Based on the open interest future percentage, a long build-up was seen in 56 stocks including Hindustan Copper, India Cements, Bank Nifty, Tata Chemicals, and Coal India
A day after the Reserve Bank of India monetary policy, the market on August 8 staged a strong performance with the Nifty50 reclaiming the 17,500 level, which acted as a strong hurdle in the previous week. Positive global cues, fall in oil prices and consistent FIIs buying lifted sentiment, while banking and financial services, auto and metal stocks supported the rally.
The BSE Sensex climbed 465 points to 58,853, while the Nifty50 rose 128 points to 17,525 and formed a bullish candlestick pattern on the daily charts.
“A long bull candle was formed on the daily chart and that is placed at the upper end of the short-term high-low range of 17,200-17,500 levels of the last four sessions. Technically, this pattern suggests a decisive upside breakout of the range at 17,500-17,550 levels. This is a positive indication and signals more upside for the short term,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
Shetti further said a sustainable move above 17,550 levels could be considered as an upside breakout of the range and that could pull the Nifty towards the next important resistance of 17,800-17,900 levels in the near term. Immediate support is placed at 17,430 levels, he added.
The broader markets also participated in the momentum but underperformed benchmark indices. The Nifty Midcap 100 and Smallcap 100 indices have gained around 0.35 percent each with positive market breadth. About 1,083 shares advanced against 890 declining shares on the NSE.
The market remained closed on August 9 on account of Muharram.
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 17,407, followed by 17,289. If the index moves up, the key resistance levels to watch out for are 17,596 and 17,667.
The Nifty Bank also traded in line with frontliners, climbing 317 points to 38,237 and forming a bullish candlestick pattern on the daily charts on Monday. The important pivot level, which will act as crucial support for the index, is placed at 37,845, followed by 37,453. On the upside, key resistance levels are placed at 38,466 and 38,695 levels.
Call option data
Maximum Call open interest of 23.27 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the August series.
This is followed by 17,500 strike, which holds 19.28 lakh contracts, and 17,400 strike, which has accumulated 11.13 lakh contracts.
Call writing was seen at 17,500 strike, which added 2.63 lakh contracts, followed by 18,000 strike which added 84,650 contracts, and 17,800 strike which added 81,550 contracts.
Call unwinding was seen at 17,300 strike, which shed 1.08 lakh contracts, followed by 17,000 strike which shed 38,550 contracts and 17,400 strike which shed 31,450 contracts.
Put option data
Maximum Put open interest of 23.28 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the August series.
This is followed by 17,000 strike, which holds 21.95 lakh contracts, and 16,000 strike, which has accumulated 21.69 lakh contracts.
Put writing was seen at 17,500 strike, which added 4.74 lakh contracts, followed by 17,400 strike, which added 3.36 lakh contracts and 16,300 strike which added 1.87 lakh contracts.
Put unwinding was seen at 16,100 strike, which shed 65,600 contracts, followed by 16,200 strike which shed 44,350 contracts, and 16,600 strike which shed 31,850 contracts.
56 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 Hindustan Copper, India Cements, Bank Nifty, Tata Chemicals, and Coal India, in which a long build-up was seen.
29 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 Hindustan Petroleum Corporation, IndiaMART InterMESH, Manappuram Finance, InterGlobe Aviation, and Aditya Birla Fashion, in which a long unwinding was seen.
48 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 Alkem Laboratories, Balkrishna Industries, Abbott India, BPCL, and Firstsource Solutions, in which a short build-up was seen.
60 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 Dr Reddy’s Laboratories, Nippon Life India, Balrampur Chini Mills, Voltas, and Bajaj Auto, in which a short-covering was seen.
Results on August 10
Coal India, Eicher Motors, Hindalco Industries, Tata Consumer Products, IRCTC, Aarti Industries, Abbott India, Arvind Fashions, Ashoka Buildcon, CESC, Cochin Shipyard, Cummins India, Endurance Technologies, General Insurance Corporation of India, Glenmark Pharmaceuticals, Indiabulls Housing Finance, Ipca Laboratories, Indian Railway Finance Corporation, ITI, Jammu & Kashmir Bank, Jaiprakash Associates, Mazagon Dock Shipbuilders, Medplus Health Services, Metropolis Healthcare, NHPC, Oil India, Patanjali Foods, Pidilite Industries, PB Fintech, Radico Khaitan, Sadbhav Engineering, SAIL, and Zydus Lifesciences will be in focus ahead of June quarter earnings on August 10.
Stocks in News
Bharti Airtel: The telecom operator clocked a 467 percent year-on-year growth in profit at Rs 1,606.9 crore for the quarter ended June FY23, with revenue growing 22.2 percent to Rs 32,804.6 crore and EBITDA increasing 26 percent to Rs 16,604.40 crore compared to the year-ago period. EBITDA margin expanded by 150 bps YoY to 50.6 percent in Q1FY23.
Power Grid Corporation of India: The company reported a 37 percent year-on-year decline in consolidated profit at Rs 3,801 crore in the June FY23 quarter on a high base. The year-ago period profit was boosted by exceptional gain. Revenue increased by 6.7 percent to Rs 10,905.21 crore compared to the same period last fiscal.
Samvardhana Motherson International: The company reported a 51 percent year-on-year decline in consolidated profit at Rs 181.55 crore during the quarter ended June FY23, impacted by weak operating performance. Revenue grew by 9 percent to Rs 17,614.4 crore compared to the corresponding period last fiscal. The company said the board has approved fundraising of Rs 1,000 crore by issuing non-convertible debentures, on a private placement basis, in one or more series or tranches.
Whirlpool of India: The company registered a 232 percent year-on-year increase in consolidated profit at Rs 84.6 crore for the June FY23 quarter partly supported by a low base. The Q1FY22 profit was affected by the second COVID wave. Revenue grew by 55 percent to Rs 2,081 crore compared to the same period last year.
Torrent Power: The company recorded a 142 percent year-on-year increase in consolidated profit at Rs 502 crore in the quarter ended June FY23, led by a healthy top line, operating income and other income. Revenue grew by 110 percent to Rs 6,510 crore compared to the corresponding quarter of the previous fiscal. Profitability was supported by an increase in contribution from renewable generation, gain from trading of LNG, improved performance of licensed distribution businesses, and increase in contribution from franchised distribution business.
Indian Hotels: The company reported a consolidated profit of Rs 180.84 crore for the quarter ended June FY23, against a loss of Rs 301.58 crore impacted by the second COVID wave in Q1FY22. Revenue grew by 267.5 percent to Rs 1,266 crore compared to the year-ago period on a low base.
Strides Pharma Science: The US Food and Drug Administration has completed an inspection of the company’s Singapore facility, with 483 observations. Its formulation facility in Singapore underwent a USFDA inspection that ended on August 8. The US is one of the key focus markets for Strides and the company has given a growth outlook of $250 million in FY23 for the US business. The company has set a target to launch 20 new products every year in the US.
NALCO: The aluminium company reported a 60.5 percent YoY growth in consolidated profit at Rs 558 crore for the quarter ended June FY23 driven by strong top line as well as operating performance, though power and fuel cost increased significantly. Revenue increased by 53 percent YoY to Rs 3,783.32 crore in Q1FY23.
Delhivery: The company posted a consolidated loss of Rs 399.34 crore for the quarter ended June FY23, widening from a loss of Rs 129.58 crore in the same period last year on loss at the operating level. Revenue grew by 32.5 percent to Rs 1,745.7 crore compared to the same period last year.
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 1,449.70 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 140.73 crore on August 8, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks – Balrampur Chini Mills, Delta Corp, Escorts Kubota – are under NSE F&O ban for August 10. 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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With inputs from one of the best stock market researchers website Moneycontrol