The BSE Sensex on November 3 declined 70 points to 60,836, while the Nifty50 fell 30 points to 18,053.
The market extended losses for the second consecutive session but showed a smart recovery from the day's low, and held the psychological 18,000 mark on the Nifty50 on November 3. The fall in global peers after Federal Reserve increased interest rate by 75 bps weighed on the market sentiment.
The BSE Sensex declined 70 points to 60,836, while the Nifty50 fell 30 points to 18,053 and formed a bullish candle on the daily charts as the index showed a smart recovery from the day's low and closed higher than opening levels.
"The positive sequence like minor degree higher tops and bottoms continued in the market and Nifty is currently in an attempt of forming a higher bottom at the lows," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He expects the choppy movement to continue in the next 1 or 2 sessions before showing an upside bounce from the lows. Immediate support is placed around 17,950-17,900 levels, the market expert said.
The broader markets fared better than benchmark indices as the Nifty Midcap 100 index was up 0.3 percent and Smallcap 100 index rose 0.24 percent.
India VIX, the fear index was down by 4.32 percent to 15.94 levels, making the trend favourable for bulls.
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 of the current month.
Key support and resistance levels on the Nifty
As per the pivot charts, the key support level for the Nifty is placed at 17,983, followed by 17,948 & 17,892. If the index moves up, the key resistance levels to watch out for are 18,095 followed by 18,130 and 18,186.
The Nifty Bank performed better than broader markets, rising 152 points to 41,298 and forming a bullish candle on the daily charts on November 3. The important pivot level, which will act as crucial support for the index, is placed at 40,947, followed by 40,791 and 40,540 levels. On the upside, key resistance levels are placed at 41,450 followed by 41,606 & 41,857 levels.
The maximum Call open interest of 20.67 lakh contracts was seen at 19,500 strike, which can act as a crucial resistance level in the November series.
This is followed by 19,000 strike, which holds 20.57 lakh contracts, and 18,000 strike, which has 19.46 lakh contracts.
Call writing was seen at 19,500 strike, which added 2.53 lakh contracts, followed by 19,000 strike which added 1.55 lakh contracts, and 18,700 strike which added 69,900 contracts.
Call unwinding was seen at 17,800 strike, which shed 88,550 contracts, followed by 18,100 strike which shed 78,500 contracts and 17,500 strike which shed 60,650 contracts.
Maximum Put open interest of 31.41 lakh contracts was seen at 17,000 strike, which can act as a crucial support level in the November series.
This is followed by 17,500 strike, which holds 25.3 lakh contracts, and 18,000 strike, which has accumulated 23.54 lakh contracts.
Put writing was seen at 16,700 strike, which added 4.95 lakh contracts, followed by 17,500 strike, which added 3.9 lakh contracts, and 18,000 strike which added 3.68 lakh contracts.
Put unwinding was seen at 18,100 strike, which shed 1.35 lakh contracts, followed by 19,000 strike which shed 94,350 contracts and 17,300 strike which shed 56,750 contracts.
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Whirlpool, PI Industries, HDFC, Larsen & Toubro, and Tata Consultancy Services, among others.
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks including Coromandel International, Dalmia Bharat, Rain Industries, Vedanta, and Bank Nifty, in which a long build-up was seen.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks including LIC Housing Finance, Max Financial Services, United Breweries, HCL Technologies, and Bosch, in which long unwinding was seen.
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen including Voltas, Balkrishna Industries, Polycab India, IRCTC, and Wipro.
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks, in which short-covering was seen. The list includes Punjab National Bank, Indus Towers, Bajaj Auto, Shriram Transport Finance, and RBL Bank, among others.
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Britannia Industries, Cipla, Titan Company, GAIL India, InterGlobe Aviation, Aditya Birla Fashion and Retail, City Union Bank, Cummins India, Dreamfolks Services, Elgi Equipments, Escorts Kubota, Go Fashion (India), Mahindra Logistics, Marico, Tube Investments of India, TVS Motor Company, and Wockhardt will be in focus ahead of their September FY23 quarter earnings on November 4.
Hero MotoCorp: The world's largest two-wheeler company recorded standalone profit at Rs 716 crore for the quarter ended September FY23, down 10 percent YoY due to lower other income and weak operating performance. Revenue at Rs 9,075 crore for the quarter increased by 7.35 percent compared to year-ago period. Company sold 14.28 lakh units for the quarter, down compared to 14.38 lakh units sold in corresponding period last fiscal.
Ethos: The India’s largest chain of luxury watch boutiques clocked five-fold year-on-year increase in profit at Rs 13.6 crore for the quarter ended September FY23, supported by robust demand and focused marketing initiatives. Revenue for the quarter at Rs 177.7 crore grew by 32 percent YoY with growth across offline and online channels.
Vodafone Idea: The telecom operator posted loss of Rs 7,595.5 crore for the quarter ended September FY23, widening from loss of Rs 7,296.7 crore in previous quarter as EBIT loss rose to 1,558.2 crore from Rs 1,475.9 crore and EBITDA margin dropped to 38.6 percent from 41.6 percent during the same period. Tepid top line also impacted profitability. Gross revenue for the quarter at Rs 10,614.6 crore increased by 2 percent on sequential basis.
Adani Enterprises: The company recorded a healthy 122 percent year-on-year growth in consolidated profit at Rs 432.3 crore for the quarter ended September FY23, driven by strong operating as well as top line performance. Revenue for the quarter increased by 189 percent YoY to Rs 38,175 crore and EBIDTA rose by 69 percent to Rs 2,136 crore on account of strong performance by integrated resource management and airport business.
Amara Raja Batteries: The company reported a 39 percent year-on-year increase in consolidated profit at Rs 201.22 crore for the quarter ended September FY23, led by strong operating performance. Revenue for the quarter at Rs 2,700.5 crore increased 19.3 percent compared to year-ago period.
Jindal Stainless (Hisar): The company posted a 49 percent year-on-year decline in consolidated profit at Rs 252.7 crore for the quarter ended September FY23, impacted by higher inventory, tepid top line growth and weak operating performance. Revenue increased by nearly 5 percent YoY to Rs 3,926 crore for the quarter.
Blue Star: The company reported a 37 percent year-on-year increase in consolidated profit at Rs 43 crore for the quarter ended September FY23 despite higher input cost, supported by top line. Revenue for the quarter at Rs 1,576 crore increased by 27 percent YoY.
JK Lakshmi Cement: The cement company recorded a 29 percent year-on-year decline in consolidated profit at Rs 61.8 crore for the quarter ended September FY23 impacted by higher power & fuel cost. Revenue from operations increased by 13.6 percent to Rs 1,373.5 crore compared to same period last year.
Foreign institutional investors (FIIs) net bought shares worth Rs 677.62 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 732.11 crore on November 3, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The NSE has retained LIC Housing Finance and Punjab National Bank under its F&O ban list for November 4. Securities thus 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 investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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