All eyes were on the Reliance Industries Annual General Meeting on Monday. Behind the scenes, the Nifty 50 was scaling the length and breadth of its trading range without many taking notice. The index yet again found support at the 19,250 mark, but failed to sustain above 19,350 once the support from Reliance faded away.

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Although the Nifty 50 did manage to close above the 19,300 mark, but only just, the price action has resulted in contrasting opinions on the charts. With three sessions to go, the Nifty 50 is still down 360 points for the August F&O series.

"The index remained sideways throughout the day before closing with a Doji formation. Although the trend remains weak, the failure to fall below 19245 on a closing basis may lead to a short-term pullback in the market," said Rupak De of LKP Securities. The Relative Strength Index (RSI) has also shown a bullish crossover. On the upside, resistance is at 19,450.

Nagaraj Shetti of HDFC Securities maintains that the short-term trend of the Nifty 50 is weak as long as it remains below 19,400. In such a scenario, he expects the index to drop towards 19,100 - 19,000. A decisive move above these levels can open the doors for further upside towards 19,600.

The Nifty Bank always appeared stronger on the charts compared to the Nifty 50 and while the index struggled on Monday, banks pulled away and recovered all of their losses from Friday. Interestingly, the Nifty Bank has closed just two points below last Thursday's close.

Ashwin Ramani of SAMCO Securities said that the Nifty Bank index has formed a morning star pattern on the daily chart and also closed marginally above its 50-DEMA. He said that a close above Monday's high of 44,610 will mark the return of the bulls on the Nifty Bank index.

However, Mehul Kothari of Anand Rathi believes that the bulls will return in the Nifty Bank only once it crosses 45,000 on the upside and the current move appears to be just a pullback. He expects 44,000 to act as a support on the downside, below which the index can see fresh selling pressure.

There is no stopping Atul Auto at the moment. The stock gained another 15 percent on Monday, extending its gaining streak for the sixth day in a row. With Monday's move, the stock has gained over 80 percent so far in 2023, 45 percent of which has come from August 14.

Shares have been surging since the news of investor Vijay Kedia increasing his stake in the company surfaced. In an interaction with CNBC-TV18 on Monday, Kedia said that he invested in the stock due to the EV theme and that will play out for the stock going forward. You can watch the entire conversation here.

What Are The F&O Cues Indicating?

Nifty 50's August futures added 1.7 percent in Open Interest on Monday. Currently, their rollovers are at 36.1 percent with three more sessions to go for expiry. They are trading at a premium of 15.25 points from a discount of 15.5 points earlier. On the other hand, Nifty Bank's August futures added 3.7 percent in Open Interest, with rollovers currently at 36.6 percent. Nifty 50's Put-Call Ratio is now at 0.99 from 0.83 earlier.

Indiabulls Housing Finance is back in the F&O ban list, while others like BHEL, Escorts Kubota, India Cements, Hindustan Copper, Manappuram Finance, GMR Infra, RBL Bank and Sun TV continue to remain in the ban list.

Nifty 50 on the Call side for August 31 expiry:

For this Thursday's weekly and monthly F&O expiry, the 19,300 Call strike for the Nifty 50 has seen Open Interest shedding, along with the 19,800 Call. Addition was seen on the 19,350 and 19,550 strike.

Nifty 50 on the Put side for August 31 expiry:

On the Put side, the Nifty 50 strikes between 18,600 on the downside and 19,300 have seen Open Interest addition, with the 19,300 Put seeing the maximum addition in Open Interest.

Lets take a look at the stocks that added fresh long positions on Monday, meaning an increase in both price and Open Interest:

Here are the stocks that added fresh short positions on Monday, meaning a decrease in price but increase in Open Interest:

Lets take a look at the stocks that saw short covering on Monday, meaning an increase in price but decrease in open interest:

These stocks saw unwinding of long positions on Monday, meaning a decrease in both price and Open Interest:

Here are the stocks to watch out for ahead of Tuesday's trading session:

Reliance Industries: Mukesh Ambani to remain Chairman & MD for the next five years.

Adani Group Stocks: Supreme Court to hear the Hindenburg matter. SEBI has submitted status report of the investigation on Friday.

Sun Pharma: Expects high-single-digit consolidated topline growth for financial year 2024. Expansion of the company's global specialty business is expected to continue. The company also expects R&D spend to be around 7-8 percent of financial year 2024's sales.

Gokaldas Exports: Enters into an agreement to acquire Atraco Group, a leading apparel manufacturer with strong market position and customer relationships across US and Europe. The equity value of the transaction is $55 million and the same will be funded by a mixture of debt and internal accruals. The transaction is likely to be closed between October-December 2023.

HFCL: Launches QIP issue to raised funds. Floor price set at Rs 68.61. Fund raising committee to meet again on August 31 to decide on the QIP issue price.

PG Electroplast: Launches QIP to raise Rs 500 crore. Floor price of Rs 1,641 is a 8.7 percent discount to Monday's close.

Zomato: Tiger Global sold 12.35 crore shares or 1.44 percent equity at Rs 91.01 apiece, totalling to Rs 1,124 crore. Apoletto Asia sold another 3.2 crore shares at an average price of Rs 90.1 apiece.

SJVN: Wholly-owned subsidiary SJVN Green Energy Ltd. has received Letter of Awards from Assam Power Development Corporation Ltd. for three Solar Power Projects of Cumulative capacity of 320 MW. The tentative cost of construction and development of these projects is around Rs 1,900 crore.

Indiabulls Housing Finance: Repaid Rs 1,112.5 crore worth of bonds which were availed in August 2013. Company has entered a phase of positive ALM where loan portfolio inflows will exceed debt repayments by Rs 1,300 crore to Rs 1,800 crore a quarter, all of which will be available for asset growth.

NBCC: Gets work order worth Rs 66.32 crore from the Indian Medical Association.

LTIMindtree: Collaborates with SaaS company CAST AI to help businesses optimise their cloud investments.

What Are Global Cues Indicating?

Benchmark indices in Asia have opened higher, carrying on from where Wall Street left on Monday night.

The Nikkei 225 is up 0.3 percent, while the Topix is up 0.1 percent after the country's unemployment rate came in higher than expected in July. The Kospi and Kosdaq in South Korea are up by a similar quantum.

Hang Seng futures are pointing towards a strong opening for the market.

Wall Street ended higher on Monday, starting the final week of August on a positive note as markets look to regain ground and trim monthly losses.

The Dow Jones ended 200 points higher, while the S&P 500 and the Nasdaq gained 0.6 percent and 0.8 percent respectively.

For the month of August, the S&P 500 is down 3.4 percent, while the Nasdaq and Dow are down 4.5 percent and 2.8 percent respectively. This will be the Nasdaq's first monthly drop since February of this year.

Foreign investors remained net sellers in the cash market on Monday, while domestic institutions continued to buy.

Shrikant Chouhan of Kotak Securities said that the Nifty 50 has formed a double bottom near key support levels indicating a pullback from current levels. "For day traders, the positive sentiment may continue as long as the index holds above 19,220," he said. Chouhan expects the pullback rally to last till 19,400 - 19,450.

19,260 will be a key support level for the Nifty 50, below which initiation of fresh shorts can drag the index down to 19,000, said SAMCO's Ramani. For fresh momentum, he wants the Nifty 50 to break above the 19,500 mark, where the maximum call Open Interest is placed.

First Published:Aug 28, 2023 9:47 PM IST