Equity benchmarks ended lower on November 17, succumbing to selling pressure at higher levels, with the Sensex closing 188 points lower at 65,795 and the Nifty 33 points lower to end at 19,732.
The broad-based Nifty, which faced strong resistance between 19,800 and 19,850, is likely to consolidate for a few days before moving into action mode, experts said.
The Nifty will have to hold the crucial support of 19,600 to 19,450. If the index manages to move decisively above 19,850, it could even cross the 20,000 mark, they said.
“The hourly momentum indicator is showing a negative crossover, which indicates that consolidation may continue over the next few trading sessions. The Bollinger bands on the hourly charts are also contracting, which indicates that there could be range-bound movements in the future,” Jatin Gedia, technical researcher,” said the Sharekhan by BNP Paribas analyst.
On the downside, 19,630 – 19,600 is the support and it is crucial to hold this zone for the uptrend to continue, he said.
Market breadth favored the bulls with 1,079 stocks rising and 1,048 falling on the NSE.
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Key support and resistance levels on Clever
The pivot point calculator indicates that the Nifty could take support at 19,682 followed by 19,649 and 19,596. On the higher side, 19,788 may be the immediate resistance, followed by 19,821 and 19,874.
On November 17, the Bank Nifty opened the gap lower, a day after the Reserve Bank of India increased the risk weighting on consumer credit exposure, and closed below the moving average 20-day exponential (EMA), falling 578 points, or 1.31%, to 43,584. The index formed a bearish candlestick with a long upper shadow on the daily charts. It is approximately 300 points away from the 200-day EMA (43,294).
On the weekly scale too, this formed a bearish candle as banking stocks continued to underperform. “Now it needs to break through and hold above the 43,750 area to bounce towards the 44,044 and then 44,250 levels, while holding below this level could lead to some weakness towards the levels from 43,333 and then 43,000,” Chandan Taparia, senior vice president, derivatives analysts, Motilal Oswal Financial Services, said.
According to the pivot point calculator, the index should take support at 43,520, followed by 43,435 and 43,298. On the upside, initial resistance is at 43,794 then at 43,879 and 44,016.
On the weekly options data front, the 19,900 strike held the maximum call open interest (OI), with 77.54 lakh contracts, which can serve as a key resistance level for the Nifty. It was followed by the 19,800 strike, which had 75.77 lakh contracts, while the 20,500 strike had 66.75 lakh contracts.
Maximum call writing was seen at 19,800 strike, which added 37.89 lakh contracts, followed by 20,400 and 20,500 strikes, which added 29.28 lakh and 27.31 lakh contracts .
The maximum call outcome was 19,500 strikes, which resulted in the loss of 45,050 contracts, followed by 19,100 and 18,600 strikes, which resulted in the loss of 600 and 50 contracts.
On the Put side, the maximum open interest was 19,700 strike, which can act as key support for the Nifty, with 49.4 lakh contracts. It was followed by 19,500 strikes, comprising 49.25 lakh contracts, and 19,000 strikes with 48.44 lakh contracts.
The significant Put writing was 19,100 strikes, which added 20.98 lakh contracts, followed by 19,000 strikes and 19,500 strikes, which added 20.53 lakh and 19.56 lakh contracts.
The unwinding of puts stood at 19,900 strikes, which lost 1.96 lakh contracts, followed by 20,200 strikes, which lost 10,100 contracts, and 20,300 strikes which lost 700 contracts.
A high delivery percentage suggests that investors are showing interest in the stock. Indraprastha Gas, IndiaMART InterMESH, Bharti Airtel, Power Grid Corporation of India and Bajaj Auto recorded the highest deliveries among F&O stocks.
Long accumulation was seen in 54 stocks including Exide Industries, SBI Life Insurance Company, MRF, Granules India and Can Fin Homes. An increase in open interest (OI) and price indicates accumulation of long positions.
Based on OI percentage, 38 stocks had a long run, including Manappuram Finance, Indian Oil Corporation, India Cements, Chambal Fertilizers and Chemicals and MCX India. A decrease in OI and price indicates a long course.
A short rise was seen in 31 stocks, including SBI Card, RBL Bank, State Bank of India, Aditya Birla Capital and IDFC First Bank. An increase in OI accompanied by a fall in price indicates an accumulation of short positions.
Based on OI percentage, 64 stocks were on the short coverage list. These include ABB India, ICICI Prudential Life Insurance Company, Ramco Cements, Bosch and AU Small Finance Bank. A decrease in OI accompanied by an increase in price is an indication of short covering.
The Nifty Put Call (PCR) ratio, which indicates the mood of the stock market, fell to 1.02 on November 17 from 1.18 in the previous session. A PCR greater than 1 suggests that traders are buying more Puts than Calls, which generally indicates an increase in bearish sentiment.
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Actions in the news
Aurobindo Pharma: The United States Food and Drug Administration (US FDA) has concluded a pre-approval inspection (PAI) of Units I and III of APL Healthcare’s formulation manufacturing plant in Telangana with zero observations. The inspection, conducted between November 13 and 17, resulted in a “No Action Indicated (NAI)” rating. APL Healthcare is a subsidiary of Aurobindo Pharma.
Expel industries: The High Court has issued a decree recording the terms of the settlement agreement signed by the parties, namely Exide Industries, Vertiv Company Group Limited UK (VCGL) and Vertiv Energy (VEPL), while ruling on the pending suits since 2006. Both VCGL & VEPL have agreed not to use the said CHLORIDE brand in India, directly or indirectly, and will withdraw all their claims on this brand in favor of Exide.
SBI Cards and Payment Services: After the Reserve Bank of India tightened rules on consumer credit and bank credit to NBFCs on November 16, the credit card company said it would impact fund adequacy ratios capital for banks and NBFCs, and for SBI card, it would reduce capital adequacy by about 4 per cent.
Cipla: The pharmaceutical company executed a ZAR945 million facility demand guarantee in favor of First Rand Bank, South Africa, for the extension of general banking facilities to Medpro Pharmaceutica (Pty) Ltd. Medpro is a wholly owned subsidiary of Cipla in South Africa. Africa.
RITES: CFM Mozambique awarded RITES the tender for 10 diesel-electric locomotives with ancillary services with a total value of $37.68 million, but the company lost the tender for 300 wagons to high edges.
NBCC (India): NBCC has signed a Memorandum of Understanding with the Institute of Chartered Accountants of India (ICAI). ICAI has awarded the planning, design and execution of its buildings and renovation works at various locations in India. NBCC will complete the work for a PMC fee of 6.5 percent of the actual project cost.
Fund Flow (Rs Crore)
Foreign institutional investors net sold shares worth Rs 477.76 crore, while domestic institutional investors offloaded Rs 565.48 crore worth of shares on November 17, according to provisional data from the National Stock Exchange.
Stocks under F&O ban on NSE
The NSE has added RBL Bank to its F&O ban list for November 20, while retaining Chambal Fertilizers and Chemicals, Delta Corp, Hindustan Copper, India Cements, Manappuram Finance, MCX India and Zee Entertainment Enterprises in the list. SAIL has been removed from the F&O ban.
Prohibited securities in the F&O segment include companies whose derivative contracts exceed 95% of the market-wide position limit.
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