The market extended gains for second consecutive session after dovish policy measures by RBI monetary policy, as buying was seen in Reliance Industries, IT, PSU banks and select auto stocks on October 8.
BSE Sensex climbed 381.23 points to close at 60,059.06, while the Nifty50 rose 104.90 points to 17,895.20 and formed small bullish candle which resembles Doji kind of pattern formation on the daily charts. The index formed bullish candle on the weekly scale as it gained 2 percent.
"Technically, one more time, the index took support near 20-day SMA (simple moving average) and reversed sharply. It also maintained higher bottom series formation which supports a short-term uptrend. We are of the view that the daily and intraday chart structure is positive and likely to continue in the near future," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
For the positional traders, 17,800 would be the key support level to watch out for, he said, adding above the same uptrend formation will continue up to 18,100-18,300 levels. "On the flip side, below 17,800 could possibly trigger a quick technical correction. Below the same, the correction wave is likely to continue up to 17,600-17,500."
The texture of the market is volatile, hence, level based trading with strict stop losses would be the ideal strategy for the positional traders, Chouhan advised.
The Nifty Midcap 100 and Smallcap 100 indices gained 0.43 percent and 1.23 percent respectively on Friday.
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 are placed at 17,843.07, followed by 17,790.93. If the index moves up, the key resistance levels to watch out for are 17,944.57 and 17,993.93.
The Nifty Bank closed at 37,775.25 with gains of 22.05 points on October 8. The important pivot level, which will act as crucial support for the index, is placed at 37,598.0, followed by 37,420.8. On the upside, key resistance levels are placed at 38,028.8 and 38,282.4 levels.
Call option data
Maximum Call open interest of 19.49 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the October series.
This is followed by 17800 strike, which holds 16.36 lakh contracts, and 18500 strike, which has accumulated 15.83 lakh contracts.
Call writing was seen at 18200 strike, which added 1.93 lakh contracts, followed by 17900 strike, which added 92,100 contracts and 18300 strike which added 65,900 contracts.
Call unwinding was seen at 18000 strike, which shed 1.6 lakh contracts, followed by 17800 strike, which shed 1.2 lakh contracts, and 17700 strike which shed 98,800 contracts.
Put option data
Maximum Put open interest of 33.46 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the October series.
This is followed by 17500 strike, which holds 29.91 lakh contracts, and 17800 strike, which has accumulated 19.13 lakh contracts.
Put writing was seen at 17900 strike, which added 3.18 lakh contracts, followed by 18500 strike which added 2.88 lakh contracts and 17100 strike which added 1.86 lakh contracts.
Put unwinding was seen at 17700 strike, which shed 60,400 contracts, followed by 17300 strike which shed 18,400 contracts, and 17000 strike which shed 12,100 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
54 stocks saw long build-up
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 in which a long build-up was seen.
37 stocks saw long unwinding
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 in which long unwinding was seen.
53 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 10 stocks in which a short build-up was seen.
38 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.
Consolidated Finvest & Holdings: India Opportunities Growth Fund Ltd - Pinewood Strategy acquired 4.1 lakh equity shares in the company at Rs 171.19 per share on the NSE, the Bulk deals data showed. However, Manu Vyapar sold 2.25 lakh equity shares in the company at Rs 171.2 per share.
Nazara Technologies: WHV-EAM International Small Cap Equity Fund acquired 2,14,823 equity shares in the company at Rs 3,011.27 per share on the NSE, the bulk deals data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting & Results Today
Results on October 11: Delta Corp, HFCL, Krsnaa Diagnostics, Ramkrishna Forgings, Saregama India, Tata Metaliks, Tinplate Company of India, Lesha Industries, and Sri Lakshmi Saraswathi Textiles will release its quarterly earnings on October 11.
Somany Home Innovation: The company's officials will meet DAM Capital, Equirus Capital, Yes Securities, Dhanki Securities, Subhkam Ventures, ithought Financial Consulting, Money Bee Investment Advisors and East Lane Capital on October 11.
Meghmani Finechem: The company's officials will meet Motilal Oswal Asset Management on October 11.
Saregama India: The company's officials will meet analysts in its Q2FY22 results conference call on October 12.
Vakrangee: The company's officials will meet analysts in its Q2FY22 results conference call on October 12.
Delta Corp: The company's officials will meet analysts in its Q2FY22 results conference call on October 12.
ICICI Securities: The company's officials will meet analysts and investors in earnings call on October 19, to discuss financial results.
Stocks in News
Tata Consultancy Services: The company reported higher consolidated profit at Rs 9,624 crore in Q2FY22 against Rs 8,433 crore in Q2FY21, revenue jumped to Rs 46,867 crore from Rs 40,135 crore YoY.
Reliance Industries: Subsidiary Reliance New Energy Solar (RNESL) has announced acquisition of 100% shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Company, for an enterprise value of $771 million.
Vakrangee: To maximize shareholder value, Vakrangee announced the demerger of both the businesses (Vakrangee Kendra Business as well as E-Governance & IT/ITES Business) into a separate entity. Profit in Q2 grew by 100.90% to Rs 26.74 crore and revenue rose by 195.01% to Rs 207.19 crore in Q2FY22 YoY.
GOCL Corporation: Subsidiary IDL Explosives has bagged order from Coal India, for supply of bulk explosives, to be supplied over a period of 2 years.
Route Mobile: Subsidiary Route Mobile (UK) has entered into a Stock Purchase Agreement with the existing shareholders of Masivian S.A.S., Colombia, South America to acquire 100% shareholdering in Masivian.
Vascon Engineers: The company has approved allotment of 3,11,80,395 equity shares, at a price of Rs 22.45, on a preferential basis to several non-promoters including Crest Ventures.
Adani Total Gas: The company has signed a definitive Agreement for collaborating on the establishment of a bio-conversion plant with a design capacity of about three hundred and fifty (350) tonnes per day of feed processing at Barsana, Mathura, Uttar Pradesh based on cattle dung as the primary biomass along with other bio mass including napier grass, press mud, etc. The company has completed the acquisition of 50% stake in Smartmeters Technologies.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 64.01 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 168.19 crore in the Indian equity market on October 8, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Seven stocks - Canara Bank, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban for October 11. 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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