Any dip down to 11,800-11,750 is going to be a buy-on-dips opportunity in the market for the next few sessions, says Nagaraj Shetti of HDFC Securities.
The market closed on a strong note after witnessing a roller-coaster ride amid US presidential election results on November 4, led by buying in IT and pharma stocks and sharp weakness in rupee against the US dollar.
The BSE Sensex jumped 355.01 points to close at 40,616.14, while the Nifty50 rallied 95 points to 11,908.50 and formed a bullish candle on the daily charts.
"Nifty is now entering a crucial resistance zone of around 11,900-11,950 levels and is now facing hurdle at the downsloping minor trend line. Hence, there is a possibility of consolidation or minor profit booking from around 11,925-11,950 levels in the next session," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"The expected profit booking may not change the positive status of the short term trend, as we could see an emergence of buying from the lows of 11,800 levels," he said, adding any dips down to 11,800-11,750 is going to be a buy-on-dips opportunity in the market for the next few sessions.
The broader markets were mixed with the Nifty Midcap rising 0.65 percent, while the smallcap index declined 0.12 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 is placed at 11,800.03, followed by 11,691.57. If the index moves up, the key resistance levels to watch out for are 11,973.33 and 12,038.17.
The Bank Nifty extended gains but underperformed benchmark Nifty50. The index rose 88.80 points to close at 25,771.60 on November 4. The important pivot level, which will act as crucial support for the index, is placed at 25,312.07, followed by 24,852.53. On the upside, key resistance levels are placed at 26,061.07 and 26,350.53.
Call option data
Maximum Call open interest of 18.37 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the November series.
This is followed by 12,500 strike, which holds 15.18 lakh contracts, and 12,200 strike, which has accumulated 8.06 lakh contracts.
Call writing was seen at 12,000 strike, which added 3.32 lakh contracts, followed by 12,800 strike which added 2.32 lakh contracts and 12,600 strike which added 93,825 contracts.
Call unwinding was seen at 11,700 strike, which shed 88,650 contracts, followed by 11,600 strike which shed 27,375 contracts.
Put option data
Maximum Put open interest of 25.56 lakh contracts was seen at 11,000 strike, which will act as crucial support in the November series.
This is followed by 11,500 strike, which holds 22.32 lakh contracts, and 11,600 strike, which has accumulated 14.80 lakh contracts.
Put writing was seen at 11,900 strike, which added 1.85 lakh contracts, followed by 11,600 strike, which added 1.22 lakh contracts and 11,000 strike which added 72,000 contracts.
Put unwinding was witnessed at 11,300 strike, which shed 84,525 contracts, followed by 11,500 strike which shed 69,300 contracts and 11,100 strike, which shed 54,450 contracts.
Stocks with a high delivery percentageA high delivery percentage suggests that investors are showing interest in these stocks.
56 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which long build-up was seen.
10 stocks saw long unwindingBased on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
36 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 short build-up was seen.
36 stocks witnessed short-coveringA 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 November 5
ABB India, Aarti Surfactants, Aditya Birla Capital, Adani Power, Adani Transmission, Astrazeneca Pharma, Bajaj Electricals, Berger Paints India, Birla Corporation, Birlasoft, Dalmia Bharat, Dish TV India, eClerx Services, Emami, Godrej Consumer Products, Gujarat Gas, ICRA, Inox Leisure, Minda Corporation, Spencers Retail, Torrent Power, Trent and Tata Teleservices (Maharashtra) among 127 companies will declare their quarterly earnings on November 5.
Stocks in the news
Pidilite Industries: The company reported consolidated profit at Rs 356.4 crore in Q2FY21 against Rs 325 crore, revenue rose to Rs 1,880.3 crore from Rs 1,806.6 crore YoY.
Godrej Agrovet: The company reported higher consolidated profit at Rs 115.5 crore in Q2FY21 against Rs 102.6 crore, revenue declined to Rs 1,723.9 crore from Rs 1,851.1 crore YoY.
JK Lakshmi: The company reported a higher profit at Rs 80.6 crore in Q2FY21 against Rs 45.9 crore, revenue increased to Rs 1,045 crore from Rs 935 crore YoY.
Indian Hotels: The company posted a consolidated loss at Rs 230 crore in Q2FY21 against profit of Rs 71.3 crore, revenue dropped to Rs 257 crore from Rs 1,007 crore YoY.
Kalpataru Power Transmission: The company reported a higher consolidated profit at Rs 144 crore in Q2FY21 against Rs 132 crore, revenue fell to Rs 3,032 crore versus Rs 3,216 crore YoY.
PVR, Inox Leisure in focus: The Maharashtra government allowed cinema halls/theatres/multiplexes to open with 50percent capacity from November 5.
HPCL: The company reported a higher profit at Rs 2,477.4 crore in Q2FY21 against Rs 1,052.3 crore, revenue declined to Rs 51,773.3 crore from Rs 60,868.4 crore YoY. The board approved share buyback at Rs 250 per share and the company is to spend Rs 2,500 crore on share buyback.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 146.22 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 8.13 crore in the Indian equity market on November 4, as per provisional data available on the NSE.
Stock under F&O ban on NSENot a single stock is under the F&O ban for November 5. 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.