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

Bulls strengthened their control over Dalal Street on September 20, helping the benchmark indices gain 1 percent following an uptrend in Asian peers, though other global peers were under pressure ahead of the outcome of the Federal Reserve meeting.

The BSE Sensex jumped 578 points to 59,720, while the Nifty50 rose 194 points to 17,816 and formed a decent bullish candle which resembles the Shooting Star kind of pattern formation on the daily charts.

“On the daily charts, the Nifty tried to feel the upside gap but was unable to close the gap and formed Shooting Star candle pattern indicating selling pressure at higher levels. However, it has managed to sustain above its 20-day SMA (simple moving average – 17,692) with the formation of the higher top higher bottom,” Vidnyan Sawant, AVP – Technical Research at GEPL Capital said.

The momentum indicator RSI (relative strength index) is moving in an upward direction and placed at the 56 mark which shows the momentum is on the slightly positive side.

The Nifty has an immediate resistance level placed at 17,918 (day high), followed by 18,096 (swing high) and on the other side, it has a strong support level placed at 17,667 (Gap Support) followed by 17,429 (3 days low).

As per the overall chart pattern and indicator set-up, Vidnyan feels that the Nifty is not giving clear clue before the FOMC meet. However, it is positively biased and the broader range of the Nifty will be 17,380 – 18,096 levels for the short to medium term.

The broader markets also participated in rally as the Nifty Midcap 100 and Smallcap 100 indices climbed more than one percent each.

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 17,734, followed by 17,652. If the index moves up, the key resistance levels to watch out for are 17,909 and 18,001.

Nifty Bank

The Nifty Bank rose 564 points to end at a record closing high of 41,468.30 and formed a decent bullish candle on the daily charts on Tuesday. The important pivot level, which will act as crucial support for the index, is placed at 41,224, followed by 40,981. On the upside, key resistance levels are placed at 41,695 and 41,921 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 20.17 lakh contracts, and 19,000 strike, which has 19.73 lakh contracts.

Call writing was seen at 17,900 strike, which added 3.75 lakh contracts, followed by 17,800 strike which added 2.08 lakh contracts, and 18,000 strike which added 1.75 lakh contracts.

Call unwinding was seen at 17,600 strike, which shed 5.21 lakh contracts, followed by 17,700 strike which shed 2.89 lakh contracts, and 17,500 strike which shed 1.54 lakh contracts.

PUT OPTION DATA

Maximum Put open interest of 30.58 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 30.51 lakh contracts, and 17,000 strike, which has accumulated 26.66 lakh contracts.

Put writing was seen at 17,800 strike, which added 6.88 lakh contracts, followed by 17,900 strike, which added 3.88 lakh contracts, and 17,700 strike which added 3.46 lakh contracts.

Put unwinding was seen at 16,500 and 17,200 strikes, which shed 3.8 lakh contracts each, followed by 16,600 strike which shed 2.77 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, Honeywell Automation, United Breweries, NTPC, and Britannia Industries, among others.

73 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 Cipla, Gujarat Gas, Rain Industries, JK Cement, and Honeywell Automation.

12 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 Escorts, India Cements, Apollo Tyres, Delta Corp, and Granules India, in which long unwinding was seen.

8 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 8 stocks in which a short build-up was seen include Can Fin Homes, Indian Oil Corporation, ABB India, Vedanta, and MRF.

100 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 short-covering was seen including Hero MotoCorp, MCX India, IRCTC, Ipca Laboratories, and Hindalco Industries.

Bulk Deals

Best Agrolife: Quant Mutual Fund bought 3.22 lakh equity shares in the company via open market transactions at an average price Rs 1,239.04 per share, and 1.78 lakh shares at an average price of Rs 1,222.6 per share. However, Raj Kumar sold 5.25 lakh shares at an average price of Rs 1,240.9 per share, and 2.75 lakh shares at an average price of Rs 1,210.68 per share.

HP Adhesives: 3 Sigma Global Fund has offloaded 1.4 lakh shares or 0.76% stake in the company via open market transactions at an average price of Rs 403.42 per share. The fund held 9.06 lakh shares or 4.93% stake in the company as of June 2022.

Tourism Finance Corporation of India: India Opportunities III Pte Limited, and Tamaka Capital Mauritius exited Tourism Finance Corporation of India by selling entire 80,61,597 shares at an average price of Rs 62.25 per share, and 24,21,502 shares at an average price of Rs 62.18 per share respectively. However, Citrine Fund bought 21,02,028 shares in at an average price of Rs 61.96 per share, Geeta Chetan Shah acquired 5 lakh shares at an average price of Rs 62.4 per share, GIR Dairy Farming Products purchased 23 lakh shares at an average price of Rs 62 per share, and Prarthana Enterprises bought 5.25 lakh shares at an average price of Rs 62.39 per share.

(For more bulk deals, click here)

Investors Meetings on September 21

Vedanta, Raymond, Sobha, KPIT Technologies, PVR, Tata Communications, Tata Consumer Products, PG Electroplast, Axis Bank, GAIL India, Meghmani Finechem, HPCL, PI Industries, Matrimony.com, CESC, Voltas: Officials of companies will attend Motilal Oswal 18th Annual Global Investor Conference, 2022.

Tata Elxsi, Grasim Industries, Indus Towers, Havells India, Persistent Systems, Mahindra & Mahindra, Axis Bank, Laurus Labs, Macrotech Developers, Info Edge: Officials of companies will attend JP Morgan’s India Investor Summit.

Arvind: Senior management of the company will interact with HDFC Asset Management Company.

Syngene International: Officials of the company will interact with L&T Mutual Fund, and Alchemy Capital.

VIP Industries: Officials of the company will interact with Albatross Capital, American Century, Investment Management Inc, Baroda BNP MF, HSBC MF, IDFC MF, Rare Enterprises, Canara Robeco Mutual Fund, Nippon MF, Sage one Investment advisors LLP, Unifi Capital, Taurus MF, BOI AXA, OHM Group, Aditya Birla Group, Exide Life Insurance, JM Mutual fund, Roha Asset Managers LLP, Sundaram MF, Alchemy Capital, Kotak Group, and ASK Investments.

Aptus Value Housing Finance India: Officials of the company will meet Marcellus.

Polycab India, Carborundum Universal: Officials of companies will participate in Equirus Virtual Annual Conference 2022.

Snowman Logistics: Officials of the company will interact with Oldbridge Capital, Labdhi Finance, Karat Capital, and Fractal Capital.

UltraTech Cement: Officials of the company will interact with Amundi Asset Management, Carnegie Fonder AB, M&G Investments, Khazanah Nasional Berhad, Citadel, Comgest Singapore Pte Limited, Millennium Capital Management Asia Limited, and Value Partners.

Eicher Motors: Officials of the company will meet BlackRock.

Stocks in News

Premier Explosives: The company has received order for warheads manufacturing from Israel Aerospace Industries (IAI). The order is valued at around Rs 4.27 crore and ordered items are expected to be delivered by May 2023. The company also received order worth Rs 5.47 crore for production and supply of booster rocket motors, which is expected to be delivered by March 31, 2023.

Rhetan TMT: Clear Water Commodities bought 9.41% stake in the company via open market transactions. It acquired 7.5 lakh shares (3.53% stake) on September 8, and 12.5 lakh shares (5.88% stake) on September 13.

Tata Steel: The company has raised Rs 2,000 crore through NCDs issue as the board of directors has approved the allotment of 20,000 non-convertible debentures with face value Rs 10 lakh each to identified investors on private placement basis. The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE.

Zydus Lifesciences: European Commission has granted marketing authorization for Nulibry (fosdenopterin) for injection as the first therapy for the treatment of patients with molybdenum cofactor deficiency (MoCD) Type A. MoCD Type A is an ultra-rare and progressive condition known to impact less than 150 patients globally with a median survival of four years. Nulibry was first FDA-approved therapeutic owned by Nasdaq-listed biopharmaceutical company BridgeBio Pharma, and US-based Sentynl Therapeutics Inc, owned by Zydus, acquired global rights to market Nulibry in March 2022.

Wipro: The IT services company, and UK-based Finastra announced a partnership in India to power digital transformation for corporate banks in India. This multi-year partnership makes Wipro the exclusive implementation and go-to-market partner for all banks in India for Finastra’s Fusion Trade Innovation and Fusion Corporate Channels.

Hero MotoCorp: The two-wheeler major and oil retailer HPCL has entered into collaboration to establish charging infrastructure for electric vehicles (EVs) in the country. Companies will set-up charging infrastructure for two-wheeled electric vehicles across the country.

Lykis: Vijay Kishanlal Kedia has offloaded 3.9 lakh equity shares or 2.02% stake in the company via open market transactions. With this, his shareholding in the company reduced to 3.95%, down from 5.97% earlier.

Niyogin Fintech: Alchemy India Long Term Fund sold 20.07 lakh shares or 2.13% stake in the company via open market transactions. With this, its shareholding in the company reduced to 0.82%, down from 3.29% earlier.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 1,196.19 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 131.94 crore on September 20, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Five stocks – Delta Corp, Escorts, India Cements, PVR, and RBL Bank – are under the NSE F&O ban list for September 21. Securities 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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