Ahead of Market: 12 things that will decide stock action today

Ahead of Market: 12 things that will decide stock action today

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NEW DELHI: Asian stock markets started the week on a high note after US indices chalked fresh record highs. Investors were happy that last week’s burst of bearishness had swung around in New York, sending wall Street higher and tempering the bull run in bonds.At 7:20 hours (IST), Nifty futures on the Singapore Exchange traded 70 points higher signalling a likely gap-up start for Dalal Street.The three major US stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded from a selloff sparked by growth worries earlier in the week. The Dow Jones Industrial Average rose 448.23 points, or 1.3 per cent, to 34,870.16, the S&P 500 gained 48.73 points, or 1.13 per cent, to 4,369.55 and the Nasdaq Composite added 142.13 points, or 0.98 per cent, to 14,701.92. For the week, the Dow is up 0.2 per cent, and the S&P 500 and Nasdaq each added 0.4 per cent.Asian shares were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week. Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%, after shedding 2.3% last week.Nifty50 on Friday fell for the second session in a row. During the day, the NSE barometer tested its recent swing low at around 15,630, before recovering some ground by the end of the day. The index formed a small bearish candle, with a long wick, reflecting intraday buying. Analysts said the index is taking a breather and the upside looks capped for now. Since the last five weeks, Nifty50 has been caught in a trading range between 15,950 and 15,500 levels, said independent analyst Manish Shah. “This is ‘3 Week Tight’ chart pattern and within the context of the trend, we have a pause before the push,” he said.Check out the candlestick formations in the latest trading sessions India VIX fell 4.55 per cent from 13.56 to 12.94 level. Declines in the VIX after a spurt in the last session have provided some stability to the market. On the options front, maximum Put Open Interest stood at 15,500 followed by 15,000 levels, while maximum Call OI was seen at 16,000 followed by 15,800 levels. Minor Call writing was seen at 15,700 and then 16,100 levels, while there was minor Put writing at 15,200 and then 15,300 levels. Options data suggested an immediate trading range between 15,500 and 15,900 levels.Momentum indicator Moving Average Convergence Divergence ( MACD ) showed bullish trade setup on the counters of Jindal Stainless, IRB Infrastructure, Kitex Garments, D-Link (India), Just Dial, Bharti Airtel, Dhani Services, Max Ventures, Navkar Corporation,, Sutlej Textiles, Nectar Lifesciences, Rites, GHCL, Jindal Worldwide, Smartlink Holdings, Aegis Logistics, Bajaj Finserv, Filatex India, Vardhman Textiles, EIH, Balaji Telefilms, Jubilant Industries, Shalimar Paints, Kalyani Steel, Royal Orchid Hotels, HOV Services and Nalwa Sons Investment.The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.The MACD showed bearish signs on the counters of Suzlon Energy, ICICI Bank, Axis Bank,, NRB Bearings, Dharani Sugars,, Quick Heal Technology, Syngene International,, ICICI Lombard General Insurance, Orient Abrasives, PI Industries, Suumaya Industries, JMC Projects, Triveni Turbine, DCM Shriram,, RPP Infra Projects, AIA Engineering, Dhanuka Agritech, Uttam Sugar Mills, Vinyl Chemicals, DCM Nouvelle, Praxis Home Retail, Wendt India, The United Nilgiri and Welspun Investments. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.Tata Steel (Rs 2,179.54 crore), TCS (Rs 2,057.43 crore), Tata Motors (Rs 1,493.60 crore), Adani Ports SEZ (Rs 1,082.91 crore), Just Dial (Rs 1,011.61 crore), Bajaj Finserv (Rs 1,006.06 crore), Bajaj Finance (Rs 886.82 crore), RIL (Rs 865.38 crore), HDFC Bank (Rs 805.09 crore) and Granules India (Rs 746.94 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.Reliance Communication (Shares traded: 23.49 crore), Vodafone Idea (Shares traded: 17.90 crore), JP Power (Shares traded: 9.34 crore), YES Bank (Shares traded: 6.71 crore), Suzlon Energy (Shares traded: 5.03 crore), Tata Motors (Shares traded: 4.88 crore), BHEL (Shares traded: 4.62 crore), PNB (Shares traded: 4.51 crore), Dish TV India (Shares traded: 4.32 crore) and SAIL (Shares traded: 3.60 crore) were among the most traded stocks in the session.Macrotech Developers, Jindal Stainless, IRB Infra Development, Hinduja Global and Tide Water Oil witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.Uttam Galva Steels and RIL (PP) witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.Overall, the market breadth remained in favour of the bulls. As many as 264 stocks on the BSE500 index settled the day in the green, while 226 settled the day in the red.Bank stocks are again witnessing some pressure on D-Street. What should Nifty Bank traders do now? Is the market likely to correct more in the coming days? What are the Nifty charts suggesting? Will Q1 earnings numbers disappoint this time?

Trade setup for Friday: Top 15 things to know before Opening Bell

The market extended losses for second consecutive session with the Nifty50 falling below 15,700 mark on June 17, as the selling pressure was seen in Banking & financials, Auto, Metals and Pharma stocks. Weak global cues also dented sentiment.

The BSE Sensex was down 178.65 points to close at 52,323.33, while the Nifty50 fell 76.10 points to 15,691.40 and formed Inverted Hammer kind of pattern on the daily charts.

“A small positive candle was formed at the lows with long upper shadow. Technically, this signals a follow-through weakness with high volatility,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

“Nifty has broken the sequence of one day decline, as it witnessed back-to-back declines for two sessions on Thursday, after the span of 19 sessions. Hence, this action signal strength of profit booking which has emerged from the new highs. This is not a good sign for bulls to sustain the highs,” he said.

He feels the short term trend of Nifty seems to have reversed down with the short term top reversal at 15,901 (June 15).

“The next downside levels to be watched around 15,550 in the next couple of sessions, before showing another round of minor upside bounce. Any upside rally towards 15,750-15,800 could be a sell on rise opportunity for the coming sessions,” Shetti said.

The broader markets also witnessed correction with the Nifty Midcap 100 and Smallcap 100 indices falling 1.23 percent and 0.53 percent respectively.

We have collated 15 data points to help you spot profitable trades:

Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 15,615.7, followed by 15,540. If the index moves up, the key resistance levels to watch out for are 15,768.2 and 15,845.

Nifty Bank

The Nifty Bank fell 398.10 points or 1.14 percent to 34,605.40 on June 17. The important pivot level, which will act as crucial support for the index, is placed at 34,414.87, followed by 34,224.34. On the upside, key resistance levels are placed at 34,839.16 and 35,072.93 levels.

Call option data

Maximum Call open interest of 36.44 lakh contracts was seen at 16,500 strike, which will act as a crucial resistance level in the June series.

This is followed by 15,800 strike, which holds 36.31 lakh contracts, and 16,000 strike, which has accumulated 35.66 lakh contracts.

Call writing was seen at 15,700 strike, which added 17.33 lakh contracts, followed by 16,500 strike which added 15.43 lakh contracts, and 15,800 strike which added 15.31 lakh contracts.

Call unwinding was seen at 15,400 strike, which shed 38,700 contracts, followed by 15,300 strike which shed 600 contracts.

Put option data

Maximum Put open interest of 37.39 lakh contracts was seen at 15000 strike, which will act as a crucial support level in the June series.

This is followed by 15,500 strike, which holds 30.86 lakh contracts, and 15,700 strike, which has accumulated 22.19 lakh contracts.

Put writing was seen at 15,000 strike, which added 8.8 lakh contracts, followed by 15,400 strike which added 5.06 lakh contracts, and 15,300 strike which added 4.55 lakh contracts.

Put unwinding was seen at 15,800 strike which shed 2.65 lakh contracts, followed by 15,500 strike which shed 1.1 lakh contracts and 16,100 strike which shed 76,125 contracts.

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks.

22 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.

55 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.

63 stocks saw short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen.

17 stocks witnessed short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.

Bulk deals

Advanced Enzyme Technologies: Plutus Wealth Management LLP acquired 11 lakh equity shares in Advanced Enzyme at Rs 400.06 per share on the NSE. Promoter Advanced Vital Enzymes was the seller in a deal, offloading 14 lakh equity shares at Rs 400.17 per share on the NSE and 17 lakh shares at Rs 400.43 per share on the BSE, the bulk deals data showed.

Globus Spirits: Templeton Strategic Emerging Markets Fund IV LDC remained seller from the month of May, selling 8,93,388 equity shares in liquor maker Globus Spirits at Rs 490.16 per share. Old Bridge Capital Management was the buyer in a deal, acquiring 7,25,701 equity shares in the company at Rs 495.02 per share, the NSE bulk deals data showed.

Max Financial Services: Promoter entity Max Ventures Investment Holdings sold 78,28,217 equity shares in Max Financial at Rs 1,000.08 per share. Government of Singapore bought 60,13,487 equity shares in Max Financial at Rs 1,000 per share, the NSE bulk deals data showed.

(For more bulk deals, click here)

Results on June 18 & 19, and Analysts/Investors Meeting

Results on June 18: Ashoka Buildcon, Archidply Industries, Balaji Telefilms, BC Power Controls, Gujarat Fluorochemicals, GMR Infrastructure, Hinduja Global Solutions, HT Media, Insecticides (India), Jubilant Industries, PSP Projects, SMS Lifesciences, Timken India, and Welspun Specialty Solutions will release quarterly earnings on June 18.

Results on June 19: NTPC, Amtek Auto, Arihant Superstructures, Galaxy Bearings, Kernex Microsystems, Muthoot Capital Services, Simplex Castings, and Vakrangee will release quarterly earnings on June 19.

CreditAccess Grameen: The company’s officials will meet Ashmore Investments on June 18.

Syngene International: The company’s officials will meet Alchemy Capital on June 18, Motilal Oswal on June 22, DSP Mutual Fund on June 24, UTI MF and Arohi Asset management on June 25, Skerryvore Asset Management on June 28.

Voltas: The company’s officials will meet Capital Group on June 18.

Phillips Carbon Black: The company’s officials will meet Equirus Securities on June 18.

Greaves Cotton: The company’s officials will meet several analysts and investors from 16 firms including SBI General Insurance, Banyan Tree, Bellwether Capital, Mirae Asset, Invesco, Motilal Oswal, ITI MF, Birla Life Insurance on June 18.

Craftsman Automation: The company’s officials will meet analysts and institutional investors in a JM Financial Virtual Meeting on June 18.

HEG: The company’s officials will meet Matthews Asia on June 18.

Prince Pipes and Fittings: The company’s officials will meet several analysts and institutional investors on June 18.

Stocks in News

Jammu & Kashmir Bank: The bank reported standalone profit at Rs 315.75 crore in Q4FY21 against loss of Rs 294.1 crore in Q4FY20, net interest income fell to Rs 917.42 crore from Rs 987.24 crore YoY.

Power Grid Corporation of India: The company reported higher consolidated profit at Rs 3,526.23 crore in Q4FY21 against Rs 3,313.47 crore in Q4FY20, revenue rose to Rs 10,510.23 crore from Rs 10,148.26 crore YoY. The company’s board of directors recommended issue of bonus shares in the ratio of 3:1 (one new equity bonus share for every three existing equity share).

Tube Investments of India: The company reported higher consolidated profit at Rs 160.4 crore in Q4FY21 against Rs 59.76 crore in Q4FY20, revenue jumped to Rs 2,732.82 crore from Rs 1,031.01 crore YoY. The company approved fresh long-term borrowing of Rs 200 crore, to meet its requirement of funds during the financial year 2021-22, by way of issue of privately placed secured non-convertible debentures, in one or more tranches.

HealthCare Global Enterprises: The company reported higher consolidated profit at Rs 113.76 crore in Q4FY21 against Rs 50.44 crore in Q4FY20, revenue rose to Rs 297.04 crore from Rs 269.5 crore YoY.

Khadim India: The company reported consolidated profit at Rs 11.52 crore in Q4FY21 against loss of Rs 19.87 crore in Q4FY20, revenue rose to Rs 269.95 crore from Rs 158.2 crore YoY.

Mangalam Organics: CRISIL has reaffirmed long term rating for various credit facilities of the company at ‘A-’ and upgraded outlook to Positive from Stable.

Fund flow

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 879.73 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 45.24 crore in the Indian equity market on June 17, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Five stocks - Adani Ports, BHEL, Canara Bank, Escorts, and Punjab National Bank - are under the F&O ban for June 18. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

All You Need To Know Going Into Trade On July 14

Asian stocks were mixed early Wednesday after Wall Street fell from a record and bond yields rose following a surprise U.S. inflation jump that stirred the debate on how long Federal Reserve policy can stay ultra-loose.

Shares fluctuated in Japan, dipped in South Korea and were steady in Australia. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.24% at 15,796.50 as of 6:50 a.m.

U.S. futures were little changed after the S&P 500 slipped for the first time in three trading sessions while the Nasdaq 100 ended little changed. Traders are digesting a release showing the highest U.S. inflation since 2008 as well as mixed earnings from JPMorgan Chase & Co. and Goldman Sachs Group Inc.

Investors are also monitoring the spread of the more contagious delta variant of Covid-19, which is hampering the recovery from the pandemic in some parts of the world. The unfolding earnings season is key too, with global stocks close to record highs on optimism over the bounce back from the health crisis.

Oil edged lower after touching the highest price in more than 2 1/2 years. The prospect of an imminent flood of crude exports from Iran and other major producers has waned, and the International Energy Agency has warned of a deepening supply crunch.