It was a volatile and rangebound session for the market, with the benchmark indices closing on a flat note on June 26 despite weakness in global counterparts.
The BSE Sensex remained below the 63,000 mark, falling 9.4 percent to 62,970, while the Nifty50 rose 26 points to 18,691 and formed a Doji kind of candlestick pattern on the daily charts, indicating indecisiveness among buyers and sellers about the future market trend, after two-day correction.
“The immediate support of 10-day EMA (exponential moving average) has been broken on the downside on Friday at 18,750 levels and the Nifty is currently placed at the next crucial support of 20-day EMA around 18,650 levels,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He feels that the said 20-day EMA has been active in the last couple of months and a minor upside bounce could be expected in the short term.
However, any weakness below this support at 18,650 levels is likely to bring the next round of weakness in the market, while immediate resistance is placed at 18,760 levels, Shetti said.
The broader markets rebounded smartly after a two-day weakness on positive breadth. The Nifty Midcap 100 and Smallcap 100 indices climbed nearly 1 percent and six-tenth of a percent respectively.
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
The pivot point calculator suggests that the Nifty may get support at 18,658, followed by 18,640 and 18,611, whereas in the case of an upside, 18,715 can be a key resistance area for the index, followed by 18,733 and 18,762.
Nifty Bank
The Bank Nifty also had a rangebound session, rising 18 points to 43,641 and forming a small bearish candlestick pattern on the daily scale.
Overall, the index continued to see a battle between the bulls and bears. “It has support at 43,400 levels, while the resistance is observed at 44,000, where the highest Call writing is visible,” Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said.
He feels if the index breaks down below 43,400, it may experience further correction toward the 42,000 mark. The overall undertone of the index remains neutral, and a break on either side of the support or resistance level will confirm a clear trend, he said.
The pivot point calculator indicated that the Bank Nifty is likely to take support at 43,564, followed by 43,509 and 43,421, whereas 43,740 can be the initial resistance zone for the index, followed by 43,795 and 43,883.
Call options data
As per monthly options data, we have seen maximum Call open interest (OI) at 18,800 strike, with 1.46 crore contracts, which can act as a crucial resistance area for the Nifty50 in coming sessions.
This was followed by 1.07 crore contracts at 19,000 strike, while 18,900 strike has 97.22 lakh contracts.
We have meaningful Call writing at 18,900 strike, which added 7.91 lakh contracts, followed by 19,000 strike and 18,700 strike, which added 7.74 lakh contracts, and 7.68 lakh contracts, respectively.
Maximum Call unwinding was at 19,200 strike, which shed 4.76 lakh contracts, followed by 19,500 and 19,400 strikes, which shed 3.51 lakh and 3.33 lakh contracts, respectively.
Put option data
On the Put side, the maximum open interest was at 18,700 strike, with 79.78 lakh contracts, which can be a crucial level for the Nifty50 in the coming sessions.
This was followed by the 18,600 strike, comprising 74.34 lakh contracts, and the 18,800 strike, which has 72.01 lakh contracts.
Put writing was seen at 18,600 strike, which added 20.72 lakh contracts, followed by 18,700 strike and 17,800 strike, which added 4.72 lakh contracts and 3.29 lakh contracts, respectively.
We have Put unwinding at 18,000 strike, which shed 8.9 lakh contracts, followed by 18,300 strike and 18,800 strike, which shed 7.65 lakh contracts, and 3.53 lakh contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. We have seen the highest delivery in Reliance Industries, United Breweries, Mphasis, Havells India and Bharti Airtel among others.
57 stocks see a long build-up
An increase in open interest (OI) and price indicates a build-up of long positions. Based on the OI percentage, we have seen a long build-up in 57 stocks including Laurus Labs, Ipca Laboratories, IOC, Cummins India and Sun Pharmaceutical Industries.
24 stocks see long unwinding
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 24 stocks including PVRInox, HDFC AMC, Oberoi Realty, RBL Bank, and HDFC saw a long unwinding.
19 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, we have seen a short build-up in 19 stocks including SBI Card, Balrampur Chini Mills, Astral, Shree Cements and Reliance Industries.
88 stocks see short-covering
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 88 stocks were on the short-covering list. These included Rain Industries, Hindustan Aeronautics, Dr Lal PathLabs, LIC Housing Finance and Mahanagar Gas.
Bulk deals
63 Moons Technologies: The Miri Strategic Emerging Markets Fund LP, the hedge fund owned by US-based Miri Capital Management LLC, has bought additional 3.54 lakh equity shares or 0.77 percent stake in the technology company via open market transactions at an average price of Rs 216.16 per share.
Aavas Financiers: Foreign portfolio investor Small Cap World Fund Inc has offloaded another 7.7 lakh equity shares or 0.97 percent stake in the housing finance company at an average price of Rs 1,437.74 per share, amounting to Rs 110.77 crore. However, Europe-based financial services group Societe Generale was the buyer for some of those shares, acquiring 3.96 lakh shares at an average price of Rs 1,427.21 per share.
Parag Milk Foods: Sixth Sense India Opportunities III, a venture capital fund managed by Sixth Sense Ventures, increased its shareholding in the milk products company, buying additional 7.83 lakh shares or 0.67 percent stake at an average price of Rs 132 per share. In the previous session, the venture capital fund had bought 6.8 lakh shares or 0.58 percent stake in Parag Milk.
Solara Active Pharma Sciences: Promoter entity Karuna Business Solutions LLP has offloaded 1.99 lakh equity shares in the pharma company via open market transactions at an average price of Rs 374.35 per share. Spiracca Ventures LLP was the buyer in the deal.
(For more bulk deals, click here)
Investors Meetings on June 27
ICICI Prudential Life Insurance Company: Senior management of the company will be meeting investors or analysts arranged by CLSA India.
Rolex Rings: The company’s senior officials will interact with Morgan Stanley, Canara Robeco Mutual Fund, HDFC Mutual Fund, Birla Mutual Fund, Axis Mutual Fund and Invesco Mutual Fund.
Finolex Industries: Officials of the company will meet First Sentier, TBC, Nikko Asset Management, Natixis Investment Managers, and Kotak Offshore.
eMudhra: The company’s officials will interact with Yes Securities, Axis Capital, BNP Paribas India, and Prabhudas Lilladher.
Aptus Value Housing Finance India: Officials of the company will interact with Investec, Yes Securities, and Sundaram Mutual Fund.
Mrs Bectors Food Specialities: The company’s senior officials will be interacting with institutional investors and analysts.
Mahindra Logistics: Officials of the company will be having group meeting with Mirae Asset Mutual Fund and Philip Capital.
Maharashtra Seamless: The company’s officials will interact with Mahindra AMC, Nippon AMC, Birla MF, 3P Asset Management, ICICI Prudential Life, Tata MF, JM PMS, Care PMS, AUM Fund, Abakkus, Julius Baer, Zeus Capital, Vallum Captal, and JM MF.
Stocks in the news
Bharti Airtel: The telecom operator has announced changes to its leadership team in Airtel Business. Ajay Chitkara has resigned as CEO of Airtel Business and will continue with the company until the third week of August 2023. Consequently, Airtel Business will operate as three business and channel segments. Global business will be led by Vani Venkatesh, Domestic business by Ganesh Lakshminarayanan, and Nxtra Data Centers by Ashish Arora.
JSW Steel: After the approval for the scheme of amalgamation by NCLT, JSW Vallabh Tinplate, Vardhman Industries, and JSW Steel Coated Products filed the said order with the Registrar of Companies. The said scheme has become effective from June 26. Accordingly, JSW Vallabh Tinplate and Vardhman Industries have merged with JSW Steel Coated Products, the subsidiary of JSW Steel, and ceased to exist from the effective date.
Aditya Birla Capital: The Aditya Birla Group company opened its qualified institutional placement (QIP) issue on June 26. The floor price has been set at Rs 175.99 per share. Sources told CNBC-TV18 that the fundraising is likely to be at Rs 1,750 crore.
BLS International Services: The outsourcing service provider said the board members of its subsidiary BLS E-Services have approved fundraising via initial public offering (IPO). The size of the offer, price and other details of the proposed IPO will be determined in due course. Post the proposed IPO, BLS E-Services would continue to be a subsidiary of the company.
City Union Bank: The company has received approval from the board of directors for raising further capital to the tune of Rs 500 crore via qualified institutional placement (QIP).
Tech Mahindra: The company’s step-down subsidiary LCC France SARL has approved a proposal to divest its 49 percent stake in SARL Djazatech along with its wholly owned subsidiary EURL LCCUK Algerie. The stake sale transaction is expected to be completed by July 10, 2023.
SBI Life Insurance Company: Swaminathan Janakiraman has resigned as a director of the life insurance company with effect from June 26 after the Reserve Bank of India appointed Swaminathan as Deputy Governor. He was the nominee director representing State Bank of India.
Fund Flow
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 409.43 crore, whereas domestic institutional investors (DII) purchased shares worth Rs 250.12 crore on June 26, provisional data from the National Stock Exchange shows.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Hindustan Copper, and RBL Bank on its F&O ban list for June 27. 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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