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

The market clocked one percent gains after five-day consolidation following FIIs buying, steep correction in oil prices and falling volatility. Banking and financials, and technology stocks lifted the market.

The BSE Sensex jumped 659 points to 59,688, while the Nifty50 rose 174 points to 17,799, which was above the five-day consolidation range, and formed a small-bodied bullish candle on the daily charts.

“On the daily charts, the Nifty has given a breakout of the consolidation range of 17,400 – 17,777 which has been forming since last 12 days which indicates positive undertone of the index for the short to medium term,” Vidnyan Sawant, AVP – Technical Research at GEPL Capital said.

The momentum indicator RSI (relative strength index) is moving upward and sustained above the 60 mark, which shows that the Nifty is gaining positive momentum for the short to medium term.

The Nifty has immediate resistance levels placed at 18,000 (swing high) followed by 18,150 (key resistance) and on the other side, it has strong support levels placed at 17,651 (20 days SMA) followed by 17,380 (gap support), the market expert said.

As per the overall chart pattern and indicator set-up, Sawant feels that the Nifty is ready to move upside towards 18,150 levels in the coming days.

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 17,724, followed by 17,650. If the index moves up, the key resistance levels to watch out for are 17,840 and 17,882.

Nifty Bank

The Nifty Bank climbed 753 points to 40,209 and formed a bullish candlestick pattern on the daily charts on Thursday, the weekly expiry day. The important pivot level, which will act as crucial support for the index, is placed at 39,855, followed by 39,501. On the upside, key resistance levels are placed at 40,414 and 40,620.

Call option data

Maximum Call open interest of 23.72 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the September series.

This is followed by 18,500 strike, which holds 19.04 lakh contracts, and 19,000 strike, which has accumulated 17.37 lakh contracts.

Call writing was seen at 18,000 strike, which added 1.8 lakh contracts, followed by 18,500 strike which added 76,700 contracts and 17,800 strike which added 53,350 contracts.

Call unwinding was seen at 17,500 strike, which shed 3.03 lakh contracts, followed by 17,600 strike which shed 2.8 lakh contracts and 17,400 strike which shed 71,000 contracts.

Put option data

Maximum Put open interest of 40.86 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 31.09 lakh contracts, and 17,500 strike, which has accumulated 27.29 lakh contracts.

Put writing was seen at 17,800 strike, which added 1.75 lakh contracts, followed by 17,700 strike, which added 1.33 lakh contracts and 16,200 strike which added 95,150 contracts.

Put unwinding was seen at 17,500 strike, which shed 3.55 lakh contracts, followed by 16,500 strike which shed 2.66 lakh contracts, and 16,000 strike, which shed 1.77 lakh contracts.

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 Power Grid Corporation of India, Britannia Industries, Voltas, Bajaj Auto, and Alkem Laboratories, among others.

57 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 Astral, Shree Cements, Indian Oil Corporation, GNFC, and Bank Nifty, in which a long build-up was seen.

25 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 Coal India, Crompton Greaves Consumer Electrical, NTPC, M&M Financial Services, and SBI Life Insurance Company, in which a long unwinding was seen.

57 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 InterGlobe Aviation, Persistent Systems, ICICI Lombard General Insurance, Federal Bank, and Bajaj Auto in which a short build-up was seen.

57 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 Container Corporation of India, Apollo Tyres, Mahindra & Mahindra, Aditya Birla Fashion & Retail, and Tech Mahindra in which a short-covering was seen.

Bulk Deals

InterGlobe Aviation: Co-founder Gangwal family sold 2.74 percent stake in the company via open market transactions. Rakesh Gangwal offloaded 27.98 lakh shares at an average price of Rs 1,886.47 per share, and 26.02 lakh shares at Rs 1,890.75 per share, while his wife Shobha Gangwal sold 21.65 lakh shares at an average price of Rs 1,895.46 per share, and 30.22 lakh shares at an average price of Rs 1,901.34 per share.

(For more bulk deals, click here)

Investors Meetings on September 9

Can Fin Homes: Officials of the company will meet C Worldwide Asset Management, Denmark.

One 97 Communications: Officials of the company will attend Citi’s 2022 Global Tech Conference and Citi’s GEMS Conference 2022.

TCNS Clothing, Satin Creditcare Network, Nuvoco Vistas Corporation, Sun Pharma, Brigade Enterprises: Officials of the company will attend Ashwamedh – Elara India Dialogue 2022.

UltraTech Cement: Officials of the company will meet Macquarie Investment Management.

Titan Company: Officials of the company will meet Fullerton Fund Management Company, and Matthews Asia.

CRISIL: Officials of the company will meet ASK Investment Managers.

Trent: Officials of the company will meet Aditya Birla Capital.

Vedanta: Officials of the company will meet HDFC MF.

Hindalco Industries: Officials of the company will meet TT International AM Ltd, UK.

TeamLease Services: Officials of the company will meet Alfaccurate Advisors, ASK Investment Managers, Bajaj Allianz Insurance, Edelweiss Mutual Fund, HSBC Mutual Fund, ICICI Pru MF, Infina Finance, Max Life Insurance, Motilal Oswal AMC, Quantum Mutual Fund, Reliance General Insurance, Union Asset Management Company, ITI AIF, SBI General Insurance, Awriga Capital Advisors LLP, Nippon India Mutual Fund, LGT Wealth, AIA Life, White Oak AMC, New Mark Capital, and Burman Capital Management.

Stocks in News

Century Enka: Life Insurance Corporation of India offloaded 4.46 lakh equity shares or 2.04 percent stake in the company via open market transactions. With this, its shareholding in the company reduced to 3.45 percent, down from 5.49 percent earlier.

Nath Bio-Genes (India): Authum Investment & Infrastructure has sold its entire 4.38 percent shareholding in the company via open market transactions on August 24 and August 26.

KDDL: Elevation Capital V FII Holdings Ltd & Elevation Capital V offloaded a 2.04 percent stake in the company via open market transactions on September 6. With this, their shareholding in the company reduced to 11.80 percent, down from 13.84 percent earlier.

PNC Infratech: The company has signed a concession agreement for a HAM project with National Highways Authority of India (NHAI) for a bid project cost of Rs 1,458 crore. This road project in Uttar Pradesh is to be constructed in 24 months, upon declaration of appointed date and operated for 15 years, post construction.

Kaveri Seed Company: Massachusetts Institute of Technology, and 238 Plan Associates LLC bought one lakh shares or 0.14 percent stake in the company via open market transactions on September 6. With this, their shareholding in the company increased to 5.13 percent, from 4.96 percent earlier.

Hatsun Agro Product: SBI Mutual Fund bought additional 15.2 lakh shares or 0.7 percent stake in the company via open market transactions on September 6. With this, the mutual fund house increased its stake in the company to 5.6 percent, up from 4.9 percent earlier.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net-bought shares worth Rs 2,913.09 crore, whereas domestic institutional investors (DIIs) net-sold shares worth Rs 212.61 crore on September 8, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Delta Corp remained on the NSE F&O ban list for September 9. 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.