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

Indian equity markets recovered sharply on April 22 on the back of positive global cues and deal between Reliance Jio and Facebook amid a gloomy economic environment.

The Sensex closed with a 743 points, or 2.42 percent, gain at 31,379.55 and the Nifty settled 206 points, or 2.29 percent, higher at 9,187.30.

"The market is likely to remain volatile and react to earnings, trends in the number of coronavirus cases, crude oil prices, currency movements and global events. Any announcement from the government with regard to an economic stimulus package could provide some interim relief," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Technically, immediate resistance for the Nifty is placed around 9,400, while support is moving higher to 9,000 levels from the previous key level of 8,900-8,800. Considering the overall chart structure, we may see index

trading in a broader range of 8,900 to 9,400 in coming sessions,” Khemka said.

We have collated 15 data points to help you spot profitable trades:

Note: The open interest (OI) and volume data of stocks in this story are aggregates of the three-months data and not of the current month only.

Key support and resistance level for the Nifty

According to the pivot charts, the key support level on the Nifty is placed at 9,019.12, followed by 8,850.93. If the index continues moving up, key resistance levels to watch out for are 9,282.62 and 9,377.93.

Nifty Bank

Nifty Bank closed 1.51 percent higher at 19,701.85. The important pivot level, which will act as crucial support for the index, is placed at 19,233.7, followed by 18,765.6. On the upside, key resistance levels are placed at 19,988.1 and 20,274.4.

Call options data

Maximum call OI of 15.16 lakh contracts was seen at the 9,500 strike price. It will act as a crucial resistance level in the April series.

This is followed by 9,000 strike, which holds 14.87 lakh contracts, and 9,200, which has accumulated 4.64 lakh contracts.

Significant call writing was seen at the 9,100 strike, which added 1.08 lakh contracts, followed by 9,700 strike that added 43,500 contracts.

Call unwinding was witnessed at 9,000 strike price, which shed 1.80 lakh contracts.

Put options data

Maximum put OI of 25.62 lakh contracts was seen at 9,000 strike, which will act as crucial support in the April series.

This is followed by 9,500, which holds 8.16 lakh contracts, and 8,700 strikes, which has accumulated 6.68 lakh contracts.

Put writing was seen at the 9,000 strike, which added 4.23 lakh contracts, followed by 8,800 strike, which added 1.75 lakh contracts.

A minor put unwinding was seen at 9,400 strike, which shed 17,175 contracts.

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

89 stocks saw long build-up

Based on OI future percentage, here are the top 10 stocks in which long build-up was seen.

Three stocks saw long unwinding

28 stocks saw short build-up

An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on OI future percentage, here are the top 10 stocks in which short build-up was seen.

24 stocks witnessed short-covering

A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on OI future percentage, here are the top 10 stocks in which short-covering was seen.

Bulk deals

(For more bulk deals, click here)

Earnings

TV18 Broadcast, Network 18, Britannia, Hathway Cable and Bharti Infratel are among the companies that will announce their March quarter results on April 23.

Stocks in the news

Piramal Enterprises: CARE reaffirmed credit rating for the company's long term NCDs and commercial paper at AA/Stable and A1+, respectively.

KNR Constructions' special purpose vehicles (SPVs) recommenced collection of user fee (toll) on all NHAI projects.

Narayana Hrudayalaya: Mutual funds raised stake in the company to 13.93 percent in Q4FY20 from 5.64 percent in Q3FY20, whereas CDC Group and CDC India Opportunities exited during the March quarter.

Zee Entertainment: Florida Retirement System bought 51,09,188 shares (or 0.53 percent) at Rs 141.29 per share.

Endurance Tech: Smallcap World Fund Inc sold 33,95,856 shares at Rs 566.66 per share.

Tanla Solutions: Board approved buyback of shares up to Rs 154 crore.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,326.09 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 863.82 crore in the Indian equity market on April 22, provisional data available on the NSE showed.

Stock under F&O ban on NSE

No security is under the F&O ban for April 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.