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

The market had a decent gap up opening and finally settled with around half a percent gains on October 27, the expiry day for monthly futures & options contracts. All sectors, barring technology, supported the market.

The BSE Sensex jumped over 200 points to 59,757, while the Nifty50 rose 81 points to 17,737 and formed a small-bodied bearish candle. It resembles the Hanging Man kind of pattern on the daily charts, which is a bearish reversal pattern formed in an uptrend.

“While the Nifty remains in a short-term uptrend and looks set to move higher towards the previous intermediate highs of 18.096, it is important that on any mild corrections the index holds above the immediate supports of 17,607-17,505 for the uptrend to continue,” Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities said.

Zooming into the 15-minute chart, “we see that though Nifty witnessed selling pressure from the highs, the index recovered from the lows and managed to close with healthy gains. The short-term trend, therefore, remains up as the Nifty has moved above the previous swing high of 17,429 and made higher bottoms over the last few weeks,” the market expert said.

The Nifty Midcap 100 and Smallcap 100 indices also closed higher, rising 0.6 percent and 0.4 percent, respectively.

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 17,676, followed by 17,645 & 17,596. If the index moves up, the key resistance levels to watch out for are 17,774 followed by 17,805 and 17,854.

Nifty Bank

The Nifty Bank also traded higher, rising 176 points to 41,299 and formed a small-bodied bearish candle on the daily charts on October 27. The important pivot level, which will act as crucial support for the index, is placed at 41,203, followed by 41,124 and 40,997 levels. On the upside, key resistance levels are placed at 41,457 followed by 41,536 & 41,663 levels.

CALL OPTION DATA

The maximum Call open interest of 82.37 lakh contracts was seen at 17,800 strike, which can act as a crucial resistance level in the November series.

This is followed by 18,000 strike, which holds 81.42 lakh contracts, and 17,900 strike, which has 56.5 lakh contracts.

Call writing was seen at 17,800 strike, which added 5.28 lakh contracts, followed by 18,700 strike which added 4.15 lakh contracts, and 18,600 strike which added 85,950 contracts.

Call unwinding was seen at 18,000 strike, which shed 31.54 lakh contracts, followed by 17,700 strike which shed 25.08 lakh contracts and 17,600 strike which shed 22.55 lakh contracts.

PUT OPTION DATA

Maximum Put open interest of 75.16 lakh contracts was seen at 17,700 strike, which can act as a crucial support level in the November series.

This is followed by 17,500 strike, which holds 65.67 lakh contracts, and 17,000 strike, which has accumulated 48.91 lakh contracts.

Put writing was seen at 17,700 strike, which added 48.58 lakh contracts, followed by 17,800 strike, which added 5.77 lakh contracts, and 17,900 strike which added 3.58 lakh contracts.

Put unwinding was seen at 17,000 strike, which shed 16.9 lakh contracts, followed by 17,200 strike which shed 12.14 lakh contracts and 17,100 strike which shed 10.77 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 HDFC Bank, Marico, ITC, HDFC Life Insurance Company, and Petronet LNG, among others.

Rollovers

Here are the top 10 stocks that saw the highest rollovers on expiry day including Oberoi Realty, Honeywell Automation, Page Industries, Kotak Mahindra Bank, and Cummins India with more than 98 percent rollovers.

3 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 three stocks – Cummins India, LIC Housing Finance, and Balrampur Chini Mills, in which a long build-up was seen.

37 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 NMDC, TVS Motor Company, Punjab National Bank, Tech Mahindra, and Bajaj Auto, in which long unwinding was seen.

6 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 six stocks in which a short build-up was seen including Mphasis, Page Industries, Astral, Max Financial Services, and Asian Paints.

151 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. The list includes Nifty Financial, Alkem Laboratories, Aarti Industries, Power Finance Corporation, and Power Grid Corporation of India.

Bulk Deals

Newgen Software Technologies: Marathon Edge India Fund I acquired additional 20 lakh equity shares in the company via open market transactions at an average price of Rs 345 per share. The fund already held 18.52 lakh shares or 2.65% stake in the company as of September 2022. However, India Acorn Icav sold 9.83 lakh equity shares at an average price of Rs 345.03 per share, and AL Mehwar Commercial Investments LLC offloaded 5.01 lakh shares at an average price of Rs 345.01 per share.

(For more bulk deals, click here)

Results on October 28 and October 29

Maruti Suzuki India, Dr Reddy’s Laboratories, JSW Energy, Vedanta, Tata Power Company, Bandhan Bank, Blue Dart Express, CCL Products (India), Dwarikesh Sugar Industries, Eveready Industries India, NIIT, Satin Creditcare Network, Sona BLW Precision Forgings, Sumitomo Chemical India, and TTK Healthcare will be in focus ahead of September FY23 quarter earnings on October 28.

Indian Oil Corporation, NTPC, Alankit, Himadri Speciality Chemical, Kirloskar Electric Company, Seshasayee Paper & Boards, and Transport Corporation of India will be in focus ahead of September FY23 quarter earnings on October 29.

Stocks in News

Supreme Petrochem: The company has reported a 53% year-on-year decline in standalone profit at Rs 59.64 crore for the quarter ended September FY23, impacted by weak operating performance. Revenue from operations grew by 3.7% YoY to Rs 1,234.6 crore during the same quarter. The company has received board approval for sub-division of shares from one equity share (face value Rs 4 each), into two shares (face value of Rs 2 each), subject to approval of shareholders.

Aditya Birla Sun Life AMC: The asset management company has recorded a 10.75% year-on-year increase in consolidated profit at Rs 191.68 crore for the quarter ended September FY23, driven by other income. Revenue from operations fell 6.3% YoY to Rs 311 crore for the quarter.

Anupam Rasayan India: The specialty chemical company has recorded a 15% year-on-year growth in profit at Rs 41.2 crore for the quarter ended September FY23 on healthy topline and operating performance. Operating revenues at Rs 310.7 crore grew by 25% YoY and EBITDA at Rs 89.8 crore increased by 29% YoY for the quarter.

CE Info Systems: MapmyIndia recorded flat profit at Rs 25.37 crore for the quarter ended September FY23 against Rs 25.39 crore in same period last year, impacted by lower other income and weak operating performance. Revenue jumped to an all-time high of Rs 76.31 crore for the quarter, growing 35% YoY.

Infibeam Avenues: The company has received in-principle authorisation to operate as a payment aggregator, from Reserve Bank of India. Now the company is allowed to operate as a Payment Aggregator to provide digital payments services to any merchant(s) online or offline across the country.

Dhanuka Agritech: The company said its Board of Directors will consider the proposal for buyback of equity shares of the company through tender offer route, on November 1. The board will also consider un-audited standalone and consolidated financial results for the quarter and half year ended September 2022, on the same day.

Tata Chemicals: The company recorded consolidated profit at Rs 685 crore for the quarter ended September FY23, against Rs 248 crore in same period last year. Revenue from operations for the quarter at Rs 4,239 crore grew by 40% YoY. The operating performance reflected improved realisations and efficient cost management in the context of elevated energy and input costs.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net bought shares worth Rs 2,818.40 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,580.10 crore on October 27, as per provisional data available on the NSE.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.