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

For the next 4-5 sessions, 13,400 is an important support to keep an eye on, says Abhishek Chinchalkar of FYERS.

December 16, 2020 / 07:16 AM IST

The market started off the day on a weak note but gained some strength amid consolidation in the afternoon to close flat with a positive bias on December 15.

Benchmark indices ended at fresh record closing highs. The BSE Sensex rose 9.71 points to 46,263.17, while the Nifty50 was up 9.70 points at 13,567.90 and formed a small-bodied bullish candle which resembles a Doji kind of indecisive pattern on the daily charts.

"For the past one week, Nifty has been consolidating between 13,400 and 13,600. Most of the sectoral indices are showing signs of fatigue following strong price gains over the past several weeks. While the overall trajectory continues to be bullish, a minor, short-term correction seems overdue before the next up-leg commences," Abhishek Chinchalkar, CMT Charterholder and Head of Education at FYERS, told Moneycontrol.

For the next 4-5 sessions, he feels 13,400 is an important support to keep an eye on. "If this support level breaks, we could see a much-needed correction in the index towards 13,000-12,900 zone."

The broader markets continued to outshine benchmark indices. The Nifty Midcap index was up 0.47 percent and Smallcap gained 0.19 percent.

Close

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 Nifty

According to pivot charts, the key support levels for the Nifty are placed at 13,479.97, followed by 13,392.13. If the index moves up, the key resistance levels to watch out for are 13,622.67 and 13,677.53.

Nifty Bank

The Nifty Bank corrected 54.90 points to close at 30,691 on December 15. The important pivot level, which will act as crucial support for the index, is placed at 30,422.67, followed by 30,154.23. On the upside, key resistance levels are placed at 30,882.67 and 31,074.23.

Call option data

Maximum Call open interest of 23.34 lakh contracts was seen at 13,000 strike, which will act as a crucial level in the December series.

This is followed by 13,500 strike, which holds 22.11 lakh contracts, and 14,000 strike, which has accumulated 18.30 lakh contracts.

Call writing was seen at 13,900 strike, which added 80,325 contracts, followed by 13,700 strike which added 71,550 contracts and 13,800 strike which added 55,275 contracts.

Call unwinding was seen at 14,000 strike, which shed 76,425 contracts, followed by 13,000 strike which shed 45,375 contracts.

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Put option data

Maximum Put open interest of 41.84 lakh contracts was seen at 13,000 strike, which will act as crucial support in the December series.

This is followed by 13,200 strike, which holds 29.52 lakh contracts, and 13,500 strike, which has accumulated 18.93 lakh contracts.

Put writing was seen at 13,000 strike, which added 2.27 lakh contracts, followed by 13,300 strike, which added 1.82 lakh contracts and 13,500 strike which added 1.75 lakh contracts.

A Put unwinding of 89,700 contracts was seen at 12,800 strike on December 15.

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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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34 stocks saw long build-up

Based on the open interest future percentage, here are the 10 stocks in which a long build-up was seen.

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28 stocks saw 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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35 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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40 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

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(For more bulk deals, click here)

Analysts/Board Meetings

Ashoka Buildcon: The company will be attending the investor video conference organised by Motilal Oswal on December 16.

Manappuram Finance: The company's officials will meet Duro Capital, IIFL Capital and Jefferies on December 16.

KEC International: Analyst/Institutional Investors meet, organised by DAM Capital Advisors, to be attended by the company through video conference on December 16.

Advanced Enzyme Technologies: The company's officials will have a virtual meeting with Malabar Investments on December 16.

Computer Age Management Services: Company officials will meet First Principles Fund, USA, on December 18.

United Spirits: Company officials will meet Spark Capital on December 16.

Voltas: Company officials will meet Ambit Capital on December 17, and Enam AMC and IDFC Mutual Fund on December 18.

Welspun Corp: The company will be attending a virtual investor meeting organised by Kotak Mutual Fund on December 17.

Stocks in the news

Mahindra & Mahindra: The company will increase the price of its passenger and commercial vehicles, across models.

IDBI Bank: QIP opened on December 15; the bank set the floor price at Rs 40.63 per share.

Axis Bank: In its clarification note, the bank said it has complied with its underwriting practices and approval processes for any exposure taken in relation to SREI Equipment Finance and SREI Infra Finance. SREI Group's outstanding dues to the bank stand at Rs 800 crore.

Biocon: Subsidiary Biocon Biologics signed MoU with CSSC in Tanzania for Mission 10 cents.

HG Infra Engineering: The company has been declared as L-1 bidder by Ircon International (A Government of India Undertaking).

Punjab National Bank: QIP opened on December 15 and the floor price has been set at Rs 37.35 per share.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 2,484.09 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,666.79 crore in the Indian equity market on December 15, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - Canara Bank - is under the F&O ban for December 16. 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.
Sunil Shankar Matkar
first published: Dec 15, 2020 09:19 pm
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