Expiry Week: Rising crude, weak rupee keep the market volatile; Smallcap index falls 3%
The Nifty50 witnessed another volatile day on Wednesday but managed to close above its crucial support level of 10,700 levels but witnessed an intraday volatility of 91 points which resulted in a ‘High Wave’ candlestick pattern on the daily charts.
A High Wave kind of pattern is formed when there is a long upper shadow and a long lower shadow with a small body. The pattern is similar to a spinning top or a Doji kind of pattern but in the high wave, the shadows are longer and there is a small body.
The Nifty50 which opened at 10,751.95 which rose to an intraday high of 10,790.45. But, bears took control of D-Street and pushed the index below 5-DEMA to touch its intraday low of 10,699. The index closed above its 13-DEMA at 10,741.95, down 60 points.
The Nifty50 has crucial support placed at 10,700 levels but a close below 10,699 levels which was Wednesday’s intraday low could well change the trend for the markets, suggest experts. On the contrary, a sustained closed above 10,800 could resume the uptrend for the Nifty50.
“The Nifty50 appears to have registered a ‘High Wave’ kind of candle formation as it witnessed an intraday swing of around 2 percent before signing off the session. In the near-term, indices may continue to remain uncertain and vulnerable to the political developments,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“However, based on larger trends it appears that Nifty50 is in a corrective and consolidation phase from the highs of 10,784 itself registered on 2nd of May which requires it to slip below 10,601 to culminate a corrective structure before resuming the uptrend. In such a scenario on the downsides it should bottom out between 10,601 – 10,552 levels,” he said.
Mohammad further added that the pressure on the indices can be expected to build further if it slips below 10,699 levels in next session. Contrary to this if the indices manage a sustainable close above 10,800 levels for a couple of trading sessions then retest of 10,929 can be expected.
We have collated top 15 data points to help you spot profitable trade:-
Key support and resistance level for Nifty
The Nifty closed at 10,741.10 on Wednesday. According to Pivot charts, key support level is placed at 10,697.03, followed by 10,652.97. If the index starts moving upwards, key resistance levels to watch out are 10,787.83 and 10,834.57.
The Nifty Bank index closed at 26,182.15 on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,046.84, followed by 25,911.47. On the upside, key resistance levels are placed at 26,372.94, followed by 26,563.67.
Call Options data
In terms of open interest (OI), the 11,000 Call option has seen the most call writing so far at 60.91 lakh contracts. This could act as a crucial resistance level for the index in the May series.
The second-highest buildup has taken place in the 10,800 Call option, which has seen 41.24 lakh contracts getting added so far; followed by 10,900 Call option which has accumulated 36.98 lakh contracts.
Call writing was seen at the strike price of 10,800, which added 4.89 lakh contracts; followed by 10,900 which added 2.97 lakh contracts.
Call unwinding was seen at the strike price of 11,000, which shed 2.8 lakh contracts; followed by 11,200, which shed 1.78 lakh contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,500, in which 55.33 lakh contracts been added till date. This could be a crucial support level for the index in May series.
The 10,700 put option comes next, having added 43.98 lakh contracts so far, followed by 10,600 put option which has now added 40.64 lakh contracts in OI.
Put writing was seen at the strike price of 10,600, which added 0.24 lakh contracts.
Put unwinding was seen at the strike price of 10,800, which shed 7.8 lakh contracts; followed by 10,500, which shed 5.29 lakh contracts and 10,700 strike which shed 3.06 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 699.22 crore, while domestic institutional investors bought shares worth Rs 229.06 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.
Fund flow picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
51 stocks saw long buildup
58 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
68 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
31 stocks saw long unwinding
BEML: Crossland Trading exchanged over 3.1 lakh shares at the price of Rs 1,096.3 apiece.
Karda Constructions: Share India Securities and Kamla Finvest traded 3.19 lakh shares at Rs 182.16 apiece.
PC Jeweller: Shaastra Securities Trading bought and sold over 20.69 lakh shares at Rs 172.5-172.65 per share.
Reliance Communications: Shaastra Securities traded over 1.96 crore shares at Rs 10.6 apiece.
Shree Renuka Sugars: Khandepar Investments sold 1.16 crore shares at the price of Rs 15.50 per share.
Syngene: Biocon has sold 15.56 lakh shares at Rs 612.10 per share.
Uttam Galva Steels: Neera Gupta bought 10 lakh shares of the firm at Rs 12.95 apiece.
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Inox Wind: The company has scheduled an investors' conference on May 18, 2018.
Geojit Financial Services: The company will be hosting an earnings' call on May 17, 2018.
Mahindra Logistics: The company met several investors, including names such as Motilal Oswal, Infina Finance, Phillip Capital, and ASK Investments, among others at its investors' conference, which was held on May 16, 2018.
Morepen Labs: The firm's investor and analyst conference will be held on May 18, 2018.
Stocks in focus
Here are stocks that are in the news today:
Tata Steel Q4:
-Consolidated profit at Rs 14,688 crore versus loss Rs 1,168 crore; revenue at Rs 36,132.30 crore versus Rs 35,304.9 crore (YoY); exceptional gain at Rs 11,376 crore versus loss Rs 4,068.6 crore (YoY)
-Standalone profit at Rs 1,030.9 crore versus Rs 1,415 crore; revenue at Rs 16,281 crore versus Rs 17,113 crore; exceptional loss at Rs 1,607.4 crore versus loss Rs 442 crore (YoY)
-Tata Steel Europe EBIT at Rs 1,154.2 crore versus Rs 1,972.2 crore; revenue at Rs 16,208 crore versus Rs 15,243.5 crore (YoY)
Ester Industries Q4: Net profit at Rs 5.6 crore versus loss of Rs 0.6 crore; revenue at Rs 220 crore versus Rs 215.1 crore (YoY).
JSW Steel Q4: Consolidated net profit at Rs 2,879 crore versus Rs 1,008 crore; revenue up 25 percent at Rs 20,817 crore versus Rs 16,656 crore (YoY).
Praj Industries Q4: Net profit up 30.4 percent at Rs 22.9 crore versus Rs 17.6 crore; revenue down 9.5 percent at Rs 226.7 crore versus Rs 250.4 crore (YoY)
Manali Petrochemical Q4: Net profit at Rs 26.6 crore versus Rs 6.8 crore; revenue up 26 percent at Rs 189.9 crore versus Rs 150.7 crore (YoY)
JK Lakshmi Cement Q4: Net profit up 62.5 percent at Rs 33.8 crore versus Rs 20.8 crore; revenue up 11.2 percent at Rs 897 crore versus Rs 806.7 crore (YoY)
Alembic Pharmaceuticals Q4: Profit up at Rs 93.99 crore versus Rs 92.96 crore; revenue up at Rs 853.3 crore versus Rs 741.35 crore (YoY).
7 stocks under ban period on NSE
Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For May 17, 2018 stocks such as DHFL, Jet Airways, Jaiprakash Associates, Just Dial, PC Jeweller, Wockhardt and Reliance Communications are present in this list.