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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 50 stocks including Torrent Power, Nifty Financial, L&T Finance Holdings, Indian Oil Corporation, and RBL Bank, in which short-covering was seen.

July 26, 2022 / 02:57 PM IST

The market lost half a percent on July 25 after rising nearly five percent in previous six consecutive sessions, dragged by auto, pharma, select banks, FMCG and financial services stocks. The market seems to be cautious ahead of Federal Reserve's policy meeting.

The BSE Sensex fell more than 300 points to 55,766, while the Nifty50 declined 88.5 points to 16,631 and formed a Doji kind of pattern on the daily charts, indicating indecisiveness among bulls and bears.

"The momentum indicator RSI (relative strength index) has given a bearish hinge at overbought level which is confirming slowdown in positive momentum of the index," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital.

He further said the Nifty has an immediate resistance levels at 16,752 (3 days high) followed by 16,793 (swing high) and on the other side, it has strong support level placed at 16,483 (key support) followed by 16,359 (gap support).

As per the overall chart set up, "we may see some correction in the Nifty till 16,359 levels in the coming future. Our corrective view will be negated if it sustains above 16,793 levels on the closing basis," Vidnyan said.

Close

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The broader markets also ended in red with the Nifty Midcap 100 index falling 0.09 percent and Smallcap 100 index declining 0.6 percent on weak market breadth, while the India VIX, the fear index, rose by 6.18 percent to 17.68 levels, making the trend favourable for bears.

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 16,561, followed by 16,492. If the index moves up, the key resistance levels to watch out for are 16,703 and 16,776.

Nifty Bank

The Nifty Bank declined 12.50 points to 36,726.40 on Monday, and formed a Doji kind of pattern on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 36,457, followed by 36,187. On the upside, key resistance levels are placed at 37,003 and 37,281 levels.

Call option data

Maximum Call open interest of 88.78 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the July series.

This is followed by 16,700 strike, which holds 62.39 lakh contracts, and 17,200 strike, which has accumulated 54.21 lakh contracts.

Call writing was seen at 17,000 strike, which added 29.17 lakh contracts, followed by 16,900 strike which added 27.69 lakh contracts and 16,700 strike which added 20.75 lakh contracts.

Call unwinding was seen at 16,500 strike, which shed 8.61 lakh contracts, followed by 17,600 strike which shed 2.7 lakh contracts and 16,200 strike which shed 1.73 lakh contracts.

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Put option data

Maximum Put open interest of 64.34 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 59.82 lakh contracts, and 15,800 strike, which has accumulated 53.28 lakh contracts.

Put writing was seen at 15,900 strike, which added 14.39 lakh contracts, followed by 16,300 strike, which added 11.5 lakh contracts and 16,200 strike which added 9.06 lakh contracts.

Put unwinding was seen at 16,500 strike, which shed 13.01 lakh contracts, followed by 16,700 strike which shed 11.61 lakh contracts, and 15,600 strike which shed 4.41 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 ICICI Lombard General Insurance, Siemens, HDFC Life Insurance, Power Grid Corporation of India, and Marico, among others.

40 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 Navin Fluorine International, NTPC, Max Financial Services, Intellect Design Arena, and Indian Hotels, in which a long build-up was seen.

46 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 Bank Nifty, Bajaj Auto, Ramco Cements, Ipca Laboratories, and Voltas, in which long unwinding was seen.

61 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 Dalmia Bharat, Mahanagar Gas, Escorts, United Breweries, and Ashok Leyland, in which a short build-up was seen.

50 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 Torrent Power, Nifty Financial, L&T Finance Holdings, Indian Oil Corporation, and RBL Bank, in which short-covering was seen.

Bulk Deals

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Results on July 26

Results 2607_001

Larsen & Toubro, Asian Paints, Baid Finserv, Bajaj Auto, Tata Power Company, Union Bank of India, Aditya Birla Sun Life AMC, United Spirits, Ujjivan Small Finance Bank, UTI Asset Management Company, Greenlam Industries, Ramco Systems, Symphony, Sanofi India, Shoppers Stop, Apollo Pipes, EIH Associated Hotels, EPL, Ethos, KEI Industries, Mahindra EPC Irrigation, PNB Gilts, SIS, South Indian Bank, and TTK Healthcare will be in focus ahead of June quarter earnings on July 26.

Stocks in News

Tata Steel: The company has reported nearly 13 percent year-on-year decline in consolidated profit at Rs 7,765 crore for the quarter ended June 2022, impacted by higher input cost and tax expenses. Revenue during the quarter increased by 18.6 percent YoY to Rs 63,430 crore during the quarter. Consolidated EBITDA stood at Rs 15,047 crore, despite the sharp rise in input costs especially coking coal and gas prices in Europe, down by 7 percent YoY.

Axis Bank: The private sector lender clocked 91 percent year-on-year growth in profit at Rs 4,125 crore driven by lower provisions, but other income fell 11 percent and pre-provision operating profit declined 5 percent YoY. Net interest income grew 21 percent to Rs 9,384 crore during the same period.

Lupin: The pharma company has received approval from US FDA for its abbreviated new drug application (ANDA), Azilsartan Medoxomil tablets, to market a generic equivalent of Edarbi tablets of Azurity Pharmaceuticals Inc, in the US. The product will be manufactured at Lupin’s facility in Nagpur, India.

Tech Mahindra: The IT services provider reported a 24.8 percent sequential decline in consolidated profit at Rs 1,132 crore for the quarter ended June 2022 impacted by weak operating performance. Revenue grew by 4.9 percent QoQ to Rs 12,708 crore during the same period and EBITDA fell 10 percent QoQ to Rs 1,880 crore. Dollar revenue grew by 1.5 percent QoQ to $1,632 million and revenue growth in constant currency was 3.5 percent QoQ.

Sonata Software: The company said the board has approved a bonus issue of one equity share for every three equity shares held by the shareholders of the company as on the record date. The bonus issue of equity shares will be subject to approval by the shareholders. The company reported 24 percent year-on-year growth in consolidated profit at Rs 107.76 crore and revenue grew by 40.2 percent to Rs 1,778.86 crore YoY.

Tanla Platforms: The company reported a 4 percent year-on-year decline in profit at Rs 100.4 crore for the quarter ended June 2022, dented by weak operating performance. Revenue was strong, rising 27.7 percent to Rs 800.1 crore during the same period. EBITDA fell by 2.8 percent to Rs 130.70 crore and margin contracted to 16.3 percent from 21.5 percent in the same period.

Macrotech Developers: The real estate company has recorded a 69 percent year-on-year growth in profit at Rs 271.26 crore for the quarter ended June 2022, driven by strong topline growth. Revenue grew by 66.67 percent to Rs 2,675.75 crore in the same period. It was the best ever first quarter with Rs 2,814 crore of pre-sales from its India business.

Craftsman Automation: The company clocked a 135.3 percent year-on-year growth in consolidated profit at Rs 56.64 crore for the quarter ended June 2022, supported by higher topline and operating income. Revenue jumped 55.55 percent YoY to Rs 676.96 crore during the same period.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 844.78 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 72.26 crore on July 25, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - Indiabulls Housing Finance - is under the NSE F&O ban list for July 26. 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 25, 2022 09:36 pm
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