The market ended a volatile and consolidative session on a flat note on September 2 amid mixed global cues. Select banking & financial services, FMCG, and metal stocks gained, whereas some auto, IT, and pharma stocks were under pressure.
In fact, the benchmark indices remained within the trading range of August 30th’s. The BSE Sensex gained 37 points at 58,803, while the Nifty50 declined 3 points to 17,540 and formed bearish candle on the daily charts. The index lost 0.1 percent for the week, but formed bullish candlestick pattern on the weekly scale as the closing was higher than opening levels.
“It appears to be the day of consolidation on the bourses as the Nifty50 remained in a somewhat narrow trading range with an indecisive formation. However, the near-term trend seems to be sideways inside the trading range of the Long White Day kind of formation, registered on August 30, present between 17,401 and 17,777 levels,” said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.
Hence, the strength in the index shall not be expected unless it closes above 17,771 levels whereas weakness shall resume on a close below 17,380 levels.
Therefore, for the time being, traders can remain neutral on the long side but shorting can be considered below 17,380 levels for a target of 17,190, the market expert said.
The broader markets witnessed a bit of profit booking after recent run-up. The Nifty Midcap 100 and Smallcap 100 indices gained 0.36 percent and 0.17 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 17,462, followed by 17,386. If the index moves up, the key resistance levels to watch out for are 17,630 and 17,721.
Nifty Bank
The Nifty Bank rallied 120 points to close at 39,421, and formed Doji pattern on the daily charts on Friday. The important pivot level, which will act as crucial support for the index, is placed at 39,216, followed by 39,010. On the upside, key resistance levels are placed at 39,611 and 39,801 levels.
Call option data
Maximum Call open interest of 20.98 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the September series.
This is followed by 19,000 strike, which holds 17.59 lakh contracts, and 18,500 strike, which has accumulated 17.15 lakh contracts.
Call writing was seen at 17,600 strike, which added 3.46 lakh contracts, followed by 17,500 strike which added 1.91 lakh contracts and 18,600 strike which added 1.18 lakh contracts.
Call unwinding was seen at 18,000 strike, which shed 1.31 lakh contracts, followed by 17,000 strike which shed 21,400 contracts and 18,700 strike which shed 17,950 contracts.
Put option data
Maximum Put open interest of 42.1 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the September series.
This is followed by 16,500 strike, which holds 33.18 lakh contracts, and 17,500 strike, which has accumulated 30.44 lakh contracts.
Put writing was seen at 16,000 strike, which added 2.81 lakh contracts, followed by 17,600 strike, which added 2.71 lakh contracts and 16,900 strike which added 1.24 lakh contracts.
Put unwinding was seen at 18,000 strike, which shed 1.71 lakh contracts, followed by 16,500 strike which shed 56,250 contracts, and 16,600 strike, which shed 28,900 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 ACC, Honeywell Automation, Bajaj Auto, Atul, and Persistent Systems, among others.
41 stocks saw long build-up
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 Nifty Financial, IndiaMART Intermesh, Astral, Delta Corp, and ITC, in which a long build-up was seen.
56 stocks saw long unwinding
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 PVR, Apollo Tyres, Mahanagar Gas, GNFC, and ICICI Bank, in which long unwinding was seen.
81 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 the open interest future percentage, here are the top 10 stocks including Coromandel International, Biocon, Persistent Systems, Tata Chemicals, and Syngene International, in which a short build-up was seen.
17 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 TVS Motor Company, HDFC, GMR Infrastructure, Ashok Leyland, and State Bank of India, in which short-covering was seen.
Bulk Deals
ACC: Morgan Stanley Asia (Singapore) Pte acquired 9,41,557 equity shares in the company via open market transactions at an average price of Rs 2,290 per share.
Indowind Energy: Indus Finance Corporation sold 5.5 lakh shares in the company at an average price of Rs 15.18 per share.
PVR: Societe Generale – ODI bought 3,23,158 equity shares in the company at an average price of Rs 1,861.42 per share.
Yash Pakka: Aegis Investment Fund sold 2,99,286 equity shares in the company at an average price of Rs 120.85 per share.
Investors Meetings on September 5
Endurance Technologies: Officials of the company will meet multiple investors during September 5-8 at Singapore. These meetings are organised by Investec Capital Services (I).
Voltas: Officials of the company will meet C Worldwide Asset Management, Denmark.
VRL Logistics, Eris Lifesciences, Kalyan Jewellers India, Nazara Technologies, Mahanagar Gas, Info Edge, Asian Paints, MM Forgings, Dr Lal PathLabs: Officials of the companies will attend Spark Capital Investor Conference.
Inox Leisure: Officials of the company will meet Taiyo Pacific.
5paisa Capital: Officials of the company will meet Altavista Capital.
UNO Minda: Officials of the company will meet ICICI Prudential Mutual Fund, Kotak Mutual Fund, and Max Life Insurance Company.
Titan Company: Officials of the company will meet Martin Currie Investment Management.
Stocks in News
SpiceJet: The company has got a three-month extension to hold an annual general meeting (AGM). According to a news report, the firm is also likely to get Rs 225 crore under the government’s credit guarantee scheme next week.
Vodafone Idea: According to an ET report, the telecom company has prepaid a short-term loan of around Rs 2,700 crore to State Bank of India. This has been done to shore up lenders’ confidence as it urgently seeks fresh bank funds to tie up equipment supply deals for 5G networks and clear some of its near Rs 15,000 crore trade payables, comprising dues to tower companies, network gear vendors and other suppliers, the report added.
HFCL: HFCL’s board approved raising up to Rs 650 crore which will be invested in enhancing R&D facilities, setting up new production facilities to enhance capacity under the production linked incentive (PLI) scheme and design linked incentive (DLI) scheme.
Olectra Greentech: The company has bagged an order worth Rs 151 crore for supplying 100 electric buses to the Assam State Transport Corporation. This is the first order for the company from northeastern states, given on an outright basis. The buses will be delivered over a period of nine months, and maintenance will be taken care of for the next five years by Olectra.
GMR Infrastructure: GMR Infrastructure approved raising funds of up to Rs 6,000 crore via foreign currency convertible bonds and/or any other security. The funds will be used for various infrastructure projects currently undertaken by the group.
Hinduja Global Solutions: Shareholders of NxtDdigital Ltd. have voted in favour of the company’s merger with Hinduja Global Solutions Ltd. “99.99% non-promoter shareholders voted in favour of the scheme of arrangement between Nxtdigital Ltd. and Hinduja Global Solutions Ltd.,” the digital television services provider said in a statement. According to the regulatory updates, 75.25 lakh votes were polled in which 75.24 lakh were in favour of the scheme and 1,022 against it.
Fund Flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 8.79 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 668.74 crore on September 2, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has added Delta Corp in F&O ban list for September 5. 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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