The market snapped an eight-day winning streak to close more than a percent lower on August 19 on across-the-board selling, except in IT names, and strength in the US dollar index.
The Sensex fell 652 points to 59,646, while the Nifty slipped 198 points to 17,758 and formed a bearish Engulfing pattern on the daily charts.
"The Nifty50 appears to be on the verge of reversing its course of direction as the long bearish candle almost reversed the gains of the last three trading sessions," Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia said.
At this point in time, the only solace for bulls is the fact that some buying emerged as the index entered into the bullish gap area present between 17,764 and 17,724 levels, registered on August 16, which was defended at least on a closing basis.
If the index fails to defend 17,710 during the week, more weakness can be expected with an initial target of 17,350, he said. The upside shall remain capped at 17,992.
The broader market, too, came under selling pressure. The Nifty midcap 100 and smallcap 100 indices fell more than a percent.
The volatility index India VIX, too rose 5.4 percent to 18.29 levels, indicating choppy trade ahead.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given are the aggregates of three-month data and not the current month only.
Key support, resistance levels for Nifty
As per the pivot charts, key support for the Nifty is placed at 17,649 followed by 17,539. If the index moves up, the key resistance levels to watch out for are 17,930 and 18,102.
The Nifty Bank fell more than benchmarks, declining 1.7 percent, or 670 points, to 38,986 and formed a bearish Engulfing pattern on the daily charts on August 19.
The important pivot level, which will act as crucial support for the index, is placed at 39,397 followed by 39,138. On the upside, key resistance levels are 39,809 and 39,963.
The maximum call open interest of 1.15 crore contracts was seen at 18,000 strike, which will act as a crucial resistance level in the August series.
This was followed by 17,900 strike, which holds 90.38 lakh contracts, and 18,500 strike, which accumulated 77.79 lakh contracts.
Call writing was seen at 18,000 strike, which added 50.52 lakh contracts followed by 18,600 strike that added 49.75 lakh contracts and 17,900 strike that accumulated 49.07 lakh contracts.
Call unwinding was seen at 17,400 strike, which shed 86,500 contracts, followed by 17,000 strike that shed 71,450 contracts and 17,500 strike, which shed 56,550 contracts.
The maximum Put open interest of 54.52 lakh contracts was seen at 17,000 strike, which will act as crucial support in the August series.
This was followed by 17,500 strike, which holds 49.86 lakh contracts, and 17,300 strike, which accumulated 42 lakh contracts.
Put writing was seen at 17,300 strike, which added 19.49 lakh contracts, followed by 17,200 strike, which added 14.26 lakh contracts and 17,500 strike that added 11.09 lakh contracts.
Put unwinding was seen at 17,900 strike, which shed 20.63 lakh contracts, followed by 18,000 strike, which shed 9.1 lakh contracts, and 17,000 strike, which shed 5.19 lakh 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 Ipca Laboratories, Max Financial Services, Atul, HDFC, and Bharti Airtel among others.
An increase in open interest along with an increase in price typically indicates a build-up of long positions. Based on the open interest future percentage, here are the 10 stocks in which a long build-up was seen:
A decline in open interest along with a drop 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:
71 stocks see a short build-up
An increase in open interest along with a fall in the 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:
6 stocks witness short-covering
A decrease in open interest along with an increase in the price typically indicates short-covering. Based on the open interest future percentage, here are the six stocks in which short-covering was seen:
IIFL Finance: Morgan Stanley Asia Singapore Pte acquired 35 lakh equity shares in the company through open market transactions at Rs 334.95 a share. However, CDC Group Plc sold 1.35 crore equity shares at an average price of Rs 335.64 a share.
Mrs Bectors Food Specialities: Bajaj Holdings and Investment offloaded 3,22,176 equity shares in the company at an average price of Rs 360.06 a share.
Repco Home Finance: UK-based asset management firm Omnis Portfolio Investments Icvc-Omnis Global Emerging Markets Equity Opportunities Fund bought 4,76,998 shares in the company at an average price of Rs 232.4 a share.
Computer Age Management Services: Great Terrain Investment sold 18,55,870 equity shares or a 3.79 percent stake in the company at an average price of Rs 2,306.18 a share.
Rama Steel Tubes: Sixteenth Street Asian Gems Fund bought 2.25 lakh equity shares in the company at an average price of Rs 568 a share.
(For more bulk deals, click here)
Investor meetings on August 22
Wipro: Officials of the company will meet investors and analysts in a non-deal road show in Mumbai.
Eicher Motors: Officials of the company will meet Optimas Capital.
Mahindra Lifespace Developers: Officials of the company will attend a Nirmal Bang conference.
Can Fin Homes: Officials of the company will meet Goldman Sachs India Fund.
Greenply Industries, Prince Pipes & Fittings: Officials of the companies will attend a Housing Ecosystem Conference organised by Yes Securities (India).
Asian Paints: Officials of the company will meet Arisaig Partners and also participate in Edelweiss Virtual Road Show.
Lemon Tree Hotels: Officials of the company will participate in the corporate roadshow in Singapore organised by Motilal Oswal Securities.
UltraTech Cement: Officials of the company will meet Capital International.
Stocks in News
Gensol Engineering: The company will be in focus as it has approved the acquisition of a majority stake in Gensol Electric Vehicles, which will further acquire technical and business know-how, patents, trademark and brand name related to electric vehicles from the US-based company.
The company will also raise Rs 140 crore from promoters and non-promoters by allotting 13,51,030 equity shares on preferential basis at an issue price of Rs 1,036.25 a share.
AstraZeneca Pharma India: The pharma company has received import and market permission in Form CT-20 subsequent to new drug approval from the Drugs Controller General of India for Olaparib film-coated tablets. Olaparib film-coated tablets 100 mg and 150 mg are additionally indicated as a monotherapy for the adjuvant treatment of adult patients with BRCA-mutated HER2- negative high-risk early breast cancer, who have previously been treated with neoadjuvant or adjuvant chemotherapy.
JSW Steel: The company has entered into a 50-50 joint venture agreement with National Steel Holding (NSHL) for establishing scrap shredding facilities in India. NSHL is engaged in the business of metal recycling, collection and processing based in Auckland, New Zealand. This is in line with the company's target to reduce its carbon footprint by achieving 42 percent reduction in CO2 emissions intensity by FY30 from the base year of 2005.
Tejas Networks: The company has acquired the remaining 93,571 equity shares in Saankhya Labs at a price of Rs 454.19 a share by paying Rs 4.25 crore through secondary purchase. With the said transaction, it has acquired 62,51,496 equity shares, or 64.4% stake in Saankhya, for Rs 283.94 crore, on a fully diluted basis.
Shilpa Medicare: The subsidiary Shilpa Biologicals (SBPL) has successfully completed the phase 3 human clinical studies of its first biosimilar, the 100mg/ml high concentration (HC) Adalimumab biosimilar. The company has submitted the dossier to the CDSCO for review and grant of marketing or manufacturing licence— a first in India. The drug is expected to cater to several diseases including rheumatoid arthritis, plaque psoriasis, and ulcerative colitis.
Oriental Hotels: Nippon Life India Trustee offloaded 1.95 lakh equity shares, or 0.1 percent stake, in the company through open market transactions. With this, its shareholding in the company reduced to 3.1687 percent, down from 3.2783 percent.
Fund Flow
Foreign institutional investors (FIIs) net bought shares worth Rs 1,110.90 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,633.21 crore on August 19, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks—Balrampur Chini Mills, Delta Corp, and Tata Chemicals—will be under the NSE F&O ban list for August 22. 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.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
