Sell-off in the afternoon session erased all morning gains, thereby causing benchmark indices to settle with a percent cut on March 18. Increase in the US bond yields weighed on the investor sentiment. Technology, banking & financials, and pharma stocks remained under pressure.
The BSE Sensex declined 585.10 points or 1.17 percent to close at 49,216.52, while the Nifty50 fell 163.40 points or 1.11 percent to 14,557.90 and formed a bearish candle on the daily charts.
"A long negative candle was formed with minor lower shadow. Nifty has broken slightly below the trend line support at 14,680 and closed lower. The market is now entering a crucial support of around 14,500 (previous swing low of February 26 and weekly 10 period EMA at 14,560)," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
Previously, in the last few occasions, the weekly 10 period EMA had acted as an important base for the market and Nifty witnessed sharp upside from the support or mildly violating that support area, he said.
He feels the short term trend of Nifty continues to be weak. "Having placed at the lower support of 14,500 levels, one needs to be cautious for any upside. A decisive move below 14,500 levels is likely to trigger broad-based weakness in the market and in such scenario, the Nifty could test 14,000 levels over the next week," he said.
The broader markets also acted in line with benchmarks as the Nifty Midcap 100 and Smallcap 100 indices fell 1.37 percent and 1.28 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 14,399.2, followed by 14,240.6. If the index moves up, the key resistance levels to watch out for are 14,795.8 and 15,033.8.
The Nifty Bank index slipped 372.50 points or 1.09 percent to 33,856.80 on March 18. The important pivot level, which will act as crucial support for the index, is placed at 33,382.97, followed by 32,909.14. On the upside, key resistance levels are placed at 34,545.27 and 35,233.73 levels.
Call option data
Maximum Call open interest of 39.16 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the March series.
This is followed by 14,900 strike, which holds 19.16 lakh contracts, and 14,800 strike, which has accumulated 18.44 lakh contracts.
Call writing was seen at 15,000 strike, which added 14.63 lakh contracts, followed by 14,900 strike which added 10.73 lakh contracts and 14,800 strike which added 9.64 lakh contracts.
There was hardly any Call unwinding seen on March 18.
Put option data
Maximum Put open interest of 30.38 lakh contracts was seen at 14,500 strike, which will act as a crucial support level in the March series.
This is followed by 14,000 strike, which holds 26.87 lakh contracts, and 14,200 strike, which has accumulated 16.95 lakh contracts.
Put writing was seen at 14,200 strike, which added 4.06 lakh contracts, followed by 14,900 strike, which added 4.04 lakh contracts and 14,000 strike which added 3.63 lakh contracts.
Put unwinding was seen at 13,900 strike, which shed 1.44 lakh contracts, followed by 15,300 strike which shed 1.43 lakh contracts and 14,800 strike which shed 1.17 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
8 stocks saw long build-up
Based on the open interest future percentage, here are the 8 stocks in which a long build-up was seen.
67 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
58 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.
25 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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Va Tech Wabag: The company's officials will attend PL — Capital Goods Day on March 19.
Tata Steel: The company's officials will interact with Investec Capital Service, and Neuberger Berman on March 22, and will attend 24th Credit Suisse Asian Investment Conference on March 23.
Ramco Cements: The company would be participating in the Cement Sector Conference scheduled on March 22 organised by Institutional Research - Systematix Shares and Stocks (India).
NACL Industries: The company's board meeting is scheduled to be held on March 23 to consider the payment of second interim dividend, if any, for the financial year 2020-21.
NBCC India: NBCC has confirmed its participation in Motilal Oswal Investors Conference 2021 on March 23 through video conferencing.
Centum Electronics: The company's officials will interact with SBI Mutual Fund on March 19.
DCM Shriram: The company's official will interact with TA Associates Adv. Pvt. Ltd. on March 22.
Stocks in the news
GAIL India: State-owned natural gas company GAIL India and Ranchi Municipal Corporation has signed concession agreement for setting up compressed biogas plant in Ranchi.
Godrej Industries: Godrej Industries informed exchanges that the rating agency ICRA has assigned 'AA' rating to the company's proposed issue of non-convertible debentures of up to Rs 1,500 crore.
Deepak Nitrite: Deepak Nitrite said the rating agency CRISIL has upgraded long-term rating outlook for bank loan facilities of Rs 750 crore of the company, from 'AA-/Positive' to 'AA/Stable.
Indo Count Industries: Indo Count Industries' project management committee has approved expansion of its bed linen capacity by around 20 percent from its existing annual capacity of 90 million meters to 108 million meters by debottlenecking and balancing its facilities.
Vaibhav Global: The Shop TJC Limited, UK, a step-down subsidiary of the Vaibhav Global, has acquired E-retailer Shop LC GmbH, Germany (100 percent subsidiary). The object of the company is to expand business in Germany by selling the products to the retail consumers via television and e-commerce websites, said Vaibhav Global in its BSE filing.
Hathway Cable & Datacom: Hathway Cable & Datacom has entered into an agreement for disposing its entire 50% i.e. 5,000 equity shares having face value of Rs 10 each of Net 9 Online Hathway, a joint venture company, on March 18. The company has received a consideration of Rs 99 lakh after selling stake in the joint venture company, said Hathway in its BSE filing.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,258.47 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,116.17 crore in the Indian equity market on March 18, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Two stocks - Vodafone Idea and SAIL - are under the F&O ban for March 19. 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.