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

Key support level for the Nifty is placed at 10,964.8, followed by 10,834.4.13. If the index moves up, the key resistance levels to watch out for are 11,168.9 and 11,242.6.

August 06, 2020 / 05:14 PM IST

Equity benchmarks - Sensex and Nifty - logged strong gains on August 4, snapping its losing streak in the last four consecutive sessions, supported by heavyweights such as Reliance Industries, HDFC twins and ICICI Bank.

Supportive global cues and gains in tech stocks boosted investor sentiment in early trade. As the day progressed, healthy buying in auto, banking and energy stocks further extended the rally.

The Sensex settled with a gain of 748 points, or 2.03 percent, at 37,687.91 and the Nifty ended at 11,095.25, up 204 points, or 1.87 percent.

"We believe the market will continue to take cues from global peers and the upcoming Reserve Bank of India policy meet would be the next major trigger. At the same time, as more companies announce their Q1 FY21 earnings, stock-specific action would continue to induce high volatility. We reiterate our advice on stock selection and risk management," said Ajit Mishra, VP - Research, Religare Broking.

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 for the Nifty
According to pivot charts, the key support level for the Nifty is placed at 10,964.8, followed by 10,834.4.13. If the index moves up, the key resistance levels to watch out for are 11,168.9 and 11,242.6.

Nifty Bank
The Nifty Bank index closed 1.99 percent higher at 21,490.50. The important pivot level, which will act as crucial support for the index, is placed at 21,173.43, followed by 20,856.37. On the upside, key resistance levels are placed at 21,691.93 and 21,893.37.

Call option data
Maximum call OI of nearly 21.33 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the August series.

This is followed by 11,000, which holds 14.54 lakh contracts, and 11,300 strikes, which has accumulated 9.81 lakh contracts.

Call writing was seen at 11,100, which added 73,950 contracts, followed by 11,400 strikes, which added 46,725 contracts.

Call unwinding was seen at 11,000, which shed 2.46 lakh contracts, followed by 11,600 strikes, which shed 1.24 lakh contracts.

Image 1 August 4

Put option data
Maximum put OI of 31.72 lakh contracts was seen at 11,000 strike, which will act as crucial support in the August series.

This is followed by 11,100, which holds 11.06 lakh contracts, and 11,200 strikes, which has accumulated 10.53 lakh contracts.

Put writing was seen at 10,800, which added 1.80 lakh contracts, followed by 11,100 strikes, which added 1.1 lakh contracts.

Put unwinding was witnessed at 11,000, which shed 2.05 lakh contracts, followed by 10,900 strikes, which shed 54,750 contracts.

Image 2 August 4

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

High delivery August 4

59 stocks saw long build-up
Based on the OI future percentage, here are the top 10 stocks in which long build-up was seen.

Long buildup August 4

10 stocks saw long unwindingLong unwinding August 4

35 stocks saw short build-up
An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup August 4

36 stocks witnessed short-covering
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Short covering August 4

Bulk dealsBulk deals August 4(For more bulk deals, click here)

Results on August 5Cadila Healthcare, DLF, Canara Bank, Adani Gas, Apollo Tyres, Asahi India Glass, Birlasoft, Cera Sanitaryware, Dwarikesh Sugar Industries, EID Parry (India), Godrej Properties, Gravita India, Inox Leisure, Intellect Design Arena, JK Lakshmi Cement, Jaiprakash Associates, Jyothy Labs, Kokuyo Camlin, PNB Gilts, PSP Projects, Rane Brake Lining, R Systems International, Shakti Pumps, Strides Pharma Science, Triveni Turbine, VIP Industries, etc.

Stocks in the newsAstral Poly Technik: Q1 profit at Rs 19.9 crore versus Rs 47.1 crore, revenue at Rs 403.9 crore versus Rs 606.6 crore YoY.

Unichem Laboratories: Q1 profit at Rs 2.43 crore versus a loss of Rs 6.19 crore, revenue at Rs 317.3 crore versus Rs 273.2 crore YoY.

Gujarat Gas: Q1 profit at Rs 59 crore versus Rs 234 crore, revenue at Rs 1,107.4 crore versus Rs 2,671 crore YoY.

SH Kelkar acquired 49 percent equity stake in Italy-based Creative Flavours and Fragrances for around Rs 126 crore.

Tamilnadu Petroproducts: Q1 profit at Rs 13.48 crore versus Rs 19.91 crore, revenue at Rs 220 crore versus Rs 343 crore YoY.

Geojit Financial Services: Q1 profit at Rs 24.56 crore versus Rs 4.01 crore, revenue at Rs 91 crore versus Rs 73.88 crore YoY.

Jindal Saw: Q1 Loss at Rs 26.57 crore versus a profit Rs 109.44 crore, revenue at Rs 1,640.8 crore versus Rs 3,056.5 crore YoY.

Fund flowFund Flow Aug 4

FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 703.74 crore while domestic institutional investors (DIIs) sold shares worth Rs 665.69 crore in the Indian equity market on August 4, as per provisional data available on the NSE.​

Stock under F&O ban on NSEThere is no stock under the F&O ban for August 5. 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.​

Nishant Kumar
first published: Aug 4, 2020 08:54 pm