The Indian market ended in the red on Wednesday, with Sensex and Nifty50 each falling over half per cent at the close, led by private banks and Reliance Industries.
Sectorally, selling pressure was seen in banking, financial, realty, pharma, and metal indices while buying interest was visible only in auto, IT, and media stocks on Wednesday.
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“The Nifty witnessed sustained selling pressure for yet another session. An intraday bounce faced resistance near the key hourly moving averages and the 20 DMA,” Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said.
Ratnaparkhi said, “From there the index nosedived towards the end of the session. As a result, Nifty has entered the near-term support zone of 17900-17800. The hourly chart shows that the index has reached lower end of the rising channel with a minor breach on the downside.”
“Going ahead, the junction of 40 DEMA and the swing low on the daily chart, which is near 17800 will be the key support to watch out for. There is scope for a bounce-back as long as the level of 17800 holds on a closing basis. A near-term hurdle is paced at 18000-18050 at the higher side, he added.
Here is a list of 12 data points that will help you in making a profitable trade
Key support & resistance levels for Nifty50:
The Nifty50 closed 0.56 percent lower at 17,898. Key Pivot points (Fibonacci) support for the index is placed at 17790, 17844, and 17878 while resistance is placed at 17988, 18022, and 18077.
Key support & resistance levels for Nifty Bank:
The NiftyBank closed 0.69 per cent lower at 38,041. Key Pivot points (Fibonacci) support for the index is placed at 37684, 37866, 37978 while resistance is placed at 38341, 38453, and 38634.
Gross Open Interest:
Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.
Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.
On Option front, Maximum Call OI is at 18500 then 19000 strike while Maximum Put OI is at 17500 then 17400 strike. Call writing is seen at 18100 then 18000 strike while Put writing is seen at 17400 then 17500 strike.
“Option data suggests a trading range in between 17700 to 18100 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
28 Stock seeing new Long Positions:
If price increases and open interest increases, then participants are having more of long positions.
55 stock witnessing Long Cover:
If the price decreases and open interest decreases, then participants are long covering their contracts.
74 stocks witnessing short positions:
If price decreases and open interest increases, then participants are having more of short positions.
33 stock witnessing short covering:
If the price increases and open interest decreases, then Participants are short covering their contracts.
Foreign portfolio investors (FPIs) remained net sellers for Rs 344.35 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 61.14 crore, provisional data showed on the NSE.
FII Index and Stock F&O:
ASL Industries: Zuber Trading LLP bought 1,88,000 equity shares in the company at the weighted average price Rs 23.55 per share on the NSE, the bulk deals data showed.
SEL Manufacturing Co Ltd: Puneet Singla bought around 2,000 equity shares in the company at the weighted average price Rs 10.2 per share on the NSE, the bulk deals data showed.
AKG Exim Limited: Marvel Realtech Private Limited bought 1,00,000 equity shares in the company at the weighted average price Rs 39 per share on the NSE, the bulk deals data showed.
Libas Consu Products Ltd: Ritesh Properties And Industries Limited bought 1,00,000 equity shares in the company at the weighted average price Rs 45.25 per share on the NSE, the bulk deals data showed.
Stocks under F&O ban on NSE
Six stocks: IRCTC, Sun TV, BHEL, Indiabulls Housing Finance, SAIL, and National Aluminium have been placed under the F&O ban on Monday. 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/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)