• Fri. Mar 1st, 2024

Thursday Trade Setup: 15 Key Insights for a Profitable Day

ByNishat Manzar

Sep 28, 2023
share market

Are you ready to seize trading opportunities this Thursday? Before you start, here are 15 crucial insights to consider before the opening bell:

1. Short-Covering Candidates: Keep an eye on 82 stocks, including Hindustan Copper, Navin Fluorine International, Balrampur Chini Mills, Delta Corp, and Apollo Tyres, as they are showing signs of short-covering based on Open Interest percentage.

2. Bullish Reversal: The market recently bounced back from its 50-day Exponential Moving Average (EMA) at around 19,550, forming a bullish candlestick pattern resembling a Bullish Engulfing. This signals a potential reversal, with resistance at 19,800-20,000 and support at 19,600-19,500 for the Nifty50.

3. Sensex and Nifty: The BSE Sensex gained 173 points to reach 66,119, while the Nifty50 rose by 52 points to 19,716. This followed two days of consolidation ahead of the monthly F&O expiry on September 28.

4. Technical Analysis: Nagaraj Shetti, technical research analyst at HDFC Securities, noted the formation of a Bullish Engulfing pattern, suggesting a possible upside bounce in the market.

5. Breakout Potential: After trading within a range, the market may experience an upside breakout around 19,750 levels, potentially confirming a short-term higher bottom reversal pattern.

6. Broader Market Gains: While the breadth wasn’t exceptionally strong, the Nifty Midcap 100 index jumped 0.75 percent, and the Smallcap 100 index gained nearly 1 percent.

7. Nifty Support and Resistance Levels: According to pivot point calculations, Nifty support levels are at 19,600, 19,558, and 19,490, with resistance at 19,735, 19,776, and 19,844.

8. Bank Nifty Analysis: Bank Nifty recovered more than 400 points from its daily low on September 27, forming a bullish candlestick pattern. It is currently trading within a range of 44,200 to 45,000.

9. Key Bank Nifty Levels: The 20-day moving average at 45,000 is a crucial level to watch, as a decisive break above it could trigger significant short-covering.

10. Call Options: Maximum Call open interest is at 19,800 strike, followed by 19,900 and 20,000 strikes. Call writing was prominent at 19,900, 19,800, and 19,500 strikes.

11. Put Options: Maximum Put open interest is at 19,600 strike, followed by 19,500 and 19,700 strikes. Put writing was notable at 19,600, 19,700, and 19,500 strikes.

12. Stock Movements: Stocks like Max Financial Services, UltraTech Cement, InterGlobe Aviation, Bharti Airtel, and Mahindra & Mahindra are showing high delivery percentages, indicating investor interest.

13. Long and Short Build-Up: Watch for long build-up in stocks like Escorts, Max Financial Services, REC, Balkrishna Industries, and BHEL. Short build-up is evident in stocks like Gujarat Gas, Colgate Palmolive, Vedanta, Hindustan Aeronautics, and ICICI Lombard General Insurance Company.

14. Stock Unwinding: Based on Open Interest percentage, 82 stocks, including Hindustan Copper, Navin Fluorine International, Balrampur Chini Mills, Delta Corp, and Apollo Tyres, are undergoing short-covering.

15. Corporate Updates: Keep an eye on corporate developments, such as Yatra Online listing its equity shares on BSE and NSE, Aurobindo Pharma’s licensing agreement, Dixon Technologies’ partnership with Xiaomi, and Tata Power’s solar plant expansion.

Bonus Information: FII sold shares worth Rs 354.35 crore, while DII bought Rs 386.28 crore worth of stocks on September 27. Delta Corp and India Cements are under the F&O ban list, while Balrampur Chini Mills, Canara Bank, Hindustan Copper, and Indiabulls Housing Finance have been removed.

Stay informed and trade wisely! These insights can help you navigate the market effectively and make informed decisions on Thursday. Good luck!