The Indian equity Sensex and Nifty ended green on August 23 after a saw trade.
Nifty creates an ugly candle with a small low shadow. This pattern indicates weakness at high levels.
Sensex closed 226 points, or 0.41 percent, higher at 55,555.79 while Niftys settled at 16,496.45, up 46 points or 0.28 percent.
Although Sensex and Nifty are closed at the top, the overall market range was incorrect and the middle and middle class indicators are not working well. Experts point out that this is not a good sign as it indicates a weakening of the market.
BSE Midcap and smallcap indicators closed at a loss of 0.90 percent and 1.55 percent, respectively.
“With weak strength, Nifty is unlikely to rally above the recent 16,701.85 figure in the near future and the bottom area of 16,250-16,400 could serve as a significant market support in the short term. We expect unusual movements in the next few fronts. Shetti, technical analyst at HDFC Securities.
Key Support And Resistance Levels On The Nifty
According to pivot charts, the key support levels for the Nifty are placed at 16,397.23, followed by 16,298.07. If the index moves up, the key resistance levels to watch out for are 16,594.04 and 16,691.67.
The Nifty Bank rose 91 points, or 0.26 percent, to 35,124.40 on August 23. The important pivot level, which will act as crucial support for the index, is placed at 34,818.8, followed by 34,513.2. On the upside, key resistance levels are placed at 35,428.7 and 35,733 levels.
Call Option Data
Maximum Call open interest of 55 lakh contracts was seen at 16,600 strike, which will act as a crucial resistance level in the August series.
This is followed by 16,500 strike, which holds 53 lakh contracts, and 16,700 strike, which has accumulated 48.3 lakh contracts.
Call writing was seen at 16,600 strike, which added 10.95 lakh contracts, followed by 16,700 strike, which added 7.16 lakh contracts and 16,900 strike which added 4.27 lakh contracts.
Call unwinding was seen at 16,400 strike, which shed a whopping 13.54 lakh contracts, followed by 16,300 strike which shed 1.20 lakh contracts, and 16,200 strike which shed 88,700 contracts.
Put Option Data
Maximum Put open interest of 44.3 lakh contracts was seen at 16,000 strike, which will act as a crucial support level in the August series.
This is followed by 16,500 strike, which holds 44.11 lakh contracts, and 16,400 strike, which has accumulated 38.3 lakh contracts.
Put writing was seen at 16,500 strike, which added 8.78 lakh contracts, followed by 16,200 strike which added 4.89 lakh contracts, and 16,100 strike which added 2.78 lakh contracts.
Put unwinding was seen at 16,400 strike, which shed 4.5 lakh contracts, followed by 17,000 strike which shed 26,050 contracts.
Stocks In The News
Sical Logistics: The fifth meeting of the committee of creditors has been scheduled for August 25 through video conferencing.
Nandan Denim: Brickworks Ratings India has revised the outlook of the rating of long-term facilities of the company.
KPI Global: The company has successfully commissioned a new capacity of 5.44 MW (DC) in its existing solar power plant at Village-Sudi & Tancha, Ta-Amod, District- Bharuch.
Atul Auto: Credit rating agency CRISIL has assigned CRISIL A-/ Stable (downgraded from CRISIL A/Stable) to long-term bank facilities and CRISIL A2+ (downgraded from CRISIL Al) to short term bank facilities of the company.
Sanghvi Movers: ICRA upgraded the long-term rating to ICRA A from ICRA A- and also upgraded the short-term rating to ICRA A1 from ICRA A2-.
Eicher Motors: Siddhartha Lal has been reappointed as managing director of the company with effect from May 1, 2021.
NR Agarwal Industries: Production at Unit 2 (writing and printing) of the company has been temporarily shut down due to the lack of market orders.
FII And DII Data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,363.36 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,452.51 crore in the Indian equity market on August 23, as per provisional data available on the NSE.
Stocks Under F&O Ban On NSE
Four stocks – Canara Bank, Vodafone Idea, NMDC and Sun TV Network – are under the F&O ban for August 24. 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.