Trade Setup for Thursday: Top 14 things to know before Opening Bell

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Bourses snapped a six-day losing streak as benchmark indices gained more than 1.5 percent on October 9.

Sensex closed 645.97 points, or 1.72  percent higher, at 38,177.95, while the Nifty index added 186.90 points, or 1.68 percent, closed at 11,313.30. About 1251 shares have advanced, 1232 shares declined, and 170 shares are unchanged.

The bulls staged a smart comeback led by short covering and stable global cues. The broader markets underperformed with BSE Midcap and Smallcap ending with gains of 1.4% and 0.7%, said Ajit Mishra, Vice President, Research, Religare Broking.

We have collated 14 data points to help you spot profitable trades:

Key support and resistance level for Nifty

According to the pivot charts, the key support level for Nifty is placed at 11161.8, followed by 11010.3. If the index starts moving up, key resistance levels to watch out for are 11393.2 and 11,473.1.

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Nifty Bank

Nifty Bank closed with a gain of 3.67 percent at 28,785.85. The important pivot level, which will act as crucial support for the index, is placed at 28039.36, followed by 27292.93. On the upside, key resistance levels are placed at 29194.96 and 29604.13.

Call options data

Maximum call open interest (OI) of 23.93 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level for the October series.

This is followed by 11,200 strike price, which holds 17.86 lakh contracts in open interest, and 11,600, which has accumulated 15.88 lakh contracts in open interest.

Call unwinding was witnessed at 11,200 strike price, which shed 14.08 lakh contracts.

Put options data

Maximum put open interest of 27.08 lakh contracts was seen at 11,000 strike price, which will act as crucial support in October series.

This is followed by 11,200 strike price, which holds 17.83 lakh contracts in open interest, and 11,500 strike price, which has accumulated 11.68 lakh contracts in open interest.

Put writing was seen at the 11,200 strike price, which added 2.15 lakh contracts, followed by 10,800 strike, which added 2.12 lakh contracts.

No major Put unwinding was seen.

Stocks with a high delivery percentage

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

67 stocks saw long buildup

4 stocks saw long unwinding

Based on the lowest open interest (OI) future percentage point, here are the top 15 stocks in which long unwinding was seen.

18 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 open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.

62 stocks witnessed short-covering

As per available data, 27 stocks witnessed short-covering. A decrease in open interest, along with an increase in price, mostly indicates a short covering. Based on the lowest open interest (OI) future percentage point, here are the top 15 stocks in which short-covering was seen.

Bulk Deals

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Upcoming analyst or board meetings/briefings

PI Industries – board meeting on October 23 to consider and approve the financial results for the period ended September 30, 2019

Larsen and Toubro – board meeting on October 23 to consider and approve the financial results for the period ended September 30, 2019

Indiabulls Ventures – To consider buyback for equity shares on October 11

Mindtree – board meeting on October 16 to consider and approve the financial results for the period ended September 30, 2019 and to consider declaration of interim dividend, if any amongst other matters.

NMDC – board meeting on October 11 to consider the proposal for fund raising

Stocks in news

Bharti Airtel: Company announced successful pricing of $750 million 5.650% subordinated perpetual securities, aimed to achieve objectives of deleveraging & strengthening of the balance sheet.

Bank Of Maharashtra: RBI denied request to set off accumulated losses of Rs 7,360 crore.

Transformers & Rectifiers: Company received a Rs 126 crore order from Power Grid.

Dixon Technologies: ICRA assigned A1+ rating to company’s enhanced commercial paper (CP) programme.

Vimta Labs: Brickwork Ratings India reaffirmed credit rating of the company for the bank loan facilities of Rs 50.33 crore.

Rama Steel Tubes: CARE revised credit rating on company’s long term bank facilities to BBB-/Stable from BBB/Negative.

FII & DII data

Foreign institutional investors (FIIs) sold shares worth Rs 485.24 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 956.24 crore in the Indian equity market on October 9, as per provisional data available on the NSE.

No stock under ban period on NSE

There is no stock under the F&O ban for October 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
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