The market has seen a gap-up opening and remained in the positive terrain throughout the session on June 7, as buying interest was seen across sectors. Traders also seem positive ahead of the interest rate decision by the Reserve Bank of India's Monetary Policy Committee scheduled for June 8.
The benchmark indices closed at the highest level of 2023. The BSE Sensex jumped 350 points to 63,143, while the Nifty50 rose 127 points to 18,726 and formed a bullish candlestick pattern on the daily charts, making higher high and higher low formation.
"This indicates an attempt at an upside breakout of minor range movement. The Nifty formed a new swing high of 18,738 levels on Wednesday," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He believes that the Nifty is all set to move into all-time highs (above the high of 18,887 on December 1, 2022) in the short term and that could possibly open sharp upside momentum for the market ahead.
Immediate supports to be watched are at 18,650 levels and the immediate resistance is around 18,900 levels for the short term, Nagaraj said.
The Nifty Midcap 100 and Smallcap 100 indices maintained the upward journey, rising over a percent each on positive market breadth.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data and not just the current month.
Key support, resistance levels on Nifty
The Nifty may get support at 18,661, followed by 18,637 and 18,598. If the index advances, then 18,740 will be the key resistance followed by 18,764 and 18,803.
The Bank Nifty also maintained an uptrend amid a volatile and rangebound session, rising 111 points to 44,275, and formed a small-bodied bearish candle on the daily scale with a long lower shadow.
"The index has to continue to hold above 44,144 levels, to make an upmove towards 44,500, then 44,750 levels, while on the downside, the support is expected at 44,044, and then 43,750 levels," Chandan Taparia, Senior Vice President, Analyst-Derivatives at Motilal Oswal Financial Services said.
As per the pivot point calculator, the Bank Nifty is expected to take support at 44,178, followed by 44,130 and 44,052, while the resistance is likely to be at 44,332, then 44,380 and 44,458.
On the weekly options front, the maximum Call open interest (OI) was at 18,900 strike, with 1.01 crore contracts, which is expected to be a crucial resistance level for the Nifty.
This was followed by 18,800 strike comprising 98.04 lakh contracts and 18,700 strike with more than 87.59 lakh contracts.
The meaningful Call writing was seen at 18,900 strike, which added 30.54 lakh contracts, followed by 19,000 strike, which added 9.53 lakh contracts, and 19,600 strike, which added 9.08 lakh contracts.
Call unwinding was at 18,600 strike, which shed 57.79 lakh contracts, followed by 18,500 strike, which shed 34.26 lakh contracts, and 19,500 strike, which shed 19.44 lakh contracts.
On the Put side, the maximum open interest was at 18,600 strike, with 1.59 crore contracts, which is expected to be an important support level in the coming sessions.
It was followed by the 18,700 strike, comprising 1.23 crore contracts and the 18,500 strike, which has 1.12 crore contracts.
Put writing was seen at 18,700 strike, which added 1.07 crore contracts, followed by 18,600 strike, which added 65.47 lakh contracts and 18,000 strike, which added 25.35 lakh contracts.
Put unwinding was seen at 17,800 strike, which shed 79,350 contracts, followed by 18,900 strike, which shed 19,100 contracts and 19,500 strike which shed 3,400 contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in HDFC, Petronet LNG, Dabur India, Coal India, and Sun Pharmaceutical Industries, among others.
An increase in open interest (OI) and price indicates a build-up of long positions. Based on the OI percentage, 85 stocks, including Britannia Industries, United Breweries, Can Fin Homes, Navin Fluorine International, and Hindustan Aeronautics, saw long buildups
A decline in OI and price generally indicate a long unwinding. Based on the OI percentage, 13 stocks, including Intellect Design Arena, Bajaj Finance, Mahindra & Mahindra, Rain Industries, and Maruti Suzuki saw a long unwinding.
17 stocks see a short build-up
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, 17 stocks, including Shriram Finance, Cipla, Ipca Laboratories, M&M Financial Services, Metropolis Healthcare, saw a short build-up.
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 74 stocks were on the short-covering list. These included Siemens, JK Cement, Coforge, Manappuram Finance and Atul.
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Investors Meetings on June 8
Stocks in the news
Tech Mahindra: Life Insurance Corporation of India has increased its stake in the IT services provider by 2.015 percent, to 8.88 percent from 6.87 percent, via open market transactions in the last six-month period. The average buying price for these shares stood at Rs 1,050.77 per share.
Tata Elxsi: The Tata Group company has partnered with the Indian Space Research Organisation (ISRO) to enable the upcoming Gaganyaan Mission. Through the association, Tata Elxsi has designed and developed Crew Module Recovery Models (CMRM) for recovery team training of the space mission. Further, the company expanded its automotive and smart mobility focus in North America with the launch of an innovation hub and nearshore engineering centre in Troy, Michigan.
Punjab & Sind Bank: The Board of Directors of the bank will meet on June 12 for considering the proposal for raising capital up to Rs 750 crore through the issuance of Basel-III compliant additional Tier-1 bonds or Tier-IT bonds, in one or more tranches within a period of 12 months from the date of approval.
Jindal Poly Films: The polyester & polypropylene films manufacturer has entered into an agreement to acquire 100 percent shareholding in Netherlands-based firm JPF Netherlands Investment BV. JPF is engaged in the business of packaging films business through its three operational wholly-owned subsidiaries based out of France, Italy, and the United Kingdom.
Zydus Lifesciences: The pharma company has received final approval from United States Food and Drug Administration (USFDA) for Tadalafil tablets. Tadalafil relaxes muscles of the blood vessels and increases blood flow to particular areas of the body. It is used to treat pulmonary arterial hypertension and improve exercise capacity in men and women.
Mazagon Dock Shipbuilders: The state-owned shipbuilding company has signed a non-binding or non-financial MoU with Thyssenkrupp Marine Systems, for cooperation and preparation for submarine project P75-I, in India. Thyssenkrupp Marine Systems would contribute to the engineering and design of the submarines as well as the consultancy support to this joint project, while Mazagon Dock would take responsibility for constructing and delivering the respective submarines.
Lemon Tree Hotels: The hotel chain has signed a license agreement for a 60-room property at Rajamundry in Andhra Pradesh. The hotel is expected to be operational by the third quarter of FY25. Subsidiary Carnation Hotels will be operating this hotel.
Sula Vineyards: The wine producer has identified a new chief financial officer, who will come on board in August. Further, the company has launched three new luxury villas at Beyond Resort in Nasik.
Fund Flow
Foreign institutional investors (FIIs) bought shares worth Rs 1,382.57 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 392.30 crore on June 7, provisional data from the National Stock Exchange shows.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Indiabulls Housing Finance, India Cements and Manappuram Finance to its F&O ban list for June 8. 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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