Trade setup for today: Top 14 things to know before the opening bell

The market started off the week on a negative note with the benchmark indices falling more than 1 percent, as the selling pressure was seen across sectors except pharma, on October 3.

The BSE Sensex plunged 638 points to 56,789, while the Nifty50 fell 207 points to 16,887 and formed a bearish candle on the daily charts.

“A long bear candle was formed on the daily chart, that has engulfed more than halfway mark of the previous long bull candle of Friday. Technically, this pattern indicates a lack of strength to sustain the upside bounce in the market and the crucial lower support of 16,750-16,800 levels could be tested again. This is a negative indication,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Hence, a decisive slide below 16,750 levels is likely to negate the bullish pattern created during Friday’s upmove and that could eventually result in further strengthening of downside momentum in the market.

On the upside, 17,060-17,100 could act as a strong hurdle for the short term, the market expert said.

The broader markets were also in control of bears as the Nifty Midcap 100 index declined 1.25 percent and the Smallcap 100 index fell 0.66 percent. India VIX, which gauges the expected volatility in the market, also jumped 7 percent to 21.37 levels, making the bulls uncomfortable at Dalal Street.

We have collated 14 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 16,790, followed by 16,693. If the index moves up, the key resistance levels to watch out for are 17,049 and 17,212.

Nifty Bank

The Nifty Bank was also under pressure, falling 602 points or 1.56 percent to 38,030 and formed a Bearish Harami candlestick pattern on the daily charts on October 3. The important pivot level, which will act as crucial support for the index, is placed at 37,781, followed by 37,533. On the upside, key resistance levels are placed at 38,460 and 38,890 levels.

CALL OPTION DATA

Maximum Call open interest of 29.98 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the October series.

This is followed by 17,000 strike, which holds 26.87 lakh contracts, and 17,500 strike, which has 17.75 lakh contracts.

Call writing was seen at 17,000 strike, which added 6.93 lakh contracts, followed by 18,000 strike which added 5.46 lakh contracts, and 18,200 strike which added 2.58 lakh contracts.

Call unwinding was seen at 17,500 strike, which shed 12,950 contracts, followed by 16,000 strike which shed 2,300 contracts and 16,700 strike which shed 1,250 contracts.

PUT OPTION DATA

Maximum Put open interest of 29.34 lakh contracts was seen at 17,000 strike, followed by 16,000 strike, which holds 28.44 lakh contracts, and 15,500 strike, which has accumulated 27.04 lakh contracts.

Put writing was seen at 17,000 strike, which added 4.52 lakh contracts, followed by 15,500 strike, which added 3.41 lakh contracts, and 16,000 strike which added 2.34 lakh contracts.

Put unwinding was seen at 17,500 strike, which shed 32,400 contracts, followed by 17,200 strike which shed 26,800 contracts and 17,100 strike which shed 26,400 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, ICICI Lombard General Insurance, HDFC, Hindustan Unilever, and HDFC AMC, among others.

16 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, below are the top 10 stocks in which a long build-up was seen. The list includes ONGC, Ipca Laboratories, Vodafone Idea, Torrent Pharma, and Zydus Lifesciences.

66 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 Aditya Birla Fashion & Retail, TVS Motor, JK Cement, Chambal Fertilizers, and Bosch, in which long unwinding was seen.

105 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 in which a short build-up was seen. The list includes Nifty Financial, Crompton Greaves Consumer Electricals, Eicher Motors, City Union Bank, and Mphasis.

10 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 10 stocks, in which short-covering was seen. The list includes MCX India, Deepak Nitrite, BHEL, Granules India, and Coal India.

Bulk Deals

Max India: Cassini Partners LP acquired 9.66 lakh shares and 238 Plan Associates LLC bought 2.34 lakh shares in the company at an average price of Rs 82 per share.

(For more bulk deals, click here)

Stocks in News

South Indian Bank: The bank announced its provisional numbers for September FY23 quarter, saying gross advances grew by 17% YoY to Rs 67,981 crore and deposit rose 2% YoY to Rs 88,503 crore.

Housing Development Finance Corporation: HDFC said loans assigned in Q2FY23 stood at Rs 9,145 crore, up from Rs 7,132 crore in same period last year. All the loans assigned during the quarter were to HDFC Bank. Gross income from dividend for Q2 came in at Rs 1,360 crore and the profit on sale of investments was nil for the quarter.

KEC International: The infrastructure EPC company has secured new orders of Rs 1,407 crore across segments. The transmission and distribution segment received orders from Middle East, while the railways business has bagged an order for signaling & telecommunication works. Its year-to-date order intake now stands at Rs 8,400 crore.

Dilip Buildcon: The road construction company through its joint venture RBL-DBL has received letter of acceptance (LOA) for its Surat Metro Rail Project in Gujarat. The said order is worth Rs 1,061 crore.

Vedanta: The company said its alumina production at Lanjigarh refinery decreased by 11% YoY to 4.54 lakh tonnes due to scheduled maintenance, and at Zinc India, reported highest-ever second quarter mined metal production at 2.55 lakh tonnes, up 3 percent YoY, driven by better grades and improved mill recoveries. In the steel segment, its total saleable production increased by 11% YoY to 3.25 lakh tonnes on account of completion of debottlenecking activities in Q1FY23.

Avenue Supermarts: The D-Mart operator announced standalone revenue for the quarter ended September 2022 at Rs 10,384.66 crore, up significantly by 36% from Rs 7,649.64 crore in same period last year. The total number of stores as of September 2022 stood at 302.

Mahindra & Mahindra Financial Services: The company said the business continued its momentum with disbursement of approximately Rs 4,080 crore, delivering a 110% YoY growth in September 2022, aided by macro tailwinds. The first half is estimated to clock a disbursement of approximately Rs 21,300 crore, which led to a strong gross asset book of approximately Rs 73,900 crore, growing ~3% month-on-month. The collection efficiency was at 98% for September 2022, against collection efficiency of 96% for August 2022.

Marico: Its India business posted low single-digit volume growth with the 3-year CAGR in high single digits and international business maintained its strong run, delivering double-digit constant currency growth. With this, its consolidated revenue in September FY23 quarter grew in low single digits on a year-on-year basis. Net profit will be further impacted by higher effective tax rate.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) turned net buyers for the first time in the last nine consecutive sessions, net purchasing shares worth Rs 590.58 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 423.16 crore on October 3, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The National Stock Exchange has not added any stock under its F&O ban list for October 4. 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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