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

Nagaraj Shetti of HDFC Securities says the short term trend of Nifty is choppy and the market is expected to move in the range of 13,100-12,800 levels by next week.

December 01, 2020 / 07:19 AM IST

The market remained volatile throughout the day and finally settled with a moderate loss on November 27, the last day of the month and the first day of the December series.

The BSE Sensex declined 110.02 points to 44,149.72, while the Nifty50 fell 18 points to 12,969 and formed a small-bodied bearish candle on the daily charts.

"A small negative candle was formed with minor lower shadow. This pattern could indicate a sideways range movement at the highs. The formation of a Bearish Engulfing pattern of November 25 is still intact. Unless Nifty moves above the high of that pattern at 13,145, consolidation movement or a minor weakness from the highs could be expected in the short term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.

The Nifty50 gained 0.85 percent during last week and formed Doji kind of indecisive pattern on the weekly scale as closing was near opening levels, while for the month, it gained 11 percent and formed a large bullish candle on the monthly charts.

"Normally, a formation of Doji after a reasonable upmove could indicate alert of trend reversal post confirmation of weakness in the subsequent weeks," he said.

Close

He feels the short-term trend of Nifty is choppy and the market is expected to move in a range of 13,100-12,800 levels by next week.

"The study of long-term charts like weekly and monthly timeframe signal crucial overhead resistance for the market around 13,100-13,150 levels. The lower area of 12,850-12,750 is going to be an important base for the Nifty and a decisive move below this area could open a sharp downward correction in the market," Shetti said.

The market was shut on Monday for Gurunanak Jayanti.

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 is placed at 12,910.43, followed by 12,851.87. If the index moves up, the key resistance levels to watch out for are 13,031.43 and 13,093.87.

Nifty Bank

The Bank Nifty gained 59.30 points to close at 29,609.05 on November 27. The important pivot level, which will act as crucial support for the index, is placed at 29,412.93, followed by 29,216.77. On the upside, key resistance levels are placed at 29,761.04 and 29,912.97.

Call option data

Maximum Call open interest of 27.12 lakh contracts was seen at 13,000 strike, which will act as crucial resistance level in the December series.

This is followed by 13,500 strike, which holds 18.89 lakh contracts, and 13,200 strike, which has accumulated 6.08 lakh contracts.

Call writing was seen at 13,500 strike, which added 2.11 lakh contracts, followed by 13,000 strike which added 2 lakh contracts and 13,700 strike which added 1.25 lakh contracts.

Call unwinding was seen at 12,800 strike, which shed 31,575 contracts, followed by 12,600 strike which shed 31,050 contracts and 12,900 strike which shed 22,650 contracts.

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Put option data

Maximum Put open interest of 27.79 lakh contracts was seen at 12,000 strike, which will act as crucial support in the December series.

This is followed by 13,000 strike, which holds 23.16 lakh contracts, and 12,500 strike, which has accumulated 21.36 lakh contracts.

Put writing was seen at 13,000 strike, which added 3.44 lakh contracts, followed by 12,000 strike, which added 2.38 lakh contracts and 12,500 strike which added 2.32 lakh contracts.

There was hardly any Put unwinding seen on the first day of the December series.

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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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51 stocks saw long build-up

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

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22 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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36 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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27 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)

Analysts Meets/Board Meetings

Mahindra Logistics: Interactions with various Analysts/Institutional Investors/Funds are scheduled to be held on December 1.

Crompton Greaves Consumer Electricals: The company's officials will interact with ENAM Asset Management on December 1, Sands Capital Management, USA on December 2 and Goldman Sachs (India) Securities on December 5.

Dredging Corporation of India: The 44th AGM of the company will be held on December 22.

Cupid: The 27th annual general meeting of the company will be held on December 22.

Stocks in the news

Auto Stocks including M&M, Tata Motors, Bajaj Auto, Maruti Suzuki, TVS Motor, Hero MotoCorp and Ashok Leyland in focus: Companies will release their November sales data.

Hero Motocorp: The company appointed Michael Clarke as chief operating officer.

Future Consumer: Bennett, Coleman & Company reduced stake in the company to 4.25 percent from 6.33 percent via open market transaction.

HealthCare Global Enterprises: The company entered into a Share Purchase Agreement with Kamini A Rao and her family members (minority shareholders) for the acquisition of 46,695 Equity Shares aggregating to 49.9 percent in BACC. The company approved the appointment of Meghraj Arvindrao Gore as the CEO.

ICICI Lombard General Insurance Company: The company received in-principle approval of The Insurance Regulatory and Development Authority of India to the draft scheme of arrangement between the company and Bharti AXA General Insurance Company.

Fortis Healthcare: Aberdeen Standard Investments (Asia) Ltd increased its stake in the company to 5.02 percent from 4.96 percent via open market purchases.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 7,712.98 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 4,968.9 crore in the Indian equity market on November 27, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Not a single stock is under the F&O ban for December 1. 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: Nov 30, 2020 08:13 pm
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