The market continued its northward journey for the second straight session on December 27, led by further value buying in quality stocks. All sectors, barring FMCG, provided support to the market.
The BSE Sensex rallied 361 points to 60,927, while the Nifty50 rose 118 points to 18,132 and formed a bullish candle on the daily charts with a long lower shadow, indicating a positive trend for coming sessions.
"Technically this pattern signals a continuation of upside momentum in the market with buy on dips opportunity. This is a positive indication and signals more upside in the short term," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
After a sharp downside breakout of crucial support like ascending trend line on Friday, Nifty witnessed a decisive upside bounce in back-to-back two sessions indicating chances of a false downside breakout of the said trend line support, and hence, a sustainable move above 18,150-18,200 levels is likely to pull Nifty towards the next overhead resistance of 18,500 levels in the near term, Shetti feels.
Immediate support for Nifty is placed at the 17,960 level, the market expert said.
The Nifty Midcap 100 and Smallcap 100 indices continued to perform better than benchmarks, rising around 1 percent each.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.
Key support and resistance levels on the Nifty
As per the pivot charts, the key support level for the Nifty is placed at 18,013, followed by 17,971 & 17,901. If the index moves up, the key resistance levels to watch out for are 18,152 followed by 18,195 and 18,265.
The Nifty Bank also extended gains for the second consecutive session, rising 229 points to 42,860 and forming a Doji kind of candlestick pattern on the daily charts, indicating indecisiveness among bulls and bears about the future market trend.
The important pivot level, which will act as crucial support for the index, is placed at 41,861, followed by 41,560 and 41,072 levels. On the upside, key resistance levels are placed at 42,836 followed by 43,137 & 43,625 levels.
We have seen the maximum Call open interest at 18,200 strike, with 87.08 lakh contracts, which can act as a crucial resistance level in the last week of the December series.
This is followed by 18,500 strike, which holds 79.59 lakh contracts, and 19,000 strike, which have more than 72.44 lakh contracts.
Call writing was seen at 18,600 strike, which added 14.61 lakh contracts, followed by 18,100 strike, which added 3.24 lakh contracts, and 18,400 strike which added 2.93 lakh contracts.
Call unwinding was seen at 18,000 strike, which shed 30.55 lakh contracts, followed by 19,000 strike which shed 11.06 lakh contracts and 17,900 strike which shed 4.87 lakh contracts.
We have seen a maximum Put open interest at 18,000 strike, with 99.16 lakh contracts which can act as a crucial support level in the last week of the December series.
This is followed by 17,000 strike, which holds 78.27 lakh contracts, and 17,800 strike, which has accumulated 73.37 lakh contracts.
Put writing was seen at 18,000 strike, which added 34.35 lakh contracts, followed by 18,100 strike, which added 22.49 lakh contracts and 17,900 strike which added 12.9 lakh contracts.
Put unwinding was seen at 17,300 strike, which shed 1.96 lakh contracts, followed by 18,300 strike which shed 1.32 lakh contracts, and 18,400 strike which shed 97,250 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in Atul, Infosys, Power Grid Corporation of India, HDFC Life Insurance Company, and M&M Financial, among others.
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, we have seen a long build-up in a total of 54 stocks on Tuesday, including Balrampur Chini Mills, Indiabulls Housing Finance, Hindalco Industries, Federal Bank, and Jindal Steel & Power.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, a total of 21 stocks have seen long unwinding on Tuesday including Amara Raja Batteries, Alkem Laboratories, Dr Lal PathLabs, Cummins India, and Syngene International.
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, we have seen a short build-up in a total of 21 stocks on Tuesday including Gujarat Gas, JK Cement, Mahindra & Mahindra, Abbott India, and UPL.
97 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, we have a total of 97 stocks in the short-covering list on Tuesday including LIC Housing Finance, Apollo Tyres, Divis Laboratories, Punjab National Bank, and Bandhan Bank.
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Investors Meetings on December 28
Stocks in News
Hariom Pipe Industries: The company has decided to acquire operating assets of RP Metal Sections. It has entered into asset transfer agreement with RP Metal Sections, the galvanized pipe and cold roll coil manufacturer, to purchase its operating asset. This unit is spread across 13.83 acres of land in Perundurai, Tamilnadu. The transaction cost is Rs 55 crore.
MOIL: The company has received intimation from Government of India through Ministry of Steel appointing Ajit Kumar Saxena as Chairman-cum-Managing Director on the board. The appointment is till the date of his superannuation (December 31, 2025) or until further orders, whichever is earlier.
India Pesticides: Subsidiary Shalvis Specialities (SSL) has received an environmental clearance for setting up manufacturing plant of "agrochemicals & intermediates, API ingredients & intermediates and fine chemicals manufacturing unit in Sumerpur, Uttar Pradesh.
Rail Vikas Nigam: The company has received letter of award for appointment as project implementation agency for implementation of the UTF harbor project in Maldives. This is a strategic project of government and the project cost is Rs 1,544.60 crore.
Kwality Pharmaceuticals: The company has received an acknowledgement from Bulgarian Drug Agency for carrying out an inspection of its cephalosporin and oncology plant in Himachal Pradesh. The company had made an EU Compliance application to Republic of Bulgaria for carrying out an inspection of Unit II in Himachal Pradesh, and Republic of Bulgaria accepted the application for EU Audit visit.
Indowind Energy: The wind turbine manufacturer has decided to open its rights issue on January 27, till February 10, 2023. The rights entitlement ratio is in the proportion 2 shares for every five shares held by eligible equity shares. The rights issue price has been fixed at Rs 12 per share.
Suryoday Small Finance Bank: The Reserve Bank of India has approved the reappointment of Baskar Babu Ramachandran as the MD & CEO of Suryoday Small Finance Bank. He will be MD & CEO for another three years, with effect from January 23, 2023.
Fund Flow
Foreign institutional investors (FIIs) sold shares worth Rs 867.65 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 621.81 crore on December 27, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has added Balrampur Chini Mills and Indiabulls Housing Finance and retained Punjab National Bank under its F&O ban list for December 28. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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