Top 15 things to know before Opening Bell

© Moneycontrol
Trade setup for Monday: Top 15 things to know before Opening Bell

The market crashed and wiped out all previous two days’ gains to fall below 17,400 on the Nifty50, as hitting fourty-year high by US inflation and rising oil prices weighed on Dalal Street on February 11. All sectoral indices were under pressure.

The BSE Sensex plunged 773 points or 1.31 percent to 58,153, while the Nifty50 declined 231 points or 1.31 percent to 17,375 and formed bearish candle on the daily charts. As long as the Nifty holds 17,300 mark the positive bias is expected to continue, whereas 17,000 could be crucial support in coming days, experts feel.

“Bearish candle as a follow-through to the Hanging Man of the preceding session shall not augur well for the bulls as Nifty has given up almost all the gains of the last two trading sessions registered with a gap up. In this process, it also filled the bullish gap placed in the zone of 17,339 – 17,306 levels,” says Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.

Going forward, the index needs to sustain above 17,300 levels to retain positive bias as a close below 17,300 levels can drag down the index towards 17,000 levels, he feels.

For the time being, Mazhar Mohammad advised traders to avoid long side bets. “Intraday traders are advised to create short positions below 17300 levels and look for a target close to 17,100 levels.”

The broader markets also witnessed significant correction on Friday, with the Nifty Midcap 100 and Smallcap 100 indices fell 2 percent each.

We have collated 15 data points to help you spot profitable trades:

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

Key support and resistance levels on the Nifty

As per the pivot charts, the key support levels for the Nifty are placed at 17,300.27, followed by 17,225.73. If the index moves up, the key resistance levels to watch out for are 17,452.07 and 17,529.33.

Nifty Bank

The Nifty Bank also fell in line with the benchmarks, declining 1.3 percent to 38,517.25 on February 11. The important pivot level, which will act as crucial support for the index, is placed at 38,345.67, followed by 38,174.13. On the upside, key resistance levels are placed at 38,739.47 and 38,961.73 levels.

Call option data

Maximum Call open interest of 25.48 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the February series.

This is followed by 17500 strike, which holds 20.66 lakh contracts, and 17600 strike, which has accumulated 14.56 lakh contracts.

Call writing was seen at 17400 strike, which added 6.98 lakh contracts, followed by 17500 strike which added 3.98 lakh contracts, and 17300 strike which added 2.42 lakh contracts.

Call unwinding was seen at 17100 strike, which shed 12,850 contracts, followed by 17900 strike which shed 5,400 contracts and 16900 strike which shed 3,700 contracts.

Put option data

Maximum Put open interest of 33.22 lakh contracts was seen at 16500 strike, which will act as a crucial support level in the February series.

This is followed by 17000 strike, which holds 32.86 lakh contracts, and 17300 strike, which has accumulated 15.90 lakh contracts.

Put writing was seen at 17300 strike, which added 5.11 lakh contracts, followed by 17400 strike, which added 3.77 lakh contracts, and 16800 strike which added 1.27 lakh contracts.

Put unwinding was seen at 17600 strike, which shed 3.96 lakh contracts, followed by 17500 strike which shed 3.45 lakh contracts, and 17800 strike which shed 1.45 lakh contracts.

Stocks with a high delivery percentage

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

6 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 the 6 stocks in which a long build-up was seen.

82 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.

104 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 top 10 stocks in which a short build-up was seen.

9 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 9 stocks in which short-covering was seen.

Bulk deals

Satin Creditcare Network: The GMO Emerging Illiquid Mauritius Fund acquired 4,41,867 equity shares or 0.58% stake in the company at Rs 100 per share on the NSE, the bulk deals data showed.

Stove Kraft: EAM Emerging Markets Small Cap Fund LP sold 1.66 lakh equity shares in the company at Rs 663.28 per share on the NSE, the bulk deals data showed.

Solara Active Pharma Sciences: Reddyvanga Ventures LLP acquired 2,67,022 equity shares in the company at Rs 674.05 per share, whereas Unnati Management Consultants LLP sold 2,67,022 equity shares at Rs 674 per share on the BSE, the bulk deals data showed.

(For more bulk deals, click here)

Analysts/Investors Meeting; and Results on February 14

Results on February 14: Coal India, Eicher Motors, Grasim Industries, SpiceJet, Adani Enterprises, Adani Wilmar, Rossari Biotech, AGS Transact Technologies, Apex Frozen Foods, Apollo Micro Systems, Balkrishna Industries, Bharat Dynamics, BGR Energy Systems, Dish TV India, Equitas Holdings, Future Retail, Gateway Distriparks, Graphite India, Greenply Industries, Ipca Labs, IRCON International, IVRCL, Jet Airways, KNR Constructions, Manappuram Finance, MEP Infrastructure, MTNL, Nagarjuna Fertilizers, Natco Pharma, NBCC (India), Panacea Biotec, PC Jeweller, PTC India, RailTel Corporation of India, Repco Home Finance, Sadbhav Engineering, Shriram Properties, Spandana Sphoorty Financial, Sterling and Wilson Renewable Energy, Vivimed Labs, and Zuari Global are among 989 companies to release quarterly earnings on February 14.

Dabur: The company’s officials will attend Axis Capital India Conference; and IIFL’s 13th Enterprising India Global Investors’ conference on February 14.

Anupam Rasayan: The company’s officials will meet investors and analysts on February 14, to discuss financial results.

Titagarh Wagons: The company’s officials will meet analysts and investors on February 14, to discuss financial results.

Piramal Enterprises: The company’s officials will attend JM Financial Conference on February 14-15.

Tube Investments of India: The company’s officials will meet Motilal Oswal Financial Services on February 14, and IIFL Capital on February 17.

Asian Paints: The company’s officials will meet Wellington Management on February 14, and to participate in Axis Capital Virtual Conference on February 16.

Axis Bank: The company’s officials will attend Daiwa Investment Conference Tokyo 2022 on February 14, & JM Financial BFSI Conference on February 16.

Voltas: The company’s officials will meet analysts and investors on February 14, to discuss financial results.

Cummins India: The company’s officials will meet IIFL Equity on February 15, and Kotak Equity on February 22.

Premier Explosives: The company’s officials will meet analysts and investors on February 15 to discuss Q3FY22 financial results.

Stocks in News

ONGC: The company reported a 45 percent YoY growth in revenue to Rs 1,45,685 crore in Q3FY22 driven by higher realisation in its core oil and gas business, Net profit zoomed 220% to Rs 11,637 crore, powered by strong growth in EBITDA margin. Both revenues from exploration & production (E&P) and retail & marketing businesses grew by 67 and 40 percent respectively, while EBITDA margin was up grew by 350 bps year-on-year to 14.7 percent.

TVS Motor: Promoter Sundaram Clayton on Friday sold around 95 lakh shares or 2% stake in the company at an average price of Rs 635.97 per share via open market transaction on the BSE. With this sale Sundaram Clayton stake will be at around 50.26% from 52.26% earlier.

Rategain Travel Technologies: The company turned profitable in Q3FY22 reporting profit at Rs 0.085 crore driven by strong growth in new contract wins, against loss of Rs 1.89 crore in previous quarter and loss of Rs 11.14 crore in year-ago period. Revenue grew by 57.4 percent to Rs 99.01 crore during the quarter as the company added 778 new clients and reported overall 215 percent growth in new contracts compared to the previous fiscal.

Kalpataru Power Transmission: Profit in Q3FY22 dropped 12.3 percent to Rs 270 crore YoY due to a challenging operating environment laden with inflated input prices and competitive pressure. Revenue rose 11 percent to Rs 3,889 crore YoY led by robust project execution in B&F, water and international T&D subsidiaries.

Indigo Paints: The company clocked 29.4 percent year-on-year jump in net profit at Rs 24.30 crore in Q3FY22 due to strong revenue growth and increase in product prices in mid-late Q3 to mitigate the sharp escalation in raw material prices. Revenue rose 26.6 percent to Rs 265.46 crore YoY.

VA Tech Wabag: The company reported 19.6 percent YoY growth in profit at Rs 45.49 crore as EBITDA margin improved by 180 bps YoY to 10.6 percent. Higher project mix of industrial & international orders and execution pace helped the company improve margins. Revenue drops 6.3% to Rs 745.48 crore YoY.

Force Motors: The net loss widened to Rs 39.90 crore in Q3FY22 against Rs 14.94 crore a year ago due to increase in raw material prices. Revenue jumped 57 percent to Rs 778 crore YoY in during the quarter.

Metropolis Healthcare: The company posted a 29.7 percent YoY decline in its net profit in Q3FY22 at Rs 41.21 crore as EBITDA margin dropped by 530 bps YoY to 27.5 percent due to increase investments in digital and marketing, manpower & customer experience initiatives in order to strengthen its brand. Revenue in Q3FY22 rose 6.6 percent to Rs 293 crore YoY with sharp drop in volumes from government contracts.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have made net buying of Rs 108.53 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold Rs 696.90 crore worth of shares in the Indian equity market on February 11, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks – BHEL, Punjab National Bank, SAIL and Tata Power Company – are under the F&O ban for February 14. 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.

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.

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.