Concerns over depreciating rupee and rising geopolitical tensions continued to keep investors on the edge as benchmark stock indices continued their freefall for the second straight day on September 17.
Global crude oil prices eased slightly but remained on the elevated levels while the threat of retaliation over the attacks on Saudi oil facilities kept investors on tenterhooks.
The Indian rupee weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices.
Sensex closed the day 642 points lower at 36,481.09 while Nifty closed 186 points or 1.69 percent lower at 10,817.60. Among the 50 stocks in the Nifty index, 44 incurred losses.
Both Nifty and Nifty Bank turned negative for the calendar 2019. Nifty Bank index closed 723 points or 2.60 percent down at 27,131.75.
India VIX climbed 7.12 percent to 16.02 level.
Nifty formed a bearish belt hold candle on the daily chart and has also broken its rising support trend line by connecting swing lows of 10,637, 10,746 then 10,880 levels.
Experts feel the sentiments are expected to remain weak and if index remains below 10,880 levels then the weakness could continue in coming sessions.
"The benchmark index is now set to test the August low of 10,637 with the potential to tumble towards 10,455 in the short term. Hence any bounce towards 10,880-10,900 can be taken as an opportunity to initiate a fresh short position," said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, key support level for Nifty is placed at 10,742.7, followed by 10,667.8. If the index starts moving up, key resistance levels to watch out for are 10,946.3 and 11,075.
Nifty Bank
The Nifty Bank closed with a strong loss of 2.60 percent at 27,131.75 on September 17. The important pivot level, which will act as crucial support for the index, is placed at 26,836, followed by 26,540.2. On the upside, key resistance levels are placed at 27,639.5 and 28,147.2.
Call options data
Maximum call open interest (OI) of 33 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in the September series.
This is followed by 11,200 strike price, which now holds 31.45 lakh contracts in open interest, and 11,100, which has accumulated 23.16 lakh contracts in open interest.
Significant call writing was seen at the 11,000 strike price, which added 12.30 lakh contracts, followed by 10,900 strike price that added 7.09 lakh contracts and 11,100 strike which added 3.40 lakh contracts.
Call unwinding was seen at 11,300 strike price, which shed 4.82 lakh contracts.
Put options data
Maximum put open interest of 36.15 lakh contracts was seen at 10,800 strike price, which will act as crucial support in September series.
This is followed by 10,600 strike price, which holds 31.14 lakh contracts in open interest, and 11,000 strike price, which has accumulated 24.29 lakh contracts in open interest.
Put writing was seen at the 10,800 strike price, which added 5.92 lakh contracts, followed by 10,600 strike, which added 4.01 lakh contracts and 10,500 strike which added 1.39 lakh contracts.
Put unwinding was seen at 11,000 strike price, which shed 5.22 lakh contracts, followed by 10,900 strike which shed 4.12 lakh contracts and 11,100 strike which shed 1.76 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
67 stocks saw long unwinding
84 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
6 stocks saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
Bulk deals
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Upcoming analyst or board meetings/briefings:
Indian Bank: The board of directors is scheduled to meet on September 18 to consider and approve the amalgamation of Allahabad Bank into Indian Bank and capital infusion by the government by way of preferential issue of shares.
Onelife Capital Advisors: The board of the company is to meet on September 18 for general purpose.
Oriental Bank of Commerce: The board of directors of the bank is scheduled to meet on September 18 to consider the amalgamation of Oriental Bank of Commerce, United Bank of India and Punjab National Bank.
United Bank of India: The board of directors of the bank is scheduled to meet on September 18 to consider the amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and raising of capital up to Rs 3,000 crore through preferential allotment of shares.
IDBI Bank: The board of directors of the bank is scheduled to meet on September 19 to consider the preferential issue of capital to the government and LIC.
Punjab & Sind Bank: The board of directors of the bank is scheduled to meet on September 19 to consider capital infusion up to Rs 800 crore by the Government of India through preferential issue of shares.
Stocks in news:
Bajaj Finance: The board of the company has approved raising up to Rs 8,500 crore via QIP.
Coffee Day: The company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Limited. The transaction is at an enterprise value of Rs 2,700 crore and will substantially bring down the debt level of the group.
DHFL: The company has defaulted on a total of Rs 256 crore worth of interest payment on NCDs.
Ahluwalia Contracts: The company bagged an order of Rs 407 crore in Rewari, Haryana.
Gujarat Alkalies: The company has completed commissioning of 20 MW AC solar power plant installation at Charanka.
Sunteck Realty: The company acquired the premium project in Mumbai for mixed-use development.
Balmer Lawrie: The company has deferred decision on bonus share issue.
NCC: Aditya Birla Sun Life MF has bought 2.2 percent stake in the company.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 808.29 crore, while domestic institutional investors (DIIs) bought Rs 85.76 crore worth of shares in the Indian equity market on September 17, as per provisional data available on the NSE.
Fund Flow
No stock under ban period on NSE
There is no stock under F&O ban for September 18. Securities in 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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