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

Traders should trail stop-loss towards 18,100 levels for all long positions with an upside towards 18,400 levels, says Rajesh Palviya of Axis Securities.

January 17, 2022 / 11:43 PM IST

The market closed at three-month high amid volatility on January 17, driven by positive global cues, and buying interest in Auto, select FMCG and Metal stocks.

BSE Sensex rose 86 points to close at 61,309, while the Nifty50 jumped 52.30 points to 18,308, the highest level since October 19, 2021, and formed bullish candle on the daily charts.

"The daily price action has formed a small bullish candle forming higher High-Low compared to the previous session and closed above the previous session's high, indicating a positive bias. On the daily chart, the bullish gap area 18,128-18,081 levels may act as a crucial support zone. The overall short to medium-term trend is still intact bullish," says Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities.

He advised that traders should trail stop-loss towards 18,100 levels for all long positions with an upside towards 18,400 levels. "Short term traders and investors are advised to book partial profits near the supply zone of 18,300-18,400 levels as any violation of 18,100 levels may cause short term profit booking towards 18,000-17,800."

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Close

The broader markets also gained momentum as the Nifty Midcap 100 and Smallcap 100 indices have gained 0.16 percent and 0.6 percent respectively.

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 18,250.73, followed by 18,193.37. If the index moves up, the key resistance levels to watch out for are 18,343.53 and 18,378.96.

Nifty Bank

The Nifty Bank fell further, down 154.20 points to 38,216.20 on January 17. The important pivot level, which will act as crucial support for the index, is placed at 38,030.37, followed by 37,844.63. On the upside, key resistance levels are placed at 38,509.67 and 38,803.23 levels.

Call option data

Maximum Call open interest of 20.06 lakh contracts was seen at 18500 strike, which will act as a crucial resistance level in the January series.

This is followed by 19000 strike, which holds 18.05 lakh contracts, and 18300 strike, which has accumulated 16.87 lakh contracts.

Call writing was seen at 18300 strike, which added 2.89 lakh contracts, followed by 19000 strike which added 2.08 lakh contracts, and 18900 strike which added 1.75 lakh contracts.

Call unwinding was seen at 18200 strike, which shed 6.37 lakh contracts, followed by 18000 strike which shed 95,800 contracts and 18100 strike which shed 62,400 contracts.

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Put option data

Maximum Put open interest of 28.52 lakh contracts was seen at 18000 strike, which will act as a crucial support level in the January series.

This is followed by 17500 strike, which holds 23.41 lakh contracts, and 17200 strike, which has accumulated 16.40 lakh contracts.

Put writing was seen at 18300 strike, which added 3.55 lakh contracts, followed by 17800 strike, which added 2.36 lakh contracts, and 17900 strike which added 1.58 lakh contracts.

Put unwinding was seen at 18200 strike, which shed 4.49 lakh contracts, followed by 17500 strike which shed 1.33 lakh contracts, and 17600 strike which shed 84,850 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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62 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 in which a long build-up was seen.

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32 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 in which long unwinding was seen.

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53 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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51 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

Alkali Metals: Societe Generale acquired 57,406 equity shares in the company at Rs 129.15 per share on the NSE, the bulk deals data showed.

Coffee Day Enterprises: DSP Investment Managers sold 28,26,540 equity shares in the company at Rs 70.2 per share on the NSE, the bulk deals data showed.

Lasa Supergenerics: BNP Enterprises sold 5,50,279 equity shares in the company at Rs 73.23 per share on the NSE, the bulk deals data showed.

Seacoast Shipping Services: Nomura Singapore acquired 50 lakh equity shares in the company at Rs 19.71 per share on the BSE, the bulk deals data showed.

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(For more bulk deals, click here)

Analysts/Investors Meeting; and Results on January 18

Results on January 18: Bajaj Finance, ICICI Prudential Life Insurance Company, L&T Technology Services, ICICI Securities, Tata Elxsi, Anup Engineering, DCM Shriram, Den Networks, EKI Energy Services, Just Dial, Jyoti Structures, Network18 Media & Investments, Newgen Software Technologies, Ramkrishna Forgings, Shree Ganesh Remedies, Shakti Pumps (India), Star Housing Finance, Trident, and TV18 Broadcast will release quarterly earnings on January 18.

Mrs Bectors Food Specialities: The company's officials will interact with institutional Investors on January 18.

GE T&D India: The company's officials will meet SBI Mutual Fund & Nippon Mutual Fund on January 18.

Fineotex Chemical: The company's officials will meet analysts and investors on January 19, to discuss financial results.

EKI Energy Services: The company's officials will meet investors & analysts on January 19, to discuss financial results.

Bank of Maharashtra: The company's officials will meet analysts and investors on January 20, to discuss financial results.

HDFC Life Insurance Company: The company's officials will meet analysts and investors on January 21, to discuss financial results.

South Indian Bank: The company's officials will meet analysts and investors on January 21, to discuss financial results.

Hi-Tech Pipes: The company's officials will meet investors and analysts on January 21, to discuss financial performance.

SBI Cards and Payment Services: The company's officials will meet analysts and investors on January 24, to discuss financial performance.

AU Small Finance Bank: The company's officials will meet analysts and investors on January 28, to discuss financial results.

Stocks in News

Vikas Ecotech: The company reported higher profit at Rs 3.42 crore in Q3FY22 against Rs 0.01 crore in Q3FY21, revenue jumped to Rs 75.26 crore from Rs 28.39 crore YoY.

Angel One: The company reported sharply higher profit at Rs 164.54 crore in Q3FY22 against Rs 73.16 crore in Q3FY21, revenue surged to Rs 597.3 crore from Rs 306.79 crore YoY.

Dilip Buildcon: The four employees who were taken in custody by investigating agency has been released and now nobody from the company is under custody of investigating agency as of now. The project 'four laning of Yavatmal to Wardha (Package-III) section of NH-361 under NHDP Phase -IV on Hybrid Annuity mode in Maharashtra' has been completed.

HFCL: The company reported lower consolidated profit at Rs 81.1 crore in Q3FY22 against Rs 85.1 crore in Q3FY21, revenue fell to Rs 1,215.2 crore from Rs 1,277.4 crore YoY.

Strides Pharma Science: The company's subsidiary Strides Pharma Global Pte Limited, Singapore received USFDA approval for Oseltamivir Phosphate for oral suspension.

Tatva Chintan Pharma Chem: The company reported higher profit at Rs 22.8 crore in Q3FY22 against Rs 20.87 crore in Q3FY21, revenue jumped to Rs 104.67 crore from Rs 80.1 crore YoY.

Tech Mahindra: The company approved to buy Com Tech Co IT Ltd for 310 million euros and buy 25% stake each in SWFT Technologies, and Surance.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 855.47 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 115.31 crore in the Indian equity market on January 17, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Five stocks - Escorts, Granules India, Indiabulls Housing Finance, Vodafone Idea, and SAIL - are under the F&O ban for January 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.

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.



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Sunil Shankar Matkar
first published: Jan 17, 2022 10:01 pm
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