The market closed sharply lower on March 4 with the benchmark indices falling one percent each after rising around 5 percent in previous three sessions. The weak global cues weighed on the investor sentiment.
The BSE Sensex fell 598.57 points or 1.16 percent to 50,846.08, while the Nifty50 shed 164.80 points or 1.08 percent to 15,080.80, but formed a bullish candle on the daily charts as closing was higher than opening levels.
"A small positive candle was formed with upper shadow, which indicates a consolidation pattern in the market with a weak bias. This market action could signal an attempt of false upside breakout of the key overhead resistance of 15,065 and 15,175 (previous gaps and lower swing high) on Wednesday. Hence, one may expect Nifty to consolidate further and later make further attempts to challenge 15,200 levels," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"The short term uptrend status remains intact and the display of positive market breadth of Thursday signals that the market is not willing to give up easily," Shetti said.
"We expect market to sustain the support of 15,000-14,900 levels, before showing upside bounce again. Immediate resistance is placed at 15,200 levels," the analyst added.
The overall market breadth was positive despite the benchmark index falling 1 percent. The Nifty Midcap 100 and Smallcap 100 indices gained 0.49 percent and 1.17 percent, respectively.
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 14,973.23, followed by 14,865.67. If the index moves up, the key resistance levels to watch out for are 15,195.33 and 15,309.87.
The Nifty Bank index tumbled 565.60 points or 1.56 percent to 35,802.50 on March 4. The important pivot level, which will act as crucial support for the index, is placed at 35,442.33, followed by 35,082.16. On the upside, key resistance levels are placed at 36,239.53 and 36,676.56 levels.
Call option data
Maximum Call open interest of 16.47 lakh contracts was seen at 15,000 strike, which will act as a crucial level in the March series.
This is followed by 15,500 strike, which holds 15.26 lakh contracts, and 15,300 strike, which has accumulated 7.23 lakh contracts.
Call writing was seen at 15,000 strike, which added 3.69 lakh contracts, followed by 15,100 strike which added 1.81 lakh contracts and 14,900 strike which added 1.51 lakh contracts.
Call unwinding was seen at 15,200 strike, which shed 36,825 contracts, followed by 14,500 strike which shed 18,600 contracts and 14,700 strike which shed 10,350 contracts.
Put option data
Maximum Put open interest of 24.52 lakh contracts was seen at 14,500 strike, which will act as a crucial support level in the March series.
This is followed by 15,000 strike, which holds 19.73 lakh contracts, and 14,700 strike, which has accumulated 17.06 lakh contracts.
Put writing was seen at 15,000 strike, which added 3.11 lakh contracts, followed by 14,800 strike, which added 1.38 lakh contracts and 15,100 strike which added 1.22 lakh contracts.
Put unwinding was seen at 14,500 strike, which shed 1.83 lakh contracts, followed by 14,600 strike which shed 25,350 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
38 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
28 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
70 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.
22 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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Tata Power: The company will be meeting with Bajaj Allianz on March 5 through 1:1 video conferencing mode.
Indostar Capital Finance: The analysts/investors call is scheduled to be held on March 5 to discuss the performance of the company for quarter and nine months ended December 2020.
Sterling and Wilson Solar: The company's officials will meet investors/analysts on March 5.
Hindustan Copper: The company's officials will meet institutional investors on March 5 through video conferencing.
Mahindra Lifespace Developers: The company's officials will meet Wellington Management Singapore on March 8.
Mindspace Business Parks REIT: The board meeting is scheduled on March 9 to consider raising of funds by Mindspace REIT through issue of debt security(ies) aggregating up to Rs 450 crore by way of private placement.
Quick Heal Technologies: The board meeting is scheduled on March 10 to consider the proposal for buyback of the fully paid-up equity shares of the company.
Engineers India: The board meeting is scheduled for March 11 to consider interim dividend, if any, for the FY21.
Hatsun Agro Product: The board meeting is scheduled to be held on March 12 to consider approval for entering in to agreement/s for power purchase, Shareholders Agreement and Share Subscription Agreement.
Stocks in the news
Wipro: The company has signed an agreement to acquire Capco, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in America, Europe and the Asia Pacific.
Heranba Industries: The company is slated to list its shares on bourses on March 5; the issue price has been fixed at Rs 627 per share.
Unichem Labs: The company has received ANDA approval for its Guanfacine tablets, from USFDA to market a generic version of TENEX (Guanfacine) tablets of Promius Pharma LLC. Guanfacine tablets are indicated in the management of hypertension.
Nitin Spinners: Aditya Birla Sun Life Mutual Fund reduced stake in the company to 3.03% from 5.07% via open market sale.
ISGEC Heavy Engineering: The company has received order for waste heat recovery boilers from Shree Cement.
Laurus Labs: Dr Satyanarayana Chava, Founder Promoter, CEO & ED, sold shares worth Rs 191.67 crore of the company and Mrs. Nagarani Chava, one of the promoters of the company sold shares of Rs 66.04 crore. Significant part of the amount will be utilised to release the pledge on their equity shares of the company.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 223.11 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 788.19 crore in the Indian equity market on March 4, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Five stocks - Bank of Baroda, BHEL, Indiabulls Housing Finance, PNB and SAIL - are under the F&O ban for March 5. 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.