Trade Setup for Monday: Top 15 things to know before Opening Bell

Market benchmarks Sensex and Nifty rose one and a half percent each during the week gone by even as volatility remained high as the increasing COVID-19 cases worldwide kept investors on the edge.

For the week gone by, Nifty50 closed 1.52 percent higher compared to 1.59 percent rally seen in the S&P BSE Sensex.

The market may continue to see volatility going ahead as the hope of economic recovery will be challenged by the fear of rising COVID-19 cases.

Trade Setup for Monday: Top 15 things to know before Opening Bell ...

The earnings season has started so management commentary would be keenly watched out for and it will influence the mood of the market.

“We suggest limiting aggressive bets at current levels and awaiting clarity over the next directional move. As of now, the Nifty index is likely to trade within 10,500-10,950 zone next week and expect volatility to remain high on the stock-specific front,” said Ajit Mishra, VP – Research, Religare Broking.

We have collated 15 data points to help you spot profitable trades in the next session:

Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- months data and not of the current month only.

Key support and resistance levels for the Nifty

According to pivot charts, the key support level for the Nifty is placed at 10,714.2, followed by 10,660.4. If the index moves up, the key resistance levels to watch out for are 10,820.6 and 10,873.2.

Nifty Bank

The Nifty Bank index ended 2.22 percent lower at 22,398.45 on July 10. The important pivot level, which will act as crucial support, is placed at 22,200.6, followed by 22,002.8. On the upside, key resistance levels are placed at 22,715.7 and 23,033.

Call option data

Maximum call OI of 21.96 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.

This is followed by 11,200, which holds 12.38 lakh contracts, and 10,800 strikes, which has accumulated 11.74 lakh contracts.

Significant call writing was seen at 10,800, which added 1.28 lakh contracts, followed by 11,000 strikes, which added 1.13 lakh contracts.

Call unwinding was witnessed at 10,700, which shed 2.57 lakh contracts, followed by 10,900 strikes, which shed 95,550 contracts.

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Put option data

Maximum put OI of 19.38 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.

This is followed by 10,600, which holds 13.95 lakh contracts, and 10,400 strikes, which has accumulated 13.35 lakh contracts.

Significant put writing was seen at 10,400, which added 1.56 lakh contracts, followed by 10,500 strikes, which added 1.21 lakh contracts.

Put unwinding was witnessed at 10,700 strikes, which shed 1.2 lakh contracts, followed by 10,800, which shed 79,950 contracts.

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Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

High delivery

26 stocks saw long build-up

Based on the OI future percentage, here are the top 10 stocks in which long build-up was seen.

Long buildup

39 stocks saw long unwinding

Based on the OI future percentage, here are the top 10 stocks in which long unwinding was seen.

Long unwinding

59 stocks saw short build-up

An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

Short buildup

18 stocks witnessed short-covering

A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Short covering

Bulk deals

Bulk deals

 

Results on July 13

5paisa Capital, India Home Loan, Kwality Pharmaceuticals, MBL Infrastructures

Stocks in the news

Reliance Industries: Subsidiary Jio Platforms received subscription amounts from Interstellar Platform Holdings (Rs 1,894.50 crore), Public Investment Fund (Rs 11,367 crore), SLP Redwood Holdings (Rs 10,202.55 crore) and General Atlantic Singapore JP (Rs 6,598.38 crore).

Infosys: Company and Old National Bank forged digital transformation partnership.

Dilip Buildcon: The company declared as L-1 bidder by the National Highways Authority of India for a project worth Rs 882 crore on a Hybrid Annuity basis in the state of Gujarat.

Lakshmi Vilas Bank Q4: Net profit was at Rs 92.86 crore against loss of Rs 264.43 crore and NII was down 51 percent at Rs 68.6 crore versus Rs 140.2 crore, YoY.

Havells India: CARE has reaffirmed its rating on the long term bank facilities (CC) at CARE AAA and reaffirmed CARE A1+ to the short term bank facilities.

Tejas Network: Company board meeting will be held on July 27, 2020, to consider and approve the unaudited standalone financial results of the company for the quarter ended June 30, 2020.