The positive global sentiment and FII buying helped benchmark indices clock one percent gains and close at a three-month high on August 1. The market continued its northward journey for the fourth consecutive session along with the formation of a bullish candlestick pattern.
The BSE Sensex rallied 545 points to 58,115, while the Nifty50 jumped 182 points to 17,340 and formed a higher high higher low formation for the third consecutive session.
"A long bull candle was formed on the daily chart after opening gap-up with small lower shadow. Technically, this market action indicates a continuation of upside momentum in the market. Though Nifty is placed at the highs with a vertical type of upmove in the last few sessions, still there is no indication of any reversal pattern unfolding at the highs," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Shetti further said minor consolidation or intraday volatility could be expected at the hurdle of 17,400-17,500 levels and that could eventually be taken out on the upside in the near term. The near-term upside target to be watched is 17,800 levels while immediate support is placed at 17,150 levels, the analyst added.
The broader markets also gained strength with the Nifty Midcap 100 and Smallcap 100 indices rising 1.7 percent and 1.8 percent, respectively.
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
As per the pivot charts, the key support level for the Nifty is placed at 17,211, followed by 17,082. If the index moves up, the key resistance levels to watch out for are 17,413 and 17,485.
The Nifty Bank also traded in line with broader space, rising 412 points or 1.1 percent to close at 37,903 and formed a bullish candlestick pattern on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 37,560, followed by 37,218. On the upside, key resistance levels are placed at 38,093 and 38,282 levels.
Maximum Call open interest of 21.5 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the August series.
This is followed by 17,500 strike, which holds 14.89 lakh contracts, and 17,000 strike, which has accumulated 14.25 lakh contracts.
Call writing was seen at 18,000 strike, which added 3.58 lakh contracts, followed by 18,500 strike which added 3.38 lakh contracts, and 17,800 strike which added 2.83 lakh contracts.
Call unwinding was seen at 17,000 strike, which shed 2.27 lakh contracts, followed by 17,100 strike which shed 1.43 lakh contracts and 17,200 strike which shed 85,950 contracts.
Put option data
Maximum Put open interest of 26.19 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the August series.
This is followed by 16,000 strike, which holds 20.44 lakh contracts, and 17,000 strike, which has accumulated 20.27 lakh contracts.
Put writing was seen at 17,000 strike, which added 4.47 lakh contracts, followed by 17,300 strike, which added 4.2 lakh contracts and 17,500 strike which added 4.18 lakh contracts.
Put unwinding was seen at 16,200 strike, which shed 50,900 contracts, followed by 16,300 strike which shed 24,600 contracts, and 18,000 strike which shed 7,000 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Crompton Greaves Consumer Electricals, Power Grid Corporation of India, ICICI Lombard General Insurance, HDFC Bank, and Atul, among others.
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 including Chambal Fertilizers, Bosch, Bank Nifty, Abbott India, and Syngene International, in which a long build-up was seen.
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 including Bank of Baroda, IndusInd Bank, United Breweries, Grasim Industries, and Nestle India, in which long unwinding was seen.
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 including Voltas, Indian Oil Corporation, Firstsource Solutions, MCX India, and Escorts, in which a short build-up was seen.
59 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 including Gujarat Gas, Punjab National Bank, Nippon Life India, Hindalco Industries, and Cholamandalam Investment, in which short-covering was seen.
Agarwal Industrial Corporation: Ashish Rameshchandra Kacholia acquired 3,72,128 equity shares in the company via open market transactions at an average price of Rs 505 per share on the NSE.
Mastek: Smallcap World Fund Inc bought 5,54,883 equity shares in the company via open market transactions at an average price of Rs 2,109.96 per share. However, Ashish Kacholia sold 5.5 lakh shares at Rs 2,110 per share.
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Bosch, Indus Towers, Siemens, Adani Green Energy, Bank of India, Voltas, Brigade Enterprises, Deepak Nitrite, Dhanuka Agritech, Dodla Dairy, Gateway Distriparks, Gati, Godrej Properties, Gravita India, JM Financial, Jubilant Pharmova, Lemon Tree Hotels, MOIL, Paradeep Phosphates, RPG Life Sciences, Schneider Electric Infrastructure, Shyam Metalics and Energy, Thermax, Tube Investments of India, and Vaibhav Global will be in focus ahead of their June quarter earnings on August 2.
Stocks in News
ITC: The company recorded a 38.3% year-on-year growth in standalone profit at Rs 4,169.4 crore for the quarter ended June 2022, on strong topline and operating performance. Revenue grew by 41.4% YoY to Rs 18,320 crore during the June FY23 quarter with growth across segments. EBITDA surged 41.5% YoY to Rs 5,647.2 crore in Q1FY23.
Zomato: The food delivery giant posted consolidated loss at Rs 186 crore for the quarter ended June 2022, which narrowed compared to loss of Rs 360.7 crore in Q1FY22 and loss of Rs 360 crore in Q4FY22. It was backed by other income that more than doubled to Rs 168.1 crore from Rs 72.2 crore YoY. Revenue grew by 67.4% YoY and 16.67% QoQ to Rs 1,413.9 crore during June FY23 quarter.
Pfizer: The company has received Rs 180.48 crore from Mylan after it has transferred Upjohn business (rimarily off-patent branded and generic established medicines business) comprising of six brands which included Lyrica, Viagra, Celebrex, Amlogard, Daxid and Dilantin along with related business assets and liabilities to Mylan.
Nelcast: The ductile and grey iron castings producer has clocked a 283.5% year-on-year growth in profit at Rs 7.8 crore for the quarter ended June 2022, driven by healthy operating performance and top line. Revenue grew by 60% to Rs 295.2 crore with growth in volumes and better realisation, while EBITDA increased by 60.4% to Rs 23.3 crore during the same period.
Castrol India: The company reported a 47.3% year-on-year growth in profit at Rs 206.26 crore for the quarter ended June 2022 despite higher input cost, driven by strong top line and operating performance. Revenue grew by 40% YoY to Rs 1,241.71 crore during the same period.
NMDC: The mineral producer recorded monthly production of iron ore at 2.05 million tonnes in July 2022, declining from 3.06 million tonnes in July 2021 and sales dropped to 2.95 million tonnes from 3.29 million tonnes during the same period.
Eicher Motors: The company sold 5,982 units in the commercial vehicle segment in July 2022, up 40.1% compared to 4,271 units sold in same month last year, with domestic sales increasing 51% to 5,360 units but exports fell 22% to 501 units in the same period.
Kansai Nerolac Paints: The company reported a 36.5% YoY growth in consolidated profit at Rs 152 crore in the quarter ended June 2022 despite sharp increase in input cost, supported by operating performance and top line. Revenue grew by 46% YoY to Rs 2,051.40 crore during the same period.
Fund Flow
Foreign institutional investors (FIIs) net bought shares worth Rs 2,320.61 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 822.23 crore on August 1, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Since it's the beginning of the new monthly F&O series, there isn't any stock in the NSE F&O ban list for August 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.
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