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

The formation of long bull candles and a possibility of faster retracement of downswing is expected to pull the Nifty beyond 14,750-14,800 levels in the next 1-2 sessions, Nagaraj Shetti of HDFC Securities feels.

February 02, 2021 / 10:20 PM IST

The market extended Budget-led gains for the second consecutive session on February 2 with the Nifty50 moving closer to record high levels, backed by buying in all sectors but FMCG.

The S&P BSE Sensex rallied 1,197.11 points or 2.46 percent to 49,797.72, while the Nifty50 climbed 366.70 points or 2.57 percent to 14,647.90 levels and formed a bullish candle on the daily charts.

"This pattern could mean a sharp bullish reversal in the market post the Budget and this action hints at a possibility of faster upward retracement of the recent downward swing. The last two sessions' sharp upside bounce has almost reached the last swing high (on Tuesday made a high of 14,731, left by 22 points). A sustainable move above 14,753 could open more upside in the near term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

"The formation of long bull candles and a possibility of faster retracement of the downswing is expected to pull the Nifty beyond 14,750-14,800 levels in the next 1-2 sessions. A sustainable move above this hurdle could open the next upside target of 15,475 levels for the next few weeks. Immediate support is placed at 14,490," he said.

The broader markets also participated in the bull run. The Nifty Midcap 100 index gained 2.4 percent and Smallcap 100 index was up 1.23 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 given in this story are the aggregates of three- month data and not of the current month only.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 14,500.77, followed by 14,353.73. If the index moves up, the key resistance levels to watch out for are 14,763.27 and 14,878.73.

Nifty Bank

The Nifty Bank shot up 1,178.80 points or 3.56 percent to 34,267.90 on February 2. The important pivot level, which will act as crucial support for the index, is placed at 33,683.16, followed by 33,098.43. On the upside, key resistance levels are placed at 34,752.56 and 35,237.23.

Call option data

Maximum Call open interest of 15.05 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the February series.

This is followed by 14,500 strike, which holds 10.97 lakh contracts, and 15,500 strike, which has accumulated 9.81 lakh contracts.

Call writing was seen at 15,500 strike, which added 2.17 lakh contracts, followed by 15,000 strikes which added 1.01 lakh contracts, and 14,600 strike which added 91,500 contracts.

Call unwinding was seen at 14,500 strike, which shed 3.09 lakh contracts, followed by 14,200 strike which shed 2.35 lakh contracts, and 14,000 strike which shed 2.23 lakh contracts.

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Put option data

Maximum Put open interest of 29.64 lakh contracts was seen at 14,000 strike, which will act as crucial support level in the February series.

This is followed by 14,200 strike, which holds 11.46 lakh contracts, and 14,500 strike, which has accumulated 8.64 lakh contracts.

Put writing was seen at 14,000 strike, which added 4.99 lakh contracts, followed by 14,600 strike, which added 4.76 lakh contracts and 14,700 strike which added 2.4 lakh contracts.

Put unwinding was seen at 13,900 strike, which shed 1.23 lakh contracts, followed by 13,800 strike, which shed 24,075 contracts.

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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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68 stocks saw long build-up

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

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7 stocks saw long unwinding

Based on the open interest future percentage, here are the 7 stocks in which long unwinding was seen.

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13 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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55 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)

Results on February 3

Bharti Airtel, Adani Enterprises, Adani Green Energy, Apollo Tyres, Aptech, Arvind Fashions, Astral Poly Technik, Adani Total Gas, Bajaj Consumer Care, City Union Bank, Deepak Fertilisers, Hindustan Copper, Indian Hotels, Inox Leisure, Jubilant FoodWorks, PNC Infratech, Prince Pipes and Fittings, Ramco Systems, SeQuent Scientific, Thermax, Ujjivan Small Finance Bank, V-Guard Industries and VIP Industries are among 88 companies that are slated to announce their quarterly earnings on February 3.

Stocks in the news

V-Mart Retail: The company has set the issue price for its QIP at Rs 2,450 per share.

Tata Consumer Products: The company reported a consolidated profit at Rs 218.2 crore in Q3FY21 against Rs 169.3 crore in Q3YFY20; revenue rose to Rs 3,069.6 crore from Rs 2,493 crore YoY. The company will acquire Kottaram Agro Foods for Rs 156 crore.

PNC Infratech: The company's subsidiary received financial closure for Uttar Pradesh project.

Infosys: The company received a digital transformation contract from Siemens Gamesa Renewable Energy.

Ratnamani Metals: The company has reported a consolidated profit at Rs 60.1 crore in Q3FY21 against Rs 101 crore in Q3FY20; revenue fell to Rs 440.8 crore from Rs 756 crore in the year-ago period.

Ajanta Pharma: The company reported sharply higher profit at Rs 176.6 crore in Q3FY21 against Rs 107.6 crore in Q3FY20, while revenue rose to Rs 748.7 crore from Rs 651.2 crore in the corresponding quarter of the previous fiscal.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 6,181.56 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,035.2 crore in the Indian equity market on February 2, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

One stock - SAIL is under the F&O ban for February 3 as we are in the initial days of February series. 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: Feb 2, 2021 10:05 pm
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