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Last Updated : Dec 03, 2019 10:01 PM IST | Source: Moneycontrol.com

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

According to the pivot charts, key support level for Nifty is placed at 11,944.2, followed by 11,894.2. If the index moves up, key resistance levels to watch out for are 12,056.4 and 12,118.6.

The Indian market benchmarks extended their losing run for the third consecutive session on December 3 on account of weak global cues and caution ahead of RBI monetary policy outcome.

The 30-share Sensex settled 127 points, or 0.31 percent, lower at 40,675.45, with 21 stocks in the red, while the Nifty index closed with a loss of 54 points, or 0.45 percent at 11,994.20, with 11 stocks up and 39 down.

Secondary barometers underperformed Sensex as the BSE Midcap and Smallcap indices ended 0.95 percent and 0.74 percent down, respectively.

Close

The market is cautiously awaiting RBI monetary policy meet outcome on December 5 where it expects the central bank to cut interest rate by 25 basis points (bps) despite higher inflation. On the global front, investors would watch out for development on the US-China trade deal and currency and crude price movement.

"The market is expecting China to retaliate, which could derail the trade talks between the two countries. So, the market is continuously witnessing profit-booking at higher levels and may continue to consolidate further in the absence of any positive trigger in the near-term,' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Technically, Nifty made a lower high for the third consecutive session and formed a red body candle on the daily chart. On the hourly chart, we witnessed a head & shoulder pattern breakdown. However, it is hovering around the lower end of a rising channel. The momentum oscillator RSI indicates a negative divergence on the daily chart and till the time Nifty sustains below 12,000–12,025, we may see profit-bookings towards 11,850–11,800. Besides, 12,158 remains a major hurdle for the index,” Khemka added.

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 11,944.2, followed by 11,894.2. If the index moves up, key resistance levels to watch out for are 12,056.4 and 12,118.6.

Nifty Bank

Nifty Bank closed 0.81 percent down at 31,613.35. The important pivot level, which will act as crucial support for the index, is placed at 31,431.93, followed by 31,250.57. On the upside, key resistance levels are placed at 31,865.63 and 32,117.96.

Call options data

Maximum call open interest (OI) of 18.84 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the December series.

This is followed by 12,000 strike price, which holds 18.15 lakh contracts in open interest, and 12,100, which has accumulated 13.65 lakh contracts in open interest.

Significant call writing was seen at the 12,000 strike price, which added 2.65 lakh contracts, followed by 12,200 strike price that added 2.11 lakh contracts and 12,100 strike which added 1.95 lakh contracts.

Call unwinding was witnessed at 11,500 strike price, which shed 7,200 contracts, followed by 11,700 which shed 2,025 contracts.

Image 1

Put options data

Maximum put open interest of 32.28 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the December series.

This is followed by 11,500 strike price, which holds 23.85 lakh contracts in open interest, and 11,800 strike price, which has accumulated 18.5 lakh contracts in open interest.

Put writing was seen at the 11,800 strike price, which added nearly 5.40 lakh contracts, followed by 11,700 strike, which added 2.24 lakh contracts.

Put unwinding was seen at 12,100 strike price, which shed 1.46 lakh contracts, followed by 12,200 and 12,500 strikes, each shedding 22,350 contracts.

Image 2

Stocks with a high delivery percentage

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

High delivery

24 stocks saw long buildup

Based on open interest (OI) future percentage, here are the top 10 stocks in which long buildup was seen.

Long build up

3 stocks saw long unwinding

Only three stocks witnessed long unwinding on December 3.

Long unwinding

121 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 10 stocks in which short build-up was seen.

Short buildup

Only 2 stocks witnessed short-covering

As per available data, only 2 stocks witnessed short-covering. A decrease in open interest, along with an increase in price, mostly indicates a short covering.

Short covering

Bulk deals

Bulk Deals

(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings

The board of Dhunseri Investments will meet on December 4 to consider and approve quarterly results.

The board of Vertex Securities will meet on December 4 to consider and approve quarterly results.

The board of Bank of India will meet on December 5 for general purpose.

The board of GATI will meet on December 5 to consider and approve the preferential issue of shares.

Stocks in the news

HDFC AMC: Standard Life is to sell up to 2.23 percent stake in the company via offer for sale.

Bajaj Finance: The company's current exposure to Karvy is approximately Rs 312 crore.

Nestle India: The company declared an interim dividend of Rs 55 per share for 2019.

CSB Bank: The lender is to make a debut on bourses on December 4, final issue price at Rs 195 per share.

Lincoln Pharma: The company is to consider & approve the scheme of amalgamation with Lincoln Parenteral.

PSU Banks: Government said PSU banks disbursed Rs 2.39 lakh crore in November via outreach efforts.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,131.12 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 963.97 crore in the Indian equity market on December 3, provisional data available on the NSE showed.

Fund flow

Fund flow

Stock under F&O ban on NSE

Yes Bank is under the F&O ban for December 4. 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.

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First Published on Dec 3, 2019 08:07 pm
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