BSE Sensex and Nifty 50 slipped over 1.8% each in the previous week as they battled weak global cues that were marred with volatility. However, Friday’s up-move, which was supported by broader markets, sent signals that stock markets might witness upside bounce. “The negative implication after the formation of the bearish engulfing pattern of Thursday remains intact, as long as the high of that pattern is protected at 12025. Friday’s upside bounce could provide opportunity for sell on rise,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. On the weekly charts, a reasonable negative candle was formed, signalling strength of recent upside bounce.
For the October series, 12,500 strike has the maximum call open interest (OI) of 24.12 lakh contracts. This is followed by 12,000 strike with 23.70 lakh contracts. Most put OI was placed at 11,000 strike with 23.91 contracts, followed by 11,500 strike with 21.95 contracts. “We believe ongoing consolidation has helped daily stochastic oscillators to cool-off overbought situations (currently placed at 32 compared to last Friday’s reading of 93). This makes us believe, ongoing corrective phase would find its feet around 11500,” said Dharmesh Shah, Head – Technical, ICICI direct.
Global cues: Asian stock markets were trading with gains on Monday morning. Hang Seng was up over 1.3%. Nikkei 225, TOPIC were trading higher with gains, so was Shanghai Composite and KOSPI along with Kosdaq.
SGX Nifty trades with gains: Nifty futures on Singapore Exchange were trading over 70 points higher on Monday morning, signalling a gap-up start for NSE Nifty 50.
FII and DII data: Foreign institutional investors (FII) were net sellers of domestic securities on Friday, pulling away Rs 479 crore from stocks. Domestic institutional Investors (DII) followed FIIs and sold Rs 430 crore worth stocks. However, FIIs were buyers of Index options and even of stock futures and options.
Results today: With the quarterly results season underway, Rallis India, ACC, Britannia, L&T Tech, and HDFC Life Insurance Company are some of the names that will present the report card for the July-September quarter.
Bulk and block deals: On Friday Route Mobile shares were bought by Theleme Master Fund Limited while Likhitha Infrastructure saw interest from BM Traders, HET Finance Private Limited, and Niraj Rajnikant Shah. SB Adani Family Trust, on Friday, pledged over 36 lakh equity shares of Adani Ports and SEZ ltd.