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

Ajit Mishra of Religare Broking continued to maintain a cautious stance on the Indian markets for the near term, given the recent run up.

December 31, 2019 / 08:42 PM IST

The market closed its last session of the year on a weak note on December 31, but registered double digit gains for the year despite the economic slowdown.

The selling pressure/profit taking seen in Reliance Industries, banking and financials, auto and technology stocks pulled the Sensex lower by 304 points, while the Nifty50 dropped 87.40 points to 12,168.50, forming a Bearish Belt Hold pattern on the daily charts.

"The recent negative chart pattern could be an encouraging factor for the bears to participate from the highs. But, the emergence of strong buying from near the supports (12,100, as happened in last time) is likely to bring bulls back into action," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

Shetti felt that a decisive downside breakout of the 12,100 mark could confirm a reversal pattern, and that could open up a near term downward correction in the market.

The broader markets continued to outperform benchmarks with the Nifty Midcap index rising 0.14 percent and Smallcap index up 0.67 percent.

Close

"We continue to maintain our cautious stance on the Indian markets in the near term, given the recent run up," said Ajit Mishra, VP - Research at Religare Broking.

"Market participants would keep a close watch on Auto sales data to be announced tomorrow. Apart from this, the movement in crude oil prices and currency would be actively tracked by the traders," he added.

We have collated 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

According to the pivot charts, the key support level for the Nifty is placed at 12,131.17, followed by 12,093.83. If the index continues moving up, key resistance levels to watch out for are 12,226.47 and 12,284.43.

Nifty Bank

Nifty Bank closed 0.6 percent lower at 32,161.65. The important pivot level, which will act as crucial support for the index, is placed at 32,065.04  followed by 31,968.37. On the upside, key resistance levels are placed at 32,302.14 and 32,442.57.

Call options data

Maximum Call open interest (OI) of 21.93 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.

This is followed by the 12,200 strike price, which holds 16.09 lakh contracts in open interest, and 12,700, which has accumulated 15.57 lakh contracts in open interest.

Significant call writing was seen at the 12,300 strike, which added 2.63 lakh contracts, followed by the 12,500 strike price that added 2.43 lakh contracts, and 12,400 strike, which added 1.68 lakh contracts.

Call unwinding was witnessed at 12,200 strike price, which shed 1.16 lakh contracts, followed by 12,100 strike, which shed 0.5 lakh contracts.

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Put options data

Maximum Put open interest of 34.53 lakh contracts was seen at 12,000 strike price, which will act as a crucial support in the January series.

This is followed by the 11,500 strike price, which holds 23.82 lakh contracts in open interest, and 11,800 strike price, which has accumulated 14.28 lakh contracts in open interest.

Put writing was seen at the 11,800 strike price, which added 2.59 lakh contracts, followed by 11,700 strike, which added 0.67 lakh contracts and 11,600, which added 0.36 lakh contracts.

Maximum Put unwinding was seen at the 12,200 strike, which shed 2.08 lakh contracts, followed by 12,100 strike, which shed 0.69 lakh contracts and 12,300 strike, which shed 0.48 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.

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22 stocks saw long buildup

Based on open interest (OI) future percentage, here are the top 10 stocks in which long buildup was seen.

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35 stocks saw long unwinding

Based on open interest (OI) future percentage, here are the top 10 stocks in which long unwinding was seen.

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67 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 open interest (OI) future percentage, here are the top 10 stocks in which a short build-up was seen.

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20 stocks witnessed short-covering

As per available data, 7 stocks witnessed short-covering on December 31. A decrease in open interest, along with an increase in price, mostly indicates a short covering.

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Bulk deals

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(For more bulk deals, click here)

Upcoming analyst or board meetings/briefings

IDFC First Bank: Board meeting is scheduled to be held on January 29 to consider the company's October-December quarter earnings.

NIIT Technologies: Board meeting is scheduled to be held on January 29 to consider the company's October-December quarter earnings.

Info Edge: Board meeting is scheduled to be held on February 12 to consider the company's October-December quarter earnings.

Procter & Gamble Hygiene: Board meeting is scheduled to be held on February 12 to consider the company's October-December quarter earnings.

Chambal Fertilisers: Board meeting is scheduled to be held on February 11 to consider the company's October-December quarter earnings.

Procter & Gamble Health: Board meeting is scheduled to be held on February 7 to consider the company's October-December quarter earnings.

Gillette India: Board meeting is scheduled to be held on February 13 to consider the company's October-December quarter earnings.

Motherson Sumi: Board meeting is scheduled to be held on February 10 to consider the company's October-December quarter earnings.

HDFC Life Insurance Company: Board meeting is scheduled to be held on January 23 to consider the company's October-December quarter earnings.

Timken India: Board meeting is scheduled to be held on January 31 to consider the company's October-December quarter earnings.

Asian Paints: Board meeting is scheduled to be held on January 22 to consider the company's October-December quarter earnings.

Stocks in the news

Aster DM Healthcare: Company entered into a share purchase agreement to acquire 100 percent stake in Wahat Al Aman Home Healthcare.

CreditAccess Grameen: Company completed direct assignment transaction of Rs 434.99 crore on December 31.

Skipper: CARE downgraded its long-term rating on company's bank facilities to BBB+ with stable outlook, from A with negative outlook.

PTC India: Company won the bid as aggregator for Pilot Scheme - II, issued by Ministry of Power, for the resolution of stressed thermal assets.

Lakshmi Vilas Bank: S Sundar resigned as Chief Financial Officer of the bank.

Yes Bank: CARE downgraded rating on infrastructure bonds to A/Negative {from A+ (Credit Watch with Developing implications) and Negative outlook assigned}.

Visa Steel: Ranjan Kumar Jindal resigned as Chief Financial Officer of the company.

Corporation Bank: Bank has accepted buy-back offer of its wholly owned subsidiary CorpBank Securities (an unlisted entity) to the extent of 25 percent of its total paid-up equity share capital as at September 30, 2019.

Monnet Ispat and Energy: Company entered into a Share Purchase Agreement with Champak Corporate Services Private Limited, to sell and transfer the entire equity shareholding held by the company Monnet Sports Foundation and Chomal Exports Private Limited.

RITES: Company has received a reaffirmed rating of A1+ for short term non fund based facility upto an amount of Rs 850 crore from Infomerics Valuation and Rating.

Sterling and Wilson Solar: Promoters have enabled repayment of Rs 1,000 crore from listing date till December 31, 2019. Balance loan amount of Rs 1,644 crore will be paid over next three quarters.

Adani Green Energy: Company commissioned 75MW wind power project.

Variman Global Enterprises: Company received purchase order worth Rs 81.69 lakh from Orient Cement.

Premier Explosives: Company received a rate contract for supply of bulk loading explosives from Jaiprakash Power Ventures Limited.

HG Infra Engineering: Raja Dutta has tendered his resignation as Chief Operating Officer of the company due to personal reason.

Zen Technologies: Ravi Kiran M resigned as Chief Financial Officer of the company due to personal reasons.

Praj Industries: CRISIL reaffirmed long term rating on company's bank loan facilities at AA/Stable.

Bajaj Electricals: Board meeting is scheduled on January 6 to consider, among others, the proposal for raising of funds by issue of equity shares, convertible securities or any other securities.

Embassy Office Parks REIT: Embassy REIT executed agreements with Embassy Sponsor to acquire 0.6 million square feet leasable area at a 9.25% initial yield on development completion in Q4FY2023 within the overall Embassy Manyata business park campus in Bengaluru.

Escorts: Girish Behari Mathur, Director resigned from the board of the company.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,265.1 crore, whereas domestic institutional investors (DIIs) bought shares of worth Rs 585.07 crore in the Indian equity market on December 31, provisional data available on the NSE showed.

Fund flow

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No stock under F&O ban on NSE

There is no stock under the F&O ban for January 1, 2020. 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 31, 2019 08:35 pm

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