vedanta, Bajaj Finserv, Punjab National Bank, Mahindra & Mahindra Financial Services, PNB Housing Finance, SBI Cards and Payment Services, TVS Motor Company, Shriram Transport Finance, Chalet Hotels, Equitas Small Finance Bank, CMS Info Systems, GHCL, AAVAS Financiers, Intellect Design Arena, Dr Lal PathLabs, Motilal Oswal Financial Services, Nippon Life India Asset Management, NIIT, NOCIL, RITES, Sona BLW Precision Forgings, TTK Prestige, and Westlife Development will be in focus ahead of June quarter earnings on July 28.

Stocks in News

Tata Motors: The company posted consolidated loss at Rs 5,006.6 crore for the quarter ended June 2022, widening from loss of Rs 4,450.92 crore in same period last year on account of weak JLR performance. Consolidated revenue from operations grew by 8.3% YoY to Rs 71,934.66 crore during the same period, driven by domestic business. Jaguar Land Rover revenue declined 7.6% QoQ and 11.3% YoY to 4.4 billion pound impacted by semiconductor shortages and China lockdowns, but customer order book grew further to 2 lakh vehicles.

Welspun India: The company has reported a 11.6% year-on-year decline in consolidated revenue at Rs 1,957.3 crore for the quarter ended June 2022, impacted by home textile business but flooring business fared better. Profit fell sharply by 90.4% to Rs 21.36 crore on weak operating performance at home textile business.

Biocon: The pharma company recorded a 54.4% YoY growth in consolidated profit at Rs 167.40 crore for the quarter ended June 2022, partly aided by higher revenue & other income and lower tax cost. Revenue grew by 21.5% to Rs 2,139.50 crore during the same period.

Exide Industries: Subsidiary Exide Energy Solutions (EESL) has executed the lease cum sale agreement for procuring land parcel admeasuring 80 acres in Bengaluru with Karnataka Industrial Areas Development Board (KIADB). The land will be used to set up state-of-the-art green field multi-gigawatt Li-ion battery cell manufacturing facility for the new-age electric mobility and stationary application businesses in India.

VIP Industries: The company registered a healthy growth in consolidated profit at Rs 69.10 crore in Q1FY23, on a low base in profit at Rs 2.53 crore in Q1FY22 that affected by second Covid wave. Revenue grew by 186.4% YoY to Rs 590.61 crore during the same period.

Schaeffler India: The company recorded a 76.2% year-on-year growth in profit at Rs 225.75 crore in Q2CY22 driven by healthy topline and higher operating income. Gain on sale of chain drive business also supported bottom line. Revenue grew by 41.8% YoY to Rs 1,748.83 crore during the June 2022 quarter.

EIH: The company clocked consolidated profit of Rs 65.86 crore for the quarter ended June 2022 on normalisation of business, against loss of Rs 114.25 crore in same period last year. In Q1FY22, numbers were affected by second Covid wave. Revenue grew by 314% YoY to Rs 394.3 crore in Q1FY23.

Hindustan Aeronautics: HAL has signed contract worth over $100 million with Honeywell for HTT-40 Engines. The company will supply and manufacture 88 TPE331-12B engines/kits along with maintenance and support services to power the Hindustan Trainer Aircraft (HTT-40).

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 436.81 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 712.03 crore on July 27, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - Delta Corp, and Indiabulls Housing Finance - are under the NSE F&O ban list for July 28. 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 27, 2022 10:17 pm
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