The benchmark indices hit new highs and also ended at record closing peak, as bulls retained their upper hand on Dalal Street for the seventh consecutive session on October 18. The rally was so strong that it took the BSE Sensex closer to 62,000 mark and the Nifty50 above 18,500 intraday, led by buying in Metals, Banking & Financials, IT and select FMCG stocks.
The BSE Sensex settled 459.64 points higher at 61,765.59, while the Nifty50 rallied 138.50 points to 18,477 but formed a negative candle on the daily charts.
"A small negative candle was formed at the swing highs with minor upper and lower shadows. Technically, this pattern signal a formation of 'Spinning Top' type candle pattern. More often, such spinning tops are associated with top reversals. Hence, trading long positions needs to be protected with appropriate stoploss," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He feels the short term trend of Nifty remains positive. "The overall chart pattern calls for caution for long positions and there is a possibility of another round of short term weakness from the higher levels. The expected weakness could be a buy in dips opportunity for the near term."
A sustainable move above 18,650 is likely to nullify this negative indication, and immediate support is placed at 18,350 levels, said Shetti.
The broader markets also ended at record closing highs. The Nifty Midcap 100 index was up 1.17 percent and Smallcap 100 index rose 0.7 percent.
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 18,433.87, followed by 18,390.63. If the index moves up, the key resistance levels to watch out for are 18,531.77 and 18,586.43.
Nifty Bank
The Nifty Bank also rallied 343.90 points to end at fresh record closing high of 39,684.80 on October 18, outshining benchmark indices. The important pivot level, which will act as crucial support for the index, is placed at 39,520.4, followed by 39,356. On the upside, key resistance levels are placed at 39,898.4 and 40,112 levels.
Call option data
Maximum Call open interest of 19.67 lakh contracts was seen at 18,500 strike, which will act as a crucial resistance level in the October series.
This is followed by 19,000 strike, which holds 17.58 lakh contracts, and 18,000 strike, which has accumulated 11.74 lakh contracts.
Call writing was seen at 18,900 strike, which added 2.96 lakh contracts, followed by 19,100 strike, which added 2.23 lakh contracts and 19,200 strike which added 2.14 lakh contracts.
Call unwinding was seen at 18,000 strike, which shed 3.93 lakh contracts, followed by 18,300 strike, which shed 2.93 lakh contracts, and 18,200 strike which shed 2.08 lakh contracts.
Put option data
Maximum Put open interest of 26.44 lakh contracts was seen at 17,500 strike, which will act as a crucial support level in the October series.
This is followed by 18,000 strike, which holds 26.01 lakh contracts, and 18,500 strike, which has accumulated 23.95 lakh contracts.
Put writing was seen at 18,500 strike, which added 12.84 lakh contracts, followed by 18,400 strike which added 6.79 lakh contracts and 18,300 strike which added 5.91 lakh contracts.
Put unwinding was seen at 17,500 strike, which shed 2.5 lakh contracts, followed by 17,800 strike which shed 1.9 lakh contracts, and 17,700 strike which shed 1.54 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
45 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.
23 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.
50 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 10 stocks in which a short build-up was seen.
63 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
Sical Logistics: Bellevue acquired 3 lakh equity shares in the company at Rs 20.88 per share on the NSE, the bulk deal data showed.
SML Isuzu: Navodya Enterprises acquired 1.1 lakh equity shares in the company at Rs 703.74 per share, and SPV Traders bought 1 lakh shares in the company at Rs 645.22 per share on the NSE, the bulk deal data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting & Results Calendar
Results on October 19: Hindustan Unilever, Nestle India, 5paisa Capital, ACC, Consolidated Construction Consortium, DCM Shriram, Heidelbergcement India, ICICI Prudential Life Insurance Company, ICICI Securities, JSW Ispat Special Products, Jubilant Ingrevia, L&T Technology Services, Mastek, Navin Fluorine International, Nelco, Network18 Media & Investments, Oriental Hotels, Rallis India, Rane Brake Lining, Shakti Pumps, Standard Industries, Sonata Software, Tata Steel Bsl, and TV18 Broadcast are slated to release their September quarter earnings on October 19.
IDBI Bank: The company's officials will meet analysts on October 21 for financial results.
Sobha: The company's officials will meet analysts and institutional investors on October 22.
MCX India: The company's officials will meet investors and analysts on October 25 with respect to financial results.
Lemon Tree Hotels: The company's officials will meet investors and analysts on October 25, to discuss financial results.
Greenpanel Industries: The company's officials will meet investors and analysts on October 27 in respect of unaudited financial results.
Vedanta: The company's officials will meet analysts and investors on October 29 after unaudited financial results.
Aditya Birla Capital: The company's officials will meet analysts and investors on November 1 to discuss the financial results.
Stocks in News
L&T Infotech: The company reported higher profit at Rs 551.7 crore in Q2FY22 against Rs 496.8 crore in Q1FY22, revenue jumped to Rs 3,767 crore from Rs 3,462.5 crore QoQ.
Indian Energy Exchange: The company will consider bonus share issue on October 21.
TTK Prestige: The company will consider the proposal of stock split on October 27.
Tata Coffee: The company reported higher consolidated profit at Rs 34.04 crore in Q2FY22 against Rs 23.20 crore in Q2FY21, revenue rose to Rs 548.52 crore from Rs 543.43 crore YoY.
HG Infra Engineering: The company been declared as L-1 bidder by National Highways Authority of India (NHAI) for two HAM projects.
Smartlink Holdings: Subsidiary Synegra EMS has received approval from the Government of India under the Production Linked Incentive (PLI) Scheme for manufacturing of telecom and networking products in India under the MSME category.
Fund flow
Foreign institutional investors (FIIs) net bought shares worth Rs 512.44 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 1,703.87 crore in the Indian equity market on October 18, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Seven stocks - Amara Raja Batteries, BHEL, Escorts, Indiabulls Housing Finance, Vodafone Idea, NALCO, and Sun TV Network - are under the F&O ban for October 19. 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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