Monday's trade setup: 15 things to know before the opening bell

 Monday's trade setup: 15 things to know before the opening bell

Despite persistent selling, the Sensex and the Nifty, which closed one percent higher on October 27, finished the week 2.5 percent down. Experts predict that the Nifty will find immediate resistance around 19,200–19,300 and support at 18,800.

Following days of nonstop selling, the market recovered dramatically, with the Nifty and Sensex indexes finishing a percent higher on October 27. Will the indexes maintain their gains after ending the week 2.5 percent lower? Not probable, experts say.

Experts predicted that a bearish feeling would predominate and that any rally would probably be sold into. Experts indicated that the Nifty, which finished at 19,047, would, at worst, consolidate below 19,500, with the previous week's low around 18,800 serving as primary support.

If the index falls below 18,800, selling pressure will increase and it may drop as low as 18,600–18,500. On the plus side, the first resistance will be between 19,200 and 19,300, then 19,500.

"The index closed well below the 19,250 key breakdown mark. The market may continue to be tempted to sell on any higher moves as long as it remains below 19,250, according to Rupak De, senior technical analyst at LKP Securities.

On the flip side, should the index drop below 18,800, weakness will return. This is due to the fact, according to him, put writers are expected to defend the Nifty with large bets at 18,800, with immediate support set at 19,900.

We've gathered 15 data points to assist you in identifying lucrative trades:

Note: The statistics on stocks' open interest (OI) and volume are the sums of three months' worth of data, not just the current month.

Important Nifty support and resistance levels

According to the pivot point calculation, the Nifty can find support around 18,960, then 18,924 and 18,867. The immediate resistance on the upper side might be 19,074, which is followed by 19,109 and 19,166.

Bank Nifty

October 27, the Bank Nifty recovered from the sharp weekly fall to conclude 1.2 percent higher at 42,782, forming a positive daily candlestick.

"The hourly upper Bollinger band, which serves as resistance, is located around 43,400, where the retreat may continue. The critical support zone on the downside is between 42,730 and 42,600, according to Jatin Gedia, a technical analysis analyst at Sharekhan by BNP Paribas.

The pivot point calculator predicts that the index will find support at 42,565, 42,481, and 42,344. The first barrier on the upward is at 42,838; it is followed by 42,922 and 43,059.

Data on call options

Weekly options data shows that the Nifty may encounter significant resistance near 19,200 strike, where there were 65.25 lakh contracts with greatest Call open interest (OI). The 19,500 strike, with 60.11 lakh contracts, came next, then the 20,000 strike, with 44.5 lakh contracts.

Following the 19,200 strike, which added 30.36 lakh contracts, there were further strikes at 19,600 and 19,500, which added 16.89 lakh and 16.66 lakh contracts, respectively, for Meaningful Call writing.

Maximum Call unwinding occurred at 19,000 strikes, resulting in the loss of 16.44 lakh contracts. After that, strikes at 18,900 and 19,800 led to the loss of 12.59 lakh and 8.09 lakh contracts, respectively.

Insert option data.

The Nifty might find significant support from the put side, where the biggest open interest was at 19,000 strike with 54.12 lakh contracts. 18,800 strikes totaling 47.90 lakh contracts and 18,000 strikes totaling 47.67 lakh contracts came after it.

Significant Put writing occurred at 19,000 strikes, adding 25.88 lakh contracts; this was followed by 18,900 and 18,000 strikes, adding 23.22 lakh and 12.91 lakh contracts, respectively.

59,600 contracts were dropped during the put unwinding at 19,700 strike, which was subsequently followed by 19,400 and 19,500 strikes, which shed 52,450 and 46,550 contracts, respectively.

stocks with a high proportion of deliveries

A high delivery rate indicates that the stock is attracting the attention of investors. Of the F&O equities, the greatest delivery was seen in Vedanta, Escorts Kubota, Bajaj Auto, Aurobindo Pharma, as well as Syngene International.

83 stocks see a protracted rise

83 equities, including Torrent Pharma, Persistent Systems, Delta Corp, IndiaMART InterMESH, and MCX India, saw a protracted build-up. A build-up of long holdings is indicated by a rise in both price and open interest (OI).

Five stocks show a lengthy unwinding

The OI % indicated that five equities saw lengthy unwinding. Price and OI declines suggest long unwinding.

There is a brief build-up in 25 stocks.

There was a brief increase in 25 equities, such as Indian Hotels, Mahanagar Gas, and Navin Fluorine International. A rise in OI and a decline in price indicate the accumulation of short bets.

74 stocks are being shorted.

74 equities were on the short-covering list based on the OI %. Dixon Technologies, Abbott India, M&M Financial Services, Can Fin Homes, and Infosys are a few of them. Short-covering is indicated by a decline in OI and a rise in price.

End of October 30 results

Prior to the company's quarterly earnings on October 30, investors will be focusing on UPL, DLF, TVS Motor, Adani Green Energy, Marico, APL Apollo Tubes, Blue Star, Castrol India, GMR Airports Infrastructure, KPIT Technologies, Nippon Life, Petronet LNG, Ramco Systems, Spandana Sphoorty Financial, Speciality Restaurants, Supreme Industries, as well as Tube Investments of India.

Articles about stocks

Reliance Industries: The billionaire Mukesh Ambani-owned company reported a 29.7% year-over-year increase in consolidated profit in the September quarter, coming in at Rs 19,878 crore. To reach Rs 44,867 crore, EBITDA increased 30.2 percent YoY, and the margin increased by 390 basis points (bps) to 17.5 percent.

A 1.2 percent increase in gross sales year over year to Rs 2,55,996 crore was fueled by the consumer businesses' ongoing growth momentum.

One tenth of a percentage point is equal to one basis point.

Union Bank of India: For the September quarter, the public sector lender recorded a 90% year-over-year increase in net profit of Rs 3,511 crore, driven primarily by a notable decline in provisions.

With a net interest margin increase of 3 basis points to 3.18 percent, net interest income increased by 10% to Rs 9,126 crore.

SBI Card: In the September quarter of FY24, the credit card firm reported a 15% year-over-year increase in earnings, coming in at Rs 603 crore. Higher interest, fees, and commission income were the main drivers of the revenue rise of 24% YoY to Rs 4,087.4 crore.

Bharat Petroleum Corporation: Thanks in part to reduced input costs, the state-owned oil marketing business reported a standalone profit of Rs 8,501.2 crore for the September quarter compared to a loss of Rs 304.2 crore in the same time last year.

However, revenue dropped to Rs 1.02 lakh crore, a 10.3% decline.

M&M Financial Services: As a result of a rise in financial instrument impairment, the financial services company's earnings for the September quarter was Rs 235 crore, down 47.5 percent year over year.

A rise in the asset book helped revenue, which increased by 24.1 percent to Rs 3,212 crore.

Cash Flow (in Rupees)

Tables FII and DII

On October 27, preliminary data from the National Stock Exchange revealed that domestic institutional investors purchased equities for Rs 313.69 crore, while foreign institutional investors sold shares worth Rs 1,500.13 crore.

NSE stock is prohibited from F&O

No stocks have been added to the F&O ban list on October 30 by the NSE.

Securities that are prohibited under the F&O sector include businesses whose derivative contracts exceed 95 percent of the maximum position limit on the market.

Notice: Moneycontrol experts' opinions and financial advice are their own, not the website's or its administrators'. Before making any investing choices, Moneycontrol recommends customers to consult with qualified professionals.

Disclosure: The Network18 group includes Moneycontrol. Reliance Industries is the only shareholder of Independent Media Trust, which governs Network 18.