Monday’s Trade Setup: The Top 15 Things to Know Before the Opening Bell

Auto, FMCG, IT, pharma, and oil & gas companies drove equity benchmarks to a 52-week low on June 17, as the market closed in the red for the sixth consecutive session.

The market fell for the sixth straight session on June 17, with the main indices hitting a new 52-week low, pulled down by auto, FMCG, IT, pharma, and oil & gas companies.

On the daily charts, the BSE Sensex slid 135 points to 51,360, while the Nifty50 fell 67 points to 15,293 to create a Doji pattern. On a weekly scale, the index corrected 5.6 percent during the week and created a Bearish Belt Hold pattern.

“The Nifty50 appears to have just scraped the top of a three-month-old channel support. As a result, until it recovers and sustains above 15,360, the market’s trajectory would continue sideways with a bearish bias moving forward “Founder and Chief Market Strategist at Chartviewindia, Mazhar Mohammad stated.

If the index falls below 15,183 in the following session, the market might fall as low as 14,900. However, as the Nifty has lost around 1,500 points in the last ten days from its highs of 16,793, most momentum oscillators have not only achieved oversold levels, but several are indicating positive divergence on shorter time frames, according to the market expert.

As a result, he believes that the following session will favour bulls, but that short-term traders should wait for more stability before entering a trade.

We’ve Compiled 15 Data Points to Assist You in Identifying Profitable Trades:

Note that the open interest (OI) and volume data for stocks in this story are three-month averages, not just for the current month.

On the Nifty, key support and resistance levels can be found.

The pivot charts show that the Nifty’s main support level is 15,184, followed by 15,075. The important resistance levels for the index if it rises are 15,401 and 15,509.

Nifty Bank is a financial institution that specialises in the

On June 17, the Nifty Bank outpaced the market, climbing 126 points to settle at 32,743. The significant pivot level, 32,392, is followed by 32,042, which will operate as crucial support. Key resistances on the upside are 32,992 and 33,240.

Data on the call option

At the 16,000 strike, there was a maximum Call open interest of 27.09 lakh contracts, which will operate as a key resistance level in the June series.

Then came the 17,000 strike, which has 24.53 lakh contracts, and the 16,500 strike, which has 23.11 lakh contracts as well.

Call writing was witnessed at strike 15,300, which added 13.49 lakh contracts, 15,800, which added 5.4 lakh contracts, and 15,400, which added 4.19 lakh contracts.

Call unwinding occurred at the 16,600 strike, which lost 65,550 contracts, followed by the 16,900 strike, which lost 47,400 contracts, and the 15,900 strike, which lost 41,750 contracts.

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Optional Info Should be Entered

Maximum At the 15,500 strike, there was a total open interest of 37.76 lakh contracts. The 14,500 strike, which has 34.3 lakh contracts, was followed by the 15,000 strike, which has 28.46 lakh contracts.

The 15,300 strike saw the most put writing, with 12.18 lakh contracts added, followed by the 14,000 strike with 3.22 lakh contracts added and the 15,100 strike with 2.79 lakh contracts added.

Put unwinding was evident at the 15,500 strike, which lost 4.98 lakh contracts, followed by the 15,000 strike, which lost 4.68 lakh contracts, and the 15,600 strike, which lost 3.82 lakh contracts.

Stocks with a high percentage of deliveries

A high delivery percentage indicates that these stocks have piqued the curiosity of investors. Honeywell Automation, Indus Towers, Sun Pharma, Power Grid Corporation, and HDFC were among the companies with the greatest delivery rates.

There has been a Long Build-up in 28 Stocks

A rise in open interest accompanied by a rise in price usually suggests a build-up of long positions. Here are the top 10 stocks with a long build-up based on open interest future percentage:

59 stocks are in the process of unwinding their long positions

A drop in open interest combined with a drop in price signals a long unwinding. Here are the top ten equities where long unwinding was observed based on open interest future percentage: ……….

There is a Temporary Build-up in 75 Stocks

A rise in open interest combined with a drop in price indicates a build-up of short bets. Here are the top 10 equities with a short build-up based on open interest future percentage:

Short-Covering is seen in 38 Stocks

Short-covering is defined as a reduction in open interest along with an increase in price. Here are the top 10 stocks where short-covering was observed based on open interest future percentage:

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Deals in Bulk

Delta Corp: In open market transactions, ace investor Rakesh Radheyshyam Jhunjhunwala sold 57.5 lakh shares in the business at an average price of Rs 167.17 per share.

Lancer Container Lines: Promoter Abdul Khalik Abdul Kadar Chataiwala sold 8 lakh shares in the company through open market transactions at an average price of Rs 200 per share.

Sageone Investment Managers LLP purchased 2.8 lakh Fiem Industries shares at an average price of Rs 1,020 per share, while Sageone Flagship Growth 2 Fund purchased 1,00,120 shares at an average price of Rs 1,019.64 per share. Elevation Capital V FII Holdings, on the other hand, sold 4,83,667 shares for Rs 1,020.01 apiece.

Integrated Core Strategies (Asia) Pte Ltd sold 29,75,707 shares in Indiabulls Real Estate in open market transactions at an average price of Rs 63.51 per share.

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On June 20, there will be investor meetings.

Officials from Larsen & Toubro and Aurobindo Pharma will attend the BNP Paribas India Virtual Investors Days.

Timken India: Company officials will meet with Nippon India.

Officials from Krsnaa Diagnostics will meet with KR Choksey and Safe Enterprise.

Dimensional Fund Advisors will meet with Meghmani Finechem officials.

Officials from PI Industries will meet with Emkay Global Financial Services.

Tata Chemicals will meet with Franklin Templeton Investments officials.

Radico Khaitan: Company officials would meet with Kotak Mahindra MF.

Axis Bank will send representatives to HSBC’s 6th Annual Asia Credit Conference.

Tata Motors: The company’s executives will meet with the Canada Pension Plan Investment Board.

Officials from Gland Pharma will meet with representatives from Kotak Life Insurance.

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In the News: Stocks

Alkem Laboratories: Following an inspection of its US unit, the company got Form 483 with three observations. From June 6 to June 17, 2022, the US Food and Drug Administration (FDA) visited the company’s production facility in St Louis.

Vadilal Industries has purchased KKC through its subsidiary Vadilal Industries USA Inc. The subsidiary inked a stock purchase agreement with ice cream parlour operator Krishna Krupa Corporation, USA (KKC) for a subscription of shares, giving it up to 100 percent voting power in KKC. The acquisition cost is $0.25 million.

Aurobindo Pharma: Aurobindo Pharma bought a 51 percent ownership in GLS Pharma, an oncology company with a production plant in Hyderabad. The cost of acquiring a 51 percent ownership in the company is Rs 28.05 crore.

Dilip Buildcon’s joint venture business RBL-DBL has been named the L-1 bidder for the Surat Metro Rail Project in Gujarat, according to Dilip Buildcon. The total value of the order is Rs 1,061 crore. In addition, the company earned a certificate of completion for two road projects in Karnataka.

Nazara Technologies has agreed to make a strategic investment of up to Rs 20.1 crore in material subsidiary Absolute Sports by acquiring promoter Porush Jain’s shares and up to Rs 10 crore in Brandscale Innovations by subscribing to optionally convertible debentures in one or more tranches.

SBI Mutual Fund sold 1 lakh equity shares in Galaxy Surfactants in open market transactions on June 16. As a result, its stake in the company has been decreased from 3.27 percent to 2.98 percent.

The Public Health Engineering Department (PHED) of Rajasthan awarded the Indian Hume Pipe Company a work order of Rs 110 crore. The order is for a Jal Jeevan Mission (JJM) cluster water supply project Package-VII of Chambal Bhilwara Water Supply Project Phase II of Jahajpur-Kotri Tehsils of district Bhilwara with operation and maintenance for ten years. The project is expected to be finished in 15 months.

Engineers India has been awarded three unique projects in the fields of specialised chemicals, sunrise, and infrastructure. It would supply advisory services, with an expected order value of Rs 80 crore for these projects.

Flow of funds

Data from the FII and DII

According to provisional data available on the NSE, foreign institutional investors (FIIs) net sold Rs 7,818.61 crore worth of shares on June 17, while domestic institutional investors (DIIs) remained net buyers with Rs 6,086.92 crore worth of shares.

NSE stocks that are subject to a F&O ban

The NSE F&O restriction is still in effect for three stocks: Indiabulls Housing Finance, RBL Bank, and Delta Corp. Companies whose securities have crossed 95 percent of the market-wide position limit are included in the ban period.

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