The Indian market witnessed an extended decline on Friday amid a massive sell-off from FIIs. The S&P BSE Sensex plunged over 650 points, while the Nifty50 ended over 1 per cent lower.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Sectorally, the selling pressure was visible in bank, IT, and financial services, while buying interest in auto, metal, FMCG, and pharma stocks on Friday.

Dr. Joseph Thomas, Head of Research, Emkay Wealth Management says, “The equity markets trended lower for the week owing to selling pressure from FIIs. The FIIs have been net sellers to the tune of more than Rs. 20000 crores for the month of October.”

“The valuation risks have been one the main concerns for FIIs, triggered by the downgrading of Indian equity markets from “overweight” to “neutral” by key global brokerages. The valuation risks are specifically coming to the fore now as few sections of the markets expect growth momentum to slow in the wake of sticky inflation, he added.

Here is a list of 12 data points that will help you in making a profitable trade

Key support & resistance levels for Nifty50:

The Nifty50 closed 1.04 percent lower at 17,671. Key Pivot points (Fibonacci) support for the index is placed at 17617, 17546, and 17430 while resistance is placed at 17849, 17920, and 18036.

Key support & resistance levels for Nifty Bank:

The NiftyBank closed 1 per cent higher at 39,115. Key Pivot points (Fibonacci) support for the index is placed at 38590, 38272, 37757 while resistance is placed at 39620, 39939, and 40454.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Options Data:

“Since it is the beginning of the new series, Option data is scattered at various far strikes. Maximum Call OI is at 19000 then 18500 strike while Put OI is at 17000 then 17500 strike. Option data suggests a wider and bigger trading range in between 17200 to 18300 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

06 Stock seeing new Long Positions:

If price increases and open interest increases, then participants are having more of long positions.

23 stock witnessing Long Cover:

If the price decreases and open interest decreases, then participants are long covering their contracts.

02 stocks witnessing short positions:

If price decreases and open interest increases, then participants are having more of short positions.

23 stock witnessing short covering:

If the price increases and open interest decreases, then Participants are short covering their contracts.

FII Activity:

Foreign portfolio investors (FPIs) remained net sellers for Rs 5142.63 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 4342.51 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Bulk Deals:

Bharat Bijlee: Rohini Nilekani bought 50,000 equity shares in the company at the weighted average price Rs 1476.25 per share on the NSE, the bulk deals data showed.

SREI Infrastructure Finance: Norges Bank sold 31,30,816 equity shares in the company at the weighted average price Rs 3.7 per share on the NSE, the bulk deals data showed.

One Point One Solution: Nexpact Limited bought 7,42,000 equity shares in the company at the weighted average price Rs 57.9 per share on the NSE, the bulk deals data showed.

ASL Industries Limited: Asl Enterprises Limited sold 2,52,000 equity shares in the company at the weighted average price Rs 24 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

One stock: Punjab National Bank has been placed under the F&O ban on Monday. 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.