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

The Nifty50 index on September 13 opened and closed above the crucial psychological level of 18,000, thereby continuing the uptrend for the fourth consecutive session amid positive global cues.

Banking & financial services, FMCG, and metal stocks supported the market. The BSE Sensex rose 456 points to 60,571, while the Nifty50 climbed 134 points to 18,070 and formed a small-bodied bullish candle on the daily charts.

“On the daily charts, the Nifty has maintained higher top higher bottom formation and it has also successfully closed above the 18,000-mark after 5 months indicating strong sentiment for the short to medium term,” said Vidnyan Sawant, AVP – Technical Research at GEPL Capital.

The momentum indicator RSI (relative strength index) is moving upward and sustained above the 65-mark which suggests a strong positive momentum of the index for the short to medium term.

The Nifty has an immediate resistance level placed at 18,150 (key resistance) followed by 18,350 (January 2022 high) and on the other side, it has a strong support level placed at 18,000 (key support) followed by 17,890 (2 days low), the market expert said.

The Nifty Midcap 100 and Smallcap 100 indices gained 0.16 percent each, underperforming the benchmark indices, while India VIX fell by 2.6 percent to 17.47 levels, making the bulls more comfortable.

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 18,027, followed by 17,985. If the index moves up, the key resistance levels to watch out for are 18,100 and 18,131.

Nifty Bank

The Nifty Bank jumped 299 points to 40,873, the highest closing level since October 27, 2021, and formed a small-bodied bullish candle on the daily charts on Tuesday. The important pivot level, which will act as crucial support for the index, is placed at 40,743, followed by 40,613. On the upside, key resistance levels are placed at 40,954 and 41,034 levels.

CALL OPTION DATA

Maximum Call open interest of 26.64 lakh contracts was seen at 18,000 strike, followed by 18,500 strike, which holds 20.36 lakh contracts, and 19,000 strike, which has 19.29 lakh contracts.

Call writing was seen at 18,100 strike, which added 1.76 lakh contracts, followed by 18,800 strike which added 1.63 lakh contracts, and 18,500 strike which added 1.43 lakh contracts.

Call unwinding was seen at 17,900 strike, which shed 4.35 lakh contracts, followed by 17,800 strike which shed 2.5 lakh contracts, and 17,500 strike which shed 1.86 lakh contracts.

PUT OPTION DATA

Maximum Put open interest of 32.61 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 26.69 lakh contracts, and 17,500 strike, which has accumulated 25.97 lakh contracts.

Put writing was seen at 18,000 strike, which added 7.6 lakh contracts, followed by 18,100 strike, which added 1.95 lakh contracts, and 17,600 strike which added 1.31 lakh contracts.

Put unwinding was seen at 17,900 strike, which shed 2.95 lakh contracts, followed by 17,300 strike which shed 1.97 lakh contracts, and 16,500 strike, which shed 1.1 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 HDFC Life Insurance Company, Alkem Laboratories, Bajaj Auto, Power Finance Corporation, and ICICI Bank, among others.

42 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 Polycab India, Max Financial Services, Voltas, JK Cement, and Sun TV Network.

46 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 City Union Bank, Firstsource Solutions, Intellect Design Arena, IndiaMART Intermesh, and Alkem Laboratories, in which long unwinding was seen.

42 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 Abbott India, Dr Lal PathLabs, Crompton Greaves Consumer Electricals, Page Industries, and Hindustan Petroleum Corporation.

66 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 Aarti Industries, L&T Technology Services, Navin Fluorine International, Nifty Financial, and Indiabulls Housing Finance.

Bulk Deals

Ami Organics: Plutus Wealth Management LLP acquired additional 9,53,420 equity shares or 2.6% stake in the company, and Small Cap World Fund Inc bought fresh 15,96,540 shares or 4.38% stake in the company at an average price of Rs 1,037.25 per share. However, Promoter Shital Nareshbhai Patel and Parul Chetankumar Vaghasia sold 3 lakh shares each at same price, while investors Virendra Nath Mishra and Kiranben Girishbhai Chovatia sold 3 lakh shares and 10 lakh shares respectively at same price.

HDFC Life Insurance Company: Abrdn (Mauritius Holdings) 2006 Limited sold 4.3 crore equity shares in the company via open market transactions, at an average price of Rs 574.15 per share.

(For more bulk deals, click here)

Investors Meetings on September 14

Eicher Motors: Officials of the company will interact with UBS Global Asset Management.

Greaves Cotton: Officials of the company will interact with AMSEC.

Indian Energy Exchange: Officials of the company will meet Capital Group, and Border to Coast.

Tata Chemicals: Officials of the company will meet Millenium Capital Management, White Oak Capital, and Eastspring Investments in Singapore.

Zensar Technologies: Officials of the company will attend RPG Annual Investor Conference 2022.

Axis Bank: Officials of the bank will attend India Financials Investor Group Trip organized by Morgan Stanley.

Indus Towers, Eicher Motors, ITC: Officials of companies will be attending 29th Annual CITIC CLSA Flagship Investors Forum.

Syngene International: Officials of the company will meet Bajaj Allianz Life Insurance.

Symphony: Officials of the company will meet Yes Securities.

Gujarat Pipavav Port, Apex Frozen Foods, Kalyan Jewellers India, Mahindra & Mahindra: Officials of companies will participate in InCred Capital Virtual Investor Conference.

Mishra Dhatu Nigam: Officials of the company will meet investors in non-deal roadshows in UAE

Hindustan Aeronautics: Officials of the company will meet investors in non-deal roadshows.

MedPlus Health Services: Officials of the company will attend Citi India Healthcare and Pharma Investor Trip 2022.

Nuvoco Vistas Corporation: Officials of the company will interact with ICICI Prudential Mutual Fund.

Vedanta: Officials of the company will interact with Max Life Venue Insurance.

Cipla: Officials of the company will attend Morgan Stanley 20th Annual Global Healthcare Conference in New York.

UltraTech Cement: Officials of the company will meet Aberdeen Asset Management.

Stocks in News

Maharashtra Scooters: The company said the board of directors declared an interim dividend of Rs 100 per share of face value of Rs 10, for the financial year ending March 2023. The record date for determining the eligibility of members to receive the interim dividend has been fixed as September 23.

Bharat Forge: Subsidiary Kalyani Powertrain, and commercial electric vehicle company Harbinger Motors Inc announced joint venture to develop electrified drivetrains for the commercial trucking industry. The new JV, named ElectroForge, will leverage the strengths of both the partners to offer best in-class drivetrains developed for the Class 3 through 8 markets.

KEC International: Infrastructure EPC major KEC International has secured new orders of Rs 1,108 crore across its various businesses including transmission & distribution and railways. The transmission & distribution business has secured orders for T&D and cabling projects in India, Middle East and Africa.

Hatsun Agro Product: The company said the board of directors on September 19 to consider raising of funds by issue of equity shares on a rights issue basis.

JSW Steel: The company has forged a collaboration with German-based engineering and technology company SMS group for exploring solutions for implementation of the decarbonisation projects across various JSW Steel plants in India. SMS group will provide its technology experts design, engineering consultancy and commissioning for executing various projects.

Bajaj Holdings & Investment: The company has declared an interim dividend of Rs 110 per share of face value of Rs 10 for the financial year ending March 2023. The record date for determining the eligibility of members to receive the interim dividend has been fixed as September 23.

Infosys: The company has collaborated with Bpost (Belgium Post), a leading postal operator and growing parcel and omni-commerce logistics partner in Europe, to secure the cloud environment and build robust cyber resilience for Bpost’s mail delivery and logistics services.

Neuland Laboratories: Deepak Gupta has resigned as Chief Financial Officer of the company, to pursue career opportunities outside the company. He will continue to act as the Chief Financial Officer of the company till October 13.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 1,956.98 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,268.43 crore on September 13, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks – Indiabulls Housing Finance, Ambuja Cements, and Delta Corp – remained under the NSE F&O ban list for September 14. 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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