Bears seem to be not ready to give up the charge of Dalal Street as the market fell for fourth consecutive session on October 22, weighed down by IT, FMCG, Auto, Metal and Pharma stocks. However, banking & financials outperformed frontliners.
The BSE Sensex corrected 101.88 points to 60,821.62, while the Nifty50 declined 63.20 points to 18,114.90 and formed bearish candle on the daily charts as the closing was lower than opening levels.
The broader markets also continued to see selling pressure as the Nifty Midcap 100 index fell 0.87 percent and Smallcap 100 index declined 1.25 percent.
"A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically this pattern indicate weakness in the market with high volatility. We observe overlapping negative candles in the last 2-3 sessions, which signifies bulls attempt of upside recoveries in between. This pattern could be considered as positive for the bulls to make a comeback," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He feels the short term trend of Nifty continues to be negative. But, "The overall chart pattern of intraday and daily timeframe signal chances of bulls coming back from the lows. Confirmation of bullish reversal pattern in the subsequent session could open up upside bounce in the market. The important support is placed for next week around 18,150-17,950 levels," Shetti 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 are placed at 17,994.73, followed by 17,874.57. If the index moves up, the key resistance levels to watch out for are 18,274.63 and 18,434.37.
Nifty Bank
The Nifty Bank remained above 40,000 mark, rising 293.45 points to close at 40,323.65 on October 22. The important pivot level, which will act as crucial support for the index, is placed at 40,119.67, followed by 39,915.74. On the upside, key resistance levels are placed at 40,557.47 and 40,791.33 levels.
Call option data
Maximum Call open interest of 64.14 lakh contracts was seen at 18200 strike, which will act as a crucial resistance level in the October series.
This is followed by 18500 strike, which holds 61.04 lakh contracts, and 18400 strike, which has accumulated 55.54 lakh contracts.
Call writing was seen at 18300 strike, which added 23.37 lakh contracts, followed by 18200 strike, which added 21.90 lakh contracts and 18800 strike which added 19.58 lakh contracts.
Call unwinding was seen at 17700 strike, which shed 92,550 contracts, followed by 18900 strike, which shed 76,000 contracts, and 17500 strike which shed 40,500 contracts.
Put option data
Maximum Put open interest of 38.65 lakh contracts was seen at 17500 strike, which will act as a crucial support level in the October series.
This is followed by 18000 strike, which holds 36.12 lakh contracts, and 18200 strike, which has accumulated 33.21 lakh contracts.
Put writing was seen at 17500 strike, which added 12.62 lakh contracts, followed by 18000 strike which added 10.97 lakh contracts and 18100 strike which added 9.32 lakh contracts.
Put unwinding was seen at 18400 strike, which shed 2.49 lakh contracts, followed by 18500 strike which shed 1.43 lakh contracts, and 18600 strike which shed 20,900 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
23 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.
61 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.
74 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.
23 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.
Bulk deals
Ajooni Biotech: TCG Funds Fund-2 acquired 90,000 equity shares in the company at Rs 61 per share and TCG Funds Fund 1 bought 3.36 lakh shares at same price on the NSE, the bulk deals data showed. However, Pritika Auto Industries sold 1,44,400 shares and Pritika Engineering Components offloaded 1,33,500 shares at same price.
Moksh Ornaments: Padmavati Investment bought 5 lakh shares in the company at Rs 34.98 per share on the NSE, the bulk deals data showed.
Sical Logistics: Fashions Brands (India) bought 4 lakh shares in the company at Rs 17.05 per share, whereas Axis Bank sold 4,73,535 equity shares at Rs 17.06 per share on the NSE, the bulk deals data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting & Results Calendar
Results on October 25: Tech Mahindra, HDFC Asset Management Company, Aditya Birla Sun Life AMC, ANG Lifesciences India, Aurionpro Solutions, Ceat, Coforge, Colgate-Palmolive (India), CSB Bank, Dwarikesh Sugar Industries, Gujarat Mineral Development Corporation, Goodluck India, Home First Finance Company India, ICRA, Indus Towers, Jagran Prakashan, Kansai Nerolac Paints, Karda Constructions, LKP Securities, Maharashtra Scooters, Mangalam Organics, Newgen Software Technologies, Orient Cement, Prakash Industries, Quick Heal Technologies, Ramco Cements, Shriram Asset Management, SRF, Suven Life Sciences, and Welcure Drugs & Pharmaceuticals will release September quarter earnings on October 25.
Investors Meeting Schedule:
Metropolis Healthcare: The company's officials will meet investors on October 25, on acquisition of Hitech Diagnostic Centre.
Kirloskar Ferrous Industries: The company's officials will meet investors and analysts on October 25, to discuss financial results.
Dr Lal PathLabs: The company's officials will meet investors and analysts on October 27, to discuss financial and operating performance.
Kansai Nerolac Paints: The company's officials will meet investors and analysts on October 27, to discuss Q2FY2021-22 financial results.
Balaji Amines: The company's officials will meet investors and analysts on October 28, to discuss Q2 FY22 earnings.
Embassy Office Parks REIT: The company's officials will meet analysts and investors on October 29, to discuss financial results.
V-Guard Industries: The company's officials will meet investors and analysts on October 29, to discuss earnings.
Gail (India): The company's officials will meet investors on October 29, to discuss financial results.
ADF Foods: The company's officials will meet analysts and investors on November 1 post earnings.
JK Lakshmi Cement: The company's officials will meet analysts and investors on November 1, to discuss company's Q2 results.
Stocks in News
Reliance Industries: The company reported sharply higher consolidated profit at Rs 15,479 crore in Q2FY22 against Rs 10,602 crore in Q2FY21, revenue jumped to Rs 1,74,104 crore from Rs 1,16,195 crore YoY.
ICICI Bank: The bank reported sharply higher standalone profit at Rs 5,511 crore in Q2FY22 against Rs 4,251.3 crore in Q2FY21, net interest income jumped to Rs 11,690 crore from Rs 9,366 crore YoY.
ABB Power Products and Systems India: The company reported sharply higher profit at Rs 34.3 crore in Q2CY21 against Rs 4.8 crore in Q3CY20, revenue fell to Rs 850.6 crore from Rs 946.3 crore YoY. Order intake was at Rs 979 crore in Q3CY21, up from Rs 890.2 crore in Q3CY20.
Tata Consumer Products: The company reported higher consolidated profit at Rs 261.4 crore in Q2FY22 against Rs 234.3 crore in Q2FY21, revenue increased to Rs 3,033.12 crore from Rs 2781.34 crore YoY.
Gland Pharma: The company reported sharply higher consolidated profit at Rs 302 crore in Q2FY22 against Rs 218 crore in Q2FY21, revenue jumped to Rs 1,080.5 crore from Rs 831.5 crore YoY.
Tata Elxsi: The company reported sharply higher profit at Rs 125.33 crore in Q2FY22 against Rs 78.87 crore in Q2FY21, revenue jumped to Rs 595.33 crore from Rs 430.17 crore YoY.
Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,697.70 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,029.97 crore in the Indian equity market on October 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Six stocks - Escorts, Indiabulls Housing Finance, Vodafone Idea, Indian Energy Exchange, Punjab National Bank, and SAIL - are under the F&O ban for October 25. 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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