Moneycontrol PRO
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

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

Based on the open interest future percentage, there were 47 stocks in which a long build-up was seen, including Crompton Greaves Consumer Electrical, United Breweries, Alkem Laboratories, Dixon Technologies, and Federal Bank

September 28, 2022 / 08:41 AM IST

The market wiped out all its gains and closed flat with a negative bias on September 27, continuing the downtrend for the fifth consecutive session. Banking and financial services, auto, and metal stocks were under pressure, whereas FMCG, IT, pharma, and oil and gas stocks supported the market.

The BSE Sensex fell 38 points to 57,107, while the Nifty50 declined 9 points to 17,007 and formed a bearish candle on the daily charts, defending the crucial area of 16,950-17,000 levels.

"A reasonable negative candle was formed on the daily chart, that has placed beside the similar negative candle of the previous session. Technically, this pattern signals broader rangebound action in the market with weak bias. This pattern also indicates a lack of strength in the intraday upside bounce. This is not a good sign and one may expect further weakness in the short term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

The Nifty is temporarily halting its weakness near the crucial lower support of 16,800 levels, as per the concept of change in polarity. The area of 16,800 has acted as an important value zone and has resulted in significant movement from its support, resistance and breakouts in the past.

Hence, having declined swiftly from the highs of 18,000 mark this time, there is a possibility of a sustainable upside bounce in the market from near this support. Immediate resistance is placed around 17,150-17,200 levels, the market expert said.

The broader markets have outperformed the benchmark indices. The Nifty Midcap 100 and Smallcap 100 indices gained 0.16 percent and 0.25 percent respectively.

Image142792022

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

Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.

Key support and resistance levels on the Nifty

As per the pivot charts, the key support level for the Nifty is placed at 16,908, followed by 16,808. If the index moves up, the key resistance levels to watch out for are 17,142 and 17,276.

Nifty Bank

The Nifty Bank remained in negative terrain, declining 257 points to 38,359 and formed a bearish candle on the daily charts on September 27. The important pivot level, which will act as crucial support for the index, is placed at 38,012, followed by 37,666. On the upside, key resistance levels are placed at 38,878 and 39,397 levels.

CALL OPTION DATA

Maximum Call open interest of 86.02 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the September series.

This is followed by 17,500 strike, which holds 83.48 lakh contracts, and 17,700 strike, which has 69.1 lakh contracts.

Call writing was seen at 17,100 strike, which added 28.93 lakh contracts, followed by 17,200 strike which added 14.43 lakh contracts, and 17,000 strike which added 8.98 lakh contracts.

Call unwinding was seen at 18,000 strike, which shed 15.77 lakh contracts, followed by 18,000 strike which shed 9.42 lakh contracts, and 17,900 strike which shed 9.03 lakh contracts.

Image122792022

PUT OPTION DATA

Maximum Put open interest of 61.36 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the September series.

This is followed by 16,500 strike, which holds 60.31 lakh contracts, and 17,000 strike, which has accumulated 54.26 lakh contracts.

Put writing was seen at 16,900 strike, which added 7.37 lakh contracts, followed by 16,600 strike, which added 6.52 lakh contracts, and 16,300 strike which added 5.95 lakh contracts.

Put unwinding was seen at 17,000 strike, which shed 6.65 lakh contracts, followed by 17,200 strike which shed 4.88 lakh contracts and 17,400 strike which shed 4.27 lakh contracts.

Image132792022

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 REC, Abbott India, Godrej Consumer Products, HDFC, and Bharti Airtel, among others.

47 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 in which a long build-up was seen including Crompton Greaves Consumer Electrical, United Breweries, Alkem Laboratories, Dixon Technologies, and Federal Bank.

37 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 Nifty Financial, Bajaj Auto, Metropolis Healthcare, Page Industries, and ACC, in which a long unwinding was seen.

40 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, the top 10 stocks in which a short build-up was seen include Bharat Electronics, Ashok Leyland, Bharat Forge, Deepak Nitrite, and Atul.

72 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 a short-covering was seen including Voltas, Escorts, IndiaMART InterMESH, Gujarat Gas, and Coromandel International.

Bulk Deals

Embassy Office Parks REIT: Kotak Performing RE Credit Strategy Fund-I acquired 4,63,76,811 units in the REIT at an average price of Rs 345 per unit. However BRE/Mauritius Investments sold 95,89,561 units, SG Indian Holding (NQ) Co I Pte Ltd offloaded 73,49,350 units, and SG Indian Holding NQ Co I Pte Ltd sold 90,10,855 units at the same price. BRE/Mauritius Investments sold another 1,17,57,523 units at an average price of Rs 345.05 per unit.

Ramkrishna Forgings: BofA Securities Europe SA bought 20,99,996 equity shares in the company at an average price of Rs 178 per share.

Safari Industries (India): DSP Mutual Fund purchased 2 lakh shares in the company at an average price of Rs 1,529.75 per share; however, Investcorp Private Equity Fund II sold 5 lakh shares at the same price.

TD Power Systems: Nippon India Mutual Fund sold 1.7 lakh shares in the company at an average price of Rs 586.99 per share.

(For more bulk deals, click here)

Investors Meetings on September 28

Investors 2809_001

Shoppers Stop: Officials of the company will be meeting representatives of Invesco Asset Management.

Tech Mahindra: Officials of the company will attend Equirus Virtual Annual Conference.

Blue Star: Officials of the company will meet Aditya Birla Sun Life AMC.

Blue Dart: Officials of the company will meet ICICI Prudential Asset Management, Motilal Oswal AMC – PMS, L&T Mutual Fund, Helios Capital, Mirae Asset Management (India), and SBI Funds Management.

Alkem Laboratories: Officials of the company will meet Nine Rivers Capital.

Polycab India: Officials of the company will meet Government of Singapore Investment Corporation, M&G Group, Somerset Capital, Helios Capital, and Nikko Asset Management in Singapore.

Greaves Cotton: Officials of the company will interact with Pine Bridge.

ICICI Bank: Officials of the bank will interact with Jefferies Global Fund Managers.

Sapphire Foods India: Officials of the company will interact with Sundaram Mutual Fund, HDFC Securities, Bajaj Allianz Life Insurance, IIFL Holdings, and Chrys Capital.

CarTrade Tech: Officials of the company will attend Kotak PCG Virtual Conference.

Bharat Forge: Officials of the company will meet Van Eck Associates Corporation.

Stocks in News

Mahindra CIE Automotive: Mahindra & Mahindra has sold 82,42,444 shares or 2.173 percent shareholding in associate company Mahindra CIE Automotive. The sale has been executed through the bulk deal window at a gross price of Rs 285 per share. After the sale, the shareholding of the company in Mahindra CIE has come down from 11.427 percent to 9.254 percent. Participaciones Internacionales Autometal Dossociedad Limitada acquired 87.20 lakh shares in Mahindra CIE at an average price of Rs 284.88 per share.

H G Infra Engineering: Subsidiary H G Khammam Devarapalle Pkg-1 Private Limited has received financial closure for Greenfield highway project in Telangana, from the National Highways Authority of India.

Bharat Heavy Electrical: The company has received an order for setting up the 2x660 MW Talcher thermal power project Stage-III on EPC (engineering, procurement & construction) basis from NTPC.

Motherson Sumi Wiring India: The company said the board of directors will meet on September 30 to consider a proposal for the issuance of bonus shares to the equity shareholders of the company.

Supriya Lifescience: The board has appointed Rajeev Kumar Jain as Chief Executive Officer and Key Managerial Personnel of the company. Rajeev will be joining as CEO on October 3, 2022, to take Supriya on the next phase of its growth journey. Shireesh Ambhaikar has resigned as Chief Executive Officer of the company citing personal reasons.

GOCL Corporation: The company has completed the sale of the balance 12.25 acres of land for Rs 125.11 crore. Earlier it had sold 32 acres out of 44.25 acres of land.

Bharat Petroleum Corporation: Life Insurance Corporation of India has acquired an additional 2.01 percent stake in the company via open market transactions. With this, its shareholding in the company increased to 9.04 percent, up from 7.03 percent earlier.

Torrent Pharmaceuticals: The company has acquired Curatio Healthcare, which has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, for Rs 2,000 crore. It has entered into definitive agreements to acquire 100 percent in Curatio which reported revenue for FY21-22 at Rs 224 crore.

Fund Flow

Image52792022

FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 2,823.96 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,504.76 crore on September 27, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks - Vodafone Idea, and Zee Entertainment Enterprises - are on the NSE F&O ban list for September 28. Securities thus banned under the F&O segment include companies where derivative contracts have 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: Sep 27, 2022 10:39 pm