The over 2.5 percent rally in the benchmark indices on August 30 not only wiped out the losses of the previous day but also saw the market close at its highest level in more than a week on FII buying and gains in key sectors.
The Sensex surged 1,564 points, or 2.7 percent, to 59,537. The Nifty jumped 446 points, 0r 2.8 percent, to 17,759 to form a strong bullish candlestick on the daily charts.
"The Nifty has sustained above its 20-day SMA (simple moving average- 17,579), however, it also closed above its previous week's high, indicating bullish undertone of the market," Vidnyan Sawant, AVP-Technical Research at GEPL Capital said.
The momentum indicator relative strength index (RSI) turned upward and formed higher highs. It sustained above the 60-mark, which shows the Nifty is gaining bullish momentum for the short to medium term.
Immediate resistance is at 17,850 followed by 17,992. The index has a strong support at 17,579 (20-day SMA) followed by 17,409 (the low of August 30).
The chart pattern and the indicator set-up indicate that the Nifty will move towards 17,992 followed by 18,114 in the coming days, Sawant said.
"Our bullish view will be negated if it sustains below 17,409 levels on the downside."
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, resistance levels on the Nifty
As per the pivot charts, the key support for the Nifty is placed at 17,515 followed by 17,270. If the index moves up, the key resistance levels to watch out for are 17,891 and 18,022.
The Nifty Bank climbed 1,260 points to close at 39,537 and formed a healthy bullish candlestick pattern on the daily charts on August 31. The important pivot level, which will act as crucial support for the index, is placed at 38,804 followed by 38,071. On the upside, key resistance levels are placed at 39,938 and 40,339.
The maximum Call open interest of 21.12 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the September series.
This is followed by 19,000 strike, which holds 16.59 lakh contracts, and 18,500 strike, which has accumulated 14 lakh contracts.
Call writing was seen at 18,700 strike, which added 1.11 lakh contracts, followed by 18,200 strike that added 85,050 contracts and 19,000 strike, which added 73,400 contracts.
Call unwinding was seen at 17,300 strike, which shed 1.84 lakh contracts, followed by 17,400 strike, which shed 1.31 lakh contracts and 17,200 strike, which shed 88,800 contracts.
Maximum Put open interest of 32.5 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the September series.
This is followed by 17,000 strike, which holds 25.49 lakh contracts, and 17,500 strike, which has accumulated 24.44 lakh contracts.
Put writing was seen at 17,500 strike, which added 5.03 lakh contracts, followed by 17,400 strike, which added 2.01 lakh contracts and 17,700 strike which added 1.87 lakh contracts.
Put unwinding was seen at 17,300 strike, which shed 3.11 lakh contracts, followed by 17,000 strike, which shed 2.66 lakh contracts, and 17,100 strike that shed 51,800 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 Oracle Financial, Godrej Consumer Products, Siemens, Tata Consumer Products, and AU Small Finance Bank, 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 top 10 stocks in which a long build-up was seen:
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 stocks in which long unwinding was seen:
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:
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:
Best Agrolife: Ace investor Ashish Rameshchandra Kacholia acquired 3.18 lakh equity shares in the company through open market transactions at an average price of Rs 940.88 a share.
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Investors Meetings on September 1
Endurance Technologies: Officials of the company will meet ICICI Prudential Mutual Fund.
Lloyds Metals and Energy: Officials of the company will meet various analysts and investors.
One 97 Communications: Officials of the company will attend Morgan Stanley Virtual Asia TMT Conference 2022.
Tata Steel: Officials of the company will meet Nikko Asset Management.
Gland Pharma: Officials of the company will meet Nippon Offshore, Capital Group, Amansa Capital, Government of Singapore (GIC), Nomura Asset Management and Fullerton Fund Management.
Capri Global Capital: Officials of the company will interact with Latin Manharlal Securities.
Eicher Motors: Officials of the company will interact with Pinpoint Funds.
Metro Brands: Officials of the company will interact with Aditya Birla Sun Life Insurance.
Nazara Technologies: Officials of the company will interact with Amsec, Ashika, B&K Securities, CLSA, Dolat Capital, Edelweiss, Equirus, HDFC Securities, ICICI Direct, ICICI Securities IIFL, Investec, Jefferies, JM Financial, Motilal Oswal, Phillip Capital, Prabhudas Lilladher, and Technology Holdings.
Stocks in News
Tata Motors: Tata Motors acquired the entire shareholding of Marcopolo S A in the joint venture entity Tata Marcopolo Motors. With this, Tata Marcopolo Motors has become a wholly owned subsidiary of Tata Motors.
Cipla: The company and Kemwell India have entered into an "amendment cum assignment agreement". As per the agreement, the joint venture entity will now be incorporated in the United States of America. There is no other material change in the agreement.
The company's subsidiary Cipla (EU) has agreed to acquire an additional 13.10 percent stake in Cipla (Jiangsu) Pharmaceutical Co Ltd, a subsidiary of Cipla EU in China.
Sunteck Realty: Subsidiary Clarissa Facility Management LLP has acquired a 10 percent stake in Rusel Multiventures. With this acquisition, the company will leverage facility management expertise to create additional streams of revenue, cost-effectiveness and continous supply of facilities, which will improve its overall effectiveness and productivity, the real estate player said.
CreditAccess Grameen: As a part of the diversification of funding strategy, the company has, by way of external commercial borrowings with a door-to-door tenure of four years, entered an arrangement to avail $90 million through a loan syndication arrangement led by HSBC Bank, which acted as lead arranger and book runner. The other lenders in the syndication arrangement include Bank of India, Union Bank of India and UCO Bank.
Glenmark Pharmaceuticals: Subsidiary Glenmark Specialty SA and Hikma Pharmaceuticals PLC launched Ryaltris, olopatadine hydrochloride and mometasone furoate nasal spray, in the US. The nasal spray is approved by the US Food and Drug Administration for the treatment of symptoms of seasonal allergic rhinitis (SAR) in adult and pediatric patients 12 years of age and older.
Inox Wind: The company has received the board approval to raise up to Rs 800 crore through the issuance of non-convertible preference shares to promoters on a private placement basis. The funds raised through the issuance of NCPRPS will be used for repayment of the debt.
Zee Entertainment Enterprises: The company has signed a strategic licensing agreement with Star India (Disney Star). With this agreement, Disney Star will lease the television broadcasting rights of the International Cricket Council's (ICC) Men's and Under 19 (U-19) global events for a period of four years, to the company.
Fund Flow
Foreign institutional investors (FIIs) net bought shares worth Rs 4,165.86 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 656.72 crore on August 30, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has not added any stock to the F&O ban list for September 1. 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.
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