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

The market came off the day’s high in the last couple of hours of trade due to profit-taking and closed with moderate gains on October 21, extending the journey north for the sixth consecutive session supported largely by banks.

The Sensex gained more than 100 points to close at 59,307, while the Nifty rose 12 points to 17,576 to form a small-bodied bearish candle that resembled a Spinning Top pattern on the daily charts.

The day’s high of 17,670 is expected to be a crucial level to watch out for on the higher side with support at 17,500-17,400, experts said.

“On the daily timeframe, the Nifty formed Spinning Top candlestick pattern near the upper Bollinger Band, which indicates indecision within the index,” Omkar Patil, Technical Research Associate of GEPL Capital said.

The momentum indicator relative strength index (RSI) is above 55 and moving upward, indicating that the index is gaining momentum.

The chart pattern and indicator setup signal that the Nifty will move towards 17,770 followed by 17,919 levels in the short to medium term, Patil said.

The broader market ended lower on October 21, with the Nifty midcap 100 and smallcap 100 indices falling 0.7 percent and 0.1 percent.

The market will open for a special one-hour Muhurat trading on Diwali evening on October 24.

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, resistance levels on the Nifty

As per the pivot charts, the key support for the Nifty is at 17,532 followed by 17,497 & 17,440. If the index moves up, the key resistance will be 17,646 followed by 17,681 and 17,738.

Nifty Bank

The Nifty Bank was the biggest gainer and outperformer among sectors on October 21, rising nearly 700 points to 40,784 and formed a bullish candle on the daily charts. The important pivot level, which will act as crucial support, is 40,465, followed by 40,306 and 40,047. On the upside, key resistance levels are 40,982 followed by 41,142 and 41,401 levels.

Call option data 

The maximum Call open interest of 91.94 lakh contracts was seen at 18,000 strike, which can act as a crucial resistance.

This was followed by 18,200 strike, which holds 66.3 lakh contracts, and 17,600 strike, which has 61.82 lakh contracts.

Call writing was seen at 18,200 strike, which added 42.24 lakh contracts, followed by 17,700 strike, which added 32.76 lakh contracts, and 17,600 strike, which added 30.04 lakh contracts.

Call unwinding was seen at 17,400 strike, which shed 3.91 lakh contracts, followed by 17,300 strike that shed 3.16 lakh contracts and 17,200 strike, which shed 95,850 contracts.

PUT OPTION DATA

The maximum Put open interest of 61.94 lakh contracts was seen at 17,000 strike, which can act as a crucial support level.

This was followed by 17,500 strike, which holds 60.94 lakh contracts, and 16,500 strike, which has accumulated 50.45 lakh contracts.

Put writing was seen at 17,600 strike, which added 27.59 lakh contracts, followed by 16,700 strike, which added 18.75 lakh contracts, and 17,100 strike, which added 9.52 lakh contracts.

Put unwinding was seen at 16,500 strike, which shed 8.65 lakh contracts, followed by 17,200 strike, which shed 1.49 lakh contracts and 17,300 strike, which shed 1.25 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 PFC, HDFC, Bharti Airtel, Larsen & Toubro and ICICI Bank among others.

19 stocks see 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:

75 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 in which long unwinding was seen:

55 stocks saw short build-up

An increase in open interest, along with a decrease in price, 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:

42 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:

Bulk Deals

CSB Bank: SBI Mutual Fund acquired 31.01 lakh equity shares in the company through open market transactions at an average price of Rs 233 a share. However, Plutus Wealth Management LLP sold 32 lakh shares at an average price of Rs 233.01 a share.

(For more bulk deals, click here)

Stocks in News

Reliance Industries: The oil-to-telecom major Reliance Industries reported consolidated profit at Rs 13,656 crore in Q2FY23 against Rs 13,680 crore in the same period last year. Revenues surged 33.7 percent to Rs 2.32 lakh crore led by strong performance of the oil-to-chemical, telecom and retail operations. Consolidated operating profit, including the impact of special additional excise duty imposed by the government in July, surged 14.5 percent on-year to Rs 34,663 crore. Jio Platforms recorded a 27 percent YoY growth in profit at Rs 4,729 crore backed by strong topline and operating performance, with average revenue per user growing 23.5 percent YoY to Rs 177.2 per subscriber per month during the quarter.

ICICI Bank: The country’s second-largest private sector lender registered 37 percent YoY growth in Q2FY23 standalone profit at Rs 7,558 crore, with a significant fall in bad loan provisions. Net interest income increased 26.5 percent YoY to Rs 14,787 crore, with net interest margin expanding around 30 bps on a sequential as well as on-year basis.

Kotak Mahindra Bank: The bank reported 27 percent YoY growth in standalone profit at Rs 2,581 crore for Q2FY23. Net interest income also grew 27 percent YoY to Rs 5,099 crore, with net interest margin expanding by 72 bps YoY to 5.17 percent for the quarter. The bank reported a significant 68 percent YoY decline in provisions and contingencies at Rs 137 crore, while asset quality improved further.

RBL Bank: The bank’s Q2FY23 profit grew 6.5 times YoY to Rs 201.55 crore on a low base. There was a considerable decline in provisions and contingencies at Rs 241 crore, a YoY drop of 26 percent. Net interest income grew 16 percent YoY to Rs 1,064 crore, with the net interest margin rising 49 bps YoY to 4.55 percent. Gross NPA declined by 28 bps QoQ but there was a 10 bps QoQ increase in net NPA.

Yes Bank: The lender recorded a 32 percent YoY decline in profit at Rs 153 crore, impacted by higher provisions for bad loans that surged 54 percent YoY to Rs 583 crore in Q2FY23. Net interest income for the quarter at Rs 1,991 crore increased by 32 percent YoY, with net interest margin expanding by 40 bps YoY (up 20 bps QoQ) to 2.6 percent.

Hindustan Unilever: The company’s profit grew 19.6 percent year-on-year to Rs 2,616 crore in the September quarter, with domestic volume growth at 4 percent. Revenue increased 15.9 percent YoY to Rs 14,751 crore during the quarter. EBITDA rose 7.8 percent to Rs 3,377 crore, but margin fell by 170 bps YoY to 22.9 percent in Q2FY23. HUL declared an interim dividend of Rs 17 a share for FY23.

IDFC First Bank: The bank reported a 266 percent year-on-year growth in profit at Rs 555.5 crore for the quarter ended September 30, driven by higher other income. Net interest income increased 32 percent YoY to Rs 3,002 crore with net interest margin expanding by 15 bps YoY to 5.98 percent for the quarter. Provisions and contingencies declined by 11 percent to Rs 424 crore for the quarter YoY. Gross NPA and net NPA of the bank at 3.18 percent and 1.09 percent improved by 18 bps and 21 bps QoQ, respectively.

KEC International: The company has received new orders worth Rs 2,042 crore, including transmission & distribution, civil and railways. With this, its order inflows for the current year stand at Rs 10,500 crore, a growth of 40 percent over last year.

JSW Steel: The company posted a consolidated loss of Rs 915 crore for the quarter ended September FY23 against a profit of Rs 7,179 crore in Q2FY22, impacted by weakness in operating performance and lower other income, but supported by exceptional gain. Revenue grew by 28.5 percent to Rs 41,778 crore YoY, while EBITDA fell 83 percent to Rs 1,752 crore compared to the year-ago period.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 438.89 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 119.08 crore on October 21, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

BHEL is under the NSE F&O ban list for October 24. 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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