On Tuesday, the benchmark index Nifty traded in a narrow range of 130 points and formed a small body bearish candle. The broader market has outperformed the benchmark indices. The advance-decline ratio was in the favour of advancers.

Here are the top trading set-ups to watch out for Wednesday.

Karnataka Bank: The stock has formed a Doji candlestick pattern as of September 16, 2021, and thereafter witnessed correction along with low volume. During the correction, the stock has formed a symmetrical triangle pattern on the daily chart. Currently, the stock is on the verge of giving a symmetrical triangle pattern breakout. Further, on Tuesday the volumes recorded were above the 50-days average, which is a sign of accumulation before the actual breakout happens.

Currently, the stock is trading above its short and long-term moving averages. These averages are in edging higher, which is a bullish sign. Interestingly, the leading indicator, 14-period daily RSI is on the verge of giving a breakout of a falling channel. The fast stochastic is trading above its slow stochastic.

Going ahead, the upper trendline of the symmetrical triangle is placed in the zone of Rs 74.50-Rs 75 levels. In case stock sustains above this zone, then we may see a sharp upside in the stock. On the downside, the 8-day EMA will act as strong support for the stock, which is currently placed at the Rs 71.15 level.

Bharat Electronics: The major trend of the stock is bullish as it is trading above its short and long-term moving averages. These averages are in a rising trajectory, which is a bullish sign. On Tuesday, the stock has given downward sloping trendline resistance breakout on the daily chart. This breakout was confirmed by above 50-days average volume.

The momentum indicators and oscillators are also suggesting bullish momentum. The leading indicator, 14-period daily RSI is currently quoting at 65.18 and it is in rising mode. The RSI is trading above its 9-day average. On the weekly chart, the RSI is in the super bullish zone. The Pring's KST has given a fresh buy signal on the weekly chart. Mansfield Relative Strength is above the zero line and shows outperformance as compared to the Nifty 500 index.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, the 8-day EMA will act as strong support for the stock. The 8-day EMA is currently placed at Rs 208.20 level.

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The markets traded weak on Tuesday with BSE Sensex slipping by more than 100 points. The broader markets outperformed the frontline indices on Tuesday with the shares of Motilal Oswal, Godrej Industries, RBL Bank and IDEA gaining more than 6% each, thus pushing the BSE Midcap index higher.

BSE Smallcap index inched higher by 0.67% on Tuesday. BSE Industrials, BSE Capital Goods and BSE Auto Index gained by more than 1% each on a day when BSE Sensex tumbled by more than 100 points.

Esab India and Elgi Equipment were the top gainers from the BSE Industrials index on Tuesday. From the auto pack, it was Eicher Motors, M&M and Bosch Ltd that gained the most on Tuesday. ABB, BEL, Bharat Forge and Lakshmi Machines were the top gainers from the BSE Capital Goods index.

SAIL led the rally in the metal pack, gaining by more than 2% on Tuesday while NMDC was up by more than 1.7% and APL Apollo gained more than 1%.

Following low priced smallcap shares made a fresh 52-week high on November 9:

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Nifty F&O action for November 11 expiry shows 18,200 will act as a key resistance now.

After showing a good up move in the previous trading session, the Indian equity market remained volatile in yesterday’s trade. It opened flat and remained range-bound for the entire day, swinging between 17980 and 18,100. Investors are not willing to take any bet and are waiting for the US inflation data to make any decisive move.

Activity on the F&O market in yesterday’s trade for the weekly expiry on November 11, 2021, shows that now 18,200 will act as a strong resistance for the next two trading sessions. The highest call option open interest (114,808) for Nifty 50 stood at a strike price of 18,200. In terms of the highest addition of open interest in the call options front was again at 18,200 in the last trading session. Total of 45,478 open interest was added at this strike price. The next highest call option open interest stands at 18,100 where total open interest stood at 97,825.

In terms of put activity, the highest put writing was seen at strike price of 17500 (15,903 open interest added on November 09), followed by 17,700 (8412 open interest added on November 09), while there was put unwinding at strike price 17,900, followed by 17,300.

Highest total put open interest (77,593) stood at a strike price of 17,900. This is followed by a strike price of 17,500, which saw a total put option open interest of 71,471 contracts.

Following table shows the difference between call and put option at strike price near to max pain of 18000.

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The Indian markets are trading weak taking cues from the global markets on Wednesday. BSE Sensex is down by more than 300 points on an intraday basis. BSE SME IPO index is up by more than 4%, BSE Telecom index is in green, up by 0.91%, BSE Auto index- up by 0.54% and BSE Oil & Gas index – up by 0.41%.

Some of the top largecap gainers on Wednesday are Aurobindo Pharma up by 2.91%, Bandhan Bank up 2.85%, M&M soaring by 2.51%, UPL gaining 2.17% and ICICI Lombard jumping higher by more than 2%.

From the midcap space, the shares of HEG were seen jumping higher by 10%, Redington share price gained by 8%, Graphite India share prices are higher by 7%, MCS India shares have zoomed by 6% and Indiabulls Housing Finance shares are on an uptrend by 6%.

From the smallcap world, we have Lakshmi Finance jumping higher by 20%, Silly Monks Entertainment gaining 20%, Williamson Magor zooming 14.97%, Sharda Motors sizzling by 10% and AYM Syntex soaring by more than 9%.

Some of the smallcaps were seen making fresh 52-week high on Wednesday such as KPIT Technology, SH Kelkar & Co, TCPL packaging and Kirti Industries.

Some of the penny stocks are seen outperforming the markets on Wednesday with a few locked in the upper circuit.
 

Following is the list of penny stocks that were seen locked in the upper circuit on Wednesday:

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For the reported quarter, consolidated PAT rose 457% YoY, sales are up 100% YoY.

Manali Petrochemicals reported a 457% year-on-year increase in its consolidated net profit to Rs 117 crore for the quarter ended September.

Consolidated total revenue from operations, rose 100% on YoY to Rs 440 crore for the reported quarter, which is the best quarterly performance in the company's history.

EBITDA rose 288% YoY to Rs 163 crore with a margin expansion of 2800 bps on a YoY basis standing at 37% for the quarter ended September. This increase is due to a decrease in the cost of materials used for manufacturing.

Commenting on the performance Muthukrishnan Ravi, MD of MPL and CEO, Petrochemicals Division of AM International Group said, “During the quarter demand for all the products improved post lifting of the restrictions across the country. The all-around increase was seen in product prices and margins, and the quarter recorded historically highest turnover. We expect to maintain a similar performance in the coming periods, subject to imports into India, which has remained subdued for over a year due to global market conditions”

Manali Petrochemicals Limited (MPL) is a petrochemical company developing innovative products, since 1986, that find application in a variety of industries such as appliances, automotive, bedding, food and fragrances, furniture, footwear, paints and coatings, and pharmaceuticals.

Major domestic manufacturer of Propylene Glycol and Polyol

The company operates in the Polyurethanes industry and specializes in the manufacture of propylene glycol, polyether polyol and related substances. It is the only domestic manufacturer of Propylene Glycol. Also, it is the first and largest Indian manufacturer of Propylene Oxide, the input material for the many derivative products.

Propylene Glycol (PG) is widely utilized in pharmaceuticals, food and flavour and fragrance industries and also for the manufacture of polyester resins, carbonless paper and automobile consumables like brake fluid and anti-freeze liquid. Some of the major applications of PG include medicines, canned food, body sprays, perfumes, cosmetics, soaps and detergents. The off-take of PG for industrial purposes is generally low due to the availability of alternate cheaper materials.

We see that chemical as a sector is playing out quite well in the past few months, and this company has utilized the industry tailwinds and posted stellar numbers.

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