Equity benchmarks recouped losses in the afternoon trade and finally settled with moderate gains on May 12, but the broader markets were under pressure with the Nifty Midcap 100 and Smallcap 100 indices falling 0.4 percent and 0.75 percent on weak breadth.
The BSE Sensex climbed 123 points to 62,028, while the Nifty gained 18 points to close at 18,315 and formed a bullish candlestick pattern with small upper shadow and long lower shadow on the daily charts.
“This pattern reflects ongoing rangebound action in the market within high-low range of 18,400-18,200 levels,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.
Though Nifty placed at the hurdle of 18,300 levels, the market is not gaining any momentum to show an upside breakout of the resistance. At the same time, there is lack of sharp weakness or reversal pattern from near the hurdle, he feels.
He expects the short-term trend of the Nifty to be range-bound with positive bias. “A decisive move above the 18,400 levels could open the next upside of around 18,600-18,700 levels in the near term. Any weakness from here could find support around 18,180-18,200 levels,” he said.
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 and resistance levels on Nifty
The pivot charts indicate that the Nifty may get support at 18,227, followed by 18,192 and 18,136. If the index advances, 18,341 would be the initial key resistance level to watch out for, followed by 18,376 and 18,432.
The Bank Nifty helped the market recover, rising 318 points to 43,794, the highest closing levels since December 14 last year, and formed a bullish candlestick pattern on the daily charts.
Bank Nifty bulls continued to hold their long positions and the intraday dip was utilised to maintain strength. “The immediate resistance for the index is at 44,000 and the downside support is at 43,500,” Kunal Shah, Senior Technical and Derivative Analyst at LKP Securities said.
As per the pivot point calculator, the Bank Nifty may take support at 43,469, followed by 43,338 and 43,124. Key resistance levels are expected to be 43,896 along with 44,027 and 44,241.
On the weekly options front, we have seen the maximum Call open interest (OI) at 18,300 strike, with 62.02 lakh contracts, which is expected to be a crucial level for the Nifty in the coming sessions.
This was followed by 18,500 strike, comprising 61.23 lakh contracts, and 18,800 strike, with more than 49.81 lakh contracts.
Call writing was seen at 18,800 strike, which added 23.56 lakh contracts, followed by the 18,500 strike, which added 22.2 lakh contracts, and 18,300 strike that added 18.47 lakh contracts.
Call unwinding was at 19,000 strike, which shed 3.2 lakh contracts, followed by 17,800 strike, which shed 11,000 contracts, and 17,700 strike, which shed 2,900 contracts.
The maximum Put open interest was at 18,200 strike with 69.21 lakh contracts, which is expected to act as an important support level in the coming sessions.
This was followed by the 18,300 strike, comprising 64.45 lakh contracts, and the 18,000 strike where we have 49.73 lakh contracts.
Put writing was seen at 18,200 strike, which added 38.92 lakh contracts, followed by 17,700 strike, which added 26.64 lakh contracts, and 18,000 strike which added 23.31 lakh contracts.
We have seen Put unwinding at 18,500 strike, which shed 13,850 contracts, followed by 18,800 strike, which shed 450 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Infosys, Sun Pharmaceutical Industries, Nestle India, PVRInox, and Larsen & Toubro, among others.
An increase in open interest (OI) and price typically indicates a build-up of long positions. Based on the OI percentage, 25 stocks, including Navin Fluorine International, Delta Corp, Glenmark Pharma, Astral, and Tata Motors saw long build-ups.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 53 stocks including Coromandel International, Power Grid Corporation of India, Asian Paints, NTPC, and ONGC saw a long unwinding.
77 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, 77 stocks, including Alkem Laboratories, Vedanta, GNFC, Bharat Forge, and Balrampur Chini Mills 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, 35 stocks were on the short-covering list. These included Polycab India, Dr Lal PathLabs, Pidilite Industries, Godrej Consumer Products, and Havells India.
Nazara Technologies: Societe Generale acquired 5.93 lakh equity shares in the gaming and sports media platform via open market transactions at an average price of Rs 570 per share.
Sotac Pharmaceuticals: Nav Capital VCC – Nav Capital Emerging Star Fund bought 82,800 equity shares in the company at Rs 119.5 per share, whereas AG Dynamic Funds sold 90,000 shares at an average price of Rs 119.51 per share.
Zee Entertainment Enterprises: Plutus Wealth Management LLP purchased 65 lakh shares in the media & entertainment company at an average price of Rs 184.63 per share.
(For more bulk deals, click here)
PVR Inox, Asahi India Glass, Astral, Century Plyboards, Coromandel International, Emkay Global Financial Services, Kalyan Jewellers India, Patel Engineering, PCBL, Pfizer, Procter & Gamble Health, Skipper, Suryoday Small Finance Bank, Tube Investments of India, Ugro Capital, and Vascon Engineers will be in focus ahead of quarterly earnings on May 15.
Stocks in the news
Tata Motors: The leading automobile manufacturer has recorded consolidated profit at Rs 5,407.8 crore for quarter ended March FY23 against loss of Rs 1,033 crore in same period last year, supported by healthy operating numbers across segments. Consolidated revenue from operations for the quarter at Rs 1.06 lakh crore grew by 35 percent over a year-ago period, with Jaguar Land Rover reporting a massive 49 percent YoY growth.
Hero MotoCorp: The world’s largest two-wheeler maker has announced partnership with Motosport SA in Costa Rica to boost its presence in Central America. As an exclusive distributor for the sale and service of Hero MotoCorp motorcycles and scooters in the country, Motosport SA will play a key role in the rapid expansion of Hero’s network in Costa Rica.
Birla Corporation: Subsidiary RCCPL has acquired the mining rights comprising of 889.760 hectares at Katni, Madhya Pradesh pursuant to a Tripartite Agreement executed with Government of Madhya Pradesh and Sanghi Infrastructure MP Limited. RCCPL has acquired 100 percent equity shares of Sanghi Infrastructure MP Limited. Accordingly, Sanghi has become a wholly owned subsidiary of RCCPL and a step down wholly owned subsidiary of Birla Corporation.
DLF: The real estate major has reported a massive 40.6 percent year-on-year growth in consolidated profit at Rs 570 crore for quarter ended March FY23 driven by strong operating margin performance as there was fall in raw material cost and other expenses. However, revenue for the quarter dropped 6 percent to Rs 1,456 crore compared to same period last year.
Colgate Palmolive India: The oral care products maker has recorded a 2.3 percent year-on-year growth in profit at Rs 316.2 crore for March FY23 quarter impacted by higher tax cost and exceptional loss. However, revenue from operations for the quarter grew by 3.8 percent to Rs 1,350.63 crore compared to year-ago period. Overall numbers were above analysts’ estimates. The board has declared second interim dividend of Rs 21 per share for FY23.
Hindustan Petroleum Corporation: The oil marketing company has reported a nine-year high quarterly standalone profit at Rs 3,223 crore for quarter ended March FY23, growing 80 percent over a year-ago period, driven by healthy operating performance. Revenue for the quarter (including excise duty) stood at Rs 1.14 lakh crore, registering growth of 8.7 percent over the corresponding period of previous year.
Adani Transmission: The electric power distribution company said the board has approved raising of funds up to Rs 8,500 crore via qualified institutional placement (QIP). The board will also seek approval of the shareholders for the said issuance.
Adani Enterprises: The flagship company of Adani Group will be in focus as the board of directors has approved raising of funds up to Rs 12,500 crore via qualified institutional placement (QIP). The board will also seek approval of the shareholders for the said issuance.
Avenue Supermarts: The food & grocery retailer has recorded a 7.8 percent year-on-year growth in consolidated profit at Rs 460.1 crore for quarter ended March FY23, backed by strong topline performance but impacted by weak margin performance, with profit margin falling 40 bps. Consolidated revenue from operations grew by 20.6 percent to Rs 10,594 crore compared to same period last year.
Fund Flow
Foreign institutional investors (FII) bought shares worth Rs 1,014.06 crore, whereas domestic institutional investors (DII) sold shares worth Rs 922.19 crore on May 12, provisional data from the National Stock Exchange showed.
Stocks under F&O ban on NSE
The National Stock Exchange added Delta Corp, & GNFC, and retained Punjab National Bank, Canara Bank, BHEL and Manappuram Finance on its F&O ban list for May 15. 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.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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