If Nifty50 moves up, the key resistance levels to watch out for are 11,907.33 and 11,941.67.
The market continued its uptrend for the second consecutive session and closed a percent higher on October 19. Banking and financials, FMCG and metals stocks led the benchmark indices higher.
The BSE Sensex climbed 448.62 points or 1.12 percent to close at 40,431.60, while the Nifty50 rose 110.50 points or 0.94 percent to 11,873 and formed a Doji kind of pattern on the daily charts as closing was near its opening levels.
The overall market breadth has started to improve and the broad market indices like Midcap and Smallcap have ended with the gains of 0.77 percent and 0.73 percent respectively.
"This is a positive signal that suggests more upside for the broader and for the benchmark index. After the formation of Bearish Engulfing pattern on Thursday, Nifty continued with upside bounce for the second consecutive session on Monday and closed higher. This could raise doubt over the negative pattern implication of bearish pattern," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
"As long as the upside of 12,025 is protected, one can't rule out any profit booking from the highs in the short term. A sustainable move above 12,025 could be considered as a negation of Bearish Engulfing pattern," 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 is placed at 11,829.53, followed by 11,786.07. If the index moves up, the key resistance levels to watch out for are 11,907.33 and 11,941.67.
The Bank Nifty surged 733.55 points or 3.12 percent to 24,266.80 on October 19. The important pivot level, which will act as crucial support for the index, is placed at 23,907.43, followed by 23,548.07. On the upside, key resistance levels are placed at 24,473.53 and 24,680.27.
Call option data
Maximum Call open interest of 24.26 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October series.
This is followed by 12,000 strike, which holds 23.09 lakh contracts, and 12,200 strike, which has accumulated 20.31 lakh contracts.
Call writing was seen at 12,200 strike, which added 4.48 lakh contracts, followed by 12,100 strike which added 1.29 lakh contracts and 12,300 strike which added 1.11 lakh contracts.
Call unwinding was seen at 11,700 strike, which shed 1.77 lakh contracts, followed by 11,800 strike, which shed 89,925 contracts and 11,500 strike which shed 65,250 contracts.
Put option data
Maximum Put open interest of 25.16 lakh contracts was seen at 11,000 strike, which will act as crucial support in the October series.
This is followed by 11,500 strike, which holds 23.72 lakh contracts, and 11,700 strike, which has accumulated 19.30 lakh contracts.
Put writing was seen at 11,100 strike, which added 4.67 lakh contracts, followed by 11,700 strike, which added 2.92 lakh contracts and 11,900 strike which added 1.84 lakh contracts.
Put unwinding was witnessed at 11,300 strike, which shed 1.09 lakh contracts, followed by 12,500 strike which shed 29,325 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
47 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.
11 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
33 stocks saw short build-upAn 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.
47 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.
Xelpmoc Design: Alpha Leon Enterprises LLP sold 71,526 equity shares in the company at Rs 251.58 per share on the NSE.
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Results on October 20
Hindustan Unilever, Larsen & Toubro Infotech, Bombay Dyeing & Manufacturing, CCL Products, CRISIL, Continental Securities, DCM Shriram, Digicontent, Fischer Chemic, Gujarat Ambuja Exports, Granules India, Hindustan Zinc, Indo Cotspin, Indian Energy Exchange, JSW Ispat Special Products, Kajaria Ceramics, Ashika Credit Capital, Mahindra CIE Automotive, Maharashtra Scooters, Oriental Aromatics, Punjab Alkalies & Chemicals, Ramkrishna Forgings, Sayaji Hotels, Shiva Cement, Simplex Mills Company, Simplex Papers, Simplex Realty, Transglobe Foods and Websol Energy System will announce quarterly earnings on October 20.
Stocks in the news
Britannia Industries: The company reported 23 percent YoY increase in profit at Rs 498 crore against Rs 404 crore, revenue rose 12 percent to Rs 3,419 crore from Rs 3,048.84 crore YoY.
ACC: The company reported profit at Rs 363.8 crore in Q3CY20 against Rs 302.5 crore, revenue increased to Rs 3,537.3 crore from Rs 3,528.3 crore YoY.
MRPL: The company to buy 49 percent stake in ONGC Mangalore Petrochemicals from ONGC for Rs 1,220 crore.
Acrysil: Schock GMBH, Regen (Germany) sold the entire 8.47 percent stake via open market transactions on October 14.
ION Exchange (India): Sunil Singhania's Abakkus Emerging Opportunities Fund-1 name appeared in September quarter shareholding with 1.7 percent stake.
HDFC Life Insurance: The Company reported profit at Rs 327.83 crore in Q2FY21 against Rs 308.98 crore, net premium income rose to Rs 10,056.7 crore from Rs 7,456.87 crore YoY.Fund flow
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,656.78 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,621.73 crore in the Indian equity market on October 19, as per provisional data available on the NSE.
Stock under F&O ban on NSETwelve stocks - BHEL, Canara Bank, Escorts, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, Mindtree, NALCO, Punjab National Bank, PVR, SAIL and Tata Motors - are under the F&O ban for October 20. 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.