Rohit Singre of LKP Securities feels on overall basis 16,500 zone will act as make or break zone on the higher side.
The market remained under pressure amid volatility throughout session and settled with half a percent loss on Friday, August 20, as all sectoral indices, barring FMCG, closed in red. Weak global cues and rising Delta variant cases globally dented sentiment.
The BSE Sensex was down 300.17 points at 55,329.32, while the Nifty50 corrected 118.30 points to 16,450.50 and formed bullish candle on the daily charts as the closing was higher than opening levels. The index formed small bearish candle on the weekly scale as it fell half a percent.
“The index reached to its previous breakout zone & going forward it will act as good support zone 16,350-16,250. If it managed to hold above-mentioned support zone then one can expect a good bounce towards immediate resistance zone of 16,500-16,600 zone where one can again lock their longs gains on immediate basis,” said Rohit Singre, Senior Technical Analyst at LKP Securities.
On overall basis 16,500 zone will act as make or break zone on the higher side, he feels.
The broader markets fell sharply, underperforming frontline indices. The BSE Midcap 100 index declined 1.99 percent and the Smallcap index dropped 2.16 percent.
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 are placed at 16,381.13, followed by 16,311.77. If the index moves up, the key resistance levels to watch out for are 16,514.73 and 16,578.97.
Nifty Bank
The Nifty Bank plunged 520.65 points or 1.46 percent to 35,033.85 on August 20. The important pivot level, which will act as crucial support for the index, is placed at 34,871.43, followed by 34,708.96. On the upside, key resistance levels are placed at 35,251.43 and 35,468.96 levels.
Call option data
Maximum Call open interest of 49.77 lakh contracts was seen at 16500 strike, which will act as a crucial resistance level in the August series.
This is followed by 16600 strike, which holds 44.05 lakh contracts, and 17000 strike, which has accumulated 42.59 lakh contracts.
Call writing was seen at 16500 strike, which added 23.61 lakh contracts, followed by 17100 strike, which added 21.52 lakh contracts and 16400 strike which added 19.25 lakh contracts.
Call unwinding was seen at 16000 strike, which shed 91,250 contracts, followed by 15900 strike which shed 90,400 contracts, and 16200 strike which shed 66,950 contracts.
Put option data
Maximum Put open interest of 43.72 lakh contracts was seen at 16000 strike, which will act as a crucial support level in the August series.
This is followed by 16400 strike, which holds 42.79 lakh contracts, and 16500 strike, which has accumulated 35.33 lakh contracts.
Put writing was seen at 16400 strike, which added 13.15 lakh contracts, followed by 16300 strike which added 8.7 lakh contracts, and 15900 strike which added 5.95 lakh contracts.
Put unwinding was seen at 16600 strike, which shed 11.72 lakh contracts, followed by 16500 strike which shed 10.54 lakh contracts and 16700 strike which shed 3.87 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
14 stocks saw long build-up
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
79 stocks saw long unwinding
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
61 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 a short build-up was seen.
10 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 10 stocks in which short-covering was seen.
Bulk deals
Cartrade Tech: Plutus Wealth Management LLP acquired 4 lakh equity shares in the company at Rs 1,590.86 per share, Goldman Sachs Trust Goldman Sacs BRICS Fund bought 9,60,042 equity shares at Rs 1,563.43 per share, and Jupiter India Fund purchased 3,89,446 equity shares in the company at Rs 1,575.55 per share on the NSE, the bulk deals data showed.
Exxaro Tiles: Nexpact acquired 2,39,349 equity shares in the company at Rs 121 per share, whereas Societe Generale sold 2.5 lakh equity shares in the company at Rs 121.76 per share on the NSE, the bulk deals data showed.
Karda Constructions: Elara India Opportunities Fund further increased stake in the company, buying additional 28 lakh equity shares at Rs 22.45 per share on the NSE, the bulk deals data showed.
Poonawalla Fincorp: Celica Developers sold 50 lakh equity shares in the company at Rs 190.13 per share on the NSE, the bulk deals data showed.
AAVAS Financiers: HDFC Mutual Fund acquired 4.25 lakh equity shares in the company at Rs 2,452.5 per share and Government of Singapore bought 7,71,124 equity shares at same price on the BSE. However, Partners Group Private Equity (Master Fund), LLC sold 10,40,976 equity shares in the company at Rs 2,453.28 per share, and Partners Group ESCL Ltd offloaded 23,72,060 equity shares at Rs 2,453.62 per share, the bulk deals data showed.
Analysts/Investors Meeting
Rajratan Global Wire: The company’s officials will meet B&K Securities on August 23 in a “Fireside Chat” as a part of the Ideation Series.
Crompton Greaves Consumer Electricals: The company’s officials will meet Principal Mutual Fund on August 23 and JM Financial on August 30. To meet investors in a Nirmal Bang – Virtual Investors Conference on August 26 and 27.
Mindtree: The company’s officials will meet analysts and investors in Jefferies India IT Summit on August 24.
Khadim India: The company’s officials will meet analysts and investors on August 24.
R Systems International: The company’s officials will meet investors and analysts on August 24 to discuss the financial results.
Allcargo Logistics: The company’s officials will meet Locus Investment Group on August 24.
Meghmani Finechem: The company’s officials will meet investors in a conference organized by Dolat Capital Market on August 24.
EKI Energy Services: The company’s officials will meet investors & analysts on August 25 to discuss the unaudited financial results.
Rushil Decor: The company’s officials will meet investors and analysts on August 27 post earnings.
Indoco Remedies: The company’s officials will meet investors and analysts in Ashwamedh, Elara India Dialogue 2021 on September 7, and ITUS Capital on September 8.
Stocks in News
Adani Enterprises: Sebi held Adani Wilmar IPO due to investigation against Adani Enterprises.
Arvind Fashions: The company raised Rs 439 crore from marquee investors including promoters at a price of Rs 218.50 per equity share.
Aurobindo Pharma: The company approved the termination of binding agreements with Cronus Pharma Specialities India for acquisition of 51% ownership in Cronus Pharma, for Rs 420 crore.
Cadila Healthcare: Zydus Cadila has received the Emergency Use Authorization (EUA) from the Drug Controller General of India (DCGI) for ZyCoV-D, the world’s first Plasmid DNA vaccine for Covid-19.
Adani Total Gas: The company to acquire 50% stake in Smartmeters Technologies.
TTK Prestige: Long-term settlement has been reached with the permanent workmen at manufacturing unit at Khardi, Maharashtra.
Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,287.03 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 119.30 crore in the Indian equity market on August 20, as per provisional data available on the NSE.
Stocks under F&O ban on NSESix stocks – Canara Bank, NALCO, NMDC, Punjab National Bank, Sun TV Network and Vedanta – are under the F&O ban for August 23. 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.
