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

It was another disappointing day for bulls on September 15 as the market corrected seven-tenth of a per cent, continuing a downtrend for the second consecutive session weighed down by technology, pharma, select banking & financial services, and FMCG stocks.

The BSE Sensex fell more than 400 points to 59,934, while the Nifty50 dropped over 120 points to 17,877 and formed a bearish candlestick pattern on the daily charts.

“A long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. Technically, this market action signal emergence of selling pressure at the resistance of 18,100 levels,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

On the downside, the Nifty is expected to find support around 17,750-17,700 levels in the short term.

The market expert overall expects the short-term trend of Nifty to be rangebound around 18,100-17,700 levels.

The outperformance by broader markets continued as the Nifty Midcap 100 index gained 0.38 percent and Smallcap 100 index ended flat.

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 17,794, followed by 17,710. If the index moves up, the key resistance levels to watch out for are 18,029 and 18,180.

Nifty Bank

The Nifty Bank also witnessed selling pressure, falling 196 points to 41,209 and formed a bearish candle on the daily charts on Thursday. The important pivot level, which will act as crucial support for the index, is placed at 40,962, followed by 40,714. On the upside, key resistance levels are placed at 41,648 and 42,087 levels.

CALL OPTION DATA

Maximum Call open interest of 30.77 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 21.34 lakh contracts, and 19,000 strike, which has 20.21 lakh contracts.

Call writing was seen at 17,900 strike, which added 3.72 lakh contracts, followed by 18,100 strike which added 2.09 lakh contracts, and 18,400 strike which added 1.77 lakh contracts.

Call unwinding was seen at 17,700 strike, which shed 82,200 contracts, followed by 18,600 strike which shed 42,600 contracts, and 17,500 strike which shed 17,050 contracts.

PUT OPTION DATA

Maximum Put open interest of 32.72 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the September series.

This is followed by 17,500 strike, which holds 28.37 lakh contracts, and 17,000 strike, which has accumulated 27.73 lakh contracts.

Put writing was seen at 17,900 strike, which added 2.88 lakh contracts, followed by 17,800 strike, which added 1.8 lakh contracts, and 16,700 strike which added 1.42 lakh contracts.

Put unwinding was seen at 18,000 strike, which shed 3.63 lakh contracts, followed by 17,600 strike which shed 60,650 contracts, and 18,500 strike, which shed 44,650 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 Whirlpool, Hindustan Unilever, Godrej Consumer Products, Power Grid Corporation, and HDFC, among others.

41 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, the top 10 stocks in which a long build-up was seen include Apollo Tyres, Mahanagar Gas, Ambuja Cements, MRF, and Granules India.

50 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 Bandhan Bank, Bharat Electronics, Bank Nifty, RBL Bank, and ACC, in which long unwinding was seen.

77 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 PVR, Nifty Financial, Infosys, Bajaj Finserv, and Biocon.

29 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 including Delta Corp, India Cements, JK Cement, Vedanta, and AU Small Finance Bank.

Bulk Deals

PVR: Plenty Private Equity FII I sold 7,62,499 equity shares (1.24% stake) in the company via open market transactions at an average price of Rs 1,877.14 per share, and Plenty Private Equity Fund I offloaded 10,76,259 shares (1.76% stake) at an average price of Rs 1,887.04 per share. They together held 6.02% stake in the company as of June 2022. Gray Birch Investment exited the company by selling 22,06,743 equity shares at an average price of Rs 1,871.18 per share.

(For more bulk deals, click here)

Investors Meetings on September 16

Kalyan Jewellers India: Officials of the company will meet Param Capital.

Indian Energy Exchange: Officials of the company will interact with Genesis Investment Management.

Tata Chemicals: Officials of the company will interact with Capital Research Group.

Rallis India: Officials of the company will meet Phillip Capital (India), and N-Square Capital.

Voltas: Officials of the company will meet T Rowe Price & Associates.

Tech Mahindra: Officials of the company will attend Kotak Corporate Access Day.

Mahindra & Mahindra: Officials of the company will participate in CLSA Virtual Investor Conference.

Axis Bank: Officials of the company will attend CITIC CLSA Tour Flagship Investors’ Forum 2022.

V-Guard Industries: Officials of the company will meet BNP, and ICICI Prudential Life.

UPL: Officials of the company will meet Ninety One UK, Capital World Investors, and USS Investment Management.

PI Industries: Officials of the company will meet B&K Securities.

Polycab India: Officials of the company will meet SBI Pension Funds.

UltraTech Cement: Officials of the company will meet Baillie Gifford & Co, Carmignac Risk Managers, Janus Henderson Asset Management company, T Rowe Price, Ocean Dial Asset Management, Martin Currie Investment Management, Capital International, and Somerset Capital Management.

Orient Electric: Officials of the company will meet SBI Life, and White Oak.

Stocks in News

Adani Ports and Special Economic Zone: Adani Ports will enhance Haldia Dock’s capacity in Bengal as its subsidiary HDC Bulk Terminal has signed concession agreement with Syama Prasad Mookerjee Port, Kolkata, for mechanization of Berth no. 2 at Haldia port. The special purpose vehicle between HDC Bulk Terminal and Syama Prasad Mookerjee Port formed to implement the project will get the rights to design, build, finance, operate, maintain and manage the bulk terminal with a capacity of 3.74 million tons per annum for a concession period of 30 years at Haldia Dock Complex, Haldia.

Future Lifestyle Fashions: Investor Pioneer Investment Fund has sold 3.98 lakh equity shares or 0.2% stake in the company via open market transactions on September 14-15. With this, its shareholding in the company stands reduced to 2.44%, up from 2.64% earlier.

Ester Industries: The company has completed sale of engineering plastics business to Radici Plastics India. Ester in May 2022 had entered into a definitive agreement to sell the said business for Rs 289.33 crore.

UPL: The agrochemical company in joint venture with CleanMax Enviro Energy Solutions, a Mumbai-based renewable energy company, to establish a hybrid solar-wind energy power plant in Gujarat. The joint venture will set-up and operate a hybrid captive power plant with a capacity of 28.05 MW of solar power and 33 MW of wind power.

Trigyn Technologies: Subsidiary Trigyn Technologies, Inc has received an enterprise task order agreement for providing citywide systems integration services, Class I, from the City of New York (City), Department of Information Technology & Telecommunications. The order is for six years.

Tata Power: Subsidiary Tata Power Solar Systems has received contract worth Rs 612 crore to set up 100 MW ground mounted project for SJVN in Gujarat. The project will get commissioned within 11 months from the date of receiving of letter of award.

MTAR Technologies: The company has received orders worth about Rs 540 crore in clean energy segment including civil nuclear power.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,270.68 crore, whereas domestic institutional investors (DIIs) net offloaded shares worth Rs 928.86 crore on September 15, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Two stocks – Indiabulls Housing Finance, and RBL Bank – are under the NSE F&O ban list for September 16. 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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