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

Key support level for the Nifty is placed at 10,638.93, followed by 10,572.07. If the index moves up, the key resistance levels to watch out for are 10,810.23 and 10,914.67.
Jul 8, 2020 / 08:59 PM IST

Headline indices — Sensex and Nifty — ended in the red, snapping five consecutive sessions of gains, on July 8, due to profit-booking amid mixed global cues.

The Sensex closed 346 points, or 0.94 percent, lower at 36,329.01, and the Nifty ended down 94 points, or 0.87 percent, at 10,705.75 levels.

"We may see a marginal dip in the index before a further up-move and that would be a healthy correction. Firm global markets and recent buoyancy in the banking index would cap the downside. All eyes will be on Q1 FY21 earnings of Tata Consultancy Services (TCS), which is scheduled for July 9. Traders should prefer hedged trades instead of outrights, citing a possible uptick in the volatility ahead," said Ajit Mishra, VP - Research, Religare Broking.

We have collated 15 data points to help you spot profitable trades in the next session:

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

Key support and resistance levels for the Nifty

According to pivot charts, the key support level for the Nifty is placed at 10,638.93, followed by 10,572.07. If the index moves up, the key resistance levels to watch out for are 10,810.23 and 10,914.67.

Nifty Bank

The Nifty Bank index ended 0.19 percent lower at 22,584.65 on July 8. The important pivot level, which will act as crucial support for the index, is placed at 22,362.6, followed by 22,140.5. On the upside, key resistance levels are placed at 22,943.7 and 23,302.7.

Call option data

Maximum call OI of 22.10 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.

This is followed by 11,200, which holds 11.60 lakh contracts, and 10,500 strikes, which has accumulated 10.38 lakh contracts.

Significant call writing was seen at 11,200, which added 1.33 lakh contracts, followed by 10,700 strikes, which added 96,150 contracts.

Call unwinding was witnessed at 10,600, which shed 60,225 contracts, followed by 10,500 strikes, which shed 53,100 contracts.

Image 1

Put option data

Maximum put OI of 19.08 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.

This is followed by 10,200, which holds 14.63 lakh contracts, and 10,600 strikes, which has accumulated 9.58 lakh contracts.

Significant put writing was seen at 10,700, which added 1.75 lakh contracts, followed by 10,500 strikes, which added 1.25 lakh contracts.

Put unwinding was witnessed at 10,300 strikes, which shed 2.04 lakh contracts.

Image 2

Stocks with a high delivery percentage

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

High delivery

26 stocks saw long build-up

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

Long buildup

58 stocks saw long unwinding

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

Long unwinding

34 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 the OI future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup

25 stocks witnessed short-covering

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

Short covering

Bulk deals

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Results on July 9

Tata Consultancy Services, Arvind Fashions, Sadbhav Engineering, Arihant Capital Markets, Brady & Morris Engineering, CIL Nova Petrochemicals, HPL Electric & Power, SKIL Infrastructure, Tree House Education, Tirupati Tyres, and WH Brady & Co.

Stocks in the news

GAIL India: LIC increased stake in the company by 2.01 percent to 7 percent via market purchases.

South Indian Bank: Q1 profit at Rs 81.65 crore versus Rs 73.26 crore, net interest income (NII) at Rs 586.89 crore versus Rs 535.66 crore YoY.

Kokuyo Camlin: Q4 loss at Rs 34.43 lakh versus profit at Rs 4.54 crore, revenue at Rs 144.4 crore versus Rs 194.08 crore YoY.

CSB Bank: Infinity Holdings acquired a 1.14 percent stake in the company in the June quarter.

​TCPL Packaging: The entire promoter shareholding is now free from encumbrance.

DB Corp: Promoter group company DB Consolidated released a pledge on 9,75,000 equity shares of the company.

Fund flow

Fu

FII and DII data

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 994.87 crore and 853.41 crore, respectively, in the Indian equity market on July 8, provisional data available on the NSE showed.

Stock under F&O ban on NSEBharat Heavy Electricals (BHEL), Equitas Holdings, Glenmark Pharmaceuticals, Indiabulls Housing Finance and Steel Authority of India (SAIL) are under the F&O ban for July 9. 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.
Nishant Kumar
first published: Jul 8, 2020 08:59 pm
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