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Trade Setup For Wednesday: Top 15 Things To Know Before Opening Bell

Key support level for the Nifty is placed at 10,721.67, followed by 10,643.63. If the index moves up, the key resistance levels to watch out for are 10,845.77 and 10,891.83.

Jul 7, 2020 / 09:11 PM IST

The Indian equity markets ended on a positive note for the fifth straight day amid mixed global cues.

The Sensex closed 187 points, or 0.51 percent, up at 36,674.52, and the Nifty ended 36 points, or 0.33 percent, up at 10,799.65.

"The market is factoring in positive macroeconomic data, strong rural economy and optimism over potential COVID-19 vaccine emerging soon. Further, hopes have now shifted to potential FY22E earnings recovery," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Nifty is trading at 21 times one-year forward P/E (premium to its long period average of 19 times) and is not looking as attractive as it did in March. Despite the near-term momentum, we would be more cautious or defensive in our approach going forward," Khemka added.

We have collated 15 data points to help you spot profitable trades in the next session:

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Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- months data and not of the current month only.

Key support and resistance levels for the Nifty

According to pivot charts, the key support level for the Nifty is placed at 10,721.67, followed by 10,643.63. If the index moves up, the key resistance levels to watch out for are 10,845.77 and 10,891.83.

Nifty Bank

The Nifty Bank index ended 1.93 percent higher at 22,628 on July 7. The important pivot level, which will act as crucial support for the index, is placed at 22,220.7, followed by 21,813.4. On the upside, key resistance levels are placed at 22,854.9 and 23,081.8.

Call option data

Maximum call OI of 22.4 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.

This is followed by 10,500, which holds 10.91 lakh contracts, and 11,200 strikes, which has accumulated 10.28 lakh contracts.

Significant call writing was seen at 10,700, which added 1.39 lakh contracts, followed by 11,100 strikes, which added 79,125 contracts.

Call unwinding was witnessed at 10,500, which shed 1.64 lakh contracts, followed by 11,000 strikes, which shed 1.56 lakh contracts.

Image 1

Put option data

Maximum put OI of 17.82 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.

This is followed by 10,300, which holds 11.32 lakh contracts, and 10,600 strikes, which has accumulated 8.95 lakh contracts.

Significant put writing was seen at 10,500, which added 1.24 lakh contracts, followed by 10,700 strikes, which added 1.04 lakh contracts.

No significant put unwinding was witnessed on July 7.

Image 2

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

High delivery

43 stocks saw long build-up

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

Long buildup

31 stocks saw long unwinding

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

long unwinding

40 stocks saw short build-up

An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup

29 stocks witnessed short-covering

A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Short covering

Bulk deals

Merlin Marketing bought 3,50,000 shares of Kamat Hotels at an average price of Rs 34.76, bulk deal data on NSE showed.

Yes Bank sold 43,00,000 shares of CG Power at an average price of Rs 10.75.

Aviator Global Investment Fund bought 1,12,000 shares of Best Agrolife at an average price of Rs 464, bulk deal data on BSE showed.

(For more bulk deals, click here)

Results on July 8

South Indian Bank, Automotive Stampings, Dish TV India, Kokuyo Camlin, Prozone Intu Properties, Radha Madhav Corporation and Swelect Energy Systems.

Stocks in the news

Shalimar Paints: Porinju Veliyath-owned Equity Intelligence India cuts stake in the company to 1.66 percent in the June quarter against 1.84 percent in the March quarter.

Jammu & Kashmir Bank: The Reserve Bank of India extended the term of RK Chhibber, its Chairman and Managing Director, by another three months or till the appointment of MD and CEO, whichever is earlier.

Birlasoft partnered with Innoveo to fast-track the journey to digital excellence.

Zuari Agro Chemicals: A plant of the company has been shut down due to the non-availability of workers owing to COVID-19.

Varun Beverages: Promoter Vivek Gupta released a pledge on 2,06,800 equity shares of the company.

CEAT: Jwalamukhi Investment Holdings cut stake in the company to 8.723 percent from 10.929 percent earlier.

Magma Fincorp: Magma partnered with Wadhwani Foundation to provide pro-bono business consulting to SME customers.

Fund flow

Funda

FII and DII data

Foreign institutional investors (FIIs) bought shares of worth Rs 829.9 crore while domestic institutional investors (DIIs) sold shares of worth Rs 784.47 crore in the Indian equity market on July 7, provisional data available on the NSE showed.

Stock under F&O ban on NSEBHEL, Equitas Holdings, Glenmark Pharmaceuticals and Indiabulls Housing Finance are under the F&O ban for July 8. 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.
Nishant Kumar
first published: Jul 7, 2020 09:11 pm
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