Trade setup for today: Top 15 things to know before the opening bell
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The market started off on a strong note but as the day progressed, participants preferred to book some profit, and finally the benchmark indices closed on the day’s high on September 9. Overall, the markets remained higher for a major part of the session.
The BSE Sensex rose more than 100 points to 59,793, while the Nifty50 rose 34 points to 17,833, and formed a Bearish Belt Hold kind of pattern on the daily charts. The index has seen the breakout of a small downward sloping resistance trend line adjoining August 19 and September 6, and since then maintained an uptrend.
“The price action since August 19 appears to be unfolding like a ‘Flat’ in Elliot wave parlance, with three moves on the downside, and another three in the counter-trend direction.
“If this observation holds true then sooner than later a downswing should unfold, with eventual targets below 17,166 levels, though confirmations are awaited in this regard,” Mazhar Mohammad, founder & chief market strategist at Chartviewindia said.
For the index to gain momentum and favour the bulls, it needs to close above 17,992 and then 18,114. Till then, bears can make a comeback anytime, he said. The broader markets also closed higher, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.35 percent and 0.06 percent respectively.
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 17,771, followed by 17,708. If the index moves up, the key resistance levels to watch out for are 17,911 and 17,988.
The Nifty Bank jumped more than 200 points to close at 40,416, the highest closing level since October 27, 2021, and formed a small-bodied bearish candle on the daily scale on Friday. The important pivot level, which will act as crucial support for the index, is placed at 40,235, followed by 40,055. On the upside, key resistance levels are placed at 40,641 and 40,866 levels.
Maximum Call open interest of 25.87 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 18.81 lakh contracts, and 19,000 strike, which has 17.91 lakh contracts.
Call writing was seen at 17,900 strike, which added 2.53 lakh contracts, followed by 18,000 strike which added 2.15 lakh contracts, and 17,800 strike which added 1.83 lakh contracts.
Call unwinding was seen at 17,600 strike, which shed 2.61 lakh contracts, followed by 17,700 strike which shed 2.44 lakh contracts, and 17,500 strike which shed 1.88 lakh contracts.
PUT OPTION DATA
Maximum Put open interest of 30.18 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the September series.
This is followed by 17,000 strike, which holds 26.79 lakh contracts, and 17,500 strike, which has accumulated 26.3 lakh contracts.
Put writing was seen at 17,800 strike, which added 4.17 lakh contracts, followed by 17,900 strike, which added 3.62 lakh contracts, and 18,000 strike which added 1.45 lakh contracts.
Put unwinding was seen at 17,500 strike, which shed 99,100 contracts, followed by 16,800 strike which shed 96,300 contracts, and 16,500 strike, which shed 90,950 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 Abbott India, HDFC, Power Grid Corporation of India, Max Financial Services, and Kotak Mahindra Bank, among others.
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, the top 10 stocks in which a long build-up was seen include Gujarat State Petronet, Astral, Gujarat Gas, Shree Cements, and Indiabulls Housing Finance.
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 Whirlpool, Metropolis Healthcare, City Union Bank, InterGlobe Aviation, and SBI Life Insurance, in which long unwinding was seen.
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 PVR, Voltas, ACC, Mahindra & Mahindra, and Power Finance Corporation.
50 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, the top 10 stocks in which short-covering was seen include Crompton Greaves Consumer Electricals, Container Corporation of India, Dixon Technologies, Bandhan Bank, and Polycab India.
Ashapura Minechem: Albula Investment Fund sold 14.5 lakh shares in the company via open market transactions. These shares were sold at an average price of Rs 101.97 per share. The fund held a 7.93 percent stake, or 72.57 lakh shares, in the company as of June 2022.
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Investors Meetings on September 12
Tata Steel: officials of the company will participate in the Ambit India Access – India Capex Conclave, and the Standard Chartered Credit Conference 2022.
Mishra Dhatu Nigam: officials of the company will meet investors in non-deal roadshows in the UAE.
Hindustan Aeronautics: company officials will meet investors in non-deal roadshows.
Tech Mahindra, Tata Consultancy Services: officials of the companies will attend Citi’s GEMS Conference, 2022.
Mahindra & Mahindra: company officials will meet analysts and investors on its M&M EV Day.
Syngene International: Officials of the company will meet Skerryvore Asset Management.
Prince Pipes and Fittings: company officials will participate in the Edelweiss Home Decor Conference.
Capri Global Capital: officials of the company will interact with SBI Mutual Fund.
Stocks in News
Reliance Industries: The company is planning to shut down one crude distillation unit (CDU) and fluidised catalytic cracker (FCC) of its SEZ refinery at Jamnagar for routine maintenance and inspection activities.
For the CDU, the duration of the shutdown is expected to be between 3-4 weeks starting September 18, 2022. For the FCC, it is expected to be between 4-5 weeks, starting September 10, 2022.
The other CDU and secondary processing units are expected to operate normally during this period.
H G Infra Engineering: subsidiary H G Ateli Narnaul Highway has received the completion certificate for its road project in Haryana. With this, the project has been declared fit for commercial operations as on March 11, 2022.
Ujjivan Small Finance Bank: the bank has issued non-convertible debentures of Rs 75 crore. The redemption date for the NCDs is April 26, 2028, and the coupon rate is 11.95 percent.
Gujarat Industries Power: The company said that its board of directors had approved the award of an EPC contract worth Rs 244 crore to KEC International. The contract is for a 400/33 KV pooling sub-station, 1,200 MW of solar, wind, and hybrid power, and a renewable energy park of 2,375 MW capacity in Gujarat.
IRB InvIT Fund: IRB InvIT Fund is set to acquire the Vadodara Kim Expressway HAM project in Gujarat from its sponsors IRB Infrastructure Developers, at an enterprise value of Rs 1,297 crore and equity value of Rs 342 crore.
The acquisition is expected to be completed by October 2022. After the acquisition is completed, the InvIT will have six operational and revenue generating assets in its portfolio.
Fund Flow
Foreign institutional investors (FIIs) have net-bought shares worth Rs 2,132.42 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,167.56 crore on September 9, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The NSE has added Ambuja Cements to its F&O ban list, while Delta Corp continued to remain in the list, for September 12. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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