Bulls were back in action. The benchmark indices, after three-day of correction, rebounded with more than one percent gains on November 1, backed by buying across sectors. Healthy GST collection for October, strong manufacturing PMI data and better-than-expected auto sales for October lifted sentiment.
The BSE Sensex rallied 831.53 points or 1.40 percent to close at 60,138.46, while the Nifty50 spiked 258 points or 1.46 percent to end at 17,929.70 and formed bullish candle on the daily charts.
"A long bull candle was formed on the daily chart, which indicates sharp upside bounce in the market after the intense weakness of the last two sessions. Having declined sharply in last week, the present upside bounce could be considered as a pullback rally of a down trend. This upmove could find strong resistance around 18,100-18,200 levels in this week," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
According to him, Monday's sharp upside bounce could be an indication of strong comeback of bulls from the lows. "But, having formed a negative chart pattern recently, we expect this pull back to halt around 18,100-18,200 levels before showing another round of weakness from the highs."
He feels if the hurdle of 18,200 gets broken decisively on the upside, then the present negative chart pattern could be nullified and the market could continue with further upside.
The broader markets also traded in line with benchmarks as the Nifty Midcap 100 index was up 1.82 percent and Smallcap 100 index gained 0.86 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 17,766.5, followed by 17,603.3. If the index moves up, the key resistance levels to watch out for are 18,023.5 and 18,117.3.
The Nifty Bank climbed 648.20 points or 1.66 percent to 39,763.80 on November 1. The important pivot level, which will act as crucial support for the index, is placed at 39,302.06, followed by 38,840.33. On the upside, key resistance levels are placed at 40,044.06 and 40,324.33 levels.
Call option data
Maximum Call open interest of 22.17 lakh contracts was seen at 19,000 strike, which will act as a crucial resistance level in the November series.
This is followed by 18,000 strike, which holds 19.11 lakh contracts, and 18500 strike, which has accumulated 17.92 lakh contracts.
Call writing was seen at 18,000 strike, which added 2.95 lakh contracts, followed by 19,000 strike, which added 1.83 lakh contracts and 18,500 strike which added 1.47 lakh contracts.
Call unwinding was seen at 17,500 strike, which shed 31,400 contracts, followed by 18,200 strike which shed 27,650 contracts and 17,000 strike which shed 14,000 contracts.
Put option data
Maximum Put open interest of 21.65 lakh contracts was seen at 17,000 strike, which will act as a crucial support level in the November series.
This is followed by 17,500 strike, which holds 21.08 lakh contracts, and 18,000 strike, which has accumulated 17.24 lakh contracts.
Put writing was seen at 18,000 strike, which added 2.21 lakh contracts, followed by 17,500 strike which added 1.92 lakh contracts and 17,000 strike which added 1.54 lakh contracts.
Put unwinding was seen at 17,600 strike, which shed 96,800 contracts, followed by 18,100 strike which shed 90,750 contracts, and 18,200 strike which shed 70,900 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
93 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.
6 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 six stocks in which long unwinding was seen.
16 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 top 10 stocks in which a short build-up was seen.
76 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.
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Analysts/Investors Meeting & Results Calendar
November 2: Bharti Airtel, HPCL, Sun Pharmaceutical Industries, Bank of India, Godrej Properties, Union Bank of India, Advanced Enzyme Technologies, Bajaj Healthcare, BASF India, Bharat Gears, Bombay Dyeing, Dabur India, Easy Trip Planners, eClerx Services, GE Power India, Gillette India, Indoco Remedies, Jindal Steel & Power, Jyothy Labs, Laxmi Organic Industries, Minda Corporation, MTAR Technologies, NCL Industries, NOCIL, PNB Housing Finance, Prince Pipes and Fittings, Radico Khaitan, R Systems International, Stove Kraft, Trent, and Unichem Laboratories will release September quarter earnings on November 2.
Cigniti Technologies: The company's officials will meet SMIFS Capital, Seraphic Management and Advisory, and Investor First Advisors on November 2.
Indian Railway Finance Corporation: The company's officials will meet analysts and investors on November 2, to discuss Q2FY22 results.
Rolex Rings: The company's officials will meet analysts and investors on November 2, to discuss financial results.
Krsnaa Diagnostics: The company's officials will meet Tata Mutual Fund, and Enam Holdings on November 2.
Cipla: The company's officials will meet Amansa Capital on November 2.
HFCL: The company's officials will meet institutional investors during November 2-November 20.
Stocks in News
PI Industries: Since Ind Swift Laboratories has not been able to complete several of pre-agreed conditions precedents, the Business Transfer Agreement with Ind Swift stands terminated.
Hero MotoCorp: The company sold 5.48 lakh units in October 2021 against 8.07 lakh units sold in October 2020.
Muthoot Finance: RBI cancelled company's White Label ATMs business licence.
Eicher Motors: Royal Enfield sales fell to 44,133 units in October 2021, against 66,891 units in October 2020.
Yes Bank: The bank completed the transaction for sale of stake in YES Asset Management and YES Trustee to GPL Finance & Investments.
Tata Motors: The company posted loss of Rs 4,415.5 crore in Q2FY22 against loss of Rs 307.3 crore in Q2FY21, revenue jumped to Rs 61,378.8 crore from Rs 53,530 crore YoY.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 202.13 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 116.01 crore in the Indian equity market on November 1, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Two stocks--Punjab National Bank and Escorts--are under the F&O ban for November 2. 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 investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.)