Nifty Closes in the Green
The Nifty staged an impressive recovery in the last hour of trading on August 14. After a day of volatile trade, the index recouped its losses and closed in the green. Technical indicators are pointing to a possible bounce in the coming sessions.
Formation of Bullish Candlestick
The index rose 177 points from the day’s low and closed at 19,435, up six points. It formed a small-bodied bullish candlestick with a long lower shadow on the daily charts. According to Nagaraj Shetti, technical research analyst at HDFC Securities, this pattern indicates a formation of a high wave type candle pattern. Normally, such a high wave formation after a reasonable decline or upside calls for an impending trend reversal. Having declined recently, the chances of an upside bounce are likely in the coming sessions.
Support at 50-Day EMA
The index took support at the 50-day exponential moving average (EMA) of 19,250 to claw back into the green. This happened amid caution ahead of the release of CPI inflation data for July. The headline retail inflation came in at 7.44 percent, much higher than expectations and the previous month’s figure. Despite this, the Nifty closed above the upward-sloping support trendline.
Key Support and Resistance Levels on Nifty
- Support: 19,307; 19,258; 19,178
- Resistance: 19,466; 19,515; 19,594
Bank Nifty Recovers Some Losses
The Bank Nifty managed to cut back some of its losses after falling to the day’s low of 43,777. It closed 108 points lower at 44,091 and formed a Doji candlestick on the daily charts. According to Rupak De, senior technical analyst at LKP Securities, support at 43,800 signifies its resilience, while substantial Put writing at 44,000 suggests confidence in its stability. However, Call writing at 44,500 could hinder upward movement. A sell-on-rise strategy may be prudent until a clear breakout above 44,500 resistance is seen.
Key Support and Resistance Levels on Bank Nifty
- Support: 43,860; 43,757; 43,591
- Resistance: 44,193; 44,296; 44,463
Call Options Data
According to the options data:
- The maximum weekly Call open interest (OI) was at 19,600 strike with 1.01 crore contracts.
- The maximum Call unwinding was at 20,500 strike, which shed 4.37 lakh contracts.
Put Options Data
According to the options data:
- The maximum Put open interest was at 19,400 strike with 90.57 lakh contracts.
- Meaningful Put unwinding was at 19,500 strike, which shed 20.55 lakh contracts.
Stocks with High Delivery Percentage
A high delivery percentage suggests that investors are showing interest in the stock. Stocks with high delivery percentage include:
- UltraTech Cement
- Torrent Pharma
- Power Grid Corporation of India
- Britannia Industries
- Bharti Airtel
Long Build-Up in Stocks
There was a long build-up in the following stocks:
- Reliance Industries
- Polycab India
- Divis Laboratories
Short Build-Up in Stocks
There was a short build-up in the following stocks:
- Muthoot Finance
- City Union Bank
- Gujarat Narmada Valley Fertilizers and Chemicals (GNFC)
- Alkem Laboratories
Bulk Deals and Investors Meeting
Notable bulk deals and investors meeting:
- Dixon Technologies, Century Plyboards: Officials of the companies will attend Emkay Confluence–Unleashing India’s Potential.
- V-Mart Retail: The company’s officials will meet Avendus Spark Institutional Equities.
Stocks in the News
Notable stocks in the news:
- ITC: Standalone profit of Rs 4,902.74 crore for the June quarter of FY24. Decline in revenue (net of excise duty) due to lower agri and paper & packaging businesses. Approval received for hotel business demerger.
- Vodafone Idea: Loss widened in the June quarter of FY24. Revenue grew sequentially, supported by improving subscriber mix and 4G subscriber additions.
- Hero MotoCorp: Company received a family settlement agreement from the promoters. Sunil Munjal will exit the management and control of the company.
- Ashok Leyland: Approval received to acquire OHM Global Mobility (OHM India). Investment of up to Rs 300 crore as equity into OHM India.
- Senco Gold: Consolidated profit of Rs 27.7 crore in the June quarter, with revenue from operations rising.
Foreign institutional investors (FII) sold shares, while domestic institutional investors (DII) purchased stocks on August 14.
Stocks Under F&O Ban
The NSE has added Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) to its F&O ban list for August 16.
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