Ajit Mishra of Religare Broking advises traders to maintain their focus on sectors, which are attracting buying interest, and plan their trades accordingly
Bears took control of Dalal Street on September 17 after the bulls' presence in the previous session had helped the Nifty surpass the 11,600 mark. The market erased almost all its previous day's gains, following correction in global peers amid no comments on stimulus measures by the US Federal Reserve.
The Sensex fell 323 points to close at 38,979.85, while the Nifty dropped 88.40 points to 11,516.10 and formed a small bodied bearish candle on the daily charts, which indicates a false upside breakout attempt to its resistance at 11,600 levels.
"The formation of Thursday's pattern could signal an emergence of profit booking from the highs, but we are not anticipating any sharp reversal from the highs as of now. There is an absence of long bear candle formation at the highs and this downward correction is likely to end soon," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
"Any decline from here, Nifty could find support at 20-day EMA (Exponential Moving Average) around 11,430, but we have seen a mild upside bounce from this moving average recently. The Nifty also failed to continue with its bullish positive sequence of higher tops and bottoms recently, which could be a cause of concern for bulls at the highs," he said.
The broader markets also corrected with the Nifty Midcap and Smallcap indices falling 0.24 percent and half a percent, respectively. Among sectors, Nifty Bank, financial services and metal indices declined over a percent each.
Ajit Mishra, VP-Research at Religare Broking, reiterated that a directional move in the market seems difficult unless there is an alignment between the Nifty and Bank Nifty. He advised traders to maintain their focus on sectors, which are attracting buying interest, and plan their trades accordingly.
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 11,480.67, followed by 11,445.23. If the index moves up, the key resistance levels to watch out for are 11,569.37 and 11,622.63.Nifty Bank
The Bank Nifty fell more than Nifty, down 253.25 points, or 1.12 percent, to 22,320.30 on September 17. The important pivot level, which will act as crucial support for the index, is placed at 22,223.46, followed by 22,126.63. On the upside, key resistance levels are placed at 22,460.76 and 22,601.23.Call option data
Maximum Call OI of 34.13 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the September series.
This is followed by 11,600, which holds 29.16 lakh contracts, and 11,500 strikes, which has accumulated 28.44 lakh contracts.
Call writing was seen at 11,500, which added 9.74 lakh contracts, followed by 11,600, which added 8.57 lakh contracts, and 12,000 strikes, which added 7.86 lakh contracts.
There was hardly any Call unwinding seen on September 17.
Put option data
Maximum Put OI of 31.86 lakh contracts was seen at 11,500 strike, which will act as crucial support in the September series.
This is followed by 11,000, which holds 31.47 lakh contracts, and 11,400 strikes, which has accumulated 22.77 lakh contracts.
Put writing was seen at 10,800, which added 5.54 lakh contracts, followed by 11,000, which added 4.29 lakh contracts, and 11,400 strikes, which added 3.39 lakh contracts.
Put unwinding was witnessed at 11,200, which shed 1.13 lakh contracts, followed by 11,600 strikes, which shed 57,450 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
23 stocks saw long build-up
Based on OI future percentage, here are the top 10 stocks in which long build-up was seen.
38 stocks saw long unwinding
Based on OI future percentage, here are the top 10 stocks in which long unwinding was seen.
53 stocks saw short build-up
An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.
24 stocks witnessed short-covering
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.
LKP Securities: Keynote Capitals acquired 4,41,000 equity shares in the company at Rs 4.65 per share. India Max Investment Fund bought an additional further 15,00,694 equity shares in the company at the same price, whereas Grovsnor Investment Fund sold its entire 1,941,694 shares at same price on the BSE.
Happiest Minds Technologies: Plutus Wealth Management bought 10 lakh shares in the company at Rs 350 per share on the NSE.
United Polyfab Gujarat: Promoter entities Vinodkumar Mangalchand Mittal, Urmila Nirmal Mittal, Radha Vinodkumar Mittal, Nirmalkumar Mangalchand Mittal, Kusumdevi Sureshkumar Mittal, Kamaladevi Anilkumar Mittal, Anilkumar Mangalchand Mittal and Sureshkumar Mittal acquired 51,000 shares each at Rs 12.85 per share. However, Dhanshree Barter Pvt sold 4,08,000 shares in the company at the same price.
(For more bulk deals, click here)Analysts/board meetings
Creditaccess Grameen: Meeting of the board of directors is proposed to be held on September 23 to consider the financial results for four months ended July.
Mahindra & Mahindra representatives will meet Fidelity Investments on September 18 and attend Ambit Virtual Investor Conference on September 21 and JP Morgan Virtual Investor Conference on September 22.
KPR Mill: Meeting of the Board of Directors is scheduled on September 24 to consider among other subjects the current business scenario.
Ramco Cements: Online investors' meet is scheduled on September 18 organised by Axis Mutual Fund and HDFC Mutual Fund.
Dr Lal PathLabs representatives will meet Mirae Asset Management via conference call on September 18.
Endurance Technologies: A tele-conference with Wellington Management Singapore has been scheduled on September 18 to discuss the company's business and the automotive industry.Stocks in the news
Sterling and Wilson Solar receives an order worth Rs 460 crore in Chile.
Hindalco Industries and Hindustan Copper signed a memorandum of understanding (MoU) for supply of copper concentrate.
Dr Reddy's Laboratories settles patent litigation for Revlimid with Celgene, a Bristol Myers Squibb Company, which allowed the company to sell Lenalidomide in the US post March 2022.
Asian Paints: Promoter entity Sattva Holding and Trading created a pledge on 18.71 lakh equity shares.
Arrow Greentech: Production operations will recommence at Ankleshwar plant as Gujarat Pollution Control Board (GPCB) issued interim revocation order.
EIH sets rights share issue price at Rs 65 per share. Shareholders will receive eight rights shares for every 85 shares held.
TVS Motor Company appointed Auteco SAS as new distributor in Colombia.
Fund flowFII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 249.82 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 1,067.83 crore in the Indian equity market on September 17, as per provisional data available on the NSE.Stock under F&O ban on NSEThirteen stocks -- Adani Enterprises, Aurobindo Pharma, Bank of Baroda, Bharat Heavy Electricals (BHEL), Canara Bank, Escorts, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, L&T Finance Holdings, Steel Authority of India (SAIL), Tata Chemicals and Vedanta-- are under the F&O ban for September 18. 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.