Following a period of consolidation, the stock market is showing signs of increased bullish sentiment, with the Nifty 50 index breaching the crucial 19,500-point mark. Market experts suggest that as long as the index maintains this level, the possibility of it reaching 19,600 in the short term cannot be ruled out. Furthermore, the potential for Nifty to target 19,800 points is on the horizon. Notably, robust support levels are visible in the range of 19,400 to 19,300. It’s worth mentioning that on September 5, the market closed higher for the third consecutive day, with the BSE Sensex gaining 152 points to reach 65,780, while the Nifty 50 index climbed 46 points to close at 19,575. Additionally, Nifty formed a small bullish candlestick pattern on the daily chart.
To aid investors in identifying profitable opportunities, we provide figures based on a three-month sum of Open Interest (OI) and Volume data for the stocks mentioned in this report, rather than just the current month.
Key Support and Resistance Levels for Nifty
Nifty’s primary support level stands at 19,539, followed by major support levels at 19,525 and 19,501. If the index continues its upward trajectory, potential resistance may be encountered at 19,501, followed by 19,600 and 19,624.
Nifty Expected to Trade within a Range in September Series
For Nifty Bank, the initial support is situated at 44,432, with significant support levels at 44,369 and 44,267. If the index continues to ascend, it might encounter resistance at 44,636, followed by 44,699 and 44,801.
Call Option Data
Weekly data reveals that the highest Call open interest, totaling 87.24 lakh contracts, is observed at the 19,600 strike, which could serve as a pivotal resistance level in upcoming trading sessions. The most substantial call writing occurred at the 20,000 strike, with 28.5 lakh contracts added. Notably, the highest call unwinding was seen at the 19,500 strike.
Put Option Data
Maximum Put open interest, accounting for 1.34 crore contracts, is concentrated at the 19,500 strike, signifying a crucial support level in future trading sessions. Substantial Put writing occurred at the 19,500 strike, with 54.34 lakh contracts added. The most significant put unwinding took place at the 19,000 strike.
Shares with High Delivery Percentage
Prominent stocks with high delivery percentages include United Breweries, Infosys, Max Financial Services, Marico, and Alkem Laboratories.
Long Build-up Seen in 74 Stocks
Long build-up, indicating increased open interest alongside rising prices, was observed in 74 stocks in the recent trading session. Notable stocks include Glenmark Pharma, Can Fin Homes, Coforge, Indian Energy Exchange, and Aarti Industries.
Long Unwinding Seen in 20 Stocks
Long unwinding, typically marked by a decrease in open interest alongside falling prices, was noted in 20 stocks based on open interest future percentage. Stocks with significant long unwinding include BHEL, Balrampur Chini Mills, NTPC, Hindustan Copper, and MCX India.
Short Build-up Seen in 45 Stocks
Short build-up, characterized by an increase in open interest alongside declining prices, was observed in 45 stocks. Notable stocks with significant short build-up include Delta Corp, SBI Life Insurance Company, M&M Financial Services, SBI Card, and Tata Communications.
Short Covering Seen in 46 Stocks
Short covering, inferred from a decrease in open interest combined with rising prices, was noted in 46 stocks. Stocks with substantial short covering include Torrent Pharma, Dalmia Bharat, Deepak Nitrite, Jubilant Foodworks, and Petronet LNG.
In recent transactions, Lighthouse India Fund has divested a 1.3% stake in Bikaji Foods International, while Plutus Wealth Management LLP has acquired 13.5 lakh shares through open market transactions.
Investor Meetings Scheduled for September 6th
Several companies, including Uniparts India, Gujarat Fluorochemicals, Anand Rathi Wealth, Punjab National Bank, Inox Wind, Suryoday Small Finance Bank, and Transport Corporation of India, will conduct meetings with investors on September 6th. These interactions aim to provide insights and engage with potential investors.
FII and DII Statistics
On September 5th, foreign institutional investors sold Rs 1,725.11 crore worth of securities in Indian markets, while domestic institutional investors purchased Rs 1,077.86 crore.
Stocks Under F&O Ban on NSE
Delta Corp, Balrampur Chini Mills, BHEL, Hindustan Copper, Indiabulls Housing Finance, and India Cements are among the six stocks currently under the F&O ban on NSE as of September 6th. Stocks enter the F&O ban category when their positions exceed market-wide position limits.