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

The rally in last hour of trade helped the market close higher for tenth consecutive session on October 14, driven by banking & financials anticipating a favourable outcome in the interest waiver case.

The BSE Sensex jumped 169.23 points to 40,794.74, while the Nifty 50 rose 36.50 points to 11,971 and formed bullish candle on the daily charts.

"We observe a formation of small positive candle with long lower shadow, which indicates a sharp intraday upside bounce, after a steep decline in the early part of Wednesday. This market could be a cheering factor for bulls to make a comeback, after a short pause in the market. But, the overall market breadth continued with weak trend and broad market indices like mid and small cap segments have failed to show any reasonable upmove," Nagaraj Shetti, technical research analyst at HDFC Securities told Moneycontrol.

"The uptrend of the last couple of weeks remains intact and Wednesday's sharp upside bounce could be another evidence of strength of upside momentum. The whole chart pattern as per daily timeframe could be considered as an uptrend continuation and Nifty is expected to surpass the 12,000 mark soon," he said.

The Midcap and Smallcap indices ended mixed, consistently underperforming the benchmarks.

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 level for the Nifty is placed at 11,863.07, followed by 11,755.13. If the index moves up, the key resistance levels to watch out for are 12,038.07 and 12,105.13.

Nifty Bank index

The Bank Nifty outperformed frontline indices, rising 382.50 points or 1.63 percent to 23,874.7 on October 14. The important pivot level, which will act as crucial support for the index, is placed at 23,361.83, followed by 22,848.97. On the upside, key resistance levels are placed at 24,175.13 and 24,475.56.

Call option data

The highest call option open interest of 23.37 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October series.

This is followed by 12,000 strike, which holds 17.50 lakh contracts, and 12,200 strike, which has accumulated 12.33 lakh contracts.

Call writing was seen at 11,900 strike, which added 65,400 contracts, followed by 12,700 strike which added 4,650 contracts.

Call unwinding was seen at 12,200 strike, which shed 93,825 contracts, followed by 11,700 strike, which shed 61,200 contracts and 12,600 strike which shed 55,575 contracts.

Put option data

The highest put option open interest of 23.96 lakh contracts was seen at 11,500 strike, which will act as crucial support in the October series.

This is followed by 11,000 strike, which holds 21.72 lakh contracts, and 11,600 strike, which has accumulated 18.61 lakh contracts.

Put writing was seen at 11,700 strike, which added 5.39 lakh contracts, followed by 11,900 strike, which added 1.25 lakh contracts and 11,500 strike which added 71,025 contracts.

Put unwinding was witnessed at 11,400 strike, which shed 1.17 lakh contracts, followed by 11,600 strike which shed 1.14 lakh contracts.

Stocks with a high delivery percentage

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

33 stocks saw a long build-up

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

30 stocks saw a long unwinding

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

32 stocks saw short build-up

An increase in the 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 top 10 stocks in which short build-up was seen.

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

Bulk deals

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Results on October 15

Mindtree, South Indian Bank, Cyient, Trident, Hathway Cable & Datacom, Rane Brake Lining, Boston Leasing and Finance, Bonlon Industries, Chennai Ferrous Industries, Dolat Investments, Interactive Financial Services, Jupiter Infomedia, Moschip Technologies, RS Software, Systematix Securities and Vimta Labs will announce quarterly earnings on October 15.

Stocks in the news

Infosys: Company reported 14.4% quarter-on-quarter growth in Q2FY21 profit at Rs 4,845 crore, a 3.8 percent rise in revenue at Rs 24,570 crore. The company raised FY21 revenue and margin guidance.

Likhitha Infrastructure: Company to list shares on bourses on October 15.

Den Networks: Company reported consolidated profit at Rs 36.7 crore in Q2FY21 against Rs 9.5 crore year-on-year (YoY), and revenue increased to Rs 337.7 crore from Rs 332.4 crore YoY.

Tata Elxsi: Company reported higher profit at Rs 78.9 crore in Q2FY21 compared to Rs 49.8 crore YoY; revenue rose to Rs 430.2 crore from Rs 385.8 crore YoY.

JTL Infra: Company reported profit at Rs 2.87 crore in Q2FY21 against Rs 2.19 crore, revenue increased to Rs 79.88 crore from Rs 45 crore YoY.

Jubilant Foodworks: FPIs raised stake in company to 37.86% in September quarter, from 36.19% in June quarter.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 821.86 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,276.14 crore in the Indian equity market on October 14, as per provisional data available on the NSE.

Stock under F&O ban on NSE

Eleven stocks - Adani Enterprises, BHEL, Canara Bank, Escorts, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, Mindtree, Punjab National Bank, PVR and SAIL - are under the futures & options (F&O) ban for October 15. 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.