Trade Setup for Wednesday 15 things that you know before market trade

The market after volatility gained strength in last couple of hours of trade and ended with around over 1 percent gain on March 9, supported by global cues. Buying in banking & financials and IT stocks led the rally.

The BSE Sensex rallied 584.41 points, or 1.16 percent, to 51,025.48, while the Nifty50 was up 142.20 points, or 0.95 percent, at 15,098.40 and formed small bullish candle on the daily charts.

"The market has continued being sluggish! We have not been successful in getting past the 15,300 which is the upper end of the Nifty's current trading range. Neither have we broken down. This is a classic case of rangebound movement where the index is taking time to decide on its next course of direction," Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments told you.

"Until one end of the range is taken out, patience would be the best virtue to exercise as any hasty decision could result in stops being triggered," he said.

The broader markets underperformed benchmark indices. The Nifty Midcap 100 and Smallcap 100 indices have corrected by 0.52 percent and 0.98 percent, respectively.

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

According to pivot charts, the key support levels for the Nifty are placed at 14,973.67, followed by 14,848.93. If the index moves up, the key resistance levels to watch out for are 15,174.97 and 15,251.53.

Nifty Bank

The Nifty Bank index jumped 589.90 points or 1.67 percent to close at 35,865.70 on March 9. The important pivot level, which will act as crucial support for the index, is placed at 35,581.07, followed by 35,296.53. On the upside, key resistance levels are placed at 36,113.97 and 36,362.34 levels.

Call option data

Maximum Call open interest of 25.42 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the March series.

This is followed by 15,500 strike, which holds 18.84 lakh contracts, and 15,000 strike, which has accumulated 18.66 lakh contracts.

Call writing was seen at 15,400 strike, which added 52,500 contracts, followed by 15,800 strike which added 28,200 contracts and 15,600 strike which added 23,250 contracts.

Call unwinding was seen at 15,700 strike, which shed 86,175 contracts, followed by 15,000 strike which shed 51,750 contracts and 14,900 strike which shed 43,200 contracts.

Put option data

Maximum Put open interest of 36.28 lakh contracts was seen at 14,000 strike, which will act as a crucial support level in the March series.

This is followed by 14,500 strike, which holds 26.13 lakh contracts, and 15,000 strike, which has accumulated 21.68 lakh contracts.

Put writing was seen at 15,000 strike, which added 1.26 lakh contracts, followed by 14,200 strike, which added 89,100 contracts and 14,600 strike which added 61,725 contracts.

Put unwinding was seen at 16,000 strike, which shed 46,200 contracts, followed by 15,100 strike which shed 41,250 contracts.

Stocks with a high delivery percentage

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

26 stocks saw long build-up

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

43 stocks saw long unwinding

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

52 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.

38 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 top 10 stocks in which short-covering was seen.

Bulk deals

Analysts/Board Meetings

Sterling and Wilson Solar: The company's officials will interact with investors on March 10.

Indostar Capital Finance: The call is scheduled to be held on March 10, with Motilal Oswal Financial Services, to discuss the performance of the company for quarter and nine months ended December 2020.

UltraTech Cement: The investor meeting to be held on March 10 which will be attended by the representatives of the company.

Rail Vikas Nigam: The management of the company will be participating in a non-deal roadshow through video conferencing on March 10.

Mahindra Holidays & Resorts India: The company's officials will interact with Dolat Capital on March 10.

Godrej Properties: The QIP Committee of the company is scheduled to be held on March 15 to consider the issue price, including a discount, if any thereto, for the equity shares to be allotted to qualified institutional buyers by the company.

Stocks in the news

Power Grid Corporation of India and REC: Power Grid acquired Ramgarh New Transmission (RNTL), the project SPV to establish Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II - Part A, on build, own, operate and maintain (BOOM) basis from the bid process coordinator - REC Power Distribution Company.

Max Healthcare Institute: The company closed its QIP issue and finalised issue price at Rs 195.40 per share.

AU Small Finance Bank: The bank launched its qualified institutional placement (QIP) issue on March 9 and fixed the floor price at Rs 1,181.06 per share.

Puravankara: Puravankara re-entered in Mumbai with the launch of its first ultra-luxury project, 'Purva Clermont'. The company has invested almost Rs 450 crore with an expected topline revenue of Rs 800 crore.

Bharat Forge: The company has made further investment of Rs 4 crore in its associate company - Aeron Systems by way of purchasing 39,000 equity shares of face value Rs 10 each at a premium of Rs 1,015.64 in accordance with the terms of Shareholders Agreement with Aeron and its founders. Consequently, the company's stake in Aeron has been increased from 26 percent to 36 percent (fully diluted).

Godrej Properties: The company launched its QIP issue on March 9 and fixed floor price at Rs 1,513.39 per share.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 2,801.87 crore, while domestic institutional investors (DIIs) net acquired shares worth Rs 1,250.22 crore in the Indian equity market on March 9, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks - Bank of Baroda, Punjab National Bank, SAIL and Sun TV Network - are under the F&O ban for March 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.

View More Posts :-