The market returned to positive territory on June 20 with the BSE Sensex rising more than 200 points, backed by FMCG, IT stocks and HDFC twins. The rally in European counterparts also aided momentum at Dalal Street.
Experts call it a relief rally after the market entered into oversold levels, as the benchmark indices had fallen around 7 percent in the previous six consecutive sessions.
The BSE Sensex closed 237 points higher at 51,598, while the Nifty50 climbed 57 points to 15,350 and formed a Hammer or Doji kind of pattern on the daily charts.
“A small body of positive candle was formed on the daily chart with minor upper and long lower shadow. Technically, this formation indicates a Doji-type candle pattern, but not a classical one. But the formation of high wave and Doji patterns back to back in the two sessions around the lows of 15,200 levels signal chances of an upside bounce in the market,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The short-term trend of the Nifty continues to be volatile with broader range movement. A decisive move above 15,500 levels could open an upside bounce in the market, and important support to be watched is around 15,200 levels, he said.
However, the mood in broader space was pathetic with the Nifty Midcap 100 and Smallcap 100 indices declining 2.3 percent and 3.2 percent respectively on weak breadth. Nearly six shares declined for every share rising on the NSE.
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 15,233, followed by 15,117. If the index moves up, the key resistance levels to watch out for are 15,425 and 15,499.
Nifty Bank fell 58 points to close at 32,685 on Monday, underperforming benchmark indices. The important pivot level, which will act as crucial support for the index, is placed at 32,432, followed by 32,179. On the upside, key resistance levels are placed at 32,932 and 33,179 levels.
Call option data
Maximum Call open interest of 29.51 lakh contracts was seen at 16,000 strike, which will act as a crucial resistance level in the June series.
This is followed by 15,500 strike, which holds 24.9 lakh contracts, and 17,000 strike, which has accumulated 24.04 lakh contracts.
Call writing was seen at 15,500 strike, which added 3.4 lakh contracts, followed by 15,700 strike which added 2.43 lakh contracts and 16,000 strike which added 2.42 lakh contracts.
Call unwinding was seen at 16,300 strike, which shed 2.24 lakh contracts, followed by 17,000 strike which shed 49,500 contracts and 16,900 strike which shed 44,850 contracts.
Put option data
Maximum Put open interest of 36.96 lakh contracts was seen at 15,500 strike. This is followed by 14,500 strike, which holds 33.07 lakh contracts, and 15,000 strike, which has accumulated 29.4 lakh contracts.
Put writing was seen at 15,200 strike, which added 2.59 lakh contracts, followed by 14,700 strike, which added 2.21 lakh contracts and 14,000 strike which added 2.11 lakh contracts.
Put unwinding was seen at 16,000 strike, which shed 1.27 lakh contracts, followed by 14,500 strike which shed 1.22 lakh contracts, and 15,500 strike which shed 79,250 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 Honeywell Automation, Crompton Greaves Consumer Electricals, M&M, HDFC Bank and HDFC, among others.
26 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 HPCL, Honeywell Automation, Britannia Industries, JK Cement, and Jubilant Foodworks, in which a long build-up was seen.
43 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 Abbott India, IndiaMART InterMESH, Birlasoft, RBL Bank, and Polycab India, in which long unwinding was seen.
95 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 GMR Infrastructure, GNFC, Chambal Fertilizers, Apollo Tyres, and Vedanta, in which a short build-up was seen.
35 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 Nifty Financial, Crompton Greaves Consumer Electricals, Coforge, Ashok Leyland, and Ipca Laboratories, in which short-covering was seen.
Ajooni Biotech: TCG Funds Fund 1 sold 1,58,870 equity shares in the company at an average price of Rs 43.98 per share, via open market transactions.
Apar Industries: UBS IQ MSCI Asia Apex 50 Ethical ETF bought 2,12,859 equity shares in the company at an average price of Rs 997.04 per share, via open market transactions.
Happiest Minds Technologies: Plutus Wealth Management LLP purchased 19,39,325 equity shares in the company at an average price of Rs 800.02 per share, whereas Morgan Stanley Investment Funds Emerging Leaders Equity Fund sold 13,14,055 shares at an average price of Rs 800 per share, via open market transactions.
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Investors Meetings on June 21
Gland Pharma: Officials of the company will meet First State Sentier.
Radico Khaitan: Officials of the company will meet Dolat Capital.
Axis Bank: Officials of the company will attend BNP Paribas India Virtual Investors Days.
Voltas: Officials of the company will meet HDFC Life.
Dr Reddy’s Laboratories: Officials of the company will hold Investor Day.
Sapphire Foods India: Officials of the company will meet Edelweiss Broking.
ADF Foods: Officials of the company will meet V.E.C. Investments.
Syngene International: Officials of the company will meet Capital World.
Godrej Properties: Officials of the company will meet Segantii Capital.
Clean Science and Technology: Officials of the company will meet Axis Mutual Fund.
Sudarshan Chemical Industries: Officials of the company will meet Haitong Securities India.
Tata Chemicals: Officials of the company will meet Axis Capital, and Broadview Research.
Mahindra Holidays & Resorts India: Officials of the company will meet Lucky Investment.
FSN E-Commerce Ventures: Officials of the company will meet UBS Securities.
Gokaldas Exports: Officials of the company will meet AlfAccurate PMS, and Nippon MF.
Mahindra Lifespace Developers: Officials of the company will attend Dolat capital’s ‘DART CXO Series – The Consumption Panorama’ conference.
Ganesha Ecosphere: Officials of the company will meet Bellwether Investment.
Stocks in News
HUDCO: Fitch Ratings has affirmed the ratings of Housing and Urban Development Corporation at ‘BBB-‘ level, i.e. at the sovereign level. At the same time, the rating agency has revised the outlook of HUDCO to ‘Stable’ from ‘Negative’. The rating action follows the change in outlook of Government of India rating to ‘Stable’ from Negative’ on June 10, 2022.
Oil and Natural Gas Corporation: Ministry of Petroleum and Natural Gas has approved the extension of additional charge of the post of Chairman and Managing Director (CMD) to Alka Mittal, Director (HR), for a period of two months from July 1 to August 31, 2022, or till the appointment of a regular incumbent to the post, or until further orders, whichever is the earliest.
Suven Life Sciences: The company informed exchanges that the Board of Directors will meet on June 24 to consider raising funds through issue of equity shares on a rights basis to the existing equity shareholders of the company.
Fineotex Chemical: The company said the board will meet on June 24 to decide on raising funds by issue of equity shares. This is subject to shareholders’ and regulatory approvals.
Engineers India: The company said the board of directors has designated Sanjay Jindal, Director (Finance) as Chief Financial Officer of the company in place of Vartika Shukla, CMD and Additional Charge Director (Technical). The appointment is with immediate effect for a period of five years, or till the date of his superannuation or until further orders, whichever is earliest.
Bharat Forge: The company has decided to consolidate its electric vehicle business initiatives under Kalyani Powertrain (KPL), a wholly-owned subsidiary, for a better strategic alignment. Accordingly, its Investment Committee – Strategic Business has approved the transfer of the company’s stake in Refu Drive GmbH, the joint venture company, to KPL subject to receipt of necessary approval from regulatory authorities.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 1,217.12 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 2,093.39 crore worth of shares on June 20, as per provisional data available on the NSE.
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