The market gained strength after initial trade volatility and marked another fresh record high on December 17, backed by HDFC Group stocks. The decision of the Federal Reserve to keep interest rates unchanged at near-zero levels in its December meeting and maintain bond-buying programmes until the economy returns to full employment also aided sentiment.
Benchmark indices ended at record closing highs again. The BSE Sensex inched near 47,000 mark, rising 223.88 points to 46,890.34, while the Nifty50 gained 58 points at 13,740.70 and formed a Spinning Top kind of pattern on the daily charts.
"Although the market looks tired at the highs, the long term charts like weekly and monthly are intact and there is no indication of any reversal forming on the short term charts like daily and 60 minutes intraday timeframe," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
"The short term trend of Nifty continues to be rangebound with a positive bias and similar type of movement is expected in the coming session. The upside target for the Nifty remains around 13,900-14,000 levels, which corresponds to multiple long term trend line resistances. Immediate support is placed at 13,660," he said.
But the overall market breadth was negative and broad market indices like Nifty Midcap and Smallcap closed 0.27 percent lower and 0.15 percent higher respectively. "This could be a cause of concern for longs at highs," Shetti said.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 13,685.07, followed by 13,629.43. If the index moves up, the key resistance levels to watch out for are 13,784.77 and 13,828.83.
The Nifty Bank rose 148.60 points to 30,847 on December 17. The important pivot level, which will act as crucial support for the index, is placed at 30,678.94, followed by 30,510.77. On the upside, key resistance levels are placed at 30,980.24 and 31,113.37.
Call option data
Maximum Call open interest of 22.08 lakh contracts was seen at 13,000 strike, which will act as a crucial level in the December series.
This is followed by 13,500 strike, which holds 19.44 lakh contracts, and 14,000 strike, which has accumulated 19.11 lakh contracts.
Call writing was seen at 14,400 strike, which added 3.72 lakh contracts, followed by 14,100 strike which added 1.6 lakh contracts and 14,000 strike which added 1.46 lakh contracts.
Call unwinding was seen at 13,500 strike, which shed 1.35 lakh contracts, followed by 13,000 strike which shed 97,350 contracts.
Put option data
Maximum Put open interest of 44.84 lakh contracts was seen at 13,000 strike, which will act as crucial support in the December series.
This is followed by 13,500 strike, which holds 31.47 lakh contracts, and 13,200 strike, which has accumulated 30.85 lakh contracts.
Put writing was seen at 13,500 strike, which added 7.11 lakh contracts, followed by 13,700 strike, which added 5.4 lakh contracts and 13,600 strike which added 4.03 lakh contracts.
Put unwinding was seen at 12,900 strike, which shed 15,675 contracts, followed by 13,200 strike, which shed 10,950 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
15 stocks saw long build-upBased on the open interest future percentage, here are the 10 stocks in which a long build-up was seen.
43 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
53 stocks saw short build-up
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, here are the top 10 stocks in which a short build-up was seen.
25 stocks witnessed short-coveringA decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.
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Manappuram Finance: Company officials will attend Phillip Capital - Revive India Virtual Conference on December 18.
HEG: Senior Management of the company is scheduled to meet the Investors/ Analyst on December 18 through Video Conferencing, as organized by SKP Securities.
Tata Steel: Company officials will meet Citi Research on December 18 and Elara Securities on December 22.
Dilip Buildcon: Company officials will attend Motilal Oswal 3rd ldeation Conference on December 18.
MCX: Company officials will attend Motilal Oswal 3rd ldeation Conference on December 18.
Capri Global Capital: The company will be hosting a virtual Analyst Meet to discuss 'Trends in Construction Financing' on December 18.
Tata Motors: Company officials will meet Slyebra Capital, HK on December 21.
Gland Pharma: Company officials will meet Arohi Asset Management on December 22.
Persistent Systems: The company will declare its December quarter earnings on January 27.
Stocks in the news
TCS: The company's Rs 16,000-crore share buyback offer opens on December 18.
Dishman Carbogen: Promoter to sell 4.4 percent stake in the company via offer for sale on December 18 and December 21; floor price is set at Rs 145.70 per share.
Zee Entertainment Enterprises: The board approved the acquisition of film production & distribution business as a going concern, on a slump sale basis from Zee Studios, and approved the transfer of the digital publishing biz division to Rapidcube Tecbnologies. The board also approved the appointment of Sasha Mirchandani & Vivek Mehra as independent directors.
IDFC: Sipadan Investments (Mauritius) sold 2.17 percent stake in IDFC during November 23-December 16, reducing total shareholding to 7.3 percent.
ISGEC Heavy Engineering: The company secured a new order for Rs 431 crore.
Trent: Arisaig India Fund sold 2.05 percent stake in the company via open market transactions, reducing total shareholding to 5.54 percent.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 2,355.25 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,494.36 crore in the Indian equity market on December 17, as per provisional data available on the NSE.
Stocks under F&O ban on NSEThree stocks - Canara Bank, Punjab National Bank and Sun TV Network - are under the F&O ban for December 18. 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.