The Indian market continued its downward march for the third consecutive day as the euphoria over the recent corporate tax cut was overshadowed by deepening woes in the financial sector.
The worries over the exposure of major banks to non-banking financial institutions (NBFCs) and realty sectors after the crisis in Punjab and Maharashtra Co-operative (PMC) Bank and Lakshmi Vilas Bank spooked investors, making them rush to offload their bets in riskier equities.
The recent developments around Punjab & Maharashtra Co-operative (PMC) Bank and Lakshmi Vilas Bank have shaken investors' confidence which was already feeble due to the gloomy macroeconomic environment.
The Sensex closed 362 points, or 0.94 percent, down at 38,305.41, with 23 stocks in the red and only seven in the green, while the Nifty pack fell 115 points, or 1 percent, to 11,359.90 on October 1. As many as 39 stocks ended in the red in the 50-share index.
On the technical front, Nifty formed a large bearish candle on the daily charts after closing below 11,400 levels for the first time since September 20, 2019.
Sustained selling pressure has been seen at higher levels and resistance is gradually shifting lower. Hence, until the index trades below 11,400 level and if it breaks Tuesday's (October 1) intraday low, bears could tighten their grip at Dalal Street, experts said.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol that going forward, it is important for Nifty to sustain above today's low of 11,247 levels.
Sustaining above the said low, consolidation in the zone of 11,250–11,550 can be expected and unless 11,550 is cleared on the upside, further strength in the index is not be expected, he added.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, key support level for Nifty is placed at 11,220.47, followed by 11,081.03. If the index starts moving up, key resistance levels to watch out for are 11,526.77 and 11,693.63.
Nifty Bank closed with a loss of 1.30 percent at 28,725.50. The important pivot level, which will act as crucial support for the index, is placed at 28,026.4, followed by 27,327.3. On the upside, key resistance levels are placed at 29,475.5 and 30,225.5.
Call options data
Maximum call open interest (OI) of 20.79 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level in the October series.
This is followed by 11,200 strike price, which holds 17.58 lakh contracts in open interest, and 11,700, which has accumulated 16.52 lakh contracts in open interest.
Significant call writing was seen at the 11,400 strike price, which added 2.29 lakh contracts, followed by 11,800 strike price that added 2.2.28 lakh contracts and 11,700 strike price which added 2.15 lakh contracts.
Call unwinding was witnessed at the 11,100 strike price, which shed 30,525 contracts, followed by the 10,900 strike price which shed 5,100 contracts.
Put options data
Maximum put OI of 20.31 lakh contracts was seen at 11,000 strike price, which will act as crucial support in October series.
This is followed by 11,500 strike price, which holds 12.44 lakh contracts in open interest, and 11,400 strike price, which has accumulated 12.08 lakh contracts in OI.
Put writing was seen at the 11,000 strike price, which added 1.89 lakh contracts, followed by 11,200 strike price, which added 1.21 lakh contracts.
Put unwinding was seen at 11,500 strike price, which shed 92,625 contracts, followed by 11,600 strike price which shed 45,975 contracts and 11,100 strike price which shed 33,675 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
9 stocks saw long buildup
61 stocks saw long unwinding
Based on the lowest OI future percentage point, here are the top 15 stocks in which long unwinding was seen.
66 stocks saw short build-up
An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 15 stocks in which short build-up was seen.
15 stocks witnessed short-covering
A decrease in OI, along with an increase in price, mostly indicates a short covering.
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Upcoming analyst or board meetings/briefings
The respective boards of Global Capital Markets, Manvijay Development Company and Jackson Investments will meet on October 3 for general purpose.
The respective boards of UCO Bank and Websol Energy Systems will meet on October 3 to consider the preferential issue of shares.
Stocks in news:
Hero MotoCorp: The company reported a month-on-month growth of 12.6 percent in two-wheeler sales in September.
Eicher Motors: Motorcycles sales in September fell 17 percent to 59,500 units versus 71,662 units, but exports jumped 191 percent at 4,642 units versus 1,597 units year-on-year (YoY).
Prestige Estates: Company and DB Group will invest Rs 2,000 crore for a project in Delhi.
TVS Motor: Sales in September dropped 25.5 percent to 3,15,912 units versus 4,23,939 units YoY.
Tata Motors: Domestic sales in September fell 50 percent to 32,376 units versus 64,598 units YoY.
M&M: The company and Ford Motor formed a JV in which it will own 51 percent stake in Ford India arm for up to Rs 657 crore.
NMDC: Iron ore production in September fell 30.2 percent to 1.64 million tonnes versus 2.35 million tonnes. Iron ore sales slipped 18.4 percent to 1.91 million tonnes versus 2.34 million tonnes YoY.
Williamson Magor & Company: Director of the company, RS Jhawar, resigned.
Dr Lal Path Labs: CRISIL has reaffirmed the credit rating for the debt instruments of the company.
Surya Roshni: CARE Ratings has reaffirmed credit rating of the company's long and short-term bank facilities.
GIC Housing Finance: ICRA has given "ICRA AA+/negative" ratings to the company's non-convertible debentures of Rs 550 crore and line of credit of Rs 12,500 crore.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,298.56 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,503.02 crore in the Indian equity market on October 1, as per provisional data available on the NSE.
No stock under ban period on NSE
There is no stock under futures and option (F&O) ban for October 3. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.