The market continued to scale new highs for yet another session, though there was profit-taking at higher levels which resulted in an off-day's high close for the benchmark indices on June 18. Technology stocks and Reliance Industries supported the market.
The BSE Sensex rose 205 points to 66,795, while the Nifty50 advanced 38 points to 19,749 and formed a bearish candlestick pattern with minor upper and lower shadows on the daily charts.
"Technically, such patterns are called high wave type candle patterns. By nature, the formation of a high wave at the hurdle/swing highs reflect high volatility and sometimes act as a reversal pattern, post confirmation," Nagaraj Shetti, technical research analyst at HDFC Securities said.
But "any formation of major reversal pattern is ruled out and one may expect consolidation or minor weakness in the next 1-2 sessions", he said.
He believes that the near-term trend of Nifty remains up and any consolidation from here could be a buy-on-dips opportunity. Immediate support is placed at 19,550-19,600 levels and the upper area of 19,800-19,850 could act as a short-term resistance, Shetti said.
The broader markets were under pressure on weak breadth. The Nifty Midcap 100 index fell 0.14 percent and Smallcap 100 index declined 0.94 percent, while the India VIX increased further by 3.49 percent to 11.71 levels.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks are the aggregates of three-month data and not just the current month
Key support, resistance levels on Nifty
The pivot point calculator suggests that the Nifty may get support at 19,704 followed by 19,673 and 19,624. In case of an upside, 19,802 can be a key resistance area followed by 19,833 and 19,882.
On July 18, Bank Nifty hit a fresh record high of 45,906, but failed to hold on to gains due to selling pressure in the later part of the session. The index fell 39 points to 45,411 and formed a bearish candlestick pattern on the daily timeframe.
"Bank Nifty consolidated after a sharp surge in the previous trading session. This consolidation is a healthy sign, and any dip should be used as a buying opportunity," Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas said.
He further said the daily momentum indicator has a positive crossover and thus any dip is a buying opportunity. On the upside, he expects the Bank Nifty to target levels of 46,000 and 46,500.
The pivot point calculator indicates that Bank Nifty is likely to take support at 45,294, followed by 45,147 and 44,908, while 45,771 can be the initial resistance zone followed by 45,919 and 46,157.
We continued to see the maximum weekly Call open interest (OI) at 20,000 strike, with 99.28 lakh contracts, which can act as a resistance for the Nifty in the coming sessions.
This is followed by 83.78 lakh contracts at 19,800 strike, while 19,900 strike has 75.09 lakh contracts.
Meaningful Call writing was seen at 20,300 strike, which added 34.34 lakh contracts, followed by 19,800 and 20,000 strikes, which added 23.91 lakh contracts and 21.41 lakh contracts.
Maximum Call unwinding was at 19,600 strike, which shed 33.14 lakh contracts, followed by 19,500 and 19,700 strikes, which shed 9.2 lakh and 6.61 lakh contracts.
On the Put side, the maximum open interest was at 19,600 strike, with 89.87 lakh contracts, which could be an important support for the Nifty.
This was followed by the 19,500 strike, comprising 85.73 lakh contracts, and the 19,400 strike, which had 78.93 lakh contracts.
Put writing was seen at 19,200 strike, which added 30.08 lakh contracts, followed by 19,700 and 19,800 strikes, which added 24.88 lakh and 11.14 lakh contracts, respectively.
We have seen Put unwinding at 19,600 strike, which shed 45.15 lakh contracts, followed by 19,500 and 18,900 strikes, which shed 19.92 lakh contracts and 7.2 lakh contracts respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Voltas, Syngene International, UPL, Container Corporation of India, and Power Grid Corporation of India among others.
Polycab India, Havells India, Persistent Systems, Infosys, and Bosch were among the 31 stocks to see a long build-up based on the open interest (OI) percentage. An increase in open interest and price indicates a build-up of long positions.
Based on the OI percentage, 48 stocks, including RBL Bank, Can Fin Homes, Syngene International, ICICI Lombard General Insurance and Container Corporation of India saw a long unwinding. A decline in OI and price indicates a long unwinding.
82 stocks see a short build-up
A short build-up was seen in 82 stocks, including Coforge, Titan Company, M&M Financial Services, Mahanagar Gas, and United Spirits. An increase in OI along with a price fall indicates a build-up of short positions.
Based on the OI percentage, 25 stocks were on the short-covering list. These included Reliance Industries, Delta Corp, Ipca Laboratories, Indraprastha Gas and Hindustan Aeronautics. A decrease in OI along with a price increase is an indication of short-covering.
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Stocks in the news
L&T Technology Services: The engineering services company has recorded a 13 percent year-on-year growth in profit at Rs 311 crore for the quarter ended June FY24 and revenue from operations grew by 15 percent YoY to Rs 2,301.4 crore for the quarter, but sequentially dropped 8.5 percent and 2.9 percent respectively. Revenue in dollar terms for the quarter grew by 9.1 percent YoY to $280 million, but fell 2.9 percent QoQ.
IndusInd Bank: The private sector lender has registered a 32.5 percent year-on-year rise in standalone profit at Rs 2,123.6 crore for the quarter ended June FY24 as provisions and contingencies dropped 20.7 percent YoY to Rs 991.6 crore. Net interest income grew by 18 percent YoY to Rs 4,867.1 crore for the quarter, with net interest margin expanding to 4.29 percent from 4.21 percent in the same period.
CIE Automotive India: The automotive components manufacturer has recorded nearly 60 percent year-on-year growth in consolidated profit at Rs 301.7 crore for the quarter ended June 2023 (Q2CY23), backed by higher other income, and strong operating income. The profit also included higher income from discontinued operations. Revenue for the quarter grew by 4.7 percent YoY to Rs 2,320.3 crore.
Himadri Speciality Chemical: The speciality chemical company has registered a massive 123.2 percent year-on-year growth in consolidated profit at Rs 86.15 crore for the quarter ended June FY24 on lower input cost and other expenses. Revenue dropped 9.1 percent to Rs 950.91 crore compared to the year-ago period.
State Bank of India: The country's largest public sector lender has received approval from its competent authority to set up a new trustee company as its wholly owned subsidiary for managing Corporate Debt Market Development Fund. SBI Funds Management is identified as the investment manager cum sponsor of the said fund.
Mazagon Dock Shipbuilders: Sanjeev Singhal, who is currently Director (Finance), has been given an additional charge of Chairman & MD of the shipbuilding company for a further period of six months with effect from August 1.
BL Kashyap and Sons: The civil engineering and construction company has secured new order worth Rs 369 crore. With this, the company's total order book as of date stands at Rs 3,086 crore. The said order is expected to be executed within 33 months.
Avanti Feeds: The shrimp exporter has incorporated a new subsidiary Avanti Pet Care in Hyderabad, Telangana. The new subsidiary will be manufacturing and trading pet food and pet care products.
Fund Flow
Foreign institutional investors (FII) have bought shares worth Rs 2,115.84 crore, whereas domestic institutional investors (DII) sold shares worth Rs 1,317.56 crore on July 18, provisional data from the National Stock Exchange (NSE) shows.
Stocks under F&O ban on NSE
The NSE has retained Delta Corp, Indiabulls Housing Finance, Manappuram Finance, and RBL Bank on its F&O ban list for July 19. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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