Moneycontrol Be a Pro
Get App
Last Updated : Sep 23, 2019 08:32 PM IST | Source: Moneycontrol.com

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

While the market is logging stellar gains, analysts feel there is also a risk of consolidation.

Nishant Kumar @Nishantopines

On expected lines, the Indian market remained in positive territory for the second consecutive session on September 23 as investors continued their buying spree in the wake of government's decision to slash corporate tax rate.

Sensex closed the day with a robust gain of 1,075 points or 2.83 percent at 39,090.03, with 16 stocks in the green and 14 in the red.

The Nifty index jumped 326 points or 2.89 percent to settle at 11,600.20. Among the 50 stocks in the index, 32 logged gains.

Close

Both Sensex and Nifty have jumped over 8 percent in the last two sessions.

The strong gains of the last two sessions have made investors richer by Rs 10.35 lakh crore as the cumulative market capitalisation of BSE listed firms has jumped to Rs 1,48,89,652.44 crore from Rs 1,38,54,439.41 crore on September 19. On September 23 alone, investors' wealth increased by Rs 3.52 lakh crore.

The recent measures by the government, including the reduction in the corporate tax rate, the abolition of enhanced tax surcharge and updated norms of FDI and CSR spending, are seen as long-term positives by most foreign brokerages.

Foreign financial firm Morgan Stanley has raised the target for Sensex to 45,000 by June 2020, saying that it sees green shoots in the offing.

Citi has raised March 2020 target for Sensex to 40,500 from 39,000. Goldman Sachs has raised Nifty50 target to 13,000 from 12,500 while JP Morgan has raised Nifty's target to 12,200. Nomura has also raised March 2020 Nifty target to 12,545.

While the market is logging stellar gains, analysts feel there is also a risk of consolidation.

"The Indian market is trading near peak valuations so we would remain cautious on the markets and expect it to consolidate in the near term. However, the recent announcements made by the FM are definitely positive for the Indian economy from a long-term perspective. Hence, investors should focus on accumulating fundamentally sound stocks," said Ajit Mishra, Vice President - Research at Religare Broking.

We have collated 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

According to the pivot charts, key support level for Nifty is placed at 11,482.73, followed by 11,365.27. If the index continues moving up, key resistance levels to watch out for are 11,706.23 and 11,812.27.

Nifty Bank

The Nifty Bank closed with a robust gain of 5.47 percent at 30,566.20 on September 23. The important pivot level, which will act as crucial support for the index, is placed at 29,961.23, followed by 29,356.27. On the upside, key resistance levels are placed at 30,986.23 and 31406.27.

Call options data

Maximum call open interest (OI) of 30.91 lakh contracts was seen at the 11,600 strike price. It will act as a crucial resistance level in the September series.

This is followed by 11,700 strike price, which now holds 24.12 lakh contracts in open interest, and 11,500, which has accumulated 21.10 lakh contracts in open interest.

Significant call writing was seen at the 11,600 strike price, which added 12.47 lakh contracts, followed by 11,700 strike price that added 11.72 lakh contracts and 12,000 strike which added 8.76 lakh contracts.

Call unwinding was seen at 11,400 strike price, which shed 10.79 lakh contracts, followed by 11,300 strike price, which shed 10.06 lakh contracts and 11,200 which shed 7.08 lakh contracts.

Image 1

Put options data

Maximum put open interest of 26.19 lakh contracts was seen at 11,500 strike price, which will act as crucial support in September series.

This is followed by 11,400 strike price, which holds 22.97 lakh contracts in open interest, and 11,300 strike price, which has accumulated 22.02 lakh contracts in open interest.

Put writing was seen at the 11,500 strike price, which added 20.33 lakh contracts, followed by 11,400 strike, which added 19.95 lakh contracts and 11,600 strike which added 16.33 lakh contracts.

Put unwinding was seen at 11,100 strike price, which shed 5.36 lakh contracts, followed by 11,200 strike which shed 42,000 contracts.

Image 2

Stocks with a high delivery percentage

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

High delivery

105 stocks saw long buildup

As many as 105 stocks saw long buildup on September 23. Based on largest open interest (OI) future percentage points, here are the top 15 stocks in which short build-up was seen.

Long build up

Only 3 stocks saw long unwinding

Long unwinding

48 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 open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.

Short buildup

7 stocks witnessed short-covering

As per available data, seven stocks witnessed short-covering on September 23. A decrease in open interest, along with an increase in price, mostly indicates a short covering.

short covering

Bulk deals

Buld deal

(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings:

The board of JSW Steel will meet on September 24 for general purpose.

The board of L&T Finance Holdings will meet on September 24 for general purpose.

The board of Punjab National Bank will meet on September 26 for general purpose.

The board of directors of Ipca Laboratories will be held on September 26 to consider issuance of convertible warrants to promoters and members of the promoter group of the company on a preferential basis.

The board of GOCL Corporation will meet on September 27 to consider special dividend.

The board of Gujarat Alkalies and Chemicals (GACL) will meet on September 27 to consider the stock split.

Stocks in news:

Axis Bank: ICRA has assigned "ICRA MAAA" rating with 'stable' outlook to the fixed deposit programme of the bank.

Wipro: The company collaborated with FEBRABAN to develop noomis, an online platform for the financial services industry in Brazil.

Manappuram Finance: The board of the company has approved raising upto Rs 465 crore via NCDs.

Indosolar: Promoter IDBI Capital has cut stake to 0.88 percent from 2.88 percent.

NCC: Promoter released a pledge on 1 lakh shares (0.02 percent equity) on September 17.

Zensar Technologies: The company has expanded operations in Cape Town, South Africa.

FII & DII data

Foreign institutional investors (FIIs) bought shares worth Rs 2,684.05 crore, while domestic institutional investors (DIIs) too bought Rs 291.95 crore worth of shares in the Indian equity market on September 23, as per provisional data available on the NSE.

Fund flow

Fund Flow

No stock under ban period on NSE

There is no stock under F&O ban for September 24. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 23, 2019 08:28 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour