Monday's trading setup: 15 things to be aware of before the opening bell

Monday's trading setup: 15 things to be aware of before the opening bell

69 equities had long increases, including Atul, Torrent Pharmaceuticals, Cummins India, Hindustan Copper, and Alkem Laboratories.

F&O ban: As MWPL approaches 80%, Steel Authority of India may be removed from the sanctions list

Experts predicted that the benchmark Nifty 50 will be volatile in the next sessions due to the construction of a shooting star after reaching a record high on February 2 and the emergence of a double top type pattern on the daily charts. These two reversal patterns are bearish.

As a result, analysts predict that in order for the index to continue rising, it would need to finish well above its new record high of 22,134. Until then, volatility is likely to persist, with support around 21,700 and significant support anticipated at 21,500. As.

The Nifty 50 increased by almost 400 points intraday and reached a new record high on February 2, but it later dropped 280 points to settle at 21,854, up 156 points. Meanwhile, the BSE Sensex closed 440 points higher at 72,086, down 156 points. It took place. In the budget week, it increased by 2.35 percent.

The bearish influence has been eradicated according to gap theory with Friday's run, which fully filled the prior big opening downward gap (bearish breakaway gap) of January 7. "Friday's swing high can also be viewed as a double top type formation after notification," senior technical research analyst at HDFC Securities Nagaraj Shetty said.

Although he thinks Nifty's short-term bullish outlook is still valid, the broader chart pattern points to the potential for further volatility at new highs.

Any effort to go higher from this point may encounter heavy resistance at the 22,100–22,200 levels, which might lead to temporary weakening from above. According to Shetty, immediate assistance is at level 21,700.

Ajit Mishra, SVP, Technical Research, Religare Broking, said that in order for Nifty to begin the next leg of its ascent above 22,500+, it must decisively finish above 22,150; otherwise, the inclination towards range-bound trading would persist.

Larger markets also finished at their highest point of the day, with the Nifty Midcap 100 and Smallcap 100 indexes increasing by 0.4% and over 1%, respectively.

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

Important Nifty and Bank Nifty support and resistance levels

The Nifty is predicted by the pivot point calculator to find immediate support at 21,806, drop to 21,730 and 21,607 levels, and then meet immediate resistance at 21,883, 22,127, and 22,250 levels at higher levels. ..On February 2, however, Bank Nifty also had a strong start to the day. Despite this, the stock was unable to maintain its momentum and ended the day down, down 218 points at 45,971, with a little loss from the day's peak of almost 900 points. On the daily time scale, the index has created bearish candlestick patterns; nevertheless, it has found support around the 10-day exponential moving average (45,895).

The index is headed towards 45,000 points, according to Kunal Shah, senior technical and derivatives analyst at LKP Securities. "Bank Nifty regained custody as the index failed to cross the crucial level of 46,500 on a closing basis. Immediate backing for the index is located at 47,700, as well as a breach below this level is expected to add selling pressure, which at first could potentially lead to further gains."

He advised traders to approach the market cautiously and have strong risk management procedures in place to cope with any changes because of the expected increase in volatility in the near future.

The pivot point calculator predicts that the Bank Nifty will find support around 45,876, 45,642, and 45,264 levels, while the index may encounter resistance at 46,062, 46,868, and 47,246 levels on the upper side.

call option information

On the weekly options data front, after the post-Budget rally, the highest call open interest was observed at the 23,000 strike with 57.84 lakh contracts, which could serve as a significant short-term resistance level for Nifty. The next highest strike was at 22,700 with 49.11 lakh contracts, and the highest strike at 22,200 with 45.41 lakh contracts.

At 22,100 strike, when 24.86 lakh contracts were added, meaningful call writing was seen. This was followed by 22,800 and 22,200 strikes, where 24.66 lakh and 24.24 lakh contracts were added, respectively.

At 21,700 strikes, the maximum call unwinding occurred, liquidation 17.73 lakh contracts; at 21,800 and 22,000 strikes, the maximum call unwinding occurred, liquidating 15.97 lakh and 2.9 lakh contracts, respectively.

input the option data.

With 56.74 lakh contracts, the greatest open interest on the put front is close to the 21,000 strike, which may serve as a crucial support level for the Nifty. Next in line were 21,600 strikes, which include 46.76 lakh contracts, and 21,500 strikes, which involve 43.75 lakh contracts.

Significant put writing occurred at strike number 21,600, adding 25.7 lakh contracts; subsequent strikes were at strike numbers 21,000 and 21,900, adding 24.81 lakh and 20.14 lakh contracts, respectively.

Twelve.03 lakh contracts were liquidated at the put unwinding strike of 20,600. Subsequently, strikes of 20,500 and 20,200 liquidated 4.26 lakh and 86,650 contracts, respectively.

stocks with a high proportion of deliveries

Syngene International, Crompton Greaves Consumer Electricals, SBI Life Insurance Company, Pidilite Industries, as well as SRF experienced the most deliveries among F&O companies; a high delivery percentage indicates that investors are expressing interest in the company.

There was a long surge in 69 stocks.

Open interest (OI) and an increase in price signal the formation of a long position. 69 equities, including Hindustan Copper, Alkem Laboratories, Cummins India, Torrent Pharmaceuticals, and Atul, saw long gains. Image 402022024

We see long buying in 29 stocks.

A protracted unwinding is indicated by open interest and price decrease; 29 equities, including JK Cement, Mphasis, India Cements, Indus Towers, and Sun TV Network, had extended declines on an OI percentage basis.

There was a brief build-up in 29 stocks.

29 equities, including City Union Bank, Bata India, Tata Chemicals, MRF, and Larsen & Toubro, showed a short build-up. A rise in OI paired with a decline in price suggests the formation of short positions.

In 60 shares, short covering is seen.

60 equities (including SAIL, Havells India, REC, GAIL India, and Maruti Suzuki India) were on the short-covering list based on an OI percentage basis. Short-covering is indicated by a decline in OI as prices rise.

PCR

In comparison to the previous session, the Nifty Put Call Ratio (PCR), which measures the state of the equities market, was unchanged at 1.02 on February 2. The 1 PCR above denotes that put volume surpasses call volume, which often implies heightened negative sentiment.

Findings from February 5th

Ahead of the company's quarterly earnings on February 5th, investors will be watching Bharti Airtel, Alembic Pharmaceuticals, Ashok Leyland, ASK Automotive, Sun Pharma Advanced Research Company, Bajaj Electricals, Barbecue-Nation Hospitality, Ideaforge Technology, Tata Chemicals, Triveni Turbine, Varun Beverages, as well as Vijaya Diagnostic Center.

news stock

State Bank of India: This public sector lender reported a standalone profit of Rs 9,164 crore for the quarter ended December FY24, which was 35.5% less than the previous year's extraordinary loss of Rs 7,100 crore. Net interest income increased 4.6% year over year to Rs 39,816 crore during the quarter.

Tata Motors: Strong operational results helped the Tata group firm achieve a 137.5% year-over-year rise in consolidated profit for the quarter ended December FY24, totaling Rs 7,025 crore. Revenue from operations rose by 25% to Rs 1,10,000 during the quarter, totaling Rs 577 crore.

InterGlobe Aviation: Profit from operations during the quarter soared by 30% to Rs 19,452 crore compared to the equivalent period last fiscal year. The low-cost airline company reported an incredible 110.7 per cent year-on-year growth in profit at Rs 2,998.1 crore for the October-December period of FY2024. This was attributed to healthy topline and operating performance.

UPL: Due to a sharp decline in topline and subpar operating results, the crop solutions company reported a consolidated net loss of Rs 1,217 crore in Q3FY24, down from Rs 1,087 crore profit in the same period last fiscal year. Consolidated revenue from operations also decreased by 27.7% to Rs 9,887 crore.

Aurobindo Pharma: From January 22 to February 2, the United States of America's Food and Drug Administration (US FDA) shut down the formulation production facility Unit-III of the company's wholly owned subsidiary Yugea Pharma Specialties in Telangana after receiving nine inspection-related comments.

Bank of India: The public sector lender reported a decline in bad loan provisions, which contributed to a 62.5% year-over-year increase in standalone profit to Rs 1,870 crore for the quarter ended December FY24. Net interest income decreased 2.4% year-over-year to Rs 5,463 crore, while net interest margin decreased 43 basis points to 2.85 percent.

Cash Flow (in Rupees)

Data from FII and DII

Provisional NSE data shows that on February 2, domestic institutional investors (DIIs) purchased shares worth Rs 2,463.16 crore, while foreign institutional investors (FIIs) purchased shares at a net amount of Rs 70.69 crore.

NSE stocks prohibited from F&O

The F&O ban list for February 5 has been updated by NSE to include Hindustan Copper. The list still includes India Cements, Indus Towers, SAIL, and Zee Entertainment Enterprises.

Restrictions on securities under the F&O sector apply to corporations whose derivative contracts over 95% of the maximum position limit in the market.

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