The market closed moderately lower after volatile and rangebound trade on May 11, dented by selling in final hour of the session, the weekly expiry day. Traders may be waiting for the CPI inflation data for the month of April scheduled after market hours on May 12.
The BSE Sensex fell 36 points to 61,905, while the Nifty50 declined 18 points to 18,297 and formed bearish candlestick pattern on the daily charts as the closing was lower than opening levels, but there was higher high higher low formation.
"Though Nifty is placed at the crucial overhead resistance of 18,300 levels, still there is no indication of any strength required for decisive upside breakout. The formations of Doji/Spinning Top or High Wave candle patterns back-to-back at the hurdle signal possibility of reasonable downward correction ahead," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
However, he feels a decisive move above 18,400 levels is likely to change the short term negative sentiment on the positive side. Immediate support is placed at 18,150 levels, he said.
The broader markets outperformed frontliners, with the Nifty Midcap 100 and Smallcap 100 indices rising third of a percent and half a percent, respectively, on positive breadth, while India VIX sustained uptrend for fifth straight session, increasing by 1.01 percent to 13.22 levels, from 13.08 levels.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data and not just the current month.
Key support and resistance levels on Nifty
The pivot charts indicate that the Nifty may get support at 18,273, followed by 18,245 and 18,200. If the index advances, 18,365 is the initial key resistance level to watch out for, followed by 18,393 and 18,438.
The Bank Nifty extended gains for yet another session, rising 144 points to 43,475 and formed Doji kind of pattern on the daily timeframe, suggesting indecisiveness among traders.
Overall, Bank Nifty had a rangebound trading session during the expiry period. "The 43,000 levels served as a strong support area with the highest open interest built up on the Put side. On the other hand, the 44,000 levels acted as resistance with fresh Call writing," said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Overall, the market showed uncertainty, with traders closely monitoring these support and resistance levels for potential market movements, he said.
As per the pivot point calculator, the Bank Nifty may take support at 43,383, followed by 43,287 and 43,132. Key resistance levels are expected to be 43,694 along with 43,790 and 43,946.
On the weekly options front, we have seen the maximum Call open interest (OI) at 18,300 strike, with 1.34 crore contracts, which is expected to be a crucial resistance level for the Nifty in the coming sessions.
This was followed by 18,400 strike, comprising 87.75 lakh contracts, and 18,500 strike, with more than 83.99 lakh contracts.
Call writing was seen at 18,300 strike, which added 59.23 lakh contracts.
Call unwinding was at 18,500 strike, which shed 34.29 lakh contracts, followed by 18,200 strike, which shed 29.06 lakh contracts, and 18,600 strike, which shed 21.84 lakh contracts.
The maximum Put open interest was at 18,200 strike with 72.72 lakh contracts, which is expected to act as an important support level in the coming sessions.
This was followed by the 18,300 strike, comprising 60.62 lakh contracts, and the 18,100 strike where we have 52.88 lakh contracts.
Put writing was seen at 17,300 strike, which added 4.76 lakh contracts, followed by 17,400 strike, which added 2.31 lakh contracts.
We have seen Put unwinding at 18,200 strike, which shed 42.89 lakh contracts, followed by 18,100 strike, which shed 32.13 lakh contracts, and 18,000 strike, which shed 31.11 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Atul, Bajaj Auto, Titan Company, Crompton Greaves Consumer Electricals, and ICICI Prudential Life Insurance Company, among others.
An increase in open interest (OI) and price typically indicates a build-up of long positions. Based on the OI percentage, 63 stocks, including Siemens, Delta Corp, Gujarat Gas, ACC, and Adani Enterprises saw long build-ups.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 19 stocks including Mahanagar Gas, Aurobindo Pharma, Laurus Labs, Alkem Laboratories, and Canara Bank saw a long unwinding.
47 stocks see a short build-up
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, 47 stocks, including Larsen & Toubro, Dr Reddy's Laboratories, Hindalco Industries, Navin Fluorine International, and Indraprastha Gas saw a short build-up.
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 60 stocks were on the short-covering list. These included Oracle Financial, GNFC, Syngene International, Aarti Industries, and Pidilite Industries.
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Tata Motors, Cipla, Vedanta, Colgate-Palmolive, DLF, Hindustan Petroleum Corporation, APL Apollo Tubes, Butterfly Gandhimathi Appliances, Cholamandalam Financial Holdings, Ethos, Great Eastern Shipping Company, Greaves Cotton, Hindustan Aeronautics, Indraprastha Gas, Indian Overseas Bank, Laxmi Organic Industries, Manappuram Finance, Max Financial Services, Polycab India, Shree Renuka Sugars, Sapphire Foods India will be in focus ahead of quarterly earnings on May 12.
Avenue Supermarts, Advanced Enzyme Technologies, Affle (India), Data Patterns (India), Navin Fluorine International, Neogen Chemicals, Sonata Software, and Vikas EcoTech will be in focus ahead of quarterly earnings on May 13.
Stocks in the news
Oil & Natural Gas Corporation: The company has discovered crude oil and natural gas in two blocks in Mumbai offshore, reported PTI. The discoveries, which have been named 'Amrit' and 'Moonga', were made in the blocks that the company won in recent open acreage licensing rounds.
Mahindra & Mahindra: The utility vehicle maker announced 18.5 percent year-on-year growth in production at 58,644 units for the month of April, while sales grew 40.9 percent YoY to Rs 60,481 units. However, exports dropped 32.9 percent at 1,813 units compared to year-ago period.
Jay Bharat Maruti: The joint venture company owned by JBM Group and Maruti Suzuki India, will be setting up two new manufacturing plants in Haryana and Gujarat to cater to the requirements of its key customer Maruti Suzuki in both the regions. These plants will be commissioned at Kharkhoda, Sonipat in Haryana and SMG Suppliers’ Park in Gujarat. The company will invest Rs 300-350 crore in a phased manner.
Eicher Motors: The motorcycle maker reported a 48.5 percent year-on-year growth in consolidated profit at Rs 905.6 crore for quarter ended March FY23, driven by better topline and operating performance. Revenue from operations in Q4 grew by 19.1 percent to Rs 3,804.3 crore compared to year-ago period. The board has recommended a final dividend of Rs 37 per share, and approved cash outlay towards capex of more than Rs 1,000 crore for FY24.
Siemens: The company recorded 38.8 percent year-on-year growth in consolidated profit at Rs 471.8 crore for quarter ended March FY23, driven by healthy growth in operating numbers and topline. Consolidated revenue from operations grew 27.8 percent to Rs 4,858 crore compared to year-ago period. The company booked new orders of Rs 31,151 crore in Q2FY23, including order of Rs 25,455 crore for the 9000 HP locomotive project.
DCW: The chemical manufacturing company said its board has re-appointed Pramodkumar Shriyansprasad Jain as Chairman and Managing Director for three years, with effect from November 1, 2023. The board also re-appointed Krishnamoorthy Krishnan as an Independent Director for five years with effect from May 22.
Fund Flow
Foreign institutional investors (FII) bought shares worth Rs 837.21 crore, whereas domestic institutional investors (DII) sold shares worth Rs 200.09 crore on May 11, provisional data from the National Stock Exchange showed.
Stocks under F&O ban on NSE
The National Stock Exchange added Punjab National Bank, and retained Canara Bank, BHEL and Manappuram Finance on its F&O ban list for May 12. 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.
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