The market snapped a four-day winning streak to close sharply lower on April 30, the first day of the May series, as all sectoral indices, barring pharma, traded in the red. The unabated surge in coronavirus cases also weighed on the sentiment.
The BSE Sensex plunged 983.58 points, or 1.98 percent, to close at 48,782.36, while the Nifty50 fell 263.80 points, or 1.77 percent, to 14,631.10 and formed a bearish candle on the daily charts. During the week, the Nifty gained 2 percent to form a bullish candle on the weekly scale.
"The daily price action has formed a sizable bearish candle, forming a lower high-low compared to the previous session, which remains in a negative sign. The index failed to surpass the past four-six weeks, multiple resistance zone of 14,900-on a closing basis and reacted from the same. Hence going forward, 14,900-15,000 levels will remain a crucial resistance zone," Rajesh Palviya, Head-Technical and Derivative Research at Axis Securities told Moneycontrol.
On the daily and weekly chart, the index continues to trend lacklustre within 14,900-14,200, representing a sideways trend, he said, adding 14,800 would be the next higher levels to be watch. Any sustainable move above 14,800 may cause the momentum towards 15,000-15,200 levels, Palviya said.
Broader markets outperformed the frontliners, as the Nifty midcap and smallcap indices fell 0.4 percent each.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of the stocks are the aggregates of three-month data and not of the current month only.
Key support, resistance levels for the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 14,536.7 followed by 14,442.3. If the index moves up, the key resistance levels to watch out for are 14,790.5 and 14,949.9.
The Nifty Bank index declined 932.70 points, or 2.77 percent, to 32,781.80 on April 30. The important pivot level, which will act as crucial support for the index, is placed at 32,478.4, followed by 32,175. On the upside, key resistance levels are placed at 33,270.2 and 33,758.6 levels.
Call option data
Maximum Call open interest of 21.98 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the May series.
This is followed by 15,500 strike, which holds 14.18 lakh contracts, and 14,500 strike, which has accumulated 9.81 lakh contracts.
Call writing was seen at 14,800 strike, which added 3.23 lakh contracts, followed by 14,700 strike, which added 2.85 lakh contracts, and 15,000 strike that added 2.01 lakh contracts.
Call unwinding was seen at 14,500 strike, which shed 35,475 contracts, followed by 14,300 strike ,which shed 10,875 contracts, and 14,400 strike that shed 7,125 contracts.
Put option data
Maximum Put open interest of 31.34 lakh contracts was seen at 14,000 strike, which will act as a crucial support in the May series.
This is followed by 14,500 strike, which holds 17.89 lakh contracts, and 13,800 strike, which has accumulated 12.91 lakh contracts.
Put writing was seen at 14,800 strike, which added 2.64 lakh contracts, followed by 14,700 strike that added 2.56 lakh contracts and 14,300 strike, which added 2.43 lakh contracts.Put unwinding was seen at 15,000 strike, which shed 1.56 lakh contracts, followed by 14,900 strike, which shed 40,575 contracts, and 15,500 strike, which shed 13,950 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
47 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:
72 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:
17 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:
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Results on May 3
Kotak Mahindra Bank, SBI Life Insurance Company, Tata Chemicals, Godrej Properties, L&T Technology Services, Home First Finance Company India, IDBI Bank, Apollo Tricoat Tubes, Citadel Realty and Developers, JK Agri Genetics, Jupiter Infomedia, Mahindra Holidays & Resorts, Navigant Corporate Advisors, Nutricircle, Pankaj Polymers, Pil Italica Lifestyle, Shree Ganesh Remedies, Supreme Industries, Tribhovandas Bhimji Zaveri, Universal Arts and Varun Beverages will release quarterly earnings on May 3.
Stocks in News
Reliance Industries: The company reported sharply higher profit at Rs 13,227 crore in Q4FY21 against Rs 6,348 crore in Q4FY20, revenue rose to Rs 1,54,896 crore from Rs 1,39,535 crore YoY.
IndusInd Bank: The bank reported profit at Rs 876 crore in Q4FY21 against Rs 301.8 crore in Q4FY20, net interest income rose to Rs 3,534.6 crore from Rs 3,231.2 crore YoY.
Yes Bank: The bank posted loss at Rs 3,787.75 crore in Q4FY21 against loss of Rs 3,668.3 crore in Q4FY20, net interest income fell to Rs 986.7 crore from Rs 1,273.7 crore YoY.
Tata Consultancy Services: Samir Seksaria has taken over as Chief Financial Officer of TCS effective May 1.
Tata Motors: The company sold 41,739 vehicles in April, a drop of 40.6 percent from 70,263 vehicles sold in March 2021.
Maruti Suzuki India: The company sold 1,59,691 vehicles in April 2021, declining from 1,67,014 vehicles in March 2021.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 3,465.07 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,419.31 crore in the Indian equity market as on April 30, as per provisional data available on the NSE.
Stocks under F&O ban on NSEOne stock—Sun TV Network—is under the F&O ban for May 3. 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.