On September 21, the market closed with around a half-percent loss due to selling across sectors except FMCG, and the correction in Asian peers.
The BSE Sensex declined 263 points to 59,457, while the Nifty50 declined 98 points to 17,718 and formed a decent bearish candle on the daily charts.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said a small negative candle formed on the daily chart with minor upper and lower shadows. This pattern indicates a consolidation movement in the market.
It is possible for the market showing small range weakness to signal broader range movement after a sharp decline on September 15 and 16. Wednesday’s market breadth was negative, and broader markets also showed some weakness. 0.7 percent was lost from the Nifty Midcap 100 index and 1 percent was lost from the SmallCap 100 index.
In the next few sessions, the market is expected to remain within a broader range of 18,100-17,500 levels. Any decisive move beyond this range could accelerate momentum on either side.
Key support and resistance levels on the Nifty
A pivot chart indicates that 17,642 is the key support level for the Nifty, followed by 17,565. If the index rises, 17,817 and 17,915 are the key resistance levels.
Nifty Bank
According to the daily chart, the Nifty Bank closed at 41,203 on Wednesday after a correction of 265 points. It is at 40,894 and 40,585 that the pivot level will act as crucial support for the index. On the upside, the 41,507 and 41,811 levels will serve as key resistance levels.
CALL OPTION DATA
There was a maximum Call open interest of 37.55 lakh contracts at 18,000 strike, which will act as a crucial resistance level in the September series.
There are 24,55 lakh contracts held by 18,500 strike, followed by 21,13 lakh contracts by 17,800 strike.
The 18,100 strike added 7.67 lakh contracts, followed by the 17,800 strike, which added 6.94 lakh contracts, and the 18,000 strike, which added 6.77 lakh contracts.
Call unwinding was seen at 18,900 strike, which shed 26,800 contracts, followed by 17,000 strike which shed 24,400 contracts, and 17,100 strike which shed 10,500 contracts.
PUT OPTION DATA
There were 33.41 lakh contracts of open interest at 17,500 strike, which is likely to act as a crucial support level in September.
This is followed by 17,000 strike, which holds 31.66 lakh contracts, and 16,500 strike, which has accumulated 29.61 lakh contracts.
Put writing was seen at 17,400 strike, which added 8.9 lakh contracts, followed by 17,000 strike, which added 5 lakh contracts, and 17,700 strike which added 4.66 lakh contracts.
Put unwinding was seen at 17,900 strike, which shed 1.73 lakh contracts, followed by 16,500 strike which shed 96,650 contracts and 16,900 strike which shed 55,000 strike.
STOCKS WITH A HIGH DELIVERY PERCENTAGE
Investor interest in these stocks is evident from their high delivery percentages. Highest deliveries were reported for Bharti Airtel, ICICI Lombard General Insurance, TCS, Power Grid Corporation of India, and Wipro.
Investors Meetings on September 22
Axis Bank: Officials of the company will attend BofA India Financials Virtual Tour.
Varun Beverages: Officials of the company will attend JP Morgan India Consumption Tour 2022 in Haryana.
Vedanta: Officials of the company will meet BofA Securities.
Eicher Motors: Officials of the company will interact with Quantum AMC.
Finolex Industries: Officials of the company will meet Grandeur Peak Global Advisors.
Varroc Engineering: Officials of the company will interact with Securities Investment Managers.
Indian Energy Exchange: Officials of the company will interact with Abu Dhabi Investment Authority (ADIA).
UPL: Officials of the company will meet several investors and analysts at a conference organised by JP Morgan.
Stocks in News
Veritas (India): Investor Swan Energpicked up anan additional 3.36 percent stake or 9.01 lakh shares in the company via open market transactions on September 20. Earlier it held just 1,441 shares in the company.
IDBI Bank: The bank sold the entire stake in Ageas Federal Life Insurance Company to partner Ageas Insurance International NV. In May 2022, the bank had entered into a Share Purchase Agreement to sell its entire stake of 20 crore equity shares in Ageas Federal Life Insurance Company to Ageas Insurance International NV. With this sale, IDBI Bank’s shareholding in Ageas Federal Life Insurance Company now stands at NIL.
Punjab National Bank: The public sector lender has raised Rs 658 crore by issuing Basel III compliant additional Tier-1 bonds at a coupon rate of 8.3 percent per annum, on a private placement basis.
Ashoka Buildcon: The company has received a contract for the construction of a new BG line, from South Western Railway as it has the letter of acceptance (LOA) from South Western Railway for the said project. The project includes electrical and telecommunication works in engineering, procurement and construction (EPC) mode. The accepted bid project cost for the project is Rs 258.12 crore. The completion period is 24 months from the date of the appointed date.
Heritage Foods: The company said the Board of Directors will meet on September 30, to consider raising funds by way of issue of equity shares on a rights issue basis.
Kirloskar Oil Engines: The company said the board members have appointed Anurag Bhagania as Chief Financial Officer of the company with effect from September 22. In addition, the company acquired a 24 percent stake in La-Gajjar Machineries (LGM). It had acquired a 76 percent stake in LGM in 2017 with an agreement that the balance holding will be acquired by KOEL over a 5-year period.
PB Fintech: The company will invest Rs 650 crore in the subsidiary Policybazaar Insurance Brokers, and also invest Rs 250 crore in another subsidiary Paisabazaar Marketing And Consulting.
FII and DII data
The NSE reported that foreign institutional investors sold shares worth Rs 461.04 crore and domestic institutional investors bought shares worth Rs 538.53 crore on September 21.
Stocks under F&O ban on NSE
Listed on the NSE F&O ban list for September 22 are Ambuja Cements, Can Fin Homes, Delta Corp, Escorts, PVR, and RBL Bank. Securities thus banned under the F&O segment include companies whose derivative contracts have reached 95 percent of the market-wide position limit.
