Put unwinding was seen at the strike price of 11,600, which shed 2.61 lakh contracts in open interest, followed by 11,500 which shed 1.32 lakh contracts.
The Nifty50 after gap up opening started correction in late morning deals, but managed to claw back in last couple of hours of trade on short covering on Wednesday after big fall in previous two consecutive sessions.
The index closed sharply higher on reports of Prime Minister may be held economic review meeting to consider fiscal or monetary measures on Saturday, and ahead of industrial output and CPI inflation data due later in the day.
The Nifty hold on to its crucial support placed at 11,300 levels and made a small bullish candle, which looked like a 'Hammer' kind of formation on daily charts, after two big bearish candles in previous two trading sessions.
A Hammer which is a bullish reversal pattern is formed after a decline. A Hammer consists of no upper shadow, a small body, and long lower shadow.
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The long lower shadow of the Hammer signifies that it tested its support where demand was located and then bounced back.
The Nifty50 opened sharply higher at 11,340.10, but wiped out all its gains in late morning deals to hit an intraday low of 11,250.20. The index managed to recoup those losses in last couple of hours of trade to hit day's high of 11,380.75 and closed 82.40 points higher at 11,369.90.
"Nifty50 registered a Hammer formation on candlestick charts as markets staged a decent recovery from day’s low of 11,250 levels perhaps owing to the short covering rally driven in anticipation of positive news flows on currency front by week end," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
However, technically speaking a pull back was due owing to sharp fall witnessed in last couple of trading sessions, he said.
Hence, according to him, sustaining above Wednesday's low of 11,250 market can be expected to initially pull back towards 11,479 levels.
At this juncture, based on wave counts on lower time frame charts it is clearly looks like a counter trend rally which if materialises should have a best case scenario target of 11,658 on the upside before resuming the downswing again, he said.
Hence, he advised traders to position themselves to play for this counter trend rally with a stop below 11,250 levels.
India Volatility Index fell by 6.16 percent to 14.38.
The market was shut on Thursday for Ganesha Chaturthi Festival.
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 11,369.90 on Wednesday. According to Pivot charts, the key support level is placed at 11,286.47, followed by 11,203.03. If the index starts moving upwards, key resistance levels to watch out are 11,417.07 and 11,464.23.
Nifty Bank
The Nifty Bank index closed at 26,819.20, up 11.70 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,617.86, followed by 26,416.53. On the upside, key resistance levels are placed at 26,957.86, followed by 27,096.53.
Call Options Data
Maximum call open interest (OI) of 44.55 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the September series.
This was followed by the 11,600 strike price, which now holds 40 lakh contracts in open interest, and 11,500, which has accumulated 34.81 lakh contracts in open interest.
Call writing was seen at a strike price of 11,400, which added 2.84 lakh contracts in open interest, followed by 11,300 which added 1.04 lakh contracts and 11,200 which added 0.58 lakh contracts.
Highest Call unwinding was seen at the strike price of 11,800, which shed 0.93 lakh contracts, followed by 11,500 which shed 0.57 lakh contracts.
Put Options data
Maximum put open interest of 44.78 lakh contracts was seen at the 11,400 strike price. This will act as a crucial support level for the September series.
This was followed by the 11,000 strike price, which now holds 42.47 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 40.01 lakh contracts in open interest.
Put writing was seen at the strike price of 11,200, which added 5.57 lakh contracts in open interest, followed by 11,400 which added 3.13 lakh contracts and 11,000 which added 2.93 lakh contracts.
Put unwinding was seen at the strike price of 11,600, which shed 2.61 lakh contracts in open interest, followed by 11,500 which shed 1.32 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,086.39 crore while domestic institutional investors bought shares worth Rs 541.44 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.
58 stocks saw a long buildup
72 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
54 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.
18 stocks saw long unwinding
Bulk Deals
Goldstar Power: Shatrunjay Investments sold 54,000 shares of the company at Rs 30.61 per share.
GSS Infotech: Margi Jigneshbhai Shah bought 94,500 shares of the company at Rs 102.95 per share.
GTN Industries: Affluence Value Management sold 98,320 shares of the company at Rs 17.1 per share.
Jai Balaji Industries: Chartered Finance and Leasing sold 6,78,317 shares of the company at Rs 11.51 per share.
Sumit Woods: Kamlesh Balchand Shah bought 1,11,000 shares of the company at Rs 45.3 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Motherson Sumi Systems: The management of the company will be attending Investor Summit on September 19.
Linc Pen and Plastics: Company's representative would be attending the Equirus MidCap Conference at Mumbai organised by Equirus Securities (P)Limited on September 18.
Gayatri Projects: Annual General Meeting to be held on September 28.
Mahindra & Mahindra: Company's officials are meeting analysts/investors on September 18, 19 and 21.
IIFL Holdings: Company's officials are meeting analysts/investors on September 14, 18 and 24.
Dr LalPathlabs: Company's officials are meeting analysts/investors on September 13, 17 and 20.
Stocks in news
Vedanta: Vedanta announced hydrocarbon Discovery in well A3-2 within its operated block KG-OSN-2009/3 within Krishna-Godavari Basin, East Coast of India. Company holds 100 percent participating interest in the block.
Redington India: Subsidiary ProConnect Supply Chain Solutions increased its shareholding in Rajprotim Supply Chain Solutions from 76 percent to 88 percent.
Allahabad Bank: Board meeting is scheduled to be held on September 19 to consider the modes/modalities of raising the equity capital of the Bank within the aforesaid overall limit of around Rs 1,900 crore.
Engineers India: Board considered the proposal for acquisition of 100 percent paid-up share capital of Projects and Development India (PDIL) from President of India, acting through the Ministry of Chemicals & Fertilizers.
Cadila Healthcare: Zydus receives final approval from the USFDA for Risedronate Sodium Delayed-release tablets.
HCL Technologies: HCL SSHS (State Street HCL Services) Facility, a joint venture between HCL Technologies and US-based State Street Corporation openedits state of the art IT Centre at Medha Tech Park in Ganavaram, Vijayawada, Andhra Pradesh.
SBI: Audit Committee of the board appointed Shri Prashant Kumar, Deputy Managing Director, as Chief Financial Officer of the bank with immediate effect.
Dr Reddy's Laboratories: Company launches Neostigmine Methylsulfate Injection, USP in the US market.
Lupin: Company receives USFDA approval for generic Atovaquone Oral Solution USP.
Wipro: Company and Anaplan partner to deliver best-in-class cloud enterprise performance management solutions.
PPAP Automotive: CRISIL has reaffirmed its credit rating of the company on the long term bank facilities to A+/Stable and the short term bank facilities at A1.
IL&FS Engineering Construction and Company: CARE Ratings had assigned credit rating of A1+ (SO) for the proposed issue of Commercial Papers of the company for an amount upto Rs 100 crore. Since, the company had not mobilised any fund for the aforementioned Commercial Paper issue programme, CARE has withdrawn the said rating.
Jain Irrigation Systems: US subsidiary acquired ETwater, innovator of intelligent irrigation technology and in the vanguard for creation of the smart irrigation controller. Although acquisition small, it will help fortify Company's position in the US smart agriculture market with Internet of Things (IoT) and also to scale up operations in the said geography.
5paisa Capital: Board approved the right issue size i.e. 1,27,39,022 equity shares of Rs 10 each at issue price of Rs 80 each aggregating to Rs 101.912 crore.
IIFL Holdings: Company has received the No objection letter from NSE in order to file the draft Composite Scheme of Arrangement with National Company Law Tribunal.
Tata Communications: Campana partners with the company in Myanmar for cloud enablement.
Mahanagar Gas: Promoters of the company, GAIL (India) and BG Asia Pacific Holdings Pte have executed an amendment agreement to the joint venture agreement in order to record some changes in the understanding between them as captured in the said JVA.
IL&FS Transportation Networks: Brickworks Ratings revised its rating for company's non-convertible debentures worth Rs 3,550 crore to BB-(SO) from AA-(SO).
Sunteck Realty: Company has been assigned A1+ credit rating from ICRA for commercial paper of Rs 150 crore.
RDB Realty & Infrastructure: Company has entered into a Joint Venture Agreement with HYT Engineering Company Private Limited and the name of the JV is HYT-RDBRIL (JV).
Veritas (India): Company has incorporated a subsidiary named as GV Offshore Private Limited in Mumbai.
India Infraspace: Company has acquired 1,61,500 (100 percent) equity shares of Shaurya Casting Private Limited.
Maruti Suzuki: Company increases Baleno production to cut down waiting, delight customers.
Simplex Castings: Company has incorporated an wholly owned subsidiary company Simplex Castings International Pte. Ltd. at Singapore.
Arman Financial Services: Board approved issuance of non-convertible debentures (NCDs) aggregating up to Rs 27.5 crore on a private placement basis.
Balasore Alloys: Samuel Onyeabor Nwabuokei has resigned from the directorship and position of non-executive director of the company due to personal reasons.
CL Educate: Sudhir Bhargava tendered his resignation from the post of Chief Financial Officer, citing personal reasons.
One stock 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 September 14, Adani Enterprises is present in this list.