The market showed smart recovery from the day's low and closed with moderate losses on the first day of the new monthly F&O series, July 1, extending downtrend for the second consecutive session. Oil & gas stocks pulled the market down after windfall gain tax was imposed on oil producers but the buying in FMCG, IT, banking and financial services stocks curtailed losses significantly.
The BSE Sensex fell 111 points to 52,908, while the Nifty50 declined 28 points to 15,752 and formed a bullish candle that resembled a Hammer pattern on the daily charts. On the weekly scale, it formed a bearish candlestick, as the closing was lower than the opening level though the index gained a third of a percent.
"Nifty50 smartly recovered from the intraday low of 15,511 levels to register a Hammer kind of formation on the daily chart. However, on the weekly charts, it appears to be staring at a bearish gap zone of 15,886 and 16,172 levels," Mazhar Mohammad, Founder and Chief Market Strategist at Chartviewindia said.
Hence, unless Nifty absorbs the supplies emanating from the said bearish zone, with a close above 16,172 levels, a sustainable up move shall not be expected, he said.
The market expert feels for a long-side trade from the current levels, technically, the stop-loss level remains below 15,511, which may not deliver a favourable risk-reward ratio as initial resistance is placed around 15,900 levels.
Hence, he advised traders to wait for more signs of strength for a long-side trade.
The broader space outpaced benchmarks on positive breadth. The Nifty Midcap 100 index gained half a percent and Smallcap 100 index rose 0.4 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
As per the pivot charts, the key support level for the Nifty is placed at 15,577, followed by 15,403. If the index moves up, the key resistance levels to watch out for are 15,860 and 15,969.
Nifty Bank has seen an outperformance compared to benchmark Nifty50, rising 114 points to 33,539 on Friday. The important pivot level, which will act as crucial support for the index, is placed at 33,191, followed by 32,843. On the upside, key resistance levels are placed at 33,777 and 34,015 levels.
Maximum Call open interest of 22.46 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the July series.
This is followed by 16,500 strike, which holds 20.94 lakh contracts, and 16,000 strike, which has accumulated 20.19 lakh contracts.
Call writing was seen at 15,700 strike, which added 4.48 lakh contracts, followed by 15,600 strike which added 3.12 lakh contracts and 17,000 strike which added 2.76 lakh contracts.
Call unwinding was seen at 15,000 strike, which shed 20,650 contracts, followed by 13,800 strike which shed 6,750 contracts and 17,900 strike which shed 1,400 contracts.
Maximum Put open interest of 30.42 lakh contracts was seen at 15,000 strike, which will act as a crucial support level in the July series.
This is followed by 15,500 strike, which holds 26.28 lakh contracts, and 14,500 strike, which has accumulated 24.2 lakh contracts.
Put writing was seen at 14,500 strike, which added 4.78 lakh contracts, followed by 14,000 strike, which added 4.26 lakh contracts and 15,000 strike which added 4.09 lakh contracts.
Put unwinding was seen at 15,900 strike, which shed 27,500 contracts, followed by 14,100 strike which shed 22,200 contracts, and 18,000 strike which shed 14,900 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Kotak Mahindra Bank, HDFC Bank, HCL Technologies, Oracle Financial, and Havells India, 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 Sun TV Network, Bank Nifty, Manappuram Finance, Abbott India, and TVS Motor Company, 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 8 stocks including AU Small Finance Bank, ABB India, Vedanta, Voltas, and Indus Towers, 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 10 stocks including ONGC, Reliance Industries, Persistent Systems, Coforge, and L&T Technology Services, in which a short build-up was seen.
58 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 including Nifty Financial, Info Edge, BPCL, HDFC Life Insurance Company, and Syngene International, in which short-covering was seen.
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Investors Meetings on July 4
Nazara Technologies: Officials of the company will meet analysts and institutional investors in a non-deal roadshow organised by CLSA>
EKI Energy Services: Officials of the company will be participating and meeting with 10 investors through roadshow from July 4 till July 7 in Singapore.
Astrazeneca Pharma: Officials of the company will meet investors and analysts.
Stocks in News
Hemisphere Properties India: Tata Sons Pvt Ltd has sold 59.85 lakh equity shares or 2.1 percent stake in the company via open market transactions during June 28-29. With this, Tata Sons' shareholding in the company reduced to 11.97 percent, down from 14.07 percent earlier.
Glenmark Pharmaceuticals: The USFDA has issued Form 483 with one observation after an inspection at the company's formulation manufacturing facility based out of Aurangabad, India between June 27 and July 1, 2022.
Hero MotoCorp: The leading two-wheeler maker sold 4.85 lakh units of motorcycles and scooters in June 2022, a growth of 3.3% over 4.69 lakh units sold in the corresponding month of the previous fiscal. During the quarter ended June 2022, it sold 13.90 lakh units, a robust double-digit growth of 35.7 percent over 10.25 lakh units sold in same period last year.
CSB Bank: The private sector lender recorded a 16.16% year-on-year growth in gross advances at Rs 16,332.8 crore for the quarter ended June 2022 and total deposits grew by 8.65% to Rs 20,266.8 crore during the same period. Advances against gold & gold jewellery at Rs 7,099.33 crore, which is 43% of total advances, increased by 26.37 percent YoY in Q1FY23.
Eicher Motors: The company sold 61,407 units of Royal Enfield in June 2022, a growth of 43 percent over 43,048 units sold in same month last year, which included exports of 11,142 units that grew by 54% YoY. During the quarter, Eicher sold 1,87,205 units of Royal Enfield, up 51 percent over 1,23,640 units sold in same quarter previous year.
Ashoka Buildcon: The joint venture led by Ashoka Buildcon emerged as 'the lowest bidder' for construction and maintenance of Rajiv Gandhi Fintech Digital Institute, Jodhpur. The project cost is Rs 611 crore and construction period is 18 months from commencement date. The company has a joint venture with Cube Construction Engineering, wherein it holds 65 percent stake.
TVS Motor Company: The company registered a growth of 22 percent in June 2022 with sales of 3,08,501 units as against 2,51,886 units in June 2021, including two-wheelers sales of 23 percent YoY at 2,93,715 units in June 2022. Total exports grew by 8 percent YoY to 1,14,449 units in June 2022.
Mahindra & Mahindra: The automotive company sold 54,096 vehicles in June 2022, a growth of 64 percent over 32,964 vehicles sold in same month last year, while exports for the month were at 2,777 vehicles, increasing by 7 percent YoY. In June 2022, it sold 41,848 tractors, a fall of 13 percent compared to 48,222 units sold in corresponding month last year.
Foreign institutional investors (FIIs) have net sold Rs 2,324.74 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,310.71 crore worth of shares on July 1, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
As we are in the beginning of July series, the National Stock Exchange has not added any stock under its F&O ban list for July 4. 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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