Rising tensions between the US and Iran spooked Indian investors causing a strong market selloff on January 6. Investors dumped riskier equities and rushed to safe-haven assets.
The BSE Sensex lost 788 points, or 1.90 percent, to close at 40,676.63, while Nifty 50 settled 234 points, or 1.91 percent lower, at 11,993.05. The BSE Midcap and Smallcap indices fell 2.31 percent and 1.96 percent, respectively.
Rising Middle East tensions wiped out almost Rs 3 lakh crore in market wealth, pushed crude oil prices towards $70/bbl, and rupee to its lowest level since November 14.
"Technically, with the Nifty breaking the support of 12,151 and trending lower, the short-term trend has turned down. Further downsides are likely once the immediate support of 11,974 is broken. Any pullback rallies could find resistance at 12,099," said Deepak Jasani, Head of Retail Research at HDFC securities.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, the key support level for Nifty is placed at 11,918.43, followed by 11,843.87. If the index moves up, key resistance levels to watch out for are 12,123.33 and 12,253.67.
Nifty Bank closed 2.59 percent down at 31,237.15. The important pivot level, which will act as crucial support for the index, is placed at 30,967.07, followed by 30,696.93. On the upside, key resistance levels are placed at 31,710.87 and 32,184.54.
Call options data
Maximum call open interest (OI) of 26.39 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.
This is followed by 12,200 strike price, which holds 24.39 lakh contracts in open interest, and 12,300, which has accumulated 21.87 lakh contracts in open interest.
Significant call writing was seen at the 12,200 strike price, which added 7.29 lakh contracts, followed by 12,300 strike price that added 6 lakh contracts and 12,400 strike which added 4.8 lakh contracts.
Call unwinding was witnessed at 11,500 strike price, which shed 25,875 contracts.
Put options data
Maximum put open interest of 41.21 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.
This is followed by 11,500 strike price, which holds 28.43 lakh contracts in open interest, and 12,200 strike price, which has accumulated 17.96 lakh contracts in open interest.
Put writing was seen at the 11,600 strike price, which added nearly 2.76 lakh contracts, followed by 11,500 strike, which added 2.69 lakh contracts and 11,800 strike which added 2.49 lakh contracts.
Put unwinding was seen at 12,200 strike price, which shed 2.9 lakh contracts, followed by 12,300 strike which shed 2.19 lakh contracts and 12,100 which shed 1.96 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
6 stocks saw long buildup
37 stocks saw long unwinding
Based on open interest (OI) future percentage, here are the top 10 stocks in which long unwinding was seen.
103 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 open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
One stock witnessed short-covering
Titan was the only stock that witnessed short-covering on January 6, data showed. A decrease in open interest, along with an increase in price, mostly indicates a short covering.
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Upcoming analyst or board meetings/briefings
Mudra Financial Services: The board will meet on January 7 for general purposes.
Modison Metals: The board will meet on January 7 for general purposes.
GM Breweries: The board will meet on January 7 to consider and approve quarterly results.
Finkurve Financial Services: The board will meet on January 7 to consider and approve preferential issuance of shares.
Stocks in the news
HDFC Bank: Advances in Q3FY20 jumped 20 percent to Rs 9.34 lakh crore, deposits grew 25 percent to Rs 10.67 lakh crore YoY.
PI Industries: A factory accident occurred in one section of a multi-product plant at Jambusar fine chemical manufacturing site in Gujarat.
VST Tillers Tractors: Power tillers sales in December increased 4.3 percent to 1,410 units, tractors sales dipped 39.2 percent to 366 units YoY.
Mishra Dhatu: Company delivered ultra high strength steel & cobalt alloys for 'Gaganyaan' of ISRO.
Sagar Cements: Consolidated December cement production down 7.5 percent to 3 lakh tonnes and sales dip 4.3 percent to 3.12 lakh tonnes YoY.
Avenue Supermarts: Company allotted listed commercial paper of Rs 100 crore.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 103.84 crore, while domestic institutional investors (DIIs), too, sold shares of worth Rs 23.7 crore in the Indian equity market on January 6, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Yes Bank is under the F&O ban for January 7. 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.