Trade setup for Monday: Top 15 things to know before Opening Bell

The market rebounded after around 2.5 percent loss seen in the previous session and closed seventh of a percent higher on October 16, led by banking and financials, metals and pharma stocks. The recovery in European peers also supported sentiment.

The BSE Sensex was up 254.57 points to close at 39,982.98, while the Nifty50 gained 82.10 points at 11,762.50 and formed a small-bodied bullish candle on the daily charts.

The overall market breadth has continued with sluggish movement but, broad market indices - Midcap and Smallcap indices - gained over a percent each.

"This could be a minor hope for longs to comeback in the market. The negative implication after the formation of the Bearish Engulfing pattern of Thursday remains intact, as long as the high of that pattern is protected at 12,025. Friday's upside bounce could provide an opportunity for sell on rise in the next week," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

"Similar upside bounces for three sessions have occurred in the past, after the formation of Bearish Engulfing pattern (in early September 20) and the sell on rise has triggered near the mid part of the long-range bear candle at 11,585. Hence, the mid part of Thursday's Bearish Engulfing pattern comes around 11,850, which is going to be an immediate resistance for the market ahead," he said.

The Nifty50 during the week shed 1.3 percent, breaking the two-week winning streak, and formed a bearish candle on the weekly charts.

"A reasonable negative candle was formed in this week with minor lower shadow (as per weekly timeframe chart), after the formation of long bull candles in the previous two weeks. This pattern could signal strength of recent upside bounce and any further weakness down to 11,600-11,550 could offer strong supports for the market," said Shetti.

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 is placed at 11,690.27, followed by 11,618.03. If the index moves up, the key resistance levels to watch out for are 11,812.27 and 11,862.03.

Nifty Bank

The Bank Nifty rallied 460.85 points or 2 percent to close at 23,533.25 on October 16. The important pivot level, which will act as crucial support for the index, is placed at 23,239.33, followed by 22,945.47. On the upside, key resistance levels are placed at 23,736.63 and 23,940.06.

Call option data

Maximum Call open interest of 24.12 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 23.70 lakh contracts, and 12,200 strike, which has accumulated 15.83 lakh contracts.

Call writing was seen at 11,700 strike, which added 2.52 lakh contracts, followed by 12,100 strike which added 1.97 lakh contracts and 12,200 strike which added 1.04 lakh contracts.

Call unwinding was seen at 12,600 strike, which shed 1.18 lakh contracts, followed by 12,400 strike, which shed 88,425 contracts and 12,300 strike which shed 55,575 contracts.

Put option data

Maximum Put open interest of 23.91 lakh contracts was seen at 11,000 strike, which will act as crucial support in the October series.

This is followed by 11,500 strike, which holds 21.95 lakh contracts, and 11,600 strike, which has accumulated 18.21 lakh contracts.

Put writing was seen at 11,700 strike, which added 4.68 lakh contracts, followed by 11,600 strike, which added 1.58 lakh contracts and 10,900 strike which added 88,875 contracts.

Put unwinding was witnessed at 11,900 strike, which shed 73,275 contracts, followed by 12,000 strike which shed 58,275 contracts.

Stocks with a high delivery percentage

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

52 stocks saw long build-up

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

8 stocks saw long unwinding

Based on the open interest future percentage, here are 8 stocks in which long unwinding was seen.

13 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 short build-up was seen.

64 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

(For more bulk deals, click here)

Results on October 19

Britannia Industries, HDFC Life Insurance Company, L&T Technology Services, ACC, Century Textiles, CSB Bank, Borosil Renewables, Hatsun Agro Product, Bank of Maharashtra, Rallis India, Sagarsoft (India), Shish Industries, Skipper, Smruthi Organics, Sumeru Industries, Tata Metaliks, Texmaco Infrastructure, Texmaco Rail, Titan Biotech, Titan Securities and Chemo Pharma Laboratories will announce quarterly earnings on October 19.

Stocks in the news

Polyplex Corporation: Morgan Stanley Asia (Singapore) PTE- ODI name appeared in September shareholding pattern with 1.23 percent stake.

Tinplate Company: The company reported profit at Rs 16.07 crore in Q2FY21 against Rs 12.67 crore YoY, revenue fell to Rs 531.5 crore from Rs 538.4 crore YoY.

CARE Ratings: L&T Investment Management cut its stake in the company to 3.18 percent from 5.18 percent earlier.

Sadbhav Infrastructure Project: Varun Mehta has tendered resignation from the position of the CFO. The company received Provisional Completion Certificate for its subsidiary Sadbhav Udaipur Highway Private Limited.

Acrysil: Abbakus Growth Fund through Abakkus Emerging Opportunities Fund-1 acquired 6.45 percent stake in the company.

IIFL Securities: The company reported profit at Rs 50.92 crore in Q2FY21 against Rs 24.85 crore, revenue rose to Rs 201.9 crore from Rs 173.7 crore YoY.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 479.59 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 429.81 crore in the Indian equity market on October 16, 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, Punjab National Bank, PVR, SAIL and Tata Motors - are under the F&O ban for October 19. 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.

Disclaimer: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."