The equity market witnessed correction for the first time in the last four sessions as it lost around half a percent on May 31, weighed down by banking & financial services, and select pharma and IT stocks.
The BSE Sensex fell over 350 points to 55,566 after rising more than 2,100 points in the previous three sessions, while the Nifty50 declined 77 points to 16,584.5 and formed an Inside Bar or Doji kind of pattern on the daily charts.
"A Doji type candle pattern was formed on the daily chart, which is placed beside the long bull candle of Monday. Technically, this pattern indicates a cooling off of the uptrend post sharp upmove. This could be considered as a temporary halt in the upside momentum," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He further said the formation of higher tops and bottoms is intact on the daily chart and current consolidation could indicate a possibility of another minor higher bottom formation in the next few sessions. The immediate resistance of 200-day EMA is placed at 16,750 levels, the market expert added.
In the broader space, the Nifty Midcap 100 index fell 0.13 percent and Smallcap 100 index gained 1.24 percent as the market breadth was moderately in favour of bulls.
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 16,507, followed by 16,430. If the index moves up, the key resistance levels to watch out for are 16,676 and 16,768.
Nifty Bank fell 340 points to close at 35,487 on Tuesday. The important pivot level, which will act as crucial support for the index, is placed at 35,224, followed by 34,960. On the upside, key resistance levels are placed at 35,817 and 36,146 levels.
Maximum Call open interest of 21.83 lakh contracts was seen at 17,500 strike, which will act as a crucial resistance level in the June series.
This is followed by 17,000 strike, which holds 21.65 lakh contracts, and 18,000 strike, which has accumulated 14.75 lakh contracts.
Call writing was seen at 17,500 strike, which added 1.99 lakh contracts, followed by 17,300 strike which added 89,500 contracts and 17,400 strike which added 88,750 contracts.
Call unwinding was seen at 16,500 strike, which shed 72,400 contracts, followed by 16,200 strike which shed 62,100 contracts and 16,800 strike which shed 42,050 contracts.
Maximum Put open interest of 38.54 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the June series.
This is followed by 15,500 strike, which holds 31.11 lakh contracts, and 15,000 strike, which has accumulated 23.82 lakh contracts.
Put writing was seen at 16,000 strike, which added 5.41 lakh contracts, followed by 16,500 strike, which added 2.66 lakh contracts and 15,600 strike which added 59,550 contracts.
Put unwinding was seen at 15,100 strike, which shed 1.11 lakh contracts, followed by 16,300 strike which shed 41,650 contracts, and 15,500 strike which shed 14,400 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 Ambuja Cements, Kotak Mahindra Bank, ICICI Prudential Life Insurance, Godrej Consumer Products, and Havells India, 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 ABB India, Astral, Max Financial Services, Vedanta, and MCX India, 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 Nifty Financial, Jubilant Foodworks, Nifty, BPCL, and Whirlpool of 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 AU Small Finance Bank, Aarti Industries, L&T Technology Services, Apollo Tyres, and Metropolis Healthcare, in which a short build-up was seen.
62 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 NTPC, Apollo Hospitals Enterprises, Shriram Transport Finance, Tata Consumer Products, and HDFC AMC, in which short-covering was seen.
Mold-Tek Packaging: Eam Long-Only Emerging Markets Master Fund acquired 2.5 lakh equity shares in the company via open market transactions at an average price of Rs 735 per share.
Nxtdigital: Aasia Corporation LLP sold 7,00,879 equity shares in the company via open market transactions at an average price of Rs 370 per share. However, Hinduja Group was the buyer for those shares at same price.
(For more bulk deals, click here)
Investors Meetings on June 1
Tata Consumer Products: The company's officials will meet Jefferies, and Citadel International Equities.
GMM Pfaudler: The company's officials will attend B&K Conference.
Amber Enterprises India: The company's officials will meet investors.
Orient Electric: The company's officials will meet White Oak Capital.
Suven Pharmaceuticals: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Heranba Industries: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Kalpataru Power Transmission: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Shoppers Stop: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Subros: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Transport Corporation of India: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Century Textiles & Industries: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Cera Sanitaryware: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
Rajratan Global Wire: The company's officials will attend B&K Securities Annual Investor Conference - Trinity India 2022.
DCM Shriram: The company's officials will meet Abakkus Asset Manager, UTI Mutual Fund, ICICI Mutual Fund, and Nippon Mutual Fund.
Zydus Wellness: The company's officials will meet analysts.
IRCTC: The company's officials will meet Aegas Life, Birla Sunlife, Motilal MF, Max Life, SBI Life Suyash Advisor, UTI MF etc.
Stocks in News
Bharat Dynamics: The state-owned defence company has signed a contract worth Rs 2,971 crore with Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) air to air missile and associates equipments to Indian Air Force & Indian Navy.
Gujarat Themis Biosyn: Jagadish G Kaujalgi has resigned as Chief Executive Officer of the company with effect from July 10.
Somany Ceramics: Saikat Mukhopadhyay has resigned as Chief Financial Officer of the company. He ceased to be Chief Financial Officer of the company w.e.f. May 31.
Venus Remedies: Promoter Pawan Chaudhary acquired 1.26 lakh equity shares in the company via open market transactions. His shareholding in the company stands increased to 12.82 percent, up from 11.87 percent earlier.
HFCL: The company, along with its material subsidiary HTL, has received the purchase orders ('PO') of Rs 237.25 crore, from one of the leading private telecom operators of the country. The company will supply optical fibre cables. The contract will be executed by October 2022.
Rail Vikas Nigam: Joint venture RVNL - Bhartia has received Letter of Acceptance (LoA) from Northeast Frontier Railway for construction of single line BG tunnel. The total estimated cost of the project is Rs 560.26 crore.
Fund Flow
Foreign institutional investors (FIIs) have net sold Rs 1,003.56 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,845.15 crore worth of shares on May 31, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has not put any stock under its F&O ban segment for June 1. 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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