The market rallied sharply and posted its biggest single-day gain over the last three months on August 26, driven by a rally across sectors, except metals. The measures announced by the government to boost the economy and possible trade talks between the US and China lifted sentiment.
The BSE Sensex surged 792.96 points or 2.16 percent to 37,494.12 while the Nifty 50 rose 228.50 points or 2.11 percent to close above the psychological 11,000 levels, at 11,057.90, forming a bearish candle on daily charts.
“The near-term bottom reversal pattern seems to have confirmed at 10,637 (August 23). A decisive/sustainable move above the hurdle of 11,150 levels could mean the next round of sharp up move in the near term, which could pull Nifty up to 11,500 levels,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said any failure to move above this hurdle could result in a decent downward correction from the highs.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors also said the index could trade & sustain above 5-DMA and 20-DMA indicating short term bullish bias in progress and the lower side is bought. As long as Nifty is trading above 11,000 levels it can extend higher towards 200-DMA standing around 11,200 level, he added.
The market breadth remained in favour of bulls as more than two shares advanced for every share declining on the NSE. The Nifty Midcap index was up 1.6 percent and Smallcap index gained 2.3 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,057.85 on August 26. According to the pivot charts, key support level is placed at 10,852.77, followed by 10,647.73. If the index starts moving upward, key resistance levels to watch out for are 11,166.57 and 11,275.33.
Nifty Bank closed at 27,951.35, up 992.70 points on August 26. The important pivot level, which will act as crucial support for the index, is placed at 27,208.66, followed by 26,466.03. On the upside, key resistance levels are placed at 28,344.56 and 28,737.83.
Call options data
Maximum Call Open Interest (OI) of 31.52 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in the August series.
This is followed by 11,200 strike price, which now holds 30.02 lakh contracts in open interest, and 11,100, which has accumulated 29.93 lakh contracts in open interest.
Significant Call writing was seen at the 11,200 strike price, which added 3.16 lakh contracts, followed by 11,400 strike price, which added 2.58 lakh contracts and 11,100 strike which added 2.34 lakh contracts.
Call Unwinding was seen at 11,000 strike price, which shed 14.43 lakh contracts, followed by 10,900 strike, which shed 8.46 lakh contracts and 10,800 strike which shed 7.91 lakh contracts.
Put options data
Maximum Put Open Interest of 34.48 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.
This is followed by 10,800 strike price, which now holds 27.94 lakh contracts in Open Interest, and 10,500 strike price, which has now accumulated 26.79 lakh contracts in open interest.
Put writing was seen at the 10,900 strike price, which added 13.48 lakh contracts, followed by 11,000 strike, which added 10.52 lakh contracts and 10,800 strike, which added 7.13 lakh contracts.
Put unwinding was seen at the 10,300 strike price, which shed 1.56 lakh contracts, followed by 11,200 strike that shed 0.82 lakh contracts and 11,300 strike price which shed 0.79 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
86 stocks saw a long buildup
48 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
21 stocks saw a short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
9 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Hindustan Motors: Annual General Meeting to be held on September 18.
Varun Beverages: Company’s representatives will meet the institutional investors in Mumbai on August 27 and 28.
Steel Strips Wheels: Board meeting is scheduled on September 2 to consider notice for calling the Annual General Meeting for the financial year 2018-19.
Thyrocare Technologies: Representative(s) of SAIF Partners would be having a meeting with the company on August 27.
Greaves Cotton: Company’s officials will be meeting HDFC Securities on August 27.
Munoth Capital Markets: 37th Annual General Meeting to be held on September 19.
Emami: Senior Management of the company will be participating in IIFL’s Invest India Conference in Tokyo on August 29 and 30.
Uttam Sugar Mills: Annual General Meeting of the company to be held on September 20.
Orient Electric: Managing Director & Chief Executive Officer and Chief Financial Officer of the company would be participating in Ambit India Access, Emerging Giants Day on August 27.
MBL Infrastructures: Board meeting will be held on August 29 to seek approval from the shareholders for raising of funds, if any, through an issue of securities.
NBCC: 59th Annual General Meeting of the company to be held on September 23.
Stocks in the news
Pidilite Industries: Company entered into a JV with Bengaluru based company Chetana Expotential Technologies.
Kajaria Ceramics: Board members approved the scheme of amalgamation for the merger of subsidiary Kajaria Tiles (formerly known as Kajaria Floera Ceramics) with the company.
Bank of Baroda: Lender approved raising up to Rs 2,150 crore in Tier-I, II bonds.
Reliance Nippon Life: Nippon Life bought 10.6 percent stake in the company via open offer. Nippon Life Now holds 53.46 percent stake in the company.
HDIL: Company received an order to admit the company under IBC from Bankruptcy Court.
PVP Ventures: Company filed an appeal before SAT for impugned fine order imposing a consolidated fine of Rs 25,93,640 and impugned suspension orders for suspending the trading in securities.
Vadilal Industries: CARE downgraded the credit rating of the company’s long term bank facilities to BBB from BBB+, under credit watch with negative implications.
IL&FS Transportation Networks: Company defaulted in payment of interest due on non-convertible debentures (NCDs) dated August 24.
Satin Creditcare Network: Choudhary Runveer Krishanan resigned as Company Secretary & Compliance Officer of the company.
Kingfa Science & Technology (India): Company started trial production at its new factory in Chakan Industrial Area, Pune.
Sastasundar Ventures: Mitsubishi Corporation, Japan signed an agreement to invest Rs 100 crore in Sastasundar Healthbuddy, subsidiary of the company.
Brooks Laboratories: Company appointed Suresh Garg as an additional director.
Stone India: Gouri Prasad Goenka resigned as Director/Chairman of the company.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 752.9 crore, while Domestic Institutional Investors (DIIs) bought net Rs 1,272.29 crore worth of shares in the Indian equity market on August 26, as per provisional data available on the NSE.
Fund Flow Picture
1 stock under F&O ban period on NSE
On August 27, IDBI Bank is under F&O ban.
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