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

The area of 14,920-15,065 is expected to be a crucial resistance zone for the market for short term, said Nagaraj Shetti of HDFC Securities.

March 03, 2021 / 07:27 AM IST

The market continued its uptrend, amid volatility, for the second consecutive session on March 2, driven by buying in auto and IT stocks. FMCG, pharma and select metal stocks also witnessed buying interest.

The BSE Sensex closed above psychological 50,000 mark, rising 447.05 points to 50,296.89, while the Nifty50 jumped 157.60 points, or 1.07 percent, to 14,919.10 and formed bullish candle on the daily charts.

"A small positive candle was formed with minor upper and lower shadow. Technically, this pattern could be considered as a comeback of bulls from the lows. Further upside from here is expected to result in a reversal of recent downtrend of the market," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

"Nifty is now placed at the verge of moving above and filling the opening downside (February 26) and upside (February 25) gaps-type of island reversal. Hence, the area of 14,920-15,065 is expected to be a crucial resistance zone for the market for short term and a sustainable move above 15,100 is likely to reverse the trend meaningfully," he said.

The broader markets also gained momentum with the Nifty Midcap 100 index and Smallcap 100 index rising 1.7 percent and 1.24 percent, respectively.

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 the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 14,800.23, followed by 14,681.37. If the index moves up, the key resistance levels to watch out for are 14,998.53 and 15,077.97.

Nifty Bank

The Nifty Bank index climbed 123.70 points to close at 35,419.70 on March 2. The important pivot level, which will act as crucial support for the index, is placed at 35,032.37, followed by 34,645.03. On the upside, key resistance levels are placed at 35,777.07 and 36,134.44 levels.

Call option data

Maximum Call open interest of 16.90 lakh contracts was seen at 15,500 strike, which will act as a crucial resistance level in the March series.

This is followed by 15,000 strike, which holds 16.37 lakh contracts, and 15,200 strike, which has accumulated 7.93 lakh contracts.

Call writing was seen at 15,500 strike, which added 2.5 lakh contracts, followed by 15,400 strike which added 2.24 lakh contracts and 15,000 strike which added 1.1 lakh contracts.

Call unwinding was seen at 14,700 strike, which shed 47,550 contracts, followed by 14,600 strike which shed 26,700 contracts.

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Put option data

Maximum Put open interest of 34.15 lakh contracts was seen at 14,000 strike, which will act as a crucial support level in the March series.

This is followed by 14,500 strike, which holds 26.72 lakh contracts, and 14,700 strike, which has accumulated 15.28 lakh contracts.

Put writing was seen at 14,600 strike, which added 3.48 lakh contracts, followed by 14,000 strike, which added 1.8 lakh contracts and 14,900 strike which added 1.27 lakh contracts.

Put unwinding was seen at 14,100 strike, which shed 12,825 contracts, followed by 15,200 strike which shed 3,750 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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76 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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9 stocks saw long unwinding

Based on the open interest future percentage, here are the 9 stocks in which long unwinding was seen.

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14 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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60 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

Ion Exchange (India): Rakesh Radheyshyam Jhunjhunwala sold 1,50,770 equity shares in the company at Rs 1,205.19 per share and Rare Investments 3,87,727 equity shares at Rs 1,205.42 per share. However, Plutus Wealth Management LLP acquired 4.75 lakh shares at Rs 1,220.75 per share on the BSE.

Seacoast Shipping Services: Kalaiyarasan Rajangam Mudaliar sold 2.1 lakh shares of Seacoast Shipping Services at Rs 137.67 per share on the BSE.

Parle Industries: PIL Enterprise sold 3 lakh shares of Parle Industries at Rs 10.5 per share on the BSE.

GG Engineering: Rashi Gupta sold 1 lakh shares in GG Engineering at Rs 108.85 per share on the BSE.

(For more bulk deals, click here)

Analysts/Board Meetings

Mawana Sugars: The board meeting is scheduled on March 6 to consider the decision of investment in redeemable cumulative preference shares of subsidiary Siel Industrial Estate.

Castrol India: The CFO and Wholetime Director of the company will join a call on March 18 with Phillip Capital (India).

MCX India: The company's officials will meet Eternity Capital LLP on Mach 3.

Dr Lal PathLabs: The company's officials will meet Alliance Bernstein on March 3 and will attend Goldman Sachs India Pharma and Healthcare tour 2021 on March 4, via conference call.

Rail Vikas Nigam: The management of the company will be participating in a non-deal roadshow through video conferencing from March 3 to March 5.

Matrimony.com: The company's officials will attend Valorem's Sixth Annual Analyst Conference - March with Valorem - India Resurrection organised by Valorem Advisors, on March 3.

Tata Power: The company's officials will meet IDFC Mutual Fund on March 3, and Sylebra Capital on March 10, via video conference.

Mahindra Holidays: The company's officials will meet M&G Investment Management on March 3 and Nikko Asset Management on March 4.

Stocks in the news

Ircon International: The offer for sale of Ircon will open during March 3-4, the government will divest 10% equity stake in company with an additional 6% as green shoe option.

Reliance Industries, Bharti Airtel, Vodafone Idea: Reliance Jio acquires 488.35 MHz of spectrum for Rs 57,122.65 crore, Bharti Airtel 355.45 MHz at Rs 18,698.75 crore, and Vodafone Idea with 11.80 MHz for Rs 1,993.40 crore, Telecom Secretary Anshul Prakash said.

Jaiprakash Power Ventures: The company has approved disinvestment of 74% shareholding in the Jaypee Powergrid (A Joint Venture Company of Powergrid Corporation of India and the company).

Ruchi Soya Industries: Promoter Patanjali Ayurved Ltd created a pledge on 48.17% stake.

Engineers India: Indian Oil Corporation has awarded the project for execution of consultancy for overall project management and EPCM Services (Phase II) for capacity expansion of Panipat refinery from 15 MMTPA to 25 MMTPA (P-25 Project) to Engineers India. The total awarded order value is around Rs 600 crore with a total project schedule of 40 months for mechanical completion.

Motherson Sumi Systems: CRISIL reaffirmed long term credit rating as AA+ and revised outlook from Negative to Stable.

Fund flow

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FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 2,223.16 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 854.04 crore in the Indian equity market on March 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 March 3. 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.

Disclaimer: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."
Sunil Shankar Matkar
first published: Mar 2, 2021 09:49 pm
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