The market extended selling pressure for the third consecutive session and declined more than one percent on October 29, the first day of November series, dragged by private banking & financials, and IT stocks. However, select buying in auto, metals, and pharma names curtailed losses. Consistent selling by FIIs, caution ahead of FOMC meet in first week of November and inflationary pressure seen in margin of companies during September quarter earnings also weighed on sentiment.
The BSE Sensex corrected 677.77 points to 59,306.93, while the Nifty50 fell 185.60 points to 17,671.70 and formed a bearish candle on the daily charts. The index also saw bearish candle formation on weekly scale as it was down 2.5 percent during the week.
"Following back-to-back correction, the benchmark Nifty has formed a long bearish candle which clearly suggests continuation of weakness in the near future. We are of the view that the short term trend remains weak due to the oversold situation in the market," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
He further said the weekly trading set up suggests 17,800 would be the immediate hurdle for Nifty. "If it succeeds to trade above the same, we can expect a pullback rally up to 17,920-18,000-18,070."
On the flip side, below 17,800, the correction wave may continue up to 17,600-17,500-17,420 levels, Shrikant Chouhan said.
The selling pressure in broader markets was low compared to benchmarks. The Nifty Midcap 100 index was down 0.15 percent and Smallcap 100 index declined 0.46 percent.
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 17,551.27, followed by 17,430.83. If the index moves up, the key resistance levels to watch out for are 17,853.97 and 18,036.23.
Nifty Bank
The Nifty Bank dropped 1 percent to close at 39,115.60 on October 29,. The important pivot level, which will act as crucial support for the index, is placed at 38,436.4, followed by 37,757.2. On the upside, key resistance levels are placed at 39,785 and 40,454.4 levels.
Call option data
Maximum Call open interest of 16.44 lakh contracts was seen at 18,500 strike, which will act as a crucial resistance level in the November series.
This is followed by 18,000 strike, which holds 16.15 lakh contracts, and 18,200 strike, which has accumulated 9.28 lakh contracts.
Call writing was seen at 17,800 strike, which added 4.75 lakh contracts, followed by 17,700 strike, which added 3.74 lakh contracts and 18,000 strike which added 3.24 lakh contracts.
Call unwinding was seen at 18,200 strike, which shed 56,650 contracts.
Put option data
Maximum Put open interest of 20.11 lakh contracts was seen at 17,000 strike, which will act as a crucial support level in the November series.
This is followed by 17,500 strike, which holds 19.15 lakh contracts, and 18,000 strike, which has accumulated 15.03 lakh contracts.
Put writing was seen at 17,700 strike, which added 3.41 lakh contracts, followed by 17,000 strike which added 3.17 lakh contracts and 17,800 strike which added 2.78 lakh contracts.
Put unwinding was seen at 18,000 strike, which shed 2.3 lakh contracts, followed by 18,200 strike which shed 2.14 lakh contracts, and 18,100 strike which shed 64,200 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
53 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.
23 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.
63 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 a short build-up was seen.
41 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
Bharat Bijlee: Rohini Nilekani acquired 50,000 equity shares in the company at Rs 1,476.25 per share on the NSE, the bulk deal data showed.
Kavveri Telecom Products: Davos International Fund sold 1,25,438 equity shares in the company at Rs 6.25 per share on the NSE, the bulk deal data showed.
NCL Industries: Ved Prakash Agarwal bought 2.35 lakh equity shares in the company at Rs 246.41 per share on the NSE, the bulk deal data showed.
SREI Infrastructure Finance: Norges Bank sold 31,30,816 equity shares in the company at Rs 3.7 per share on the NSE, the bulk deal data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting & Results Calendar
Results on November 1: HDFC, Tata Motors, IRCTC, Aditya Birla Capital, Allcargo Logistics, Bajaj Consumer Care, Bayer Cropscience, Carborundum Universal, Chambal Fertilisers, Devyani International, Dollar Industries, Graphite India, Gravita India, IG Petrochemicals, Indian Railway Finance Corporation, Lux Industries, Nilkamal, Parag Milk Foods, The Phoenix Mills, Privi Speciality Chemicals, Punjab & Sind Bank, Relaxo Footwears, Shipping Corporation of India, SPARC, VIP Clothing, Whirlpool of India, and Windlas Biotech will release their September quarter earnings on November 1.
Union Bank of India: The company's officials will meet investors and analysts on November 1 to discuss financial results.
CARE Ratings: The company's officials will meet analysts and investors to discuss the financial results, on November 1.
Nath Bio-Genes: The company's officials will meet analysts and investors on November 2.
Gujarat Narmada Valley Fertilizers & Chemicals: The company's officials will meet investors and analysts on November 2.
Easy Trip Planners: The company's officials will meet investors and analysts on November 3 after financial results.
Suven Pharmaceuticals: The company's officials will meet investors on November 8 post financial results.
JHS Svendgaard Laboratories: The company's officials will meet analysts and investors on November 9.
Stocks in News
Dr Reddy's Laboratories reported a consolidated profit of Rs 992 crore in Q2FY22 against Rs 762 crore in Q2FY21. Revenues rose to Rs 5,763 crore from Rs 4,897 crore YoY.
Indian Oil Corporation: The company reported 7 percent jump in net profit at Rs 6,360 crore in Q2FY22 against Rs 5,941,4 crore in Q1FY22. Revenue jumped to Rs 1.35 lakh crore from Rs 1.18 lakh crore QoQ
SAIL: It reported net profit of Rs 5,794.9 crore in Q2FY22 against Rs 660.2 crore logged in Q2FY21, revenue was up at Rs 26,828 crore versus Rs 16,925.5 crore, YoY.
Equitas Small Finance Bank: The company posted 60 percent fall in its net profit at Rs 41.2 crore in Q2FY22 against Rs 103 crore in Q2FY21. Net interest income (NII) rose to Rs 483.9 crore from Rs 461.2 crore, YoY.
Vedanta: The company reported higher consolidated net profit at Rs 5,813 crore in Q2FY22 against Rs 1,642 crore in Q2FY21. Revenue rose to Rs 30,101 crore from Rs 21,107 crore, YoY.
Shree Cement: The company reported an increase in profit at Rs 577.7 crore for Q2FY22 against Rs 547 crore in Q2FY21. Revenue rose to Rs 3,205.9 crore from Rs 3,053.3 crore, YoY.
Fund Flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 5,142.63 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 4,342.51 crore in the Indian equity market on October 29, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - Punjab National Bank (PNB) - is under the F&O ban for November 1. 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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