The market continued its higher highs formation as well as upward journey for the fifth consecutive session on the Nifty on September 7, as the bulls stayed strong at Dalal Street, which are likely to take the Nifty50 towards 19,800-19,900 levels in coming sessions, provided the index holds 19,650. The 19,700-19,500 is expected to be support zone, experts said.
The BSE Sensex jumped 385 points to 66,266, while the Nifty50 rose 116 points to 19,727 and formed long bullish candlestick pattern on the daily charts, with firmly maintaining above falling resistance trendline.
"The bulls were able to push Nifty higher following a rangebound trading period in the preceding few days. The sentiment remains positive as long as the index sustains above 19,550," said Rupak De, senior technical analyst at LKP Securities.
On the higher end, he feels gains may extend to the range of 19,900 to 20,000 in the near term, provided that bullishness in the market continues to increase.
The positive trend remained in broader markets for nine days in a row, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.8 percent and half a percent, respectively.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks are the aggregates of three-month data and not just the current month.
Key support and resistance levels on Nifty
The pivot point calculator indicates that the Nifty may be taking support at 19,600, followed by 19,556 and 19,484. On the flip side, 19,743 can act as the key resistance followed by 19,787 and 19,858.
On September 7, the Bank Nifty showed strong performance among key sectors, rising 469 points or 1 percent to 44,878 and formed long bullish candlestick pattern on the daily timeframe by taking strong support at falling resistance trendline.
"The index has broken out of a three-day consolidation on the upside which indicates that it has started the next leg of up-move. Daily and hourly momentum indicators are in sync with the price action which should provide speed to the present up-move," Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas said.
On the upside, he feels 45,000 is the psychological hurdle and above that 45,200 shall be the next possible hurdle. Overall, the trend is positive, and any intraday dips should be bought into, he said.
As per the pivot point calculator, the Bank Nifty is expected to take support at 44,492, followed by 44,357 and 44,137. On the upside, the initial resistance is at 44,931, then 45,067 and 45,286.
As per the options data, the maximum weekly Call open interest (OI) stood at 19,800 strike, with 1.38 crore contracts, which can act as a key resistance for the Nifty. It was followed by 20,000 strike, which had 99.37 lakh contracts, while 19,700 strike had 90.95 lakh contracts.
The maximum Call writing was seen at 19,800 strike, which added 49.04 lakh contracts, followed by 19,900 and 20,000 strikes, which added 35.48 lakh and 17.02 lakh contracts.
The maximum Call unwinding was at 19,600 strike, which shed 62.23 lakh contracts, followed by 19,700 strike and 19,500 strike, which shed 34.66 lakh contracts, and 31.18 lakh contracts.
On the Put side, the maximum open interest was at 19,700 strike, with 2.16 crore contracts. This can be an important support for Nifty in the coming sessions.
It was followed by 19,600 strike, comprising 1.6 crore contracts, and 19,400 strike with 1.36 crore contracts.
The maximum Put writing was at 19,700 strike, which added 2.06 crore contracts, followed by 19,600 strike and 19,100 strike, which added 76.18 lakh and 10.04 lakh contracts.
Meaningful Put unwinding was at 19,200 strike, which shed 22.48 lakh contracts followed by 18,800 and 19,500 strikes, which shed 17.79 lakh and 14.01 lakh contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. Alkem Laboratories, Balkrishna Industries, SRF, ICICI Lombard General Insurance Company, and Colgate Palmolive were among the stocks with the highest delivery.
The long build-up was seen in 64 stocks including Larsen & Toubro, Granules India, NTPC, Bata India, and Syngene International. An increase in open interest (OI) and price indicates a build-up of long positions.
Based on the OI percentage, 29 stocks, including Zydus Life Sciences, Can Fin Homes, Delta Corp, Shriram Finance, and InterGlobe Aviation saw long unwinding. A decline in OI and price indicates long unwinding.
40 stocks see a short build-up
A short build-up was seen in 40 stocks, including Birlasoft, Ramco Cements, Britannia Industries, Container Corporation of India, and United Spirits. An increase in OI along with a fall in price points to a build-up of short positions.
Based on the OI percentage, 53 stocks were on the short-covering list. These included ICICI Prudential Life Insurance Company, Dixon Technologies, State Bank of India, Apollo Tyres, and Atul. A decrease in OI along with a price increase is an indication of short-covering.
(For more bulk deals, click here)
Investors meeting on September 8
ITC: Company's senior officials will attend Jefferies 4th Annual Asia Forum.
Stocks in the news
Bajaj Finserv: Subsidiary Bajaj Allianz General Insurance Company announced the gross direct premium underwritten for August at Rs 1,677.87 crore, and the premium in the current financial year up to August at Rs 9,228.81 crore. Subsidiary Bajaj Allianz Life Insurance Company's total premium for August stood at Rs 926.41 crore and premium in the current financial year (FY24) up to August at Rs 3,828.06 crore.
Sterlite Technologies: The optical and digital solutions company has partnered with TruVista, the broadband services and applications provider, to drive the growth and enhancement of South Carolina's rural connectivity infrastructure. TruVista, headquartered in South Carolina, is expanding fiber optic connectivity across rural South Carolina.
Campus Activewear: Piyush Singh has resigned as Chief Operating Officer of the footwear company with effect from December 2, 2023, due to personal reasons.
Mazagon Dock Shipbuilders: The state-owned shipbuilding company has signed Master Ship Repair Agreement (MSRA) with the US Government represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. This is a non-financial agreement. There are only two shipyards in the country including Mazagon Dock which has signed MSRA. The agreement is expected to open-up voyage repairs of US Navy Ships at Mazagon Dock.
Landmark Cars: The premium automotive retailer has signed letter of intent (LoI) with Mahindra & Mahindra for opening dealership in Howrah, West Bengal. This dealership will be established in one of the wholly-owned subsidiary of Landmark Cars, namely Landmark Mobility. This business will include sales and after sales of Mahindra’s Personal, Pickup and Supro range of vehicles.
JB Chemicals and Pharmaceuticals: Lakshay Kataria has resigned as Chief Financial Officer of the company with effect from November 30, due to personal reasons.
Fund Flow (Rs Crore)
Foreign institutional investors (FII) sold shares worth Rs 758.55 crore, while domestic institutional investors (DII) bought Rs 28.11 crore worth of stocks on September 7, provisional data from the National Stock Exchange (NSE) showed.
Stocks under F&O ban on NSE
The NSE has added Punjab National Bank to its F&O ban list for September 8, while retaining Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, and SAIL on the list. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
