Maximum call open interest (OI) of 33.84 lakh contracts was seen at the 11,600 strike price.
Bulls went on a rampage on the first day of the truncated week. The Nifty 50 surpassed the psychological 11,500-mark at the opening of trade on August 20, extended the rally through the day and closed above 11,550 levels for the first time, forming a bullish candle on the daily charts.
It was a broad-based based rally and driven majorly by banking & financials, metals and auto stocks. Positive global cues and recovery in the rupee also boosted investors sentiment.
Experts feel the market is heading towards next target of 11,630, but as the market currently seems to be in a bit of overbought position, some profit booking or consolidation can't be ruled out before moving up again.
The Nifty50 after directly opening above 11,500-mark (at 11,502.10) extended gains as the day progressed and touched an intraday record high of 11,565.30, showing strength for the fifth consecutive week. The index closed 81 points higher at 11,551.80.
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"Nifty50 continued its saga of making new lifetime highs as it opened the week on a positive note with a bullish candle after a gap up opening," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said although there are no apparent sell signals apart from continued negative divergence on RSI chart it looks prudent to take some money off the table as Nifty 50 heads towards 11,630 levels which appears to be the initial target based on weekly charts. "Besides this is the 5th consecutive week in which indices are trading with positive bias hence profit booking may kick in at any point in time."
According to him, a close below Monday’s bullish gap zone of 11,499–11,486 can be considered as an initial sign of weakness in the index. "Hence, positional traders with slightly longer time horizon can maintain a stop below 11,480 on a closing basis whereas short-term traders shall book profits as Nifty50 head towards 11,600 mark."
India VIX fell by 0.28 percent to 13.12 levels and overall lower volatility suggests tight grip of the bulls in 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 11,551.80 on Monday. According to Pivot charts, the key support level is placed at 11,512.57, followed by 11,473.33. If the index starts moving upwards, key resistance levels to watch out are 11,578.17 and 11,604.53.
Nifty Bank
The Nifty Bank index closed at 28,274.25, up 145.70 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 28,189.84, followed by 28,105.47. On the upside, key resistance levels are placed at 28,340.44, followed by 28,406.67.
Call Options Data
Maximum call open interest (OI) of 33.84 lakh contracts was seen at the 11,600 strike price. This will act as a crucial resistance level for the August series.
This was followed by the 11,500 strike price, which now holds 32.54 lakh contracts in open interest, and 11,700, which has accumulated 28.56 lakh contracts in open interest.
Call writing was seen at the strike price of 11,700, which added 2.27 lakh contracts, followed by 11,800 which added 1.56 lakh contracts.
Highest Call unwinding was seen at the strike price of 11,400, which shed 4.53 lakh contracts, followed by 11,500, which shed 4 lakh contracts and 12,000 which shed 2.28 lakh contracts.
Put Options data
Maximum put open interest of 43.57 lakh contracts was seen at the 11,400 strike price. This will act as a crucial support level for the August series.
This was followed by the 11,300 strike price, which now holds 42.92 lakh contracts in open interest, and the 11,000 strike price, which has now accumulated 42.61 lakh contracts in open interest.
Put writing was seen at the strike price of 11,500 which added 15.62 lakh contracts, followed by 11,600 which added 5.34 lakh contracts and 11,400 which added 3.45 lakh contracts.
Highest Put unwinding was seen at the strike price of 11,100, which shed 3.79 lakh contracts, followed by 11,000, which shed 3.5 lakh contracts and 11,200 which shed 1.95 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 483.04 crore while domestic institutional investors bought shares worth Rs 593.22 crore in the Indian equity market on Monday, 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.
89 stocks saw long buildup
63 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
39 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.
19 stocks saw long unwinding
Bulk Deals
TVS Motor Company: Europacific Growth Fund sold 34,06,733 shares of the company at Rs 519.49 per share on the NSE.
Vadilal Industries: Ashish Ramchandra Kacholia sold 3,06,045 shares of the company at Rs 612.18 per share on the NSE and 56,260 shares at Rs 604.05 per share on the BSE. However, EQ India Fund bought 48,000 shares at Rs 590.24 per share on the NSE.
Gayatri Highways: Societe GENERALE sold 14,82,075 shares of the company at Rs 2.2 per share on the NSE.
Solara Active: Chellaram Mills bought 1,41,967 shares of the company at Rs 296.4 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Aurobindo Pharma: Company is attending an investor conference hosted by Citi Group from August 21 to 23 in Hong Kong and Singapore.
UPL: Company has scheduled to meet analysts/investors at a roadshow/conference being organised by Citigroup Global Markets India from August 21 to August 23 in Hongkong and Singapore.
Prism Cement: Officials of the company will be meeting investors in a non-deal roadshow with Investec on August 21 in Mumbai.
Kaveri Seed Company: G Vijay Kumar, Chief Financial Officer of the company will be meeting with several funds/ investors at ICICI Securities' 'Bengaluru Corporate Day' on August 21.
Eris Lifesciences: Company's officials will be meeting Citi - India Corporate Forum, Hong Kong, and Singapore on August 22 and 23 respectively.
Intellect Design Arena: 7th Annual General Meeting of the company will be held on August 23 to consider fundraising options.
Force Motors: 9th Annual General Meeting of the members of the company, to be held on September 11.
Hathway Cable & Datacom: 58th Annual General Meeting of the company will be held on September 11.
Fiem Industries: Officials of the company will be meeting SAIF Partners on August 21 and Kitara Capital on August 27.
Amtek Auto: The meeting of the board of directors of the Company is scheduled on August 21 to consider unaudited quarterly financial results for the quarter ended September 2017.
Khaitan (India): The meeting of the Board of Directors of the company is scheduled on August 28 to consider draft notice of Annual General Meeting and any other matter with the permission of the Chairman.
Responsive Industries: Officials of the company will be meeting investors and analysts on August 21 in Mumbai.
VXL Instruments: AGM of FY2017-18 to be held on September 19, 2018.
JR Foods: The meeting of the board of directors of the company is scheduled for August 28 to consider and approve the boards' report for the financial year 2017-18.
Atlas Cycles (Haryana): Board rescheduled its meeting to be held on August 29 for the announcement of the March quarter and June quarter earnings.
Permanent Magnets: Annual General Meeting to be held on September 28.
Hem Holdings & Trading: Annual General Meeting to be held on September 21.
Dhoot Industrial Finance: 40th AGM scheduled to be held on September 19.
Khaitan Electricals: Board of directors will meet on August 29 to fix the date, time and venue of Annual General Meeting.
Stocks in news
Apollo Tyres: Production operations of the company's plants located at Perambra and Kalamassery, Kerala have been disrupted due to floods in Kerala. The production loss due to this natural calamity is 1500 MT (approximately) till Monday. However, consequential loss of profit is not significant. The natural calamity is adequately covered under the insurance policy of the company.
Bank of Baroda: PS Jayakumar is likely to get an extension as MD & CEO of Bank Of Baroda: CNBC-TV18 sources. His term was to end in October 2018.
IL&FS Transportation Networks: Brickworks Ratings revised its rating for non-convertible debentures worth Rs 3,550 crore from AA+ (SO) to AA- (SO). ICRA Ratings also revised its ratings to "Issuer not co-operating' category to all - non-convertible debentures worth Rs 3,000 crore, commercial papers Rs 1,000 crore, non-convertible debentures Rs 2,000 crore, term loans Rs 490 crore, fund-based bank limits Rs 320 crore and preference share Rs 760 crore from Provisional AA (SO), A4, BB-, BB-, A4 and BB-, respectively.
Rungta Irrigation: Nitin Dhawan, Chief Financial Officer of the company has resigned with effect from Monday.
N R Agarwal Industries: Operations of the company's Unit - I in Vapi, Gujarat will be temporarily shut down for a period of 15 days with effect from August 27 for the purpose of Annual maintenance and technological upgradation.
3 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For August 21, Adani Power, Raymond and Jain Irrigation Systems are present in this list.