The market remained volatile on the monthly F&O contracts expiry day, May 25 and managed to report moderate gains due to buying in late trade. However, global markets remained under pressure amid ongoing negotiations for the US debt ceiling.
The BSE Sensex gained 99 points to close at 61,873, while the Nifty50 climbed 36 points to 18,321, and formed a bullish candlestick pattern with a long lower shadow on the daily charts, indicating buying at lower levels, though there were lower highs, lower lows formation.
"We observe that Nifty did move below the 20-day SMA (18,223), but it recovered and closed well above it, indicating the bulls remain in control after two sessions of weakness," Subash Gangandharan, Senior Technical and Derivative Analyst at HDFC Securities said.
Therefore, he expects the uptrend to continue in the coming sessions.
"Further upsides are likely once the immediate resistances of 18,393-18,420 are taken out. The immediate target is 18,459. Crucial support to watch for weakness is at 18,202," he said.
The broader markets also closed higher with the Nifty Midcap 100 and Smallcap 100 indices rising 0.4 percent and 0.1 percent, respectively, while the falling volatility gave comfort to bulls. The India VIX declined by 4.51 percent to 12.52 levels, from 13.11 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, resistance levels on Nifty
Pivot charts indicate that the Nifty may get support at 18,235, followed by 18,203.4 and 18,152. If the index advances, 18,339 would be the key resistance level to watch out for followed by 18,371 and 18,423.
The Bank Nifty also formed lower highs and lower lows formation but has formed small bodied bullish candle with a long lower shadow, which resembles a Hammer sort of candle on the daily scale, which is generally a bullish reversal pattern formed at the downtrend. Also, there was buying support at lower levels. The index rose 4 points to 43,681.
Overall, the fight between the bulls and bears continued in the Bank Nifty Index. "The bulls have been trying to push the index higher, but the bears have been successful in keeping it in check. The monthly expiry witnessed volatile trading, but the index managed to hold the support of 43,400. This is a positive sign for the bulls, as it shows that there is still demand for the index at this level," Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
The resistance is at 44,000, where the highest open interest is built up on the Call side. This means that there is a lot of potential for the index to move higher if it can break through this resistance level, he feels.
As per the pivot point calculator, the Bank Nifty is likely to take support at 43,471, followed by 43,394 and 43,268. The key resistance level to watch out for would be 43,723, followed by 43,801, and 43,927.
On the monthly options front, we have seen the maximum Call open interest (OI) at 18,400 strike, with 89.14 lakh contracts, which is expected to be a crucial resistance level for the Nifty.
This was followed by 18,500 strike comprising 71.97 lakh contracts and 18,300 strike with more than 70.23 lakh contracts.
There was hardly any Call writing seen on the monthly expiry day.
The meaningful Call unwinding was at 18,500 strike, which shed 59.13 lakh contracts, followed by 18,400 strike, which shed 49.55 lakh contracts and 18,300 strike, which shed 45.58 lakh contracts.
On the Put side, the maximum Put open interest was at 18,300 strike, with 1.39 crore contracts, which is expected to be an important support in the coming sessions.
This was followed by the 18,100 strike, comprising 97.64 lakh contracts, and the 18,100 strike with 65.36 lakh contracts.
We have seen Put writing only at 18,300 strike (we read the range of 17,000-19,500 strikes), which added 30.63 lakh contracts.
Put unwinding was seen at 18,000 strike, which shed 26.06 lakh contracts, followed by 18,200 strike, which shed 25.47 lakh contracts, and 18,100 strike, which shed 23.61 lakh contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Atul, HDFC, Petronet LNG, Torrent Pharma and Alkem Laboratories among others.
Here are the top 10 stocks which saw the highest rollovers on expiry day including Grasim Industries, Berger Paints, HDFC Bank, Crompton Greaves Consumer Electricals and HDFC with 98-99 percent rollovers.
An increase in open interest (OI) and price typically indicates a build-up of long positions. Based on the OI percentage, 6 stocks, including Bajaj Auto, Hindustan Aeronautics, Titan Company, Indus Towers and Tech Mahindra saw long build-ups.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 58 stocks, including Ramco Cements, ONGC, Intellect Design Arena, Indiabulls Housing Finance and Deepak Nitrite saw long unwinding.
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, 6 stocks, including Tata Chemicals, Ashok Leyland, HDFC, Biocon and Hindalco Industries 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, 117 stocks were on the short-covering list. These included Tata Communications, Delta Corp, Power Finance Corporation, ICICI Lombard General Insurance Company and Atul.
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Stocks in the news
Praj Industries: The industrial biotechnology company has received board approval for forming a 50:50 joint venture with Indian Oil Corporation to set up biofuel production facilities and marketing of CBG, ethanol, SAF & other co-products. Both companies will infuse Rs 50 lakh each into the joint venture company. The company reported a consolidated profit of Rs 88.1 crore for the quarter ended March FY23, growing 53 percent over a year-ago period, while revenue from operations grew by 21 percent to Rs 1,004 crore compared to the same period last year.
Reliance Industries: Reliance Consumer Products, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures (a subsidiary of Reliance Industries) has completed the acquisition of a 51 percent controlling stake in LOTUS for Rs 74 crore, and subscribed to non-cumulative redeemable preference shares of LOTUS for Rs 25 crore. Reliance Consumer Products has also completed the acquisition of equity shares pursuant to the open offer and has taken sole control of LOTUS with effect from May 24.
Page Industries: The exclusive licensee of JOCKEY International Inc (USA) has appointed Deepanjan Bandyopadhyay as Chief Financial Officer (CFO) with effect from June 1, 2023, after current CFO Chandrasekar K retiring due to his superannuation with effect from May 31. The company has also reappointed Shamir Genomal as Deputy Managing Director for another 5 years with effect from September 1, 2023. The company has reported a 59 percent year-on-year growth in profit at Rs 78.4 crore for the quarter ended March FY23, impacted by weak operating as well as topline numbers. Revenue fell 12.8 percent to Rs 969.1 crore for the quarter YoY.
Emami: The FMCG company has registered a 56.4 percent year-on-year growth in consolidated profit at Rs 144.43 crore for the March FY23 quarter despite healthy operating numbers, as the base in Q4FY22 was higher due to tax write-back. Revenue from operations for the quarter at Rs 836 crore increased by 8.8 percent over a year-ago period, with domestic sales growing 5 percent and international business rising 19 percent.
Zee Entertainment Enterprises: The media & entertainment company has posted a consolidated loss of Rs 196 crore for the quarter ended March FY23, against a profit of Rs 181.9 crore in the corresponding period last fiscal. The weak operating numbers, lower topline & other income, and exceptional loss impacted profitability. Revenue fell by 9 percent to Rs 2,112.1 crore compared to the year-ago period, with domestic advertising revenues falling 10.2 percent YoY due to FTA withdrawal (Zee Anmol) and a slowdown in advertising spending, and subscription revenue declining 1 percent.
Religare Enterprises: Subsidiary Religare Finvest has received the no-dues certificates (NDC) from all 16 secured OTS (one-time settlement) lenders against their total outstanding dues including dues toward their unsecured exposure. In March, Religare Finvest completed the entire OTS payment of Rs 2,178 crore to all 16 secured OTS lenders. Accordingly, the OTS stands completed.
Max India: The stock will be in focus as the board has given approval for an infusion of Rs 294 crore in its wholly owned subsidiary companies, i.e. Rs 177 crore for Antara Senior Living, and Rs 117 crore for Antara Assisted Care Services, to meet their funding/business expansion requirements. The company posted a consolidated loss of Rs 4.18 crore for the March FY23 quarter, widening from Rs 1.08 crore in the same period last year. Revenue from operations for the quarter grew by 12.6 percent year-on-year to Rs 56.35 crore.
Foreign institutional investors (FIIs) bought shares worth Rs 589.10 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 338.44 crore on May 25, provisional data from the National Stock Exchange showed.
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