Call options dataAccording to the weekly options data, the 22,800 strike owned the maximum Call open interest, with 69.72 lakh contracts.
It was followed by the 23,500 strike, which had 67.56 lakh contracts, while the 23,000 strike had 63.88 lakh contracts.
Meaningful Call writing was seen at the 22,800 strike, which saw an addition of 41.45 lakh contracts.
It was followed by the 21,800 strike, comprising 39.24 lakh contracts and then the 22,500 strike, with 36.49 lakh contracts.
Meaningful Put writing was seen at the 22,000 strike, which saw an addition of 24.79 lakh contracts, followed by 21,900 and 22,100 strikes, with 18.59 lakh and 14.12 lakh contracts additions, respectively.
Stock Market Trend
The market is expected to consolidate with a positive bias in the coming sessions, with immediate resistance on the higher side at 22,600-22,650, followed by 22,800 levels, while the 22,450 (the middle of Bollinger band) may act as a support, followed by 22,300 (the low of long bullish candlestick pattern formed on April 25), experts said.
On May 3, the BSE Sensex plunged 733 points to 73,878 as the market participants turned cautious ahead of US non-payrolls data (which was lower than analysts estimates) and unemployment rate (rising to 3.9 percent from 3.8 percent) announced later in the day.
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The Nifty 50 declined 172 points to 22,476 after hitting a record high during the day, and witnessed bearish divergence on daily timeframe with the momentum indicator RSI (relative strength index) failing to surpass its previous swing high despite indices surging to a fresh high on Friday.
The index has formed Bearish Engulfing candlestick pattern on the daily charts and Doji kind of pattern on the weekly charts as well as Double Top kind of pattern formation.
"While it is important to be slightly cautious on account of the overhead resistance being formed, it is equally important to note that despite all these bearish indications, the index is still managing to hold its 50 DMA zone of 22,280-22,300 which is also the lower support zone of the upward rising channel Nifty, which has been trading since January 2024," Sudeep Shah, deputy vice-president and head of the technical and derivative research desk at SBI Securities said.
With the global markets on a rebound mode post the US Fed Policy announcement, he feels Nifty could continue consolidating between 22,280-22,300 on the downside and 22,800 levels on the upside in the coming says.
"Any move beyond the 22,800 zone could imply continuation of the rally up to 23,050-23,200 levels, which is the upper end of the rising channel mentioned earlier. Below 22,280, the index could witness acceleration of profit booking up to 22,000-21,900 levels," he said.
Ashish Kyal of Waves Strategy Advisors also agreed with Sudeep, saying it is not going to be easy for bulls to take Nifty back above 22,800 immediately.
"Bulls need to sustain above 22,650 followed by 22,800 for up move to resume."
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Double Top is a bearish reversal pattern, but needs to be watched the action of following session for confirmation of the said pattern.
Meanwhile, the India VIX, the fear gauge, jumped 8.7 percent to 14.62 level, the highest closing level since March 4, and rallied 43.4 percent in the past seven consecutive sessions.
Here are 15 data points we have collated to help you spot profitable trades
Key support and resistance levels on the Nifty and the Bank Nifty
The pivot point calculator indicates that the Nifty 50 is expected to face resistance at the 22,517 level, followed by 22,816 and 22,986 points. On the lower side, the index may take immediate support at the 22,369 level, followed by 22,263 and 22,093 points.
Meanwhile, the Bank Nifty was also under pressure, falling 308 points to 48,924 and formed bearish candlestick pattern on the daily charts after hitting the upper end of Bollinger band.
"Immediate resistance is at 49,200, and a break above could trigger short-covering moves towards 49,500 levels," Kunal Shah, senior technical & derivative analyst at LKP Securities said.
Conversely, he feels the immediate support lies at 48,800-48,700, and a breach might lead to further downside towards the 48,400 mark, where the 20DMA is situated.
According to the pivot point calculator, the Bank Nifty index may see resistance at 49,010, followed by 49,650 and 50,012. On the lower side, support is likely at 48,702, followed by 48,478 and 48,116.
Call options data
According to the weekly options data, the 22,800 strike owned the maximum Call open interest, with 69.72 lakh contracts. This level can act as a key resistance for the Nifty in the short term. It was followed by the 23,500 strike, which had 67.56 lakh contracts, while the 23,000 strike had 63.88 lakh contracts.
Meaningful Call writing was seen at the 22,800 strike, which saw an addition of 41.45 lakh contracts. It was followed by 22,500 and 23,000 strikes that added 32.38 lakh and 29.99 lakh contracts.
The maximum Call unwinding was visible in the 21,500 strike, which shed 29,425 contracts, followed by 22,000 and 21,700 strikes, which shed 18,250 and 4,300 contracts, respectively.
Put option data
On the Put side, the maximum open interest was seen at 22,000 strike, which can act as a key support level for the Nifty with 55.49 lakh contracts. It was followed by the 21,800 strike, comprising 39.24 lakh contracts and then the 22,500 strike, with 36.49 lakh contracts.
Meaningful Put writing was seen at the 22,000 strike, which saw an addition of 24.79 lakh contracts, followed by 21,900 and 22,100 strikes, with 18.59 lakh and 14.12 lakh contracts additions, respectively.
Put unwinding was observed at the 22,700 strike, which shed 12.44 lakh contracts. This was followed by 22,600 and 22,800 strikes, with deduction of 7.43 lakh and 1.77 lakh contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage reflects investor interest in a stock. HDFC Life Insurance Company, Max Financial Services, SBI Life Insurance Company, Kotak Mahindra Bank, and PI Industries saw the highest delivery among the F&O stocks.
18 stocks see long build-up
A long build-up was seen in 18 stocks, including Navin Fluorine International, Bajaj Finance, Shree Cement, Cummins India, and Grasim Industries. An increase in open interest (OI) and price indicates a build-up of long positions.
82 stocks see long unwinding
Based on the OI percentage, 82 stocks saw long unwinding, which included Abbott India, Havells India, Ipca Laboratories, Oberoi Realty, and Aditya Birla Fashion & Retail. A decline in OI and price indicates long unwinding.
54 stocks see a short build-up
A short build-up was seen in 54 stocks, including Coforge, MRF, Balrampur Chini Mills, GMR Airports Infrastructure, and HDFC Life Insurance Company. An increase in OI, along with a fall in price, points to a build-up of short positions.
33 stocks see short-covering
Based on the OI percentage, 33 stocks were on the short-covering list including Dabur India, Oracle Financial Services Software, Escorts Kubota, Container Corporation of India, and Crompton Greaves Consumer Electricals. A decrease in OI, along with a price increase, is an indication of short-covering.
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 0.89 on May 3, from 1.28 levels in the previous session.
The increasing PCR or higher than 0.7 or surpassing 1 means traders are selling more Put options than Calls options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
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Results on May 6
Lupin, Marico, Arvind, CarTrade Tech, CG Power and Industrial Solutions, DCM Shriram, Godrej Consumer Products, Gujarat Gas, Happiest Minds Technologies, Indian Bank, Route Mobile, and Suven Life Sciences will release March FY24 quarter earnings on May 6.
Stocks in the news
Kotak Mahindra Bank: The private sector lender has recorded standalone net profit at Rs 4,133 crore for quarter ended March FY24, growing 18.2 percent over a year-ago period, with strong growth in non-interest income and operating profit. Net interest income rose 13.2 percent on-year to Rs 6,909.4 crore for the quarter.
Britannia Industries: The biscuit maker has reported consolidated net profit at Rs 536.6 crore for March FY24 quarter, declining 3.8 percent compared to corresponding period of last fiscal, impacted by muted growth in topline and weak operating numbers. Revenue from operations grew by 1.1 percent on-year to Rs 4,069.4 crore for the quarter.
M&M Financial Services: The non-banking finance company has registered a 9.5 percent on-year decline in profit at Rs 619 crore for the quarter ended March FY24. Net interest income grew by 15.6 percent year-on-year to Rs 1,919 crore for the quarter.
One 97 Communications: Bhavesh Gupta has resigned as President and Chief Operating Officer of the company to move to advisory position with effect from May 31, as a part of overall organisational restructuring.
Avenue Supermarts: The D-Mart operator has recorded consolidated net profit at Rs 563.3 crore for March FY24 quarter, growing 22.4 percent over same period previous fiscal, with healthy topline and operating numbers. Revenue from operations grew by 20.1 percent on-year to Rs 12,726.6 crore for the quarter.
Funds Flow (Rs crore)
FII and DII data
Foreign institutional investors (FIIs) net sold Rs 2,391.98 crore shares, while domestic institutional investors (DIIs) pumped in Rs 690.52 crore on May 3, provisional data from the NSE showed.
Stocks under F&O ban on NSE
The NSE has added Balrampur Chini Mills, and GMR Airports Infrastructure to the F&O ban list for May 6, while retaining Aditya Birla Fashion & Retail, Biocon and Vodafone Idea to the said list.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
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