The market has broken a five-day losing streak and rebounded with one percent gains on April 20, backed by buying in beaten-down HDFC twins and technology stocks. Cement and FMCG stocks and index heavyweight Reliance Industries also supported the market.
The BSE Sensex rallied 574 points to 57,037, while the Nifty50 jumped 178 points to 17,136 and formed a Bullish Harami candlestick pattern on the daily charts, indicating a reversal of the trend.
“The crucial lower area of 17,000-16,800 levels seems to be acting as an important value area. The current chart pattern indicates that the Nifty seems to have halted its decline around this support and could bounce back,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
Previously, the upside and downside movement from this area has gathered sharp momentum on either side. Hence, a sustainable move above 17,300 levels is likely to bring bulls back into action that could possibly pull the Nifty towards further upside, he said. “Immediate support is placed at 17,000 levels.”
The broader markets had a mixed trend with the Nifty Midcap 100 index rising 0.75 percent and Smallcap 100 index falling 0.2 percent.
We have collated 14 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 17,015, followed by 16,893. If the index moves up, the key resistance levels to watch out for are 17,223 and 17,309.
The Bank Nifty has underperformed frontline indices, declining 27 points to 36,315 on April 20. The important pivot level, which will act as crucial support for the index, is placed at 36,115, followed by 35,914. On the upside, key resistance levels are placed at 36,514 and 36,714 levels.
Call option data
Maximum Call open interest of 31.01 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the April series.
This is followed by 17,500 strike, which holds 26.4 lakh contracts, and 17,200 strike, which has accumulated 25.77 lakh contracts.
Call writing was seen at 17,400 strike, which added 10.82 lakh contracts, followed by 17,200 strike which added 5.31 lakh contracts, and 17,100 strike which added 4.44 lakh contracts.
Call unwinding was seen at 16,900 strike, which shed 66,150 contracts, followed by 16,000 strike which shed 12,750 contracts and 16,700 strike which shed 4,250 contracts.
Put option data
Maximum Put open interest of 36.03 lakh contracts was seen at 17,000 strike, which will act as a crucial support level in the April series.
This is followed by 16,500 strike, which holds 24.3 lakh contracts, and 16,000 strike, which has accumulated 20.37 lakh contracts.
Put writing was seen at 17,000 strike, which added 6.03 lakh contracts, followed by 17,100 strike, which added 5.47 lakh contracts and 16,400 strike which added 4.52 lakh contracts.
Put unwinding was seen at 16,500 strike, which shed 2.43 lakh contracts, followed by 17,500 strike which shed 2.01 lakh contracts, and 17,600 strike which shed 1.34 lakh 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 ICICI Bank, Lupin, Larsen & Toubro, Honeywell Automation, and HDFC, among others.
61 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 ACC, Ambuja Cements, Marico, HDFC Bank, and Bata India, in which a long build-up was seen.
19 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 Navin Fluorine International, Aditya Birla Fashion & Retail, NTPC, Birlasoft, and Atul, in which long unwinding was seen.
39 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 JK Cement, Persistent Systems, L&T Infotech, Abbott India, and Indraprastha Gas, in which a short build-up was seen.
80 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 Firstsource Solutions, Nifty, Nifty Financial, Coromandel International, and Apollo Tyres, in which short-covering was seen.
BLS International Services: Saint Capital Fund acquired 5.25 lakh equity shares in the company via open market transactions. These shares were bought at an average price of Rs 340 per share.
Manali Petrochemicals: Premier Investment Fund sold 8,83,034 equity shares in the company via open market transactions. These shares were offloaded at an average price of Rs 141.04 per share.
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Results on April 21
HCL Technologies, Nestle India, ICICI Lombard General Insurance Company, L&T Technology Services, Tata Communications, CRISIL, Cyient, Rallis India, Sasken Technologies, Shiva Cement, Betala Global Securities, Rajratan Global Wire, Roni Households, Shukra Jewellers, S&T Corporation, and Trident Texofab will release quarterly earnings on April 21.
Stocks In News
Tata Elxsi: The design and technology services provider clocked 39 percent year-on-year growth in Q4FY22 profit at Rs 160 crore on healthy growth in revenue that increased 31.5 percent YoY to Rs 682 crore backed by strong double-digit growth in transportation, media and communications, and healthcare segments. EBITDA grew by 32 percent YoY to Rs 221.2 crore in the March quarter.
Persistent Systems: Kotak Mahindra Mutual Fund bought additional 21,566 equity shares in the IT company via open market transactions on April 18. With this, Kotak MF’s shareholding in the company stands increased to 5 percent, up from 4.97 percent earlier.
Infosys: The bluechip IT company has completed the acquisition of Germany-based digital experience and marketing agency, oddity.
Ambalal Sarabhai Enterprises: CoSara Diagnostics got permission to manufacture and sell its SARAQ Hepatitis C (HCV) viral load kit as an in vitro diagnostic (IVD) from Central Drugs Standard Control Organisation. CoSara is a joint venture of a subsidiary of Ambalal Sarabhai Enterprises, and Co-Diagnostics, Inc, USA.
Everest Kanto Cylinder: Subsidiary EKC International FZE (Dubai) has entered into a joint venture agreement with Dr. Mohamed Saad Eldin. The company intends to become the market leader in CNG cylinder manufacturing in the Middle East and North Africa (MENA) region by 2026 leveraging on the strong track record and the know-how of EKC International Dubai and the high potential in the Egyptian and African markets.
Atul Auto: The company joined hands with Valeo and Honda Power Pack Energy India for electric vehicles with battery swapping solutions. Subsidiary Atul Greentech (AGPL), engaged in designing and developing innovative solutions for last-mile electric mobility for domestic and export markets, would launch the e-vehicle after the successful completion of field trials.
ICICI Securities: Consolidated profit grew by 3.3 percent year-on-year to Rs 340.3 crore in Q4FY22 impacted by higher finance and employee costs, and charge related to impairment on financial instruments. Revenue grew by 20.6 percent YoY to Rs 891.7 crore led by an increase in interest income, income from services, and net gain on fair value changes in the treasury segment and other investment portfolios.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 3,009.26 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 2,645.82 crore on April 20, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock – Tata Power – is under the F&O ban for April 21. 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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