The market lost initial hours of gain after the Reserved Bank of India monetary policy decision fell in line with analysts' expectations, and remained in the negative terrain during rest of the session to close 0.4 percent lower on August 6.
The BSE Sensex declined 215.12 points to close at 54,277.72, while the Nifty50 slipped 56.40 points to 16,238.20 and formed bearish candle on the daily charts. During the week, the index gained 3 percent and formed bullish candle pattern on the weekly scale.
"Technically, on weekly charts, the Nifty has formed a strong breakout formation, which indicates a further uptrend from current levels. We are of the view that the medium-term trend is bullish and buying on dips and selling on rallies would be the ideal strategy for the positional traders," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
"The 16,150-16,050 level would be the strong support zone for the index. Trading above the same, the uptrend wave is likely to continue till 16,400-16,550 levels. Below 16,050, breakout traders may prefer to exit from trading in long positions," he said.
The broader markets managed to outperform benchmark indices. The Nifty Midcap 100 index and Smallcap 100 index gained 0.06 percent and 0.04 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
According to pivot charts, the key support levels for the Nifty are placed at 16,195.4, followed by 16,152.6. If the index moves up, the key resistance levels to watch out for are 16,308.9 and 16,379.6.
Nifty Bank
The Nifty Bank declined 25.55 points to close at 35,809.25 on August 6. The important pivot level, which will act as crucial support for the index, is placed at 35,646.37, followed by 35,483.53. On the upside, key resistance levels are placed at 36,026.07 and 36,242.94 levels.
Call option data
Maximum Call open interest of 20.67 lakh contracts was seen at 16500 strike, which will act as a crucial resistance level in the August series.
This is followed by 15800 strike, which holds 15.42 lakh contracts, and 16000 strike, which has accumulated 14.85 lakh contracts.
Call writing was seen at 16600 strike, which added 77,300 contracts, followed by 16700 strike, which added 47,050 contracts and 16400 strike which added 30,550 contracts.
Call unwinding was seen at 16000 strike, which shed 1.01 lakh contracts, followed by 16500 strike which shed 87,200 contracts, and 16300 strike which shed 69,550 contracts.
Put option data
Maximum Put open interest of 30.50 lakh contracts was seen at 16000 strike, which will act as a crucial support level in the August series.
This is followed by 15500 strike, which holds 27.04 lakh contracts, and 15800 strike, which has accumulated 24.32 lakh contracts.
Put writing was seen at 16400 strike, which added 2.37 lakh contracts, followed by 16000 strike which added 1.43 lakh contracts, and 16300 strike which added 84,000 contracts.
Put unwinding was seen at 15800 strike, which shed 3.99 lakh contracts, followed by 15900 strike which shed 1.13 lakh contracts, and 16,100 strike which shed 89,550 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
36 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 in which a long build-up was seen.
22 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 in which long unwinding was seen.
68 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 in which a short build-up was seen.
36 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 in which short-covering was seen.
Bulk deals
De Nora India: Plutus Wealth Management LLP sold 55,938 equity shares in the company at Rs 352.38 per share on the NSE, the bulk deals data showed.
Mold-Tek Packaging: ALPS Kotak India Growth Fund acquired 2.52 lakh equity shares in the company at Rs 517.99 per share, whereas A Lakshmi Mythri sold 1.5 lakh shares in the company at Rs 518 per share on the NSE, the bulk deals data showed.
(For more bulk deals, click here)
Results on August 9, and Analysts/Investors Meeting
Results on August 9: Shree Cement, Astrazeneca Pharma India, Balrampur Chini Mills, Birla Tyres, Bombay Dyeing, Chemcon Speciality Chemicals, Clean Science and Technology, Gati, Gujarat State Petronet, Indian Hotels, Laxmi Organic Industries, MRF, Nilkamal, Reliance Power, Satin Creditcare Network, Shalby, Shankara Building Products, Subex, Suven Life Sciences, Timken India, and Venky's (India) will release quarterly earnings on August 9.
Welspun Corp: The company's officials will meet analysts and investors on August 9, in a virtual conference 'Emkay Confluence - Ideas for Tomorrow'.
PSP Projects: The company's officials will meet analysts and investors in the Spark Capital's Annual Monsoon conference, on August 9.
Rajratan Global Wire: The company's officials will meet several analysts and investors in a group meeting on August 9.
JSW Energy: The company's officials will meet analysts and investors on August 10, in a virtual conference 'Emkay Confluence - Ideas for Tomorrow'.
Saregama India: The company's officials will meet analysts and investors on August 10, in the Emkay conference.
Satin Creditcare Network: The company's officials will meet investors and analysts on August 10, to discuss on financial results & future outlook.
Capacite Infraprojects: The company's officials will meet investors and analysts, on August 11, to discuss the operational and financial performance.
Aster DM Healthcare: The company's officials will meet analysts/ institutional investors on August 12, to discuss the financial results.
Aurobindo Pharma: The company's officials will meet analysts and investors on August 13, to discuss the financial results.
Ashok Leyland: The company's officials will meet analysts and investors on August 13, to discuss the financial results.
Stocks in News
Rolex Rings: The stock will list its equity shares on the bourses on August 9.
Bank of Baroda: The bank reported profit at Rs 1,280.6 crore in Q1FY22 against loss of Rs 864.3 crore in Q1FY21, net interest income rose to Rs 7,891.9 crore from Rs 6,816.1 crore YoY.
Amber Enterprises India: The company reported profit at Rs 11.2 crore in Q1FY22 against loss of Rs 23.9 crore in Q1FY21, revenue jumped to Rs 707.9 crore from Rs 259.5 crore YoY.
NALCO: The company reported sharply higher profit at Rs 347.7 crore in Q1FY22 against Rs 16.6 crore in Q1FY21, revenue surged to Rs 2,474.5 crore from Rs 1,380.6 crore YoY.
Affle India: The company reported sharply higher profit at Rs 35.9 crore in Q1FY22 against Rs 18.8 crore in Q1FY21, revenue surged to Rs 152.5 crore from Rs 89.8 crore YoY.
SAIL: The company reported consolidated profit at Rs 3,897.4 crore in Q1FY22 against loss of Rs 1,226.5 crore in Q1FY21, revenue jumped to Rs 20,643 crore from Rs 9,067 crore YoY.
Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 69.37 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 631 crore in the Indian equity market on August 6, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Six stocks - Canara Bank, Indiabulls Housing Finance, NALCO, RBL Bank, SAIL and Sun TV Network - are under the F&O ban for August 9. 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.