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

Maximum Call open interest of nearly 21.38 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the August series

August 17, 2020 / 11:35 PM IST

The market rebounded and recouped last week's losses with the Nifty gaining six-tenth of a percent on August 17 backed by auto, FMCG, IT, metals and private banks stocks.

The Sensex closed at 38,050.78, up 173.44 points, and the Nifty climbed 68.70 points to 11,247.1. On the daily technical chart, the index has formed a Doji kind of indecisive formation, which can also be viewed as an Inside Bar due to trading inside the previous session's trading range.

The bounce back after August 14 sharp downtick indicated that the market could see another bout of upside, amid volatility, in the coming session. But if the index breaks the previous week's high decisively, then there could be a sharp rally, experts told Moneycontrol .

"There is a possibility of further upside in the short term, before showing any downward correction again from the new swing highs," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said. Immediate support is placed around 11,100-11,150 and the key overhead resistance is placed at 11,350-11,380, he added.

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Daily 14 period RSI (Relative Strength Index) is placed around 60 levels. According to this pattern, RSI turning up from 60 levels could mean further strengthening of the upside momentum in the market ahead.

The broader markets too participated in today's (August 17) gains with the Nifty Midcap and Smallcap indices rising half a percent and 0.9 percent, respectively.

Ajit Mishra, VP-Research at Religare Broking, advised continuing with a positive yet cautious stance and maintaining its focus on overnight risk management.

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 level for the Nifty is placed at 11,172.03, followed by 11,096.97. If the index moves up, the key resistance levels to watch out for are 11,294.63 and 11,342.17.

Nifty Bank

The Bank Nifty closed at 21,700.80, up 21.40 points. The important pivot level, which will act as crucial support for the index, is placed at 21,432.87, followed by 21,164.93. On the upside, key resistance levels are placed at 21,939.07 and 22,177.34.

Call option data

Maximum Call open interest of nearly 21.38 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the August series.

This is followed by 11,300, which holds 16.58 lakh contracts, and 11,400 strikes, which has accumulated 12.48 lakh contracts.

Call writing was seen at 11,900, which added 2.76 lakh contracts, followed by 11,600, which added 1.18 lakh contracts, and 11,300 strikes, which added 1.02 lakh contracts.

Call unwinding was seen at 11,500, which shed 1.15 lakh contracts, followed by 11,800 strikes, which shed 4,200 contracts.

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Put option data

Maximum Put open interest of 36.76 lakh contracts was seen at 11,000 strike, which will act as crucial support in the August series.

This is followed by 11,200, which holds 19.87 lakh contracts, and 11,100 strikes, which has accumulated 16.93 lakh contracts.

Put writing was seen at 11,200, which added 4.62 lakh contracts, followed by 11,000, which added 3.01 lakh contracts, and 10,700 strikes, which added 1.99 lakh contracts.

Put unwinding was witnessed at 10,500, which shed 1.48 lakh contracts, followed by 10,600 strikes, which shed 27,825 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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38 stocks saw long build-up

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18 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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22 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 short build-up was seen.

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61 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering.

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Bulk deals

CG Power & Industrial Solutions: L&T Finance sold 1,13,06,222 shares in company at Rs 13.94 per share on the NSE and 4,12,93,778 shares at Rs 13.97 per share on the BSE. Singularity Holdings acquired 35 lakh shares in company at Rs 13.95 per share on the NSE and Blue Diamond Properties bought 4,12,93,778 shares at Rs 13.97 per share on the BSE.

Rushil Decor: Aspire Emerging Fund sold 75,000 shares in company at Rs 105 per share.

Supreme Engineering: Sanjay R Chowdhari offloaded 2.4 lakh shares in company at Rs 16.53 per share.

McLeod Russel India: IndusInd Bank sold 22 lakh shares in the company at Rs 17.78 per share and Manju Gaggar sold 9 lakh shares at the same price, whereas Niraj Rajnikant Shah acquired 12,12,620 shares at same price.

Satin Creditcare RE: Trishashna Holdings & Investments bought 1,90,842 Rights Entitlement shares in company at Rs 20.15 per share. Linkage Securities net sold 1,47,800 RE shares at Rs 20.2 per share.

(For more bulk deals, click here)

Results on August 18

Hindustan Aeronautics, Gujarat Industries Power, GTL Infrastructure, Indo Count Industries, KNR Constructions, SPML Infra, TCNS Clothing, Uflex, Vascon Engineers, etc will announce their quarterly earnings on August 18.

Stocks in the news

Bandhan Bank: RBI lifted regulatory restrictions on the remuneration of the bank's Managing Director and CEO. With this, all the regulatory restrictions imposed by the central bank are now withdrawn.

Paisalo Digital will consider raising funds through various options, including issue of debt securities by private placement basis, in August and/or September.

Jump Networks will grow its proprietary blockchain platform across India by partnering and investing with MOS Utility. Partnership is expected to generate a revenue of over Rs 1,000 crore in the next 12 months.

Bharti Airtel: Commercial papers issued on May 18 have been paid by the company on August 17 (on the maturity date).

Orient Paper & Industries: Q1 loss at Rs 17.4 crore versus a profit Rs 8.02 crore, revenue at Rs 80.6 crore versus Rs 149.76 crore YoY.

Emami: Promoters Diwakar Viniyog Pvt, Suraj Viniyog Pvt and Bhanu Vyapaar Pvt released 40,100 pledged shares.

Ajanta Pharma: Promoter Ravi Agrawal and Trustee Ravi Agrawal Trust released 10.5 lakh pledged shares.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 332.9 crore whereas domestic institutional investors (DIIs) sold shares worth Rs 717.62 crore in the Indian equity market on August 17, as per provisional data available on the NSE.

Stock under F&O ban on NSE

Eleven stocks -- Ashok Leyland, Aurobindo Pharma, Bata India, Bharat Heavy Electricals (BHEL), Glenmark Pharmaceuticals, Vodafone Idea, Manappuram Finance, Steel Authority of India (SAIL), Jindal Steel, Sun TV Network and Vedanta -- are under the F&O ban for August 18.

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: Aug 17, 2020 09:26 pm
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