Maximum call open interest (OI) of 29.90 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for August series.
After a flat open and rangebound trade for the most part of the day, the Nifty50 closed mildly lower Wednesday. This was after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 6.5 percent while keeping the policy stance neutral.
The fall in the market is on account of mild profit booking after rising 400-points in the previous four consecutive sessions. The index formed 'Spinning Top' kind of pattern on the daily candlestick charts.
Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend as well as in a downtrend.
Overall it was a volatile session for the market. The Nifty50 after flat opening at 11,359.80 traded higher and hit fresh intraday record high of 11,390.55, but the rally gradually fizzled out in late morning deals amid rangebound trade and hit an intraday low of 11,313.55 after the RBI monetary policy announcement. The index closed 10.30 points lower at 11,346.20.
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"Market appears to have taken a neutral stance to the rate hike as Nifty50 registered an indecisive formation called Spinning Top," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said muted response of bears to the RBI event is suggesting that there may not be a bigger correction going forward but market may consolidate to adjust the readings on technical oscillators which are in extremely overbought zones as market has relentlessly rallied for the last 9 sessions.
Once this corrective and consolidation phase gets over Nifty50 can be expected to resume its upmove with initial targets placed around 11450 levels but beyond that a bigger swing can be expected only on a fresh breakout above 11,500 kind of levels, he added.
According to him, on the downsides initial support can be expected around 11,267 levels breach of which may drag down the indices further towards the bullish gap zone of 11,210–11,185 levels registered on July 27. "As trends across the time frames are strong any such fall shall be considered only as an opportunity to create fresh longs."
India VIX moved up by 0.16 percent at 12.50. Overall lower volatility suggests that bulls are holding the grip on the market.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,346.20 on Wednesday. According to Pivot charts, the key support level is placed at 11,309.63, followed by 11,273.07. If the index starts moving upwards, key resistance levels to watch out are 11,386.63 and 11,427.07.
Nifty Bank
The Nifty Bank index closed at 27,596.60, down 167.55 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 27,442.94, followed by 27,289.27. On the upside, key resistance levels are placed at 27,785.24, followed by 27,973.87.
Call Options Data
Maximum call open interest (OI) of 29.90 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for August series.
This was followed by the 11,400 strike price, which now holds 27.20 lakh contracts in open interest, and 11,600, which has accumulated 18.34 lakh contracts in open interest.
Call writing was seen at the stike price of 11,400, which added 3.38 lakh contracts, followed by 11,600 which added 2.84 lakh contracts and 11,500 which added 2.04 lakh contracts.
Call unwinding was seen at the strike price of 11,200, which shed 0.54 lakh contracts, followed by 11,100, which shed 0.53 lakh contracts.
Put Options data
Maximum put open interest of 51.16 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for August series.
This was followed by the 11,200 strike price, which now holds 31.23 lakh contracts in open interest, and the 11,100 strike price, which has now accumulated 24.54 lakh contracts in open interest.
Put writing was seen at the strike price of 11,000 which added 3.92 lakh contracts, followed by 11,300 which added 3.33 lakh contracts and 11,400 which added 2.7 lakh contracts.
Put Unwinding was seen at the strike price of 10,700 which shed 2.04 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 95.94 crore and domestic institutional investors sold shares worth Rs 562.33 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.
Fund Flow Picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
56 stocks saw long buildup
48 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
61 stocks saw a short build-up
An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.
43 stocks saw long unwinding
Bulk Deals
CIL Nova Petrochemicals: Asia Investment Corporation Mauritius bought 1,37,500 equity shares of the company at Rs 27 per share.
Talwalkar Fitness: Capital World Growth and Income Fund sold 9,60,270 shares of the company at Rs 30.12 per share while Small Cap World Fund Inc sold 2,99,900 shares at Rs 27.71 per share and 3,12,860 shares at Rs 27.72 per share.
Talwalkars Lifestyles: American Funds Insurance Series sold 7,98,150 shares of the company at Rs 153.22 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Kiri Industries: Company has arranged conference between Brairwood Capital, New York and Centrum Broking, Mumbai and Manish Kiri, Managing Director as well as other key managerial persons of the company on August 2. to understand business of the company.
Century Textiles: Analyst/institutional investor meeting with Theleme Partners LLP is scheduled to be held on August 3.
Emami Paper Mills: 36Th Annual General Meeting is scheduled to be held on August 10.
PNB Housing Finance: Earnings Call has been re-scheduled from August 8 to August 9 as board meeting has been re-scheduled due to internal exigencies.
Talwalkars Better Value Fitness: A meeting of the board of directors of the company is scheduled on August 9 to approve April-June quarter earnings.
Thomas Scott (India): A meeting of the board of directors of the company is scheduled on August 13 to approve April-June quarter earnings.
Crompton Greaves Consumer Electricals: Company's management is scheduled to meet Progress Asia Capital & Advisors on August 2 and OHM Group on August 3.
Dr Lal PathLabs: Conference call for investors/ analysts to be held on August 10 to discuss financial and operating performance for Q1FY19.
Khadim India: A meeting of the board of directors of the company is scheduled on August 14 to approve April-June quarter earnings.
Shriram Transport Finance: Meeting with analyst / institutional investor is scheduled to be held on August 2.
Gateway Distriparks: Meeting of the board of directors is scheduled on August 6 to consider and approve raising of funds by issue of debt securities including non-convertible debentures and any other instruments.
Shalimar Paints: A meeting of the board of directors of the company is scheduled on August 10 to approve April-June quarter earnings.
Peninsula Land: A meeting of the board of directors of the company is scheduled on August 9 to approve April-June quarter earnings.
State Trading Corporation of India: A meeting of the board of directors of the company is scheduled on August 10 to approve April-June quarter earnings.
Vivimed Labs: A meeting of the board of directors of the company is scheduled on August 13 to approve April-June quarter earnings.
Corporation Bank: A meeting of the board of directors of the company is scheduled on August 14 to approve April-June quarter earnings.
Eicher Motors: Company has scheduled a conference call on August 9 to discuss unaudited financial results for the first quarter ended June.
Kaveri Seed Company: A meeting of the board of directors of the company is scheduled on August 9 to approve April-June quarter earnings.
Stocks in news
Results on Thursday: ONGC, Marico, Indiabulls Housing Finance, Capital First, Torrent Pharma, Godrej Properties, Pfizer, Akzo Nobel, GE Power, Narayana Hrudayalaya, MOIL, Mahindra Logistics, JK Lakshmi Cement, Deepak Nitrite, Time techno, Ramco Industries, National Peroxide, Geojit Financial, Newgen Software, Manpasand Beverages, Majesco, Visaka, Shakti Pumps, Mold-tek Packaging, Marathon Nextgen, PPAP Auto, Kamdhenu, Vinyl Chemicals
ICICI Bank: RBI approves appointment of Sandeep Bakhshi as Wholetime Director designated as COO.
L&T Technology Services: Larsen & Tourbo to sell 41 lakh shares of the company (representing 4 percent of total paid up equity) through offer for sale route on August 2, with an option to additionally sell 25 lakh shares shares (representing 2.44 percent of the total paid up equity). L&T sets Rs 1,400 as floor price for company’s share sale.
Tata Motors: Domestic sales rise 21 percent to 51,896 units versus 42,775 units, exports increase 44 percent to Rs 4,971 units versus 3,411 units (YoY).
Hero MotoCorp: July total sales rise 9.1 percent to 6.79 lakh units versus 6.23 lakh units (YoY).
Eicher Motors: Royal Enfield sales rise 7 percent to 69,063 units versus 64,459 units; exports increase 58 percent to 2,062 units versus 1,302 units (YoY).
Bhushan Power: NCLAT said all 3 bidders - Tata Steel, Liberty, JSW - are allowed to submit revised bids till August 6.
CDSL: BSE Investments acquires 24 percent stake in CDSL Commodity Repository.
Fertiliser units: Cabinet approves Rs 1,257 crore interest-free loan to revive 3 fertilizer units.
Hindustan Copper: Cabinet approves issue of fresh equity to the extent of 15 percent in company; government's shareholding in company to reduce from 76.05 percent to 66.13 percent.
IDBI Bank: Cabinet approves LIC's proposal to acquire 51 percent stake in the bank.
Satin Creditcare: A meeting of Working Committee of the board of director is scheduled for August 4 for the issuance of non-convertible debentures upto the amount of Rs 30 crore through private placement.
Nalco: There is a reduction in coal supply to 1200 MW at Angul plant, temporarily importing 120 MW power from state grid without curtailing production and no production loss due to coal shortage.
Tata Power: Generation capacity increases to 13,113 MUs in Q1 FY19 as compared to 12,429 MUs Q1FY18.
Orient Paper: Q1 profit jumps to Rs 18.68 crore versus Rs 8.25 crore; revenue increases 135.5 crore versus Rs 145.2 crore (YoY).
FDC: Q1 profit surges to Rs 51.06 crore versus Rs 29.3 crore; revenue rises to Rs 285.7 crore versus Rs 236.8 crore (YoY).
HEG: Q1 profit at Rs 770.3 crore versus net loss at Rs 8.34 crore; revenue jumps 673 percent to Rs 1,587 crore versus Rs 205.35 crore (YoY)
Jindal Saw: Q1 profit rises to Rs 95.41 crore versus Rs 64.04 crore; revenue jumps to Rs 2,284.31 crore versus Rs 1,397.06 crore (YoY).
Elecon Engineering: Q1 profit at Rs 7.5 crore versus loss of Rs 36.2 crore; revenue rises to Rs 303.5 crore versus Rs 234.4 crore (YoY).
Torrent Power: Q1 profit rises to Rs 227.32 crore versus Rs 203.24 crore; revenue increases to Rs 3,528.13 crore versus Rs 3,043.94 crore (YoY).
V2 Retail: Q1 profit rises to Rs 11.22 crore versus Rs 8.7 crore; revenue increases to Rs 187.75 crore versus Rs 142.25 crore (YoY).
Pratibha Industries: Company received order with joint venture Ceylex Engineering Private Limited for total contract value worth of Rs 32.31 crore and other project worth Rs 35.56 crore.
Inox Leisure: Company has commenced the commercial operations of two additional screens in the existing Multiplex Cinema Theatre, taken on leave and license basis, in Pune and discontinued the commercial operations of the Multiplex Cinema Theatre in Kota. Company is now present in 64 cities with 127 Multiplexes, 511 screens and a total seating capacity of 1,24,720 seats across India.
NESCO: Dibakar Chatterjee, Chief Executive Officer of the company has tendered his resignation and he shall render his services till closure of working hours on August 3.
No stock under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For August 2, not a single stock is present in this list.