A market like this not only puts the market participants, but people like us to test as well. How? For a market that has barely moved from the previous day, It is extremely difficult to come up with a suitable headline that will get you to read what is in store for the next trading session!

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The Nifty 50 is the perfect example of such a market. Neither is the index willing to break above 19,400, nor is it falling below 19,200. The 200 point range has been a constant companion for most part of the August F&O series.

So who does the Nifty 50 turn to for support? For taking it past that elusive 19,400 mark, that will open doors for 19,600 and then again for a dash towards 20,000? Here's what its heavyweights are up to:

Reliance:

Down for four days in a row and in six out of the last seven

ITC: Down three days in a row and in four out of the last five

HDFC Bank: Up two days in a row but down 5 percent this series

ICICI Bank: Down 2.5 percent this series

Rupak De of LKP Securities expects the Nifty 50 to remain rangebound until there is a breakout on either side of the 19,245 - 19,425 range.

For Kotak Securities' Shrikant Chouhan, a move towards 19,440 - 19,480 will be possible only once the Nifty 50 trades above the 19,380 mark. He added that there are currently no fresh positive triggers for the market, therby keeping investors away.

The Nifty Bank was where the Nifty 50 looked towards for support. Till the banking index remained strong, the Nifty 50 looked like it will finally close above 19,400. However, that was not to be. The Nifty Bank closed flat, declining nearly 200 points from the day's high.

An immediate resistance for the Nifty Bank is at 44,600, above which, the index can move back towards 45,000, said Kunal Shah of LKP Securities. He maintains that the broader range of the index remains between 44,000 - 45,000.

While the benchmark indices continue to struggle, the midcaps and smallcaps continue to move higher. The Smallcap index is 30 points away from its previous record of last week, while the Midcap index is just 200 points away from the 39,000 mark. In case the index does close above 39,000, the 1,000 point move will be completed in just eight trading sessions.

Within the broader market, the specialty chemical names like Deepak Nitrite were surging in today's session. In fact, Deepak Nitrite ended 7 percent higher, and has gained in four out of the last five sessions.

"We're overweight on specialty chemical space. Archean Chemical and Tatva Chintan – are both tomorrow stories. These are places where one can buy in today's atmosphere where the market looks at five-year average multiples of 20," said Vinay Jaising of JM Financial.

What Are F&O Cues Indicating?

Nifty 50's across all series added 0.1 percent in Open Interest on Tuesday. The index's August futures are trading at a 5.55 points discount compared to a premium of 15.25 points. Rollovers at the close on Tuesday stood at 46 percent. On the other hand, Nifty Bank futures shed 0.9 percent in Open Interest across all series, with rollovers at 44 percent. Nifty 50's Put-Call Ratio is at 0.97 from 0.99 earlier.

On the penultimate day of the August F&O series, BHEL and India Cements are out of the F&O ban list, while Escorts Kubota, Hindustan Copper, Manappuram Finance, GMR Infra, RBL Bank, Sun TV & Indiabulls Housing Finance continue to be in the list.

Nifty 50 on the Call side for August 31 expiry:

For tomorrow's expiry, the Nifty 50 Call strikes between 19,350 and 19,550 have seen addition in Open Interest, with the 19,400 strike seeing the maximum addition. The 19,800 strike continues to see shedding after a few surprising days of addition of Open Interest.

Nifty 50 on the Put side for August 31 expiry:

On the Put side, the Nifty 50 strikes between 19,100 and 19,300 continue to see Open Interest addition, indicating some support for the index at these levels.

Lets take a look at the stocks that saw short covering on Tuesday, meaning an increase in price but decrease in Open Interest:

Lets take a look at the stocks that saw unwinding of long positions on Tuesday, meaning a decrease in both price and Open Interest:

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

Tatva Chintan Pharma: Approves allocation of 12.26 lakh equity shares at an issue price of Rs 1,630 apiece, which is a 4.38 percent discount to the floor price.

Suzlon: Various order wins including that of 285 MW in Kutch, Gujarat from Avikiran Solar India has been downsized to 168 MW due to Covid-19 and the resultant supply chain disruption.

Zomato: SVF Growth Fund may sell 10 crore shares or 1.17 percent of the total equity via block deals, sources say. Shares may be sold at 94 apiece, translating into a deal value of Rs 940 crore.

APL Apollo Tubes: Promoter Rahul Gupta cleans out his holding after selling 15 lakh shares at Rs 1,621 apiece.

Lupin: Launches propranolol long-acting capsules in Canada. Propranolol LA is a generic equivalent of Inderal. Propranolol is used in the treatment of heart problems, anxiety and migranes.

Central Bank of India: Enters into a strategic co-lending partnership with IKF Finance to offer MSME loans at competitive rates.

Jupiter Wagons: Board meet on September 5 to consider proposal to raise funds via equity issue or other methods.

MPS: MPS Interactive Systems Ltd. acquires Liberate Group for 9.32 million Australian Dollars.

What Are Global Cues Indicating?

Asian markets have opened mostly higher, mirroring Wall Street's overnight close.

The Nikkei 225 is trading with gains for the third day in a row, rising 0.6 percent and the Topix is also up by a similar quantum. South Korea's Kospi is outperforming in the region, rising nearly a percent, as is the Kosdaq.

Hang Seng's futures are also pointing towards a strong start to the trading day.

US markets continued to trim their monthly losses as tech stocks rallied courtesy of who else, but Nvidia!

The tech-heavy Nasdaq ended 1.74 percent higher, while the S&P 500 climbed 1.45 percent to register its best single-day gain since June 2. The Dow Jones also ended with gains of nearly 300 points. Tech stocks also received a boost from falling yields.

Nvidia ended 4.2 percent higher on Tuesday after announcing a partnership with Google that could expand the distribution of its Artificial Intelligence technology.

Both foreign and domestic investors were buyers in Tuesday's trading session, although in a smaller quantum.

Rajesh Bhosale of Angel One said that their outlook remains bullish due to the banking sector resilience and the midcap outperformance. He expects a move above 19,400 to lead the Nifty 50 towards 19,600 and advises using any correction be used as a buying opportunity.

The Nifty 50 can encounter resistance between 19,450 - 19,500 over the next 1-2 sessions, said Nagaraj Shetti of HDFC Securities. He noted that the chart patterns are indicating a minor upside bounce with rangebound action.

First Published:Aug 29, 2023 10:05 PM IST