Tracking weakness in global markets, Indian indices witnessed a knee-jerk reaction which took benchmark indices to a four-month low. The BSE Sensex suffered a biggest single-day loss (in absolute terms) since August 24, 2015.
The Sensex plunged 1,448.37 points or 3.64 percent to 38,297.29, the lowest level since October 14, 2019, while the Nifty50 shed 431.50 points or 3.71 percent to 11,201.80, the lowest level since October 7, 2019.
Experts favour waiting for some consolidation before initiating long positions and say if the index breaks the next crucial support of 11,111, then it could slip past the psychologically important 11,000-mark.
“The Nifty is approaching certain critical long-term averages on longer time-frame charts from where it took to support and staged a rally after major corrections in the past. Hence, in the near term, crucial support to watch out will be 11,111, which should not be violated at least on a weekly closing basis. The next logical support of the entire rally from the lows of 10,670–12,430 is placed around 11,022 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
For the week, the S&P BSE Sensex witnessed a fall of about 7 percent while the Nifty50 was down by 7.3 percent. Investors lost more than Rs 11 lakh crore in terms of market capitalisation.
We have collated 15 data points to help you spot profitable trades:
Note: The OI and volume data of stocks given in this story are aggregates of three month’s data and not of the current month only.
Key support and resistance level for Nifty
According to the pivot charts, the key support level is placed at 11,122.93 followed by 11,044.07. If the index starts moving upward, key resistance levels to watch out for are 11,332.73 and 11,463.67.
The important pivot level, which will act as crucial support for the index, is placed at 28,944.43 followed by 28,741.67. On the upside, key resistance levels are placed at 29,457.03 and 29,766.87.
Call options data
Maximum Call Open Interest (OI) of 22.8 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the March series.
This is followed by 11,800 strike price, which now holds 16.66 lakh contracts in open interest, and 11,500, which has accumulated 15.01 lakh contracts in open interest.
Significant Call writing was seen at the 11,500 strike price, which added 10.16 lakh contracts, followed by 11,300 strike price, which added 7.52 lakh contracts.
Minor Call Unwinding was seen at 10,500 strike price, which shed 32,625 lakh contracts.
Put options data
Maximum Put Open Interest of 22.35 lakh contracts was seen at 11,800 strike price, which will act as crucial support in the March series.
This is followed by 11,700 strike price, which now holds 19.54 lakh contracts in Open Interest, and 11,000 strike price, which has accumulated 19.31 lakh contracts in open interest.
Put writing was seen at the 11,500 strike price, which added 6.33 lakh contracts, followed by 11,300 strike, which added 3.71 lakh contracts.
Put unwinding was seen at the 11,600 strike price, which shed 2.44 lakh contracts, followed by 12,000 strike that shed 2.12 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means they are bullish on it.
No stocks saw a long build-up
Based on open interest (OI) future percentage, there are no stocks in which long build-up was seen.
67 stocks saw long unwinding
75 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. Based on open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
1 stock saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
Here are the key corporate actions taking place in week ahead:
Stocks in News
Coal India: The company is likely to register a 13 percent year-on-year rise in production in February to 66 million tonnes, sources said on February 29. “The daily average production has inched higher to nearly 2.5 million tonnes compared to a little over 2 million tonnes in the month of January. Till February 28, cumulative monthly production was 63.5 million tonnes” the sources told PTI.
GMR Infra: GMR Infrastructure said it will seek shareholders’ nod for minority stake sale in its airport business. In a notice to shareholders, the company sought approval for “divestment of minority equity stake in GMR Airports Ltd”. Aeroports de Paris SA (ADP) would buy 100 percent stake in GMR Infra Services Ltd and then 49 percent shareholding in GAL. GMR Infra Services is an operating and holding company. Its primary business is to hold shares in GAL.
Allahabad Bank: Allahabad Bank announced a cut of up to 40 basis points in interest rate on external benchmark-linked products. “…the Asset Liability Management Committee (ALCO) of the Bank has decided to revise interest rates for the products linked to External Benchmark with effect from 1st March 2020,” the bank said in a regulatory filing.
Reliance Industries: Reliance Industries on February 29 said it has acquired 37.7 percent stake in textile manufacturer Alok Industries Ltd for Rs 250 crore. Reliance had jointly with JM Financial Asset Reconstruction Co Ltd bid for acquiring Alok Industries that was auctioned under the insolvency and bankruptcy law by lenders to recover their unpaid loans.
Dr Reddy’s Laboratories: Dr Reddy’s Laboratories said the US health regulator has issued a Form 483 with two observations after inspecting one of its formulation plants in Hyderabad. In a regulatory filing, the drug major said the US Food and Drug Administration (USFDA) completed audit of its formulations manufacturing plant – 3 at Bachupally, Hyderabad on Friday.
Eicher Motors: February auto sales – Total commercial vehicles sales went down 29.2 percent at 4,439 units against 6,268 units (YoY). Total domestic CV sales was down 27.4 percent at 3,875 units against 5,337 units (YoY). Total CV exports was down 39.4 percent at 564 units against 931 units (YoY).
Mahindra & Mahindra February auto sales: Total sales went down 1.1 percent at 1.47 lakh units against 1.48 lakh units (YoY). Total exports was up 7.1 percent at 10,261 units against 9,582 units (YoY). Total domestic sales went down 3.6 percent at 1.36 lakh units against 1.39 lakh units (YoY).
Maruti Suzuki February auto sales: Total sales at 1.47 lakh units against Nomura expectation of 1.5 lakh units. Total sales went down 1.1 percent at 1.47 lakh units against 1.48 lakh units (YoY). Total exports went up 7.1 percent at 10,261 units against 9,582 units (YoY). Total domestic sales went down 3.6 percent at 1.36 lakh units against 1.39 lakh units (YoY).
Bharti Airtel: Company made payment of Rs 8,004 crore to DoT in AGR matter
Bajaj Finance: Bajaj Finance raises Rs 430 crore via 2030 Bonds at 7.6 percent.
SREI Infra: CARE cuts long-term rating to BBB+ from A-
ONGC: Company to consider and declare interim dividend on March 4
JK Cement: Company to pay Rs 7.50 per share as interim dividend
HUDCO: Board approves raising up to Rs 28,000 crore via bonds in FY21
PNC Infra: Got letter of award from HAI for Hybrid Annuity Mode Project of Rs 1,602 crore
(For more bulk deals, click here)
Fund Flow Picture
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 1428.74 crore, while Domestic Institutional Investors (DIIs) bought net Rs 7621.16 crore worth of shares in the Indian equity market on February 28, as per provisional data available on the NSE.
Stocks under F&O ban
There was not a single stock present in the NSE F&O ban list
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.