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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 57 stocks including India Cements, Nifty Financial, Astral, Lupin, and Bajaj Auto in which a short-covering was seen

September 20, 2022 / 08:58 AM IST

The market rebounded with half a percent gains on September 19, after losing 3 percent in the previous three trading sessions, as traders await the Federal Reserve's interest rate decision which is due in the middle of this week.

The BSE Sensex rallied 300 points to 59,141, while the Nifty50 climbed 92 points to 17,622 and formed a decent bullish candlestick pattern on the daily charts.

"A small positive candle was formed on the daily chart with a minor lower shadow. Technically, this pattern indicates a minor upside bounce in the market," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

The Nifty is currently placed within a broader range of 18,000-17,500 levels and it was seen showing a minor upside bounce from the lower range. Hence, any sustainable upside bounce from here could encounter hurdles around 17,750, 17,860 and 18,050 levels.

Monday's upside bounce could be a cheering factor for the bulls to make a comeback. Further sustainable upmove from here could pull the Nifty towards the 18,000 mark again, he said, adding that any weakness below the support of 17,450 levels could open the next downside towards the 17,100-17,000 levels in the near term.

Close

But there was underperformance in the broader space as the Nifty Midcap 100 index closed flat and the Nifty Smallcap 100 index declined nearly 1 percent.

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

Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.

Key support and resistance levels on the Nifty

As per the pivot charts, the key support level for the Nifty is placed at 17,479, followed by 17,335. If the index moves up, the key resistance levels to watch out for are 17,716 and 17,810.

Nifty Bank

The Nifty Bank climbed 128 points to 40,904 and formed a bullish candle on the daily charts on Monday. The important pivot level, which will act as crucial support for the index, is placed at 40,548, followed by 40,192. On the upside, key resistance levels are placed at 41,222 and 41,540 levels.

CALL OPTION DATA

Maximum Call open interest of 29.01 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the September series.

This is followed by 18,500 strike, which holds 20.57 lakh contracts, and 19,000 strike, which has 19.31 lakh contracts.

Call writing was seen at 17,600 strike, which added 2.13 lakh contracts, followed by 18,600 strike which added 2.06 lakh contracts, and 18,400 strike which added 1.2 lakh contracts.

Call unwinding was seen at 18,000 strike, which shed 1.63 lakh contracts, followed by 18,100 strike which shed 1.07 lakh contracts, and 18,500 strike which shed 92,400 contracts.

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PUT OPTION DATA

Maximum Put open interest of 34.39 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the September series.

This is followed by 17,500 strike, which holds 31.93 lakh contracts, and 17,000 strike, which has accumulated 27.9 lakh contracts.

Put writing was seen at 17,200 strike, which added 3.53 lakh contracts, followed by 17,600 strike, which added 2.76 lakh contracts, and 17,500 strike which added 2.68 lakh contracts.

Put unwinding was seen at 16,500 strike, which shed 1.33 lakh contracts, followed by 16,800 and 18,000 strikes which shed 1.11 lakh contracts each.

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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 Larsen & Toubro, Power Grid Corporation of India, ITC, Godrej Consumer Products, and Bharti Airtel, among others.

TuesdayTradeSetup 2009_002

31 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 including Escorts, TVS Motor Company, ACC, Bharti Airtel, and Mahanagar Gas.

TuesdayTradeSetup 2009_006

57 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 Birlasoft, Polycab India, ICICI Bank, Tata Consumer Products, and Gujarat State Petronet, in which long unwinding was seen.

TuesdayTradeSetup 2009_005

51 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, the top 10 stocks in which a short build-up was seen include Can Fin Homes, Muthoot Finance, Gujarat Gas, L&T Technology Services, and M&M Financial Services.

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57 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 include India Cements, Nifty Financial, Astral, Lupin, and Bajaj Auto.

TuesdayTradeSetup 2009_003

Bulk Deals

Advanced Enzyme Technologies: Nalanda India Equity Fund acquired additional 29,11,630 equity shares (2.6 percent stake) in the company via open market transactions at an average price of Rs 270.03 per share. However, Advanced Vital Enzymes sold 25,73,500 shares (2.3 percent shareholding) at an average price of Rs 270.04 per share.

Krishna Institute of Medical Sciences: Investor General Atlantic Singapore KH Pte Ltd further sold 12.1 lakh shares (1.5 percent stake) in the company at an average price of Rs 1,250 per share. However, ICICI Prudential Life Insurance Company was the buyer for those shares at the same price.

V-Mart Retail: Amansa Holdings Private Limited acquired 2,88,299 equity shares in the company at an average price of Rs 2,914.99 per share. However, Plutus Wealth Management LLP sold 3.03 lakh shares at an average price of Rs 2,915.04 per share.

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(For more bulk deals, click here)

Investors Meetings on September 20

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Stocks in News

Adani Enterprises: The company has raised Rs 100 crore by allotment of 1,000 non-convertible debentures of face value of Rs 10 lakh each on a private placement basis. The said MLD will be listed on the Wholesale Debt Market segment of BSE.

Ugro Capital: The company said the board of directors will consider raising funds by issuance of non-convertible debentures on a private placement basis on September 22.

Natco Pharma: The pharma company is allowed to launch Chlorantraniliprole (CTPR) and its formulations, through its non-infringing process. It has received an order from the High Court of Delhi to launch the same. CTPR technical is formulated into broadspectrum insecticides used across a wide range of crops for pest management. Natco estimates the current market size of CTPR-containing products in India to be over Rs 2,000 crore.

Ceat: The company said the Board of Directors has allotted non-convertible debentures (NCDs) on a private placement basis aggregating to Rs 150 crore.

Future Supply Chain Solutions: The company has called off a proposal to sell or dispose of warehouse assets, and has decided to explore other opportunities for rehabilitation of business operations.

Ircon International: The stock will be in focus as the company has received a work order of detailed engineering and project management consultancy services for the development of rail infrastructure for Ananta OCP of Jagannath Area at Talcher, from Mahanadi Coalfields. The total value of the order is Rs 256 crore.

Butterfly Gandhimathi Appliances: Promoter Crompton Greaves Consumer Electricals is going to sell 10.72 lakh equity shares or a 6 percent stake in the subsidiary via offer for sale on September 20 and September 21. The floor price for the sale will be Rs 1,370 per share.

Bombay Dyeing and Manufacturing Company: The company said the board of directors on September 22 will consider a proposal of raising funds by issue of equity shares.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net-bought shares worth Rs 312.31 crore, whereas domestic institutional investors (DIIs) net-sold shares worth Rs 94.68 crore on September 19, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Six stocks - Delta Corp, Escorts, Indiabulls Housing Finance, India Cements, PVR, and RBL Bank - are under the NSE F&O ban list for September 20. Securities thus banned under the F&O segment include companies where derivative contracts have 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: Sep 19, 2022 10:02 pm
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