Trade Setup for Wednesday: Top 15 things to know before Opening Bell

Benchmark indices were dragged down by profit booking on May 21, a day after clocking strong gains on the back on exit polls for Lok Sabha Election 2019.

The Sensex closed down 382.87 points at 38,969.80, while Nifty ended 119.20 points lower at 11,709.10. About 970 shares advanced, 1,560 shares declined, and 160 shares remained unchanged.

Tata Motors, BPCL, Zee Entertainment, IndusInd Bank and Adani Ports were the top losers on the Nifty, while gainers were Dr Reddy’s Labs, Bharti Infratel, Britannia Industries, Titan Company and Reliance Industries.

All the sectoral indices ended in the red led by auto, bank, pharma, energy, infra, metal, energy and IT.

After a sharp up move yesterday, the Indian benchmark indices witnessed profit taking at higher levels due to nervousness amongst market participants ahead of the actual election results. The Nifty index witnessed selling pressure throughout the day as it ended with losses of ~1% at 11,709 levels, said Jayant Manglik, President – Retail Distribution, Religare Broking.

“The broader market outperformed the benchmark with BSE Midcap and Smallcap ending with losses of 0.9% and 0.6% respectively. Amongst the sectoral indices, except consumer durables which ended with gains of 0.7%, all the other sector indices ended in red with auto, banking and metal being the top losers, he added.

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

Key support and resistance level for Nifty

Nifty closed at 11709.1 on May 21. According to the Pivot charts, the key support level is placed at 11,633.43, followed by 11,557.77. If the index starts moving upward, key resistance levels to watch out are 11,834.13 and 11,959.17.

Nifty Bank

The Nifty Bank index closed at 30,308.4, down 451.3 points on May 21. The important Pivot level, which will act as crucial support for the index, is placed at 30,073.43, followed by 29,838.46. On the upside, key resistance levels are placed at 30,735.03, followed by 31,161.66.

Call options data

Maximum Call open interest (OI) of 36.19 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.

This was followed by 11,800 strike price, which now holds 16.46 lakh contracts in open interest, and 12,200, which has accumulated 15.22 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 12,200, which added 3.85 lakh contracts, followed by 12,000 strike price that added 3.13 lakh contracts and 11,700 strike price that added 1.23 lakh contracts.

No major Call unwinding seen.


Put options data

Maximum Put open interest of 17.60 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the May series.

This was followed by 11,700 strike price, which now holds 13.29 lakh contracts in open interest and 11,300 strike price, which has now accumulated 12.96 lakh contracts in open interest.

Put writing was seen at the strike price of 11,600, which added 1.88 lakh contracts, followed by 11,400 strike price that added 1.81 lakh contracts and 11,300 strike price that added 1.54 lakh contracts.

No major Put unwinding seen.


Stocks with a high delivery percentage

High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.

high rollover

29 stocks saw a long buildup

long buildup

4 stocks that saw short covering

A decrease in open interest, along with an increase in price, mostly indicates short covering.

long buidup

123 stocks saw a short build-up

An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.

short build up

42 stocks saw long unwinding

long unwining

Bulk Deals:


FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 1,185.44 crore while Domestic Institutional Investors (DIIs) sold Rs 1,090.32 crore worth of shares in the Indian equity market on May 8, as per provisional data available on the NSE.

Fund Flow Picture


Stocks in news:

Infosys Finacle and Global Treasure Bank announced the successful implementation of the Finacle Core Banking solution at the Bank

Tech Mahindra Q4: Net profit down 6.6% at Rs 1,132.5 crore against Rs 1,206.8 crore, revenue down at Rs 8,892.3 crore versus Rs 8,943.7 crore, QoQ

Acuite Ratings & Research reaffirmed A1+ rating to the commercial papers of the Future Enterprises and AA/Stable to the NCDs

Alkali Metals received an Establishment Inspection Report (EIR) from United States Food and Drug Administration (US FDA) for its Visakhapatnam Unit in Andhra Pradesh.

Eris Lifesciences Q4: Net profit down 8.9% at Rs 52.4 crore versus Rs 57.5 crore, revenue up 2.3% at Rs 198.4 crore versus Rs 194 crore, YoY

Subros Q4: Net profit up 25.7% at Rs 76 crore, revenue up 7.9% at Rs 2,124.4 crore

Jamna Auto Q4: Net profit down 28.5% at Rs 33.4 crore, revenue down 8.9% at Rs 542.8 crore

Arthur J. Gallagher & Co. to acquire minority stake in Edelweiss Insurance Brokers, a wholly owned subsidiary of Edelweiss Financial Services

Analyst or Board Meet/Briefings

Selan Exploration Technology: Board meeting on May 29 to consider and approve the financial results for the period ended March 31, 2019

Adani Power: Board meeting on May 29 to consider and approve the financial results for the period ended March 31, 2019 and other business matters

HCL Infosystems: Board meeting on May 30 to consider and approve the financial results for the period ended March 31, 2019 and other business matters

National Fertilisers: Board meeting on June 4 to consider final dividend for the financial year ended 31st March, 2019 and Closing of Trading window.

V-Guard Industries: Board meeting on May 29 to consider and approve the financial results for the period ended March 31, 2019, dividend, Fund Raising and other business matters

Four stocks under ban period on NSE

For May 22, Adani Power, IDBI, Jet Airways and Reliance Capital are under a ban. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.