The market snapped a four-day winning streak as selling pressure emerged at record high levels and the benchmark indices fell 1.3 percent on November 19, dragged by banking and financials and IT stocks. Weak global cues due to rising coronavirus infections count in the Western world also hit sentiment.
The BSE Sensex plunged 580.09 points to 43,599.96, while the Nifty50 fell 166.60 points to 12,771.70 and formed a small-bodied bearish candle which resembles a Shooting Star kind of pattern on the daily charts.
"A small negative candle was formed with upper shadow, which indicates the emergence of profit booking from the new highs. The upper shadow that formed after a reasonable period of time on the daily chart could indicate a possibility of further weakness in the near term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"The bears seem to have entered in the market and the Nifty showed reversal from the new highs. Though the quantum of decline is not alarming any significant change in the recent uptrend of the market, one may expect some more downward correction in the short term," he said.
"The next crucial lower supports to be watched around 12,650-12,600. A sustainable move above 13,000 mark could only open the upside targets of around 13,500-13,600 levels," he added.
The market breadth was slightly negative and broad market indices like Midcap and Smallcap segments have showed resilience and restricted their losses, falling 0.64 percent and 0.2 percent respectively. About five shares declined for every four rising shares. This is a positive indication, Shetti feels.
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 12,690.67, followed by 12,609.63. If the index moves up, the key resistance levels to watch out for are 12,907.87 and 13,044.03.
The Bank Nifty fell the most among sectoral indices, declining 846.80 points or 2.85 percent to 28,903 on November 19. The important pivot level, which will act as crucial support for the index, is placed at 28,606.07, followed by 28,309.03. On the upside, key resistance levels are placed at 29,413.67 and 29,924.23.
Call option data
Maximum Call open interest of 34.35 lakh contracts was seen at 13,500 strike, which will act as crucial resistance level in the November series.
This is followed by 13,000 strike, which holds 33.34 lakh contracts, and 12,900 strike, which has accumulated 30.19 lakh contracts.
Call writing was seen at 12,900 strike, which added 18.66 lakh contracts, followed by 13,500 strike which added 16.26 lakh contracts and 13,000 strike which added 14.10 lakh contracts.
Call unwinding was seen at 12,500 strike, which shed 30,525 contracts, followed by 12,000 strike which shed 27,750 contracts and 12,100 strike which shed 15,150 contracts.
Put option data
Maximum Put open interest of 37 lakh contracts was seen at 12,000 strike, which will act as crucial support in the November series.
This is followed by 12,500 strike, which holds 25.92 lakh contracts, and 12,700 strike, which has accumulated 23.46 lakh contracts.
Put writing was seen at 12,000 strike, which added 7.68 lakh contracts, followed by 12,700 strike, which added 7.25 lakh contracts and 12,500 strike which added 4.02 lakh contracts.
There was hardly any Put unwinding seen.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
21 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.
49 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
52 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.
15 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.
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Analysts Meets/Board Meetings
Sterling and Wilson Solar: The company's officials will meet investor(s)/analyst(s) on November 20.
Westlife Development: The company would be having one on one and group investor meetings through calls/ video conference during its participation in CLSA Conference, on November 20 in Mumbai.
Coffee Day Enterprises: The company will consider March quarter, June quarter and September quarter earnings on November 25.
Dixon Technologies: The company's officials will meet Franklin Templeton on November 26.
Sreeleathers: The company will consider the proposal for buyback of the fully paid-up equity shares on November 24.
Stocks in the news
Reliance Industries: Reliance Retail Ventures completed fundraise of Rs 47,265 crore for 10.09 percent stake in the company.
Gland Pharma: Stock to debut on bourses on November 20.
Mphasis: The company acquired UK's Datalytyx, a DataOps specialist in the Snowflake and Talend ecosystem, for £13.3 million.
Shree Rama Newsprint: CARE assigned BB+ rating for the company's long term bank facilities and placed under Credit Watch with developing implications.
Aarti Industries: HDFC Asset Management Company reduced stake in the company to 5.08 percent from 7.08 percent earlier.
Tata Chemicals: Life Insurance Corporation of India increased stake in the company to 7.09 percent from 5.03 percent earlier.
Autoline Industries: Rakesh Jhunjhunwala and his wife reduced the stake in the company to 5.65 percent on November 19, against 6.2 percent in the September quarter. Indianivesh Rennaisance Fund also reduced stake to 15.48percent from 16.97 percent in the same period. JM Financial Asset Reconstruction Company Limited acquired 8.73 percent stake as per the shareholding pattern available on November 19.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,180.61 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,854.94 crore in the Indian equity market on November 19, as per provisional data available on the NSE.Disclaimer: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."