The market wiped out all its initial gains and declined for the third consecutive session on February 18, dragged by weak global cues, rising US bond yields and COVID-19 concerns. Private banks, auto, select FMCG and pharma stocks were under pressure, though PSU banks bucked the trend with 5.6 percent rally.
The S&P BSE Sensex was down 379.14 points at 51,324.69, while the Nifty50 index declined 89.90 points to 15,119 and formed a bearish candle on the daily charts.
"A reasonable negative candle was formed, which is back to back for the second session. This action reflects a profit booking in the market but, Nifty so far has not shown any violent decline at the highs, after a rise of more than thousand points, post budget," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
The overall market breadth was positive despite decline in Nifty and broader market indices Nifty Midcap 100 and Smallcap 100 indices closed higher by 0.47 percent and 0.96 percent, respectively.
"Lack of strength in decline and positive market breadth could indicate possibility of a comeback of bulls from the lower levels," Shetti said.
"We expect Nifty to show upside bounce from the lows of around 15,000 levels in the next 1-2 sessions. On the flip side, a decisive move below 14,950 is likely to trigger more weakness in the near term," he added.
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 15,047.73, followed by 14,976.47. If the index moves up, the key resistance levels to watch out for are 15,220.53 and 15,322.07.
The Nifty Bank extended losses, down 323.90 points to close at 36,587 on February 18. The important pivot level, which will act as a crucial support for the index, is placed at 36,266.67, followed by 35,946.33. On the upside, key resistance levels are placed at 37,008.07 and 37,429.14 levels.
Call option data
Maximum Call open interest of 39.38 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the February series.
This is followed by 15,500 strike, which holds 28.84 lakh contracts, and 15,300 strike, which has accumulated 26.19 lakh contracts.
Call writing was seen at 16,000 strike, which added 15.85 lakh contracts, followed by 15,300 strike which added 10.01 lakh contracts and 15,100 strike which added 9.27 lakh contracts.
Call unwinding was seen at 14,400 strike, which shed 12,300 contracts, followed by 14,300 strike which shed 2,175 contracts.
Put option data
Maximum Put open interest of 30.07 lakh contracts was seen at 15,000 strike, which will act as crucial support level in the February series.
This is followed by 14,500 strike, which holds 21.82 lakh contracts, and 15,100 strike, which has accumulated 15.49 lakh contracts.
Put writing was seen at 15,100 strike, which added 7.28 lakh contracts, followed by 14,700 strike, which added 4.5 lakh contracts and 15,000 strike which added 4.42 lakh contracts.
Put unwinding was seen at 15,300 strike, which shed 2.35 lakh contracts, followed by 15,200 strike which shed 69,300 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
37 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.
34 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
40 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.
28 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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Results on February 19
Mahindra CIE Automotive, Asian Tea & Exports, Binani Industries, Chromatic India, Sunedison Infrastructure, Uniply Decor, Uniply Industries and Uniworth Securities will announce their quarterly earnings on February 19.
Stocks in the news
DLF: The company's subsidiary has completed the acquisition of 51.8 percent stake in Fairleaf at Rs 779.40 crore.
Engineers India & Oil India: Both companies to jointly bid for 61.65 percent stake in Numaligarh Refinery.
NMDC: Its Donimalai iron ore mine operations have restarted.
Ambuja Cements: The company reported higher profit at Rs 497.1 crore for Q4CY20 against Rs 454.9 crore in Q4CY19, while revenue increased to Rs 3,515.1 crore from Rs 3,135.9 crore YoY.
ACC & Ambuja Cements: Both companies' board members approved renewal of master supply agreement between two to three years.
Shilpa Medicare: The company has received an Import Alert 66-40, pursuant to the USFDA inspection of the Unit IV, Jadcherla, Telangana facility from February 13-20 and February 24-25, 2020.Fund flow
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 903.07 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,217.34 crore in the Indian equity market on February 18, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Four stocks - BHEL, Canara Bank, Vodafone Idea and SAIL - are under the F&O ban for February 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.