The upper area of 12,025 has been acting as a key overhead resistance in the last couple of weeks and this hurdle could be tested again in the coming week, Nagaraj Shetti of HDFC Securities says.
The market recouped some of the previous day's losses and closed a rangebound session a third of a percent higher on October 23, aided by auto, select FMCG and IT stocks.
The BSE Sensex gained 127.01 points at 40,685.50 on Friday, while the Nifty50 climbed 33.90 points to 11,930.40 and formed a bearish candle which resembles a Spinning Top kind of pattern on the daily charts as closing was lower than opening levels.
For the week, the index gained 1.4 percent and formed a Spinning Top kind of pattern on the weekly scale, too.
"A small negative candle was formed with minor upper and lower shadow. Technically, this pattern indicates the formation of a high wave or Spinning Top type candle pattern. But having formed this pattern in a range movement, the pattern implication regards to underlying trend of the market could be less," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
Though Nifty witnessed a range movement on Friday, the overall market breadth was positive and broad market indices like Midcap and Smallcap segments have closed higher by 0.79 percent and 0.62 percent respectively. This is a positive indication, Shetti feels.
"The upper area of 12,025 has been acting as a key overhead resistance in the last couple of weeks and this hurdle could be tested again in the coming week. A sustainable upside breakout of this hurdle could have a sharp positive impact on the market ahead," he said.
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 11,901.23, followed by 11,872.17. If the index moves up, the key resistance levels to watch out for are 11,966.93 and 12,003.57.
The Bank Nifty declined 5.85 points to close at 24,478.30 on October 23. The important pivot level, which will act as crucial support for the index, is placed at 24,304.66, followed by 24,131.03. On the upside, key resistance levels are placed at 24,708.06 and 24,937.83.
Call option data
Maximum Call open interest of 45.92 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October series.
This is followed by 12,000 strike, which holds 37.82 lakh contracts, and 12,200 strike, which has accumulated 31.87 lakh contracts.
Call writing was seen at 12,500 strike, which added 10.07 lakh contracts, followed by 12,000 strike which added 7.09 lakh contracts and 12,200 strike which added 6.99 lakh contracts.
Call unwinding was seen at 11,500 strike, which shed 38,475 contracts, followed by 11,600 strike, which shed 29,850 contracts.
Put option data
Maximum Put open interest of 32.72 lakh contracts was seen at 11,000 strike, which will act as crucial support in the October series.
This is followed by 11,500 strike, which holds 29.91 lakh contracts, and 11,800 strike, which has accumulated 26.16 lakh contracts.
Put writing was seen at 11,800 strike, which added 7.46 lakh contracts, followed by 11,900 strike, which added 7.02 lakh contracts and 11,200 strike which added 4.72 lakh contracts.
Put unwinding was witnessed at 11,400 strike, which shed 58,500 contracts, followed by 12,500 strike which shed 6,375 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
38 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which long build-up was seen.
15 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
41 stocks saw short build-up
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 short build-up was seen.
43 stocks witnessed short-covering
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.
(For more bulk deals, click here)
Results on October 26
Kotak Mahindra Bank, SBI Life Insurance Company, Mahindra & Mahindra Financial Services, Angel Broking, Finolex Industries, Genus Paper & Boards, GHCL, Hindustan Media Ventures, Alicon Castalloy, Lasa Supergenerics, Lakshmi Machine Works, Max Ventures and Industries, Swaraj Engines, Torrent Pharmaceuticals and Zim Laboratories are among 36 companies to announce quarterly earnings on October 26.
Stocks in the news
Yes Bank: The bank reported profit at Rs 129.4 crore in Q2FY21 against loss of Rs 600.1 crore, NII fell to Rs 1,973.4 crore from Rs 2,185.9 crore YoY.
Tech Mahindra: The company reported higher profit at Rs 1,064.6 crore in Q2FY21 against Rs 972.3 crore, revenue rose to Rs 9,371.8 crore from Rs 9,106.3 crore QoQ. Subsidiary Tech Mahindra (Singapore) Pte Ltd agreed to acquire 100% stake in Momenton Pty. Ltd, Tenzing Ltd and Tenzing Australia Ltd.
Nestle: The company reported profit at Rs 587 crore in Q3CY20 against Rs 595.3 crore, revenue increased to Rs 3,541.7 crore versus Rs 3,215.8 crore YoY.
JSW Steel: The company reported a lower profit at Rs 1,595 crore in Q2FY21 against Rs 2,536 crore, revenue rose to Rs 19,264 crore from Rs 17,572 crore YoY.
Wabco India: The company reported profit at Rs 35.1 crore in Q2FY21 against Rs 33.85 crore, revenue fell to Rs 418.7 crore from Rs 446 crore YoY.
ICICI Lombard General Insurance: The company reported a higher profit at Rs 415.74 crore in Q2FY21 against Rs 307.91 crore, total income rose to Rs 2,883.4 crore from Rs 2,738.9 crore YoY.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 906.93 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 891.86 crore in the Indian equity market on October 23, as per provisional data available on the NSE.
Stock under F&O ban on NSE
Seven stocks - BHEL, Canara Bank, Escorts, Vodafone Idea, NALCO, Punjab National Bank and Vedanta - are under the F&O ban for October 26. 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.