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Trade setup for Tuesday: Top 15 things to know before Opening Bell

Though the Nifty is placed at an all-time high, there is no indication of any reversal pattern forming at the highs, says Nagaraj Shetti of HDFC Securities.

February 09, 2021 / 07:28 AM IST

The northward journey of the market continued for the sixth consecutive session with the Nifty50 closing above the psychological 15,000 mark for the first time on February 8. Positive global cues and FII inflow lifted sentiment. Banking and financials, auto, IT and metals led the rally.

The benchmark indices ended at a record closing high. The BSE Sensex surged 617.14 points or 1.22 percent to 51,348.77, while the Nifty50 jumped 191.50 points or 1.28 percent to 15,115.80 and formed a small bullish candle on the daily charts.

"A reasonable positive candle was formed on the daily chart with the gap-up opening. This is the second unfilled gap in a span of five sessions. The formation of the previous gap of February 2 could be considered as a bullish breakaway gap and the present gap (of Monday) is expected to be a bullish runaway gap, provided this gap remains unfilled for the next couple of sessions. On the occurrence of such action, the market could show more upside in the near term," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

"Though the Nifty is placed at an all-time high, there is no indication of any reversal pattern forming at the highs. The next upside levels to be watched are around 15,500, which is at 1.618 percent fibonacci extension (connected from January 2020 top to March 2020 bottom). This could be achieved in the next one week. Immediate support is placed at 14,960," he said.

The broader markets outpaced frontliners as the Nifty Midcap and Smallcap indices climbed 1.5 percent each.

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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

According to pivot charts, the key support levels for the Nifty are placed at 15,051.23, followed by 14,986.67. If the index moves up, the key resistance levels to watch out for are 15,170.13 and 15,224.47.

Nifty Bank

The Nifty Bank gained 329.20 points to close at 35,983.70 on February 8. The important pivot level, which will act as crucial support for the index, is placed at 35,748.4, followed by 35,513.2. On the upside, key resistance levels are placed at 36,342.6 and 36,701.6.

Call option data

Maximum Call open interest of 19.41 lakh contracts was seen at 15,500 strike, which will act as a crucial resistance level in the February series.

This is followed by 16,000 strike, which holds 17.03 lakh contracts, and 15,000 strike, which has accumulated 12.91 lakh contracts.

Call writing was seen at 15,500 strike, which added 3.86 lakh contracts, followed by 15,100 strike which added 2.7 lakh contracts and 16,000 strike which added 1.5 lakh contracts.

Call unwinding was seen at 14,900 strike, which shed 2.42 lakh contracts, followed by 15,000 strike which shed 1.97 lakh contracts and 14,800 strike which shed 1.05 lakh contracts.

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Put option data

Maximum Put open interest of 32.05 lakh contracts was seen at 14,000 strike, which will act as crucial support level in the February series.

This is followed by 14,500 strike, which holds 19.81 lakh contracts, and 14,200 strike, which has accumulated 15.33 lakh contracts.

Put writing was seen at 14,500 strike, which added 4.77 lakh contracts, followed by 15,000 strike, which added 4.37 lakh contracts and 15,100 strike which added 2.20 lakh contracts.

Put unwinding was seen at 14,000 strike, which shed 3.24 lakh contracts, followed by 14,200 strike which shed 62,025 contracts.

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Stocks with a high delivery percentage

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

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60 stocks saw long build-up

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

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12 stocks saw long unwinding

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

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18 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 in which a short build-up was seen.

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53 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 in which short-covering was seen.

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Bulk deals

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(For more bulk deals, click here)

Results on February 9

Tata Steel, Adani Ports and Special Economic Zone, Aries Agro, Aster DM Healthcare, BASF India, Berger Paints India, Burger King India, Central Bank of India, Chalet Hotels, Dhanlaxmi Bank, Endurance Technologies, Future Retail, GMDC, HCC, HEG, Indoco Remedies, Indian Overseas Bank, Jammu & Kashmir Bank, Lemon Tree Hotels, Max Financial Services, Mahanagar Gas, Muthoot Finance, Raymond, Shree Renuka Sugars, Spandana Sphoorty Financial, Torrent Power and VST Tillers Tractors are among 218 companies to announce their quarterly earnings on February 9.

Stocks in the news

Torrent Pharma: The company reported a higher consolidated profit at Rs 297 crore in Q3FY21 against Rs 251 crore in Q3FY20; revenue increased to Rs 1,995 crore from Rs 1,966 crore YoY.

NMDC: The company reported sharply higher profit at Rs 2,108 crore in Q3FY21 against Rs 1,375 crore in Q3FY20, and revenue jumped to Rs 4,355.1 crore from Rs 3,006.4 crore YoY.

Majesco: Third Alpha LLP, Third Edge Advisors LLP, Alpha Alternatives Multi Strategy Absolute Return Scheme, and Alpha Alternatives Fund Advisors LLP reduced their stake in the company to 2.56 percent from 5.65 percent via open market sale.

Jindal Stainless (Hisar): The company reported a higher consolidated profit at Rs 270.20 crore in Q3FY21 against Rs 82.04 crore in Q3FY20; revenue rose to Rs 3,146.65 crore from Rs 2,484.12 crore YoY.

Sun TV Network: The company reported a higher consolidated profit at Rs 445.41 crore in Q3FY21 against Rs 384.69 crore in Q3FY20. Revenue rose to Rs 994.14 crore from Rs 847.81 crore YoY.

Redington India: The company reported consolidated profit at Rs 201.94 crore in Q3FY21 against Rs 182.30 crore in Q2FY21. Revenue jumped to Rs 16,980.84 crore from Rs 13,763.94 crore QoQ.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,876.6 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 504.86 crore in the Indian equity market on February 8, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - BHEL, SAIL and Sun TV Network - are under the F&O ban for February 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.
Sunil Shankar Matkar
first published: Feb 8, 2021 08:34 pm
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