With the Nifty50 falling below the 18,600 mark on June 9, we saw selling pressure in equity benchmarks for yet another session as all sectors trended down, led by FMCG and IT.
The BSE Sensex dropped 223 points to 62,626, while the Nifty50 declined 71 points to 18,563, and formed a bearish candlestick pattern on the daily charts for the second straight session.
Overall, the Nifty is not displaying any major signs of weakness. However, “at higher levels, signs of exhaustion are emerging, with negative divergence observed in momentum indicators, suggesting a potential for profit booking in the market,” said Santosh Meena, Head of Research at Swastika Investmart.
He feels the immediate and crucial support level stands at the 20-day moving average (DMA) of 18,450, and if breached, the next support level would be 18,180. On the upside, the 18,800-18,888 range is seen to be a resistance zone, he said.
Broader markets also trended downward, with the Nifty Midcap 100 and Smallcap 100 indices falling over one-tenth of a percent each on weak breadth, even as volatility remained lower levels. The India VIX closed at a one-and-half-month low (11.12), indicating that the market is more stable.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data and not just the current month.
Key support, resistance levels on Nifty
According to the pivot point calculator, the Nifty may find support at 18,552, followed by 18,523 and 18,477. If the index advances, then 18,645 will be the key resistance, followed by 18,673 and 18,720.
The Bank Nifty failed to sustain at higher levels in the later part of the session and ended the day 6.3 points down at 43,989, forming a small-bodied bearish candlestick pattern with a long upper shadow on the daily scale.
“We expect the prices to oscillate within a broad horizontal range of 43,500-44,500. Currently, the index is trading above the 21-day EMA (exponential moving average), which aligns near 43,850. A significant breach below this EMA level would strengthen the possibility of further decline towards 43,500,” said Arvinder Singh Nanda, Senior Vice President at Master Capital Services.
As per the pivot point calculator, the Bank Nifty is expected to find support at 43,937, followed by 43,870 and 43,760, while the resistance is likely to be at 44,157, then 44,225 and 44,335.
On the weekly options front, with 1.55 crore contracts, the maximum Call open interest (OI) was at 18,700 strike, which is expected to be a crucial resistance level for the Nifty.
This was followed by 77.53 lakh contracts at 18,800 strike, while 75.76 lakh contracts comprised the 18,600 strike.
Maximum call writing was seen at 18,600 strike, which added 52.45 lakh contracts, followed by 18,700 and 18,900 strike, which added 50.21 and 31.9 lakh contracts, respectively.
Maximum call unwinding was at 18,200 strike, which shed 19,450 contracts, followed by 17,800 and 17,500 strike, which shed 1,150 and 1,100 contracts, respectively.
On the Put side, the maximum open interest was at 18,700 strike, with 65.27 lakh contracts, which is expected to be an important support level for the Nifty50 in the coming sessions.
This was followed by the 18,600 strike, comprising 56.75 lakh contracts, and the 18,300 strike, which has 48.08 lakh contracts.
Put writing was seen at 18,300 strike, which added 24.44 lakh contracts, followed by 18,600 and 18,000 strike, which added 24.09 and 18.35 lakh contracts, respectively.
Put unwinding was seen at 18,700 strike, which shed 8.35 lakh contracts, followed by 18,900 and 19,100 strike, which shed 66,500 and 7,750 contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Alkem Laboratories, Kotak Mahindra Bank, Ipca Laboratories, HDFC, and Asian Paints, among others.
An increase in open interest (OI) and price indicates a build-up of long positions. Based on the OI percentage, 31 stocks, including Balrampur Chini Mills, India Cements, Hindustan Aeronautics, Apollo Tyres, and Delta Corp, saw a long build-up.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 48 stocks, including Kotak Mahindra Bank, ICICI Prudential Life Insurance Company, Siemens, Escorts, and Container Corporation of India saw a long unwinding.
78 stocks see a short build-up
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, 78 stocks, including Indian Energy Exchange, Atul, State Bank of India, Exide Industries, and Dr Lal PathLabs, saw a short build-up.
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 31 stocks were on the short-covering list. These included Manappuram Finance, Abbott India, IndiaMART InterMESH, DLF, and Larsen & Toubro
Kotak Mahindra Bank: foreign portfolio investor Canada Pension Plan Investment Board sold 3.3 crore equity shares, or 1.66 percent stake, in the private sector lender via open market transactions. Shares were sold at an average price of Rs 1,855.64 per share. The CPP Investment Board held 8.63 crore shares, or 4.34 percent stake, in the bank as of March 2023.
Birla Corporation: Europe-based financial services group Societe Generale picked a half percent stake in Birla Corporation, the erstwhile Birla Jute & Industries. The foreign portfolio investor bought 3.99 lakh shares in the company via open market transactions at an average price of Rs 1,188.51 per share.
CMS Info Systems: Promoter Sion Investment Holdings Pte Limited sold 2.12 crore equity shares, or 13.75 percent stake, in Cash Management and Payment Solutions via open market transactions, at an average price of Rs 300.23 per share. IIFL Focused Equity (mutual) Fund, Valuequest Investment Advisors, SBI Mutual Fund, Norges Bank (on account of the Norwegian Government Pension Fund Global), the Abu Dhabi Investment Authority, and 360 ONE Mutual Fund also bought a total of 1.46 crore shares, or 9.49 percent stake, at an average price of Rs 300 per share.
Indian Energy Exchange: Entrepreneur Harsh Anand Jain has bought 52.95 lakh equity shares, or 0.59 percent stake, in the energy exchange via open market transactions, at an average price of Rs 124.82 per share, amounting to Rs 66.09 crore.
(For more bulk deals, click here)
Investors Meetings on June 12
Bharat Forge: company officials will interact with Resona Asset Management.
UTI Asset Management Company: officials of the company will meet TA Associates Advisory.
Repco Home Finance: company officials will meet ICICI Prudential Mutual Fund, Tata Mutual Fund, Sundaram Mutual Fund, IIFL Mutual Fund, and DSP Mutual Fund.
Home First Finance Company India: officials of the company will be participating in non-deal roadshows organised by Investec in London.
Mahindra & Mahindra: the company’s officials will meet several funds and investors in a non-deal roadshow in the US.
Arvind: the company’s senior management will meet fund managers of JM Mutual Funds and Invexa Capital.
Metro Brands: company officials will meet Motilal Oswal.
Max Healthcare Institute: Abhay Soi, Chairman and Managing Director of the company, will meet various institutional investors in Europe.
Graphite India: the senior management of the company is scheduled to meet representatives of Bajaj Allianz Life Insurance.
Stocks in the news
InterGlobe Aviation: The low-cost carrier has expanded its codeshare partnership with Turkish Airlines for the US. It will launch codeshare flights to four cities in the US via Istanbul from June 15. The flights will connect New York, Boston, Chicago, and Washington.
Jupiter Wagons: NCLT, Kolkata, has approved the resolution plan submitted by Jupiter Wagons for acquiring the controlling stake of Stone India under the corporate insolvency resolution process (CIRP) of the Insolvency and Bankruptcy Code, 2016. After implementation of the resolution plan, Stone India will become a subsidiary of Jupiter Wagons.
Cochin Shipyard: The Indian Navy has declared the shipbuilding company as L1 (lowest) bidder for the mid-life upgrade of a ship. The estimated contract value of the project is around Rs 300 crore, and it is to be executed in about 24 months.
TVS Motor Company: The PI Opportunities Fund-I Scheme-II will acquire additional stock of TVS Credit, the TVS Motor subsidiary, for Rs 257.02 crore. PI Opportunities Fund will hold approximately 9.72 percent stake in TVS Credit, which is raising the proposed investment from PI to ensure sufficient capital for its growth plans. In addition, its subsidiary TVS Motor (Singapore) has agreed to acquire an additional 25 percent stake in Swiss E-Mobility Group (Holding) AG.
Info Edge: The technology company has agreed to sell its entire shareholding in associate company Happily Unmarried Marketing (HUM) to VLCC Health Care. The stake sale will be done via a mix of cash and swap of shares, for Rs 61 crore.
Steel Authority of India: Life Insurance Corporation of India acquired additional 2 percent stake in the steel company via open market transactions. Thus, LIC has increased its shareholding in SAIL to 8.687 percent, up from 6.686 percent earlier.
Fund Flow
Foreign institutional investors (FII) sold shares worth Rs 308.97 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,245.51 crore on June 9, provisional data from the National Stock Exchange shows.
Stocks under F&O ban on NSE
The National Stock Exchange has added Indian Energy Exchange and India Cements to its F&O ban list for June 12, and retained Indiabulls Housing Finance on the list. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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