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Trade setup for today: Top 15 things to know before the opening bell

Based on the open interest future percentage, a short-covering was seen in 93 stocks including Honeywell Automation, Escorts, Tata Chemicals, Polycab India, and HDFC AMC

August 17, 2022 / 12:36 PM IST

The market clocked more than half a percent gain and closed at a fresh four-month high, continuing the uptrend for the sixth consecutive session on August 16. Positive global cues supported the market, while auto, banking and financial services, oil and gas, and select metal and pharma stocks aided the rally.

The benchmark indices had a gap-up opening on Tuesday. The BSE Sensex rose 379 points to 59,842, while the Nifty50 climbed 127 points to 17,825 and formed a Doji kind of candlestick pattern on the daily charts.

"The Nifty is now placed at the edge of a significant overhead resistance of down sloping trend line (downtrend line connected from the important lower tops) around 17,850-17,900 levels. This is a positive indication and suggests that the hurdle could be taken out on the upside soon," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Hence, a sustainable upside above this hurdle of 17,900-18,000 could open the next upside target of around 18,500-18,600 levels in the near term. Immediate support is placed at 17,650 levels, he added.

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Close

The uptrend was also seen in broader markets, in fact, higher than benchmarks. The Nifty Midcap 100 index gained 1.5 percent and Smallcap 100 index rose 1 percent.

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

As per the pivot charts, the key support level for the Nifty is placed at 17,780, followed by 17,734. If the index moves up, the key resistance levels to watch out for are 17,855 and 17,884.

Nifty Bank

The Nifty Bank rose 197.4 points to 39,240 and formed a Doji kind of pattern on the daily charts on Tuesday. The important pivot level, which will act as crucial support for the index, is placed at 39,091, followed by 38,943. On the upside, key resistance levels are placed at 39,416 and 39,593 levels.

Call option data

Maximum Call open interest of 25.66 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the August series.

This is followed by 17,800 strike, which holds 19.18 lakh contracts, and 18,500 strike, which has accumulated 18.91 lakh contracts.

Call writing was seen at 18,500 strike, which added 7.29 lakh contracts, followed by 17,800 strike which added 5.19 lakh contracts, and 18,300 strike which added 3.27 lakh contracts.

Call unwinding was seen at 17,700 strike, which shed 3.73 lakh contracts, followed by 17,500 strike which shed 2.71 lakh contracts and 17,600 strike which shed 1.96 lakh contracts.

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Put option data

Maximum Put open interest of 29.57 lakh contracts was seen at 17,500 strike, which will act as a crucial support level in the August series.

This is followed by 17,600 strike, which holds 25.05 lakh contracts, and 17,000 strike, which has accumulated 23.83 lakh contracts.

Put writing was seen at 17,800 strike, which added 10.95 lakh contracts, followed by 16,900 strike, which added 3.43 lakh contracts and 17,600 strike which added 3.25 lakh contracts.

Put unwinding was seen at 16,700 strike, which shed 4.12 lakh contracts, followed by 16,800 strike which shed 1.26 lakh contracts, and 16,500 strike which shed 1.17 lakh contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in HDFC Asset Management Company, Power Grid Corporation of India, HDFC, HCL Technologies, and HDFC Bank, among others.

66 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks including Ambuja Cements, Godrej Consumer Products, Apollo Tyres, Nippon Life India, and Gujarat Gas, in which a long build-up was seen.

14 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks including JK Cement, Bank of Baroda, Bharat Forge, Dabur India, and JSW Steel, in which long unwinding was seen.

24 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 including Muthoot Finance, Metropolis Healthcare, PVR, Zee Entertainment Enterprises, and Gujarat State Petronet, in which a short build-up was seen.

93 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 including Honeywell Automation, Escorts, Tata Chemicals, Polycab India, and HDFC AMC, in which short-covering was seen.

Bulk Deals

Singer India: The late investor Rakesh Jhunjhunwala's investment arm Rare Enterprises bought 4.25 million shares at an average price of Rs 53.50 a share in a block deal. Other investors such as Seven Hills Capital, Insurexcellence Advisors Pvt Ltd, TIA Advisors LLP, Veena Kumari Tandon, Gauri Tandon, Illingworth Advisors LLP, Pivotal Business Managers LLP also bought shares in the firm, according to BSE block deal data. Retail Holdings India BV sold around 12 million shares in the firm.

Max Healthcare Institute: GIC of Singapore and financial services firm Capital Group picked up a 26.8 percent stake in hospital chain Max Healthcare Institute as American private equity giant KKR exited the company by selling its entire stake on Tuesday via block deals. With this, the promoters will now own a 24 percent stake in the company.

(For more bulk deals, click here)

Investors Meetings on August 17

Tata Chemicals: Officials of the company will meet Morgan Stanley Research.

Ramco Cements: Officials of the company will attend investors' meets in Singapore, organised by B & K Securities.

Repco Home Finance: Officials of the company will meet analysts and investors.

Vedant Fashions: Officials of the company will meet analysts.

Nuvoco Vistas Corporation: Officials of the company will attend Nirmal Bang Institutional Equities -Investor Conference.

Adani Enterprises: Officials of the company will meet Quant Mutual Fund.

MCX India: Officials of the company will meet PPFAS Mutual Fund, Birla MF, Baroda BNP MF, Navi MF, Sundaram MF, SBI General Insurance, Abakkus Asset Manager LLP, and Taurus MF.

Polycab India: Officials of the company will meet Nordea Investment Management and Dolat Capital Market.

Stocks in News

Bajaj Hindusthan Sugar: State Bank of India has filed an insolvency petition in the National Company Law Tribunal (NCLT) against Bajaj Hindusthan Sugar, the company said in an exchange filing on August 16. The petition has been filed at the Allahabad bench of the National Company Law Tribunal under the Insolvency and Bankruptcy Code, the filing showed. Bajaj Hindusthan Sugar owes nearly Rs 4,800 crore to banks like SBI, Punjab National Bank, Indian Bank and Central Bank of India.

Cipla: The stock will be in focus after the company said it appointed Ashish Adukia as global Chief financial officer. Dinesh Jain was relieved from additional responsibility as interim chief financial officer of the company. Jain will continue as senior vice president and head of corporate finance. The company also said that the US food and drug administration has begun inspection of the Goa plant today. Goa facility was issued a warning letter in February 2020.

SBI Cards and Payment Services: The stock will be in focus after Informist reported that the Reserve Bank of India is against unregulated firms issuing credit cards. Also, the company can offer credit cards after getting an RBI licence, the report said.

Hindustan Zinc: A PTI report said ICICI Securities, Axis Capital and Citigroup Global Markets are among the five investment bankers selected to manage the sale of the government's 29.53 percent residual stake in the company. The Department of Investment and Public Asset Management (DIPAM) had in early July invited bids from merchant bankers for managing Hindustan Zinc Ltd (HZL) residual stake and set July 28 as the deadline for putting bids.

Bharat Gears: The company will consider a bonus share issue on August 19.

Techno Electric & Engineering: The firm informed exchanges that it has got new orders for flue gas desulphurisation (FGD) totalling Rs 1455 crore. It got orders worth Rs 666 crore from Rajasthan Rajya Vidyut Utpadan Nigam Limited Kota and Rs 789 crore orders from Rajasthan Rajya Vidyut Utpadan Nigam Limited Jhalawar.

Fund Flow

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FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 1,376.84 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 136.24 crore on August 16, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - Balrampur Chini Mills, Delta Corp and Tata Chemicals - are under the NSE F&O ban list for August 17. 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: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Aug 16, 2022 10:53 pm
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