The market snapped its three-day winning streak and closed sharply lower on May 29 ahead of the expiry of May derivative contracts. Banks, auto and metals stocks lagged. Global trade war tensions and Arun Jaitley’s decision to opt out of the new government due to health issues hit traders’ sentiment.
The BSE Sensex fell 247.68 points to close at 39,502.05 while the Nifty 50 ended down 67.70 points to end at 11,861.10, forming a bearish candle on daily charts.
“We observe a formation of small negative candle, after the formation of hanging man type candle of the last session. This pattern could indicate a minor profit booking at the highs. We also observe a minor higher low formation in the Nifty, as per smaller time frame chart,” Nagaraj Shetti – Technical Research Analyst, HDFC Securities told Moneycontrol.
As long as this weakness with range movement continues, the near term uptrend status of the Nifty could be intact, he added. “Next lower supports to be watched is at 11,815.”
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said Thursday, being the expiry day for the May series is expected to be volatile.
The weakness was visible in the broader market indices as well. The Nifty Midcap index lost 0.77 percent and Smallcap index shed 0.67 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,861.10 on May 29. According to the Pivot charts, the key support level is placed at 11,821.3, followed by 11,781.5. If the index starts moving upward, key resistance levels to watch out are 11,916.4 and 11,971.7.
The Nifty Bank index closed at 31,295.55, down 302.35 points on May 29. The important Pivot level, which will act as crucial support for the index, is placed at 31,186.73, followed by 31,077.87. On the upside, key resistance levels are placed at 31,475.63, followed by 31,655.67.
Call options data
Maximum Call open interest (OI) of 53.42 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,500 strike price, which now holds 34.18 lakh contracts in open interest, and 11,900, which has accumulated 26.39 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 12,000, which added 12.95 lakh contracts, followed by 11,900 strike which added 7.68 lakh contracts.
Call unwinding was seen at the strike price of 12,500, which shed 6.67 lakh contracts, followed by 12,400 strike price that shed 2.7 lakh contracts.
Put options data
Maximum Put open interest of 22.48 lakh contracts was seen at 11,700 strike price. This will act as a crucial support level for the May series.
This was followed by 11,800 strike price, which now holds 20.87 lakh contracts in open interest and 11,500 strike price, which has now accumulated 19.52 lakh contracts in open interest.
There was hardly any Put writing seen.
Put unwinding was seen at the strike price of 11,900, which shed 6.84 lakh contracts, followed by 11,500 strike price that shed 4.68 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
10 stocks saw a long buildup
38 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
37 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.
112 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 304.27 crore and Domestic Institutional Investors (DIIs) offloaded Rs 189.58 crore worth of shares in the Indian equity market on May 29, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Results on May 30: About 1,250 companies will release their March quarter earnings on Thursday, which include Apollo Hospital, Coal India, HDIL, IDBI Bank, NALCO, PC Jewelller, Prabhat Dairy, Reliance Infrastructure, Sadbhav Engineering, SAIL, Suzlon Energy etc.
Power Grid Corporation Q4: Profit was up 51.9 percent at Rs 3,053.9 crore versus Rs 2,010.3 crore; revenue grew 18 percent at Rs 9,218 crore versus Rs 7,814.4 crore (YoY).
Nava Bharat Ventures Q4: Consolidated profit fell 59.3 percent to Rs 70.7 crore versus Rs 173.5 crore; consolidated revenue dipped 12.6 percent at Rs 773.7 crore versus Rs 884.8 crore (YoY)
Max India Q4: Loss was at Rs 16.5 crore versus profit of Rs 0.6 crore; revenue down 17.7 percent at Rs 13 crore versus Rs 15.8 crore (YoY).
United Spirits Q4: Profit down 40.2 percent at Rs 126.2 crore versus Rs 211 crore; revenue declined 3.5 percent at Rs 2,250 crore versus Rs 2,173.7 crore (YoY).
Bharat Electronics Q4: Profit rose 19.7 percent at Rs 668.6 crore versus Rs 558.7 crore; revenue grew 7.3 percent at Rs 3,884.6 crore versus Rs 3,621.8 crore (YoY).
SJVN Q4: Profit jumped to Rs 458.9 crore versus Rs 132.2 crore; revenue spiked to Rs 805.2 crore versus Rs 344.8 crore (YoY).
Ratnamani Metals & Tubes Q4: Profit was up 12.5 percent at Rs 63.2 crore versus Rs 56.2 crore; revenue grew 10.9 percent at Rs 686.7 crore versus Rs 619.1 crore (YoY).
Grindwell Norton Q4: Profit fell 3.4 percent at Rs 42.8 crore versus Rs 44.3 crore; revenue grew 5.7 percent at Rs 405.3 crore versus Rs 383.5 crore (YoY).
GNFC Q4: Profit dipped 71.6 percent at Rs 93.6 crore versus Rs 329 crore; revenue was down 18.9 percent at Rs 1,430.9 crore versus Rs 1,764.4 crore (YoY).
Apar Industries Q4: Profit grew 8.5 percent at Rs 43.7 crore versus Rs 40.3 crore; revenue rose 39.4 percent at Rs 2,464.6 crore versus Rs 1,767.5 crore (YoY).
Excel Cropcare Q4: Profit was Rs 4.7 crore versus loss of Rs 0.5 crore; revenue up 31.7 percent at Rs 273.2 crore versus Rs 207.4 crore (YoY).
Bharti Airtel: SingTel completes subscription of 17 cr shares in the rights issue of the company worth Rs 3,740 crore.
Manpasand Beverages: Officials arrested for GST fraud have been denied bail – CNBC-TV18 sources.
Cholamandalam Investment: Company entered into agreements to raise $222 million in debt funds in the form of US dollar bonds.
SBI: Bank to raise up to Rs 5,000 crore in Tier 2 bonds in FY20.
Aban Offshore: Board approved raising up to $400 million overseas and up to Rs 2,500 crore via QIP.
Axis Bank: Board approved the issuance of 4.5 crore shares on warrant conversion.
DHFL: Company made an interest payment for NCDs due on May 29.
Vakrangee: The company appointed Gopal Bihani as COO, CFO with immediate effect.
RBI constituted a committee on the development of housing finance securitisation market; Harsh Vardhan, Senior Advisor, Bain to head panel
Analyst or Board Meet/Briefings
HEG: Senior Management of the company will be participating in B&K Securities Annual Investor Conference scheduled to be held on May 30.
Kiri Industries: Conference Call is scheduled for May 30 to discuss the financial performance of the company.
Kaya: Company through its representatives will be participating in the Investor Meeting to be held on May 30 which will be hosted by Batlivala & Karani Securities India Private Limited.
Tata Steel: Company’s officials will meet HDFC Mutual Fund on May 30.
Polycab India: Meeting is scheduled on May 30 with the institutional investors.
Tamil Nadu Newsprint & Papers: Company’s officials will meet analysts and mutual fund investors on May 30.
Two stocks under ban period on NSE
For May 30, Adani Power is under a ban period.
Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.