Talking on the future condition and direction of the market, Nagraj Shetty of HDFC Securities says that the overall chart pattern is indicating caution on long positions. At present, the market is looking to create opportunities for short term weakness from higher levels. Any dip coming from the upper levels would be a good buying opportunity.
On October 18, the Sensex-Nifty set a new high and also set a record closing high and the market remained in the hands of the bulls for the 7th consecutive day. The Sensex touched the 62,000 level in yesterday’s rally. On the other hand, Nifty also went above 18,500 in intraday. Metal, banking, financial, IT and select FMCG stocks saw strong gains in yesterday’s trade.
BSE Sensex closed at 61,765.59 with a gain of 459.64 points yesterday. Nifty closed at 18,477 with a gain of 138.50 points. But it created a negative chart on the daily chart.
Nagraj Shetty of HDFC Securities Says a small negative candle with minor upper and lower shadows is forming at the swing highs. Technically this pattern is indicative of the formation of a Spinning Top type candle pattern. This type of formation is usually associated with the top reversal. Keeping this in mind, you must provide stoploss protection for trading long positions.
He also believes that the short term trend for Nifty remains positive. But the overall chart pattern is indicating caution on long positions. At present, the market is looking to create opportunities for short term weakness from higher levels. Any dip coming from the upper levels would be a good buying opportunity. He also says that any strong uptrend above 18,650 will negate this negative signal. Support is visible for Nifty at 18,350 level.
In yesterday’s trade, along with the giants, there was a rise in mid and smallcap stocks. Nifty Midcap closed with a gain of 1.17 per cent. At the same time, the Smallcap 100 index closed with a gain of 0.7 percent.
Here we are giving you some such data, on the basis of which it will be easy for you to catch profitable deals. It should be noted here that the Open Interest (OI) and volume of stocks in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 18,433.87 and after that the second support is located at 18,390.63. If the index turns upwards, then it may face resistance at 18,531.77 then 18,586.43.
Nifty Bank
The first support for Nifty Bank is located at 39,520.4 and after that the second support is located at 39,356. If the index turns upwards, then it may face resistance at 39,898.4 then 40,112.
call option data
The strike of 18,500 saw the maximum call open interest of 19.67 lakh contracts, which would act as a key resistance level in the October series. After this, the highest call open interest of 17.58 lakh contracts is being seen at 19,000. At the same time, at the strike of 18,000, there is a call open interest of 11.74 lakh contracts.
Call writing was seen on the strike of 18,900. 2.96 lakh contracts were added to this strike. After that, 2.23 lakh contracts have been seen getting added even at 19,100.
The maximum call unwinding was seen at the strike of 18,000. This was followed by the highest call unwinding at 18,300 and then 18,200 strike.
put option data
The maximum put open interest of 26.44 lakh contracts has been seen at the strike of 17500, which will act as an important resistance level in the October series. After this, the highest put open interest of 26.01 lakh contracts is being seen at 18,000. At the same time, there is a Put Open Interest of 23.95 lakh contracts at a strike of 18,500.
Put writing was seen at the strike of 18,500. 12.84 lakh contracts were added to this strike. After that, 6.79 lakh contracts have been seen getting added even at 18,400. Whereas 5.91 lakh contracts are attached at 18,300.
The maximum put unwinding was witnessed at the strike of 17,500. This was followed by the highest put unwinding at the strike of 17,800 and then 17,700.
Stocks with High Delivery Percentage
These include HUL, HCL Tech, Crompton, Infi, Britannia and NTPC. A high delivery percentage indicates that investors are showing interest in those stocks.
FII and DII figures
Foreign institutional investors bought Rs 512.44 crore in the Indian markets on 18 October. On the other hand, domestic institutional investors sold Rs 1,703.87 crore on this day.
Stocks coming under F&O ban on NSE
On October 19, 7 stocks are under F&O ban on NSE. These include the names of Amara Raja Batteries, BHEL, Escorts, Indiabulls Housing Finance, Vodafone Idea, NALCO, and Sun TV Network. It is to be noted that the stocks included in the F&O segment are put in the ban category if the positions of the securities exceed their market wide position limits.
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