Key indices Sensex and Nifty corrected sharply on January 30 amid weak global cues triggered by the rising death toll from coronavirus spreading in China.
Sensex closed 285 points, or 0.69 percent, lower at 40,913.82, while Nifty settled with a loss of 94 points, or 0.77 percent, down at 12,035.80.
“Equity markets again reversed its direction and fell on account of continued fear with regards to coronavirus and cautiousness ahead of Budget. The market is likely to be highly volatile as investors are nervous ahead of the Union Budget
on February 1 where the market is expecting measures from the government to lift economic growth," said
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"Technically, Nifty formed a negative candle on a daily scale and closed a tad below its crucial support of 50-EMA on a daily scale. At the current juncture, the index is hovering around the lower end of a 'rising megaphone' pattern on the daily chart. Going forward, if it sustains below 12,000 levels, then selling pressure may accelerate towards 11,930-11,900 zone. On the flip side, an immediate hurdle for Nifty is placed at 12,150,” he said.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, the key support level is placed at 11,980.83, followed by 11,925.87. If the index starts moving upward, key resistance levels to watch out for are 12,120.53 and 12,205.27.
The Nifty Bank index closed at 30,647.40, down 0.74 percent. The important pivot level, which will act as crucial support for the index, is placed at 30,475.97, followed by 30,304.54. On the upside, key resistance levels are placed at 30,864.17 and 31,080.93.
Call options data
Maximum Call Open Interest (OI) of 52.42 lakh contracts was seen at the 12,100 strike price. It will act as a crucial resistance level for the February series.
This is followed by 12,200 strike price, which now holds 47.1 lakh contracts in open interest, and 12,300, which has accumulated 32.97 lakh contracts in open interest.
Significant Call writing was seen at the 12,100 strike price, which added 34.7 lakh contracts, followed by 12,000 strike price, which added 1.79 lakh contracts.
Call Unwinding was seen at 12,300 strike price, which shed 8.46 lakh contracts, followed by 12,400 strike, which shed 5.17 lakh contracts and 12,200 strike which shed 3.63 lakh contracts.
Put options data
Maximum Put Open Interest of 49.39 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the February series.
This is followed by 11,500 strike price, which now holds 28.68 lakh contracts in Open Interest, and 11,800 strike price, which has now accumulated 20 lakh contracts in open interest.
Put writing was seen at 12,000 strike price, which added 14.56 lakh contracts, followed by 11,500 strike, which added 1.27 lakh contracts.
Put unwinding was seen at the 12,100 strike price, which shed 19.07 lakh contracts, followed by 12,200 strike that shed 5.85 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means they are bullish on it.
No stock saw a long buildup
There was no stock which witnessed long build up on January 30.
107 stock saw long unwinding
Based on OI future percentage, here are the top 10 stocks in which long unwinding was witnessed.
5 stocks saw a short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
31 stocks saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering. Based on OI future percentage, here are the top 10 stocks in which short-covering was witnessed.
Aegis Logistics: The board will meet on January 31 to consider and approve interim dividend and quarterly results.
Bajaj Electricals: The board will meet on January 31 to consider and approve the right issue of equity shares.
Brooks Laboratories: The board will meet on January 31 to consider and approve the right issue of equity shares.
Indostar Capital Finance: The board will meet on January 31 to consider and approve the preferential issue of shares.
Stocks in the news
Nocil: The company approved amalgamation of Suremi Trading and Sushripada Investments with it.
Blue Star Q3: Net profit came at Rs 19.6 crore against the loss of Rs 0.9 crore and revenue rose 12.5 percent at Rs 1,236 crore against Rs 1,099 crore YoY.
Kotak Mahindra Bank: RBI accepts promoters' voting rights in the company to be capped to 20 percent till March 31, 2020.
Tata Motors Q3: Consolidated net profit at Rs 1,738 crore against the loss of Rs 26,992.5 crore and revenue went down 6.8 percent at Rs 71,676.1 crore YoY.
Persistent Systems Q3: Net profit came up at Rs 87.9 crore against Rs 86.1 crore and rupee revenue up at Rs 922.7 crore against Rs 884.6 crore QoQ.
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Fund Flow Picture
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 962.28 crore, while Domestic Institutional Investors (DIIs) bought net Rs 292.35 crore worth of shares in the Indian equity market on January 30, as per provisional data available on the NSE.