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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 65 stocks including Indus Towers, Alkem Laboratories, Chambal Fertilizers, Bosch, and Syngene International

August 03, 2022 / 10:13 PM IST

The market continued its uptrend for the sixth consecutive session with the Nifty50 making an attempt to cross the 17,400 mark on August 3. Overall, the benchmark indices remained in consolidation for the second straight day ahead of the outcome of the Monetary Policy Committee meeting on August 5.

The BSE Sensex rallied 214 points to 58,350.5, while the Nifty50 rose 43 points to 17,388 and formed a small-bodied bullish candle on the daily charts.

"A small positive candle was formed on the daily chart with a long lower shadow. Technically, this pattern indicates the formation of a Hanging Man-type candle pattern. But having formed a high wave and Hanging Man type pattern amidst broader range movement in the last two sessions signal choppy movement in the market. Hence, there are no indications of any reversal pattern unfolding at the highs," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

He further said that the Nifty is currently placed at the crucial overhead resistance at 17,450 levels, and there is a lack of sharp selling participation at the hurdle.

The positive chart pattern like higher tops and bottoms is intact and any short-term downward correction from here could form a new higher bottom in the market, the market expert said, adding that there is a possibility of further consolidation movement in the next one or two sessions around 17,400-17,250 levels before witnessing a sharp upside breakout of the hurdle.

Close

The upside target to be watched is at the 17,800 level and immediate support is placed at 17,220, he said.

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The broader markets turned negative on Wednesday as the Nifty Midcap 100 and Smallcap 100 indices fell 0.7 percent and 0.5 percent respectively.

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 17,273, followed by 17,159. If the index moves up, the key resistance levels to watch out for are 17,455 and 17,522.

Nifty Bank

The Nifty Bank fell 35 points to 37,989 and formed a Doji kind of pattern on the daily charts on Wednesday. The important pivot level, which will act as crucial support for the index, is placed at 37,765, followed by 37,541. On the upside, key resistance levels are placed at 38,141 and 38,293 levels.

Call option data

Maximum Call open interest of 21.60 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the August series.

This is followed by 17,500 strike, which holds 16.82 lakh contracts, and 17,300 strike, which has accumulated 12.45 lakh contracts.

Call writing was seen at 17,900 strike, which added 1.53 lakh contracts, followed by 18,500 strike which added 1.25 lakh contracts, and 18,800 strike which added 84,350 contracts.

Call unwinding was seen at 17,100 strike, which shed 1.23 lakh contracts, followed by 17,000 strike which shed 70,850 contracts and 17,200 strike which shed 55,550 contracts.

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Put option data

Maximum Put open interest of 22.47 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the August series.

This is followed by 16,000 strike, which holds 21.08 lakh contracts, and 17,000 strike, which has accumulated 20.7 lakh contracts.

Put writing was seen at 16,000 strike, which added 1.43 lakh contracts, followed by 16,600 strike, which added 1.2 lakh contracts and 16,300 strike which added 72,050 contracts.

Put unwinding was seen at 16,500 strike, which shed 1.59 lakh contracts, followed by 18,200 strike which shed 13,450 contracts, and 16,800 strike which shed 12,300 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 Whirlpool, Power Grid Corporation of India, Dalmia Bharat, Marico, and Indian Oil Corporation, among others.

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26 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 Nippon Life India, Eicher Motors, Atul, GNFC, and Piramal Enterprises, in which a long build-up was seen.

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69 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 Siemens, Max Financial Services, Voltas, Firstsource Solutions, and Aarti Industries, in which long unwinding was seen.

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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 Indus Towers, Alkem Laboratories, Chambal Fertilizers, Bosch, and Syngene International, in which a short build-up was seen.

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35 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, Power Grid Corporation, MRF, Oracle Financial and Cipla, in which short-covering was seen.

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Bulk Deals

Zomato: Fidelity Investment Trust Fidelity Series Emerging Markets Fund bought 5,44,38,744 equity shares in the company at an average price of Rs 50.26 per share, and ICICI Prudential Life Insurance Company purchased 4.5 crore shares at an average price of Rs 50.25 per share. However, Uber BV sold 61,21,99,100 equity shares in the company via open market transactions, at an average price of Rs 50.44 per share.

EPL: Norges Bank on Account of The Government Pension Fund Global sold 31,63,054 shares in the company at an average price of Rs 168.02 per share and sold 22,21,292 shares at an average price of Rs 168 per share.

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(For more bulk deals, click here)

Results on August 4

Britannia Industries, GAIL India, Adani Enterprises, LIC Housing Finance, Dabur India, Alembic Pharmaceuticals, Adani Total Gas, Aarti Surfactants, Aptech, Balkrishna Industries, Balrampur Chini Mills, BEML, Berger Paints India, Bharat Heavy Electricals, Blue Star, Container Corporation of India, Dalmia Bharat, Edelweiss Financial Services, Glenmark Life Sciences, Gujarat State Petronet, ICRA, Kalpataru Power Transmission, Kalyan Jewellers India, Krsnaa Diagnostics, Manappuram Finance, Praj Industries, REC, Shankara Building Products, Spandana Sphoorty Financial, Suryoday Small Finance Bank, Ujjivan Financial Services, Welspun Corp, and Windlas Biotech will be in focus ahead of June quarter earnings on August 4.

Stocks in News

Vodafone Idea: The telecom operator has posted a loss of Rs 7,296.7 crore for the quarter ended June 2022, against a loss of Rs 6,563.1 crore in the previous quarter following an increase in interest and financing costs, and EBIT loss. Revenue from operations grew by 1.6 percent QoQ to Rs 10,410.10 crore for the June FY23 quarter. EBITDA fell by 7 percent QoQ to Rs 4,328.4 crore and margin declined by 380 bps QoQ to 41.6 percent for the quarter.

Hindalco Industries: Aluminum solutions provider Novelis said net income attributable to its common shareholder increased 28 percent YoY to $307 million and the record adjusted EBITDA of $561 million grew by 1 percent YoY. The shipments of 962 kilotonnes in June FY23 quarter fell by 1 percent compared to 973 kilotonnes in the prior year. Net sales increased 32 percent YoY to $5.1 billion for the first quarter of fiscal year 2023, primarily driven by higher average aluminium prices and local market premiums.

InterGlobe Aviation: The aviation company posted a net loss of Rs 1,064.3 crore for the June FY23 quarter, which narrowed from a loss of Rs 3,174.2 crore in Q1FY22 as the year-ago quarter was affected by the second Covid wave. Revenue grew by 327.5 percent to Rs 12,855.3 crore during the same period. EBITDAR at Rs 716.9 crore with an EBITDAR margin of 5.6 percent improved significantly compared to negative EBITDAR of Rs 1,360.2 crore with a negative EBITDAR margin of 45.2 percent YoY.

Inox Leisure: The company reported the highest ever quarterly revenues at Rs 589 crore, the highest ever EBITDA at Rs 130 crore and the highest ever PAT at Rs 74 crore for the quarter ended June 2022, with footfalls at 18.4 million. The year-ago quarter (Q1FY22) was affected by the second Covid wave. The quarter witnessed blockbuster movies like RRR, KGF: Chapter 2, Vikram, Bhool Bhulaiya 2 and Doctor Strange In The Multiverse of Madness.

JMC Projects (India): The company said the board has approved the appointment of Vikram Singhvi as Chief Financial Officer (CFO) of the company with immediate effect. Shailendra Kumar Tripathi is reappointed as Managing Director and CEO of the company for a period of three years commencing from October 22, 2022, to October 21, 2025, subject to the approval of the members of the company. The company reported a consolidated profit of Rs 31.33 crore for the quarter ended June 2022 against a loss of Rs 10.15 crore in the same period last year. Revenue during the same period increased by 44 percent to Rs 1,671.64 crore partly on a low base as Q1FY22 was affected by the second Covid wave.

Fineotex Chemical: Ashish Kacholia acquired 5.5 lakh equity shares or a 0.5 percent stake in the company via open market transactions. With this, his shareholding in the company stands increased to 2.43 percent, from 1.94 percent earlier.

AU Small Finance Bank: The bank launched its qualified institutional placement issue on August 3 and fixed the floor price at Rs 590.84 per share for the issue, against the current market price of Rs 609.35 on August 3.

Adani Wilmar: The company recorded 10.2 percent YoY growth in consolidated profit at Rs 193.59 crore for the June FY23 quarter on strong growth in top line. Revenue grew by 30.2 percent YoY to Rs 14,731.62 crore during the same period with overall volumes rising 15 percent YoY to 1.19 MMT, and EBITDA increased by 14 percent YoY to Rs 496 crore.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 765.17 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 518.42 crore on August 3, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The National Stock Exchange has added Escorts under its F&O ban list for August 4 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: Aug 3, 2022 09:54 pm
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