The market saw consolidation for yet another session and closed with moderate losses helped by recovery in late trade on November 18, while the fall in broader markets was bit higher than benchmarks.
The BSE Sensex declined 87 points to 61,663, while the Nifty50 dropped 36 points to 18,308 and formed bearish candle with long lower shadow on the daily charts.
"Technically, this pattern indicates an emergence of buying interest from the lows. Nifty took a support of 10-day EMA (exponential moving average) at 18,247," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The Nifty continues to show consolidation movement with weak bias at the highs and still there is no formation of any significant top reversal pattern, he feels. Hence, further consolidation or minor weakness from here could find support around 18,100 level and there could be upside bounce from the lows, the market expert said.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices were down half a percent each, while India VIX fell by 3.27 percent to 14.39 levels, giving comfort to bulls and support to the market.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.
Key support and resistance levels on the Nifty
As per the pivot charts, the key support level for the Nifty is placed at 18,233, followed by 18,190 & 18,119. If the index moves up, the key resistance levels to watch out for are 18,375 followed by 18,418 and 18,489.
Nifty Bank
The Nifty Bank fell 21 points to 42,437, and formed bearish candle with long lower shadow on the daily frame as the closing was lower than opening levels on November 18. The important pivot level, which will act as crucial support for the index, is placed at 42,277, followed by 42,190 and 42,050 levels. On the upside, key resistance levels are placed at 42,557 followed by 42,644 & 42,784 levels.
CALL OPTION DATA
The maximum Call open interest of 1.05 crore contracts was seen at 18,400 strike, which can act as a resistance level in the November expiry week.
This is followed by 19,000 strike, which holds 90.86 lakh contracts, and 18,500 strike, which have more than 76.9 lakh contracts.
Call writing was seen at 18,400 strike, which added 51.29 lakh contracts, followed by 18,300 strike which added 38.2 lakh contracts, and 18,900 strike which added 34.32 lakh contracts.
Call unwinding was seen at 19,000 strike, which shed 9.07 lakh contracts, followed by 17,900 strike which shed 17,650 contracts and 17,300 strike which shed 8,350 contracts.
PUT OPTION DATA
Maximum Put open interest of 68.53 lakh contracts was seen at 18,300 strike, which can act as a support level in the November expiry week.
This is followed by 18,000 strike, which holds 64.39 lakh contracts, and 17,500 strike, which has accumulated 45.94 lakh contracts.
Put writing was seen at 18,300 strike, which added 19.61 lakh contracts, followed by 17,900 strike, which added 14.28 lakh contracts, and 18,200 strike which added 13.25 lakh contracts.
Put unwinding was seen at 18,400 strike, which shed 1.54 lakh contracts, followed by 17,400 strike which shed 1.43 lakh contracts and 18,600 strike which shed 1.35 lakh contracts.
STOCKS WITH A HIGH DELIVERY PERCENTAGE
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in ICICI Bank, NTPC, Atul, SBI Life Insurance Company, and Havells India, among others.
21 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 top 10 stocks including Indraprastha Gas, Max Financial Services, GAIL India, Escorts, and Punjab National Bank, in which a long build-up was seen.
56 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 including Gujarat State Petronet, Mindtree, Persistent Systems, ABB India, and Hindustan Aeronautics, in which long unwinding was seen.
86 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 include ONGC, Polycab India, PVR, RBL Bank, and IndiaMART InterMESH.
33 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, top 10 stocks in which short-covering was seen includes NMDC, Birlasoft, Balrampur Chini Mills, Tech Mahindra, and Amara Raja Batteries.
Bulk Deals
FSN E-Commerce Ventures: TPG Growth IV SF Pte Ltd sold 5.42 crore equity shares in Nykaa Fashion operator via open market transaction, at an average price of Rs 184.55 per share. The deal was worth Rs 1,000 crore.
Alstone Textiles (India): Investors Paschim Finance and Chit Fund, and Victory Software continued to offload shares in Alstone Textiles, but the stock remained in an uptrend, hitting upper circuits day after day, rising to Rs 300.45 on November 18, from Rs 15.75 on August 24 this year. Paschim Finance and Chit Fund sold another 1.4 lakh shares and Victory Software offloaded another 1.1 lakh shares at an average price of Rs 300.45 per share.
(For more bulk deals, click here)
Investors Meetings on November 21
Mahindra & Mahindra: Officials of company will participate in Kotak Investor Conference.
UltraTech Cement: Officials of company will interact with ICICI Prudential Mutual Fund, and Abu Dhabi Investment Authority.
Adani Total Gas: Officials of company will interact with investors/analysts in roadshow organized by Nomura at Singapore.
KEI Industries: Officials of company will interact with Kotak Securities.
Tata Power Company: Officials of the company will meet JP Morgan Asset Management during the Investor Meet of Morgan Stanley - 21st Annual Asia Pacific Summit being held in Singapore.
Trent: Officials of the company will attend KIE India Consumer Forum.
Havells India: Officials of the company will interact with international investors.
MCX India: Officials of the company will interact with Allard Partners.
Allcargo Logistics: Officials of the company will interact with Sell Side Group Meeting.
CreditAccess Grameen: Officials of the company will interact with Baillie Gifford & Co.
Safari Industries: Officials of the company will interact with Aditya Birla Mutual Fund.
IRCTC: Officials of the company will be participating in non-deal road shows and meeting prospective investors.
Stocks in News
Zomato: Mohit Gupta, co-founder at Zomato has resigned. He had joined the food delivery giant's Deepinder Goyal and team, four-and-half-year ago. He decided to move on from Zomato to seek the other unknown adventures.
Archean Chemical Industries: The specialty chemical company will make its debut on the BSE and NSE on November 21. The issue price has been fixed at Rs 407 per share.
Five Star Business Finance: The non-banking finance company will list its equity shares on the bourses on November 21. The issue price has been set at Rs 474 per share.
Tata Motors: The BSE has decided to add Tata Motors in the S&P BSE Sensex index, in place of Dr Reddy's Laboratories. Also in the S&P BSE 100 and Sensex Next 50 indices, Adani Power and Indian Hotels Company will replace Adani Total Gas, and Hindustan Petroleum Corporation. The changes will be effective from December 19, 2022. In addition, Nxtdigital will be removed from S&P BSE AllCap, Consumer Discretionary, MidSmallCap and SmallCap with effect from November 22 as it is demerging into Hinduja Global Solutions as part of restructuring to separate their media and communication business.
3i Infotech: The stock will be in focus as the IT company received a contract from Hindustan Petroleum Corporation, for managing and supporting IT infrastructure at HPCL offices, refinery including data centers across pan-India. Total contract value is approximately Rs 51 crore spread across three years.
REC: The state-run power projects finance company has received consideration and accordingly transferred its entire shareholding in Gadag II-A Transmission, presently held by its subsidiary RECPDCL, along with all assets and liabilities to ReNew Transmission Ventures, the successful bidder. Gadag II-A will establish transmission system for "transmission scheme for solar energy zone in Gadag with a capacity of 1,500 MW in Karnataka as a Part A Phase-II.
Indian Energy Exchange: The company said the board of directors will meet on November 25 to consider share buyback proposal.
Engineers India: The company has received order from Chennai Petroleum Corporation for overall project management & EPCM services for OHCU revamp, CDWU and related off-site facilities for Group-II LOBS project at Manali refinery.
Fund Flow
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 751.20 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 890.45 crore on November 18, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Seven stocks - Balrampur Chini Mills, BHEL, Delta Corp, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance, Punjab National Bank, and Sun TV Network - are under NSE F&O ban list for November 21. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
Disclaimer: The views and investment tips expressed by investment 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.
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