The market remained volatile throughout sessions and finally settled with moderate losses on September 8, but the broader markets outpaced frontliners as the Nifty Midcap 100 index gained 0.52 percent and Smallcap 100 index rose 0.65 percent.
Select IT, auto and pharma stocks witnessed selling pressure, whereas the market was supported by banks and select metals stocks.
The BSE Sensex fell 29.22 points to 58,250.26, while the Nifty50 declined 8.60 points to 17,353.50 and formed Hammer kind of pattern on the daily charts.
"A small body of negative candle was formed on the daily chart with long lower shadow. Technically, this formation indicate a Hammer type candle pattern (not a classical one) at swing lows. Normally, a Hammer formation after a reasonable decline/at swing lows more often result in a bottom reversal pattern post confirmation," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Hence, he feels a positive session on Thursday could mean a formation of minor bottom reversal and chances of more upside.
According to him, the present short term consolidation movement is expected to end soon and that could open a decisive upside bounce from the lows in the next 1-2 sessions. "The confirmation of higher bottom is likely to pull Nifty towards 17,550-17,600 levels by next week. Immediate support is placed at 17,250 levels," he said.
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 are placed at 17,277.33, followed by 17,201.17. If the index moves up, the key resistance levels to watch out for are 17,406.54 and 17,459.57.
Nifty Bank
The Nifty Bank outperformed benchmark indices, rising 299.40 points to close at 36,768.20 on September 8. The important pivot level, which will act as crucial support for the index, is placed at 36,489.23, followed by 36,210.27. On the upside, key resistance levels are placed at 36,951.53 and 37,134.86 levels.
Call option data
Maximum Call open interest of 17.75 lakh contracts was seen at 17500 strike, which will act as a crucial resistance level in the September series.
This is followed by 17400 strike, which holds 14.94 lakh contracts, and 17300 strike, which has accumulated 13.90 lakh contracts.
Call writing was seen at 17800 strike, which added 1.51 lakh contracts, followed by 18000 strike, which added 41,900 contracts and 17700 strike which added 24,000 contracts.
Call unwinding was seen at 17200 strike, which shed 77,750 contracts, followed by 17000 strike, which shed 64,400 contracts, and 16,800 strike which shed 50,000 contracts.
Put option data
Maximum Put open interest of 41.46 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the September series.
This is followed by 16500 strike, which holds 28.05 lakh contracts, and 17200 strike, which has accumulated 16.98 lakh contracts.
Put writing was seen at 17000 strike, which added 5.44 lakh contracts, followed by 16900 strike which added 3.38 lakh contracts, and 17300 strike which added 1.62 lakh contracts.
Put unwinding was seen at 16700 strike, which shed 37,450 contracts, followed by 18000 strike which shed 8,450 contracts and 17800 strike which shed 5,300 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
40 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.
33 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.
47 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.
52 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.
Bulk deals
Debock Sale Marketing: Dubash Radhika acquired 78,000 equity shares in the company at Rs 26.4 per share on the NSE, the bulk deals data showed.
GSS Infotech: Dubash Radhika bought 1.74 lakh equity shares in the company at Rs 79.24 per share on the NSE, the bulk deals data showed.
McDowell Holdings: Besseggen Infotech LLP bought 89,142 equity shares in the company at Rs 49.95 per share on the NSE, the bulk deals data showed.
Somany Hom Innovation: Cohesion MK Best Ideas Sub Trust bought 10.5 lakh equity shares in the company at Rs 365 per share on the NSE, the bulk deals data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting
Asian Granito India: The company's officials will meet analysts on September 9.
3i Infotech: The company's officials will meet Dalal and Broacha, Nirmal Bang, AMSEC, and IDBI Capital on September 9.
Cummins India: The company's officials will meet Edelweiss Securities, JM Financial, and Anand Rathi on September 9.
UltraTech Cement: The company's officials will meet Axiom International Investors, and AllianceBernstein Holding on September 9, and Millennium Partners on September 10.
UTI AMC: The company's officials will meet Macquarie on September 9.
Cipla: The company's officials will meet Terra Nova Capital Advisors on September 9.
Meghmani Finechem: The company's officials will meet Haitong Securities India on September 9.
Stocks in News
ONGC: ICRA has assigned 'AAA' credit rating for non-convertible debentures (NCD) of the company for Rs 7,500 crore.
KPI Global Infrastructure: The company has terminated power purchase agreement signed for the capacity of 1.10 MW solar power plant under Independent Power Producer (IPP) segment.
Jindal Steel & Power: Subsidiary Jindal Steel & Power (Australia) Pty Ltd made a pre-payment of $105.66 million (Rs 777.4 crore). The prepayment has helped reduce the Australian debt by approximately 50 percent.
TCS: Avianca, one of the leading airlines in South America, partnered with TCS to accelerate its journey to the cloud.
Shree Ganesh Remedies: The company has acquired the 100% equity stake of Akshar Jyot (AJPL), which is in process to acquire 26% equity stake in Dhari Chemicals.
Infosys: The company and The Economist Group announced a new strategic partnership designed to enable and accelerate sustainability solutions and drive world-changing impact through a new business-to-business model.
Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 802.51 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 0.60 crore in the Indian equity market on September 8, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks - Indiabulls Housing Finance, IRCTC and NALCO - are under the F&O ban for September 9. 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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