Trade Setup For Monday; Key Factors To Know Before Opening Bell: Day Trading Guide For Today

The Gifty Nifty traded in green signalling a positive start for benchmarks Sensex and Nifty. However, Asian cues traded lower tracking declines of Wall Street ahead of US Federal Reserve and Bank of Japan's meetings. At home, focus will be shifting towards month-end and also upcoming Q2 earnings season. In the previous session, Indian markets closed near record highs, driven by autos and financials.

The gift nifty, formerly known as SGX Nifty, traded at 20,186.5, up by 20 points or 0.10%, at the time of writing on Monday. The index opened at 20,166.5, and ranged between 20,194.5 and 20,149.0 respectively.

Sensex ended at 67,838.63, up by 319.63 points or 0.47%. While Nifty ended at 20,192.35, higher by 89.25 points or 0.44% last week on Friday. However, Bank Nifty settled at 46,231.50 up by 230.65 points or 0.5%. Midcap and smallcap indices on NSE advanced as well to end at 40,829.90 and 12,793.75 respectively.

Day Trading Guide For Today:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects a support level in the range of 20,100/20,050 for Nifty 50 on Monday, however, resistance is factored around 20,350/20,400. While she sees Bank Nifty to have a support level of 46,000/45,950 with resistance around 46,700/46,750.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "We expect a positive tone to continue in the Nifty, with some intermediate consolidation citing a hurdle at 20,300 levels. Participants should maintain a "buy on dips" approach and look for stocks offering a favorable risk to reward ratio."

Nifty Spot Index:

Rupak De, Senior Technical analyst at LKP Securities in his technical view said, "Strong Put writing at 20,100 has further bolstered positive sentiment in the market. The trend is expected to remain positive as long as the Nifty remains above the 20,000 mark. In the short term, there is potential for the Nifty to move towards the 20,480-20,500 range on the upside."

Also, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, "The Nifty is continuing its strong bullish momentum, with no signs of weakness yet. However, traders should keep in mind that 20,000 is a key support level. As long as the Nifty remains above this level, bullish momentum is likely to continue towards the 20,400-20,500 zone. However, if the Nifty falls below 20,000, we can expect some profit-taking towards the 19,800-19,640 levels."

Bank Nifty Spot Index:

Rupak De, Senior Technical analyst at LKP Securities said, "The strong presence of Put writers at 46,000 has supported the index to stay in positive territory. The trend is anticipated to stay bullish as long as the Bank Nifty remains above the 46,000 mark. In the short term, there is potential for the Bank Nifty to reach levels around 46,700 and 47,000 on the upside."

Meanwhile, Gour said, "The BankNifty is hovering around its all-time high of 46,369. If the Bank Nifty breaks above this level, we can expect a short-covering rally towards the 46,600-47,000 zone. On the downside, 45,800 is an immediate support level. If Bank Nifty falls below this level, we can expect some profit-taking towards the 45,000 mark."

Derivatives market:

As per Gour, if we look at the derivative data, then FIIs are 66% long positions in index futures. The put-call ratio is at a 1.31 level. Overall, derivative data indicates a positive bias.

Buy Or Sell Stocks In Intraday:

Vaishali Parekh has recommended buying three stocks in the intraday trade on Monday. These are:

1. Engineers India: The buying range is Rs 153.15 with a stop loss of Rs 150 for a target price of Rs 162.

2. Colgate Palmolive: Buying range at Rs 1985.85 with a stop loss of Rs 1948 for a target price of Rs 2070.

3. Bandhan Bank: Buying range is at Rs 249.35 with a stop loss of Rs 244 for a target price of Rs 265.

Bulk And Block Deals:

Restaurant Brands Asia: Promoter QSR Asia sold 12.54 crore shares representing 25.36% of paid-up equity at an average price of Rs 119.1 per share. While QSR exited investors like Tata Mutual Fund, Plutus Wealth Management LLP, TD Emerging Markets Fund, Amal N Parikh, Quant Mutual Fund, ICICI Prudential Life Insurance Company, Goldman Sachs Funds-Goldman Sachs Asia Equity Portfolio, and Franklin Singapore 3 Banken Asia Stock-Mix together purchased 11.83 crore equity shares or 23.92% stake in the company. The transaction aggregated to Rs 1,349 crore on Friday.

Five-Star Business Finance: SCHF PV Mauritius sold 30,18,700 shares in the company, while Smallcap World Fund purchased the same in the open market. The transaction's average price was at Rs 700.15 per share.

Ramkrishna Forgings: BNP Paribas Arbitrage offloaded 15,84,659 shares, while Vanguard Group's funds were buyers.

Among other stocks to record bulk and block deals were --- TVS Srichakra, Aditya Vision, Titgarh Rail Systems, Usha Martin, Tamilnad Merca Bank, Semco Gold, and MTAR Technologies among others.

Stocks In News:

Stocks like Tata Steel, Dhanlaxmi Bank, Jupiter Life Line Hospitals, Hindustan Aeronautics, Bharat Electronics, Indian Oil Corporation, Zomato and Texmaco Rail & Engineering will have an investor meeting on September 18.

FII and DII data:

Both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) turned into net buyers.

In Indian stocks, on September 15, FIIs made buying of Rs 164.42 crore, while DIIs purchased Rs 1,938.57 crore of equities.

Stocks banned under F&O on NSE:

The exchange NSE added Chambal Fertilizers & Chemicals to the futures and options (F&O) ban list on Monday. Stocks like Balrampur Chini Mills, BHEL, Hindustan Copper, Indiabulls Housing Finance, Indian Energy Exchange, India Cements, Manappuram Finance, REC and Zee Entertainment Enterprises were retained as well in the list. However, Delta Corp, National Aluminium Company, and SAIL were excluded from the list.

Securities which are banned in the F&O list are those that have crossed 95% of the market-wide position limit.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.