The market closed in the red after erasing all its gains in late trade, continuing the downtrend for the second consecutive session on January 7. Technology and FMCG stocks pulled the market lower, but was supported by metals, and select banking and financials.
The BSE Sensex declined 80.74 points to 48,093.32, while the Nifty50 fell 8.90 points to 14,137.40 and formed a bearish candle on the daily charts as closing was lower than opening levels.
"A negative candle was formed after opening at the new highs (14,256) and this candle is placed beside the similar negative candle of Wednesday. Technically, this pattern could indicate a range movement with a weak bias. We observe the emergence of intraday profit booking at the new highs," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"The short term trend of Nifty has turned out to be choppy and this range-bound movement is expected to continue for the next session. Immediate resistance is placed at 14,300 and short term support for the Nifty is at 14,000 levels. A sustainable move above 14,300 could open further upside momentum in the market," he said.
The overall market breadth continued to be positive as about 1,198 shares advanced against 737 declining shares on the NSE. The broader market indices like Nifty Midcap 100 index and Smallcap 100 index have outperformed the benchmark index and closed higher by 1.45 percent and 1.37 percent respectively. This is a positive indication, Shetti feels.
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 14,088.2, followed by 14,039.1. If the index moves up, the key resistance levels to watch out for are 14,221.3 and 14,305.3.
The Nifty Bank outperformed the benchmark Nifty50 for the third consecutive session, rising 158.10 points to 31,956. The important pivot level, which will act as crucial support for the index, is placed at 31,852.53, followed by 31,749.07. On the upside, key resistance levels are placed at 32,118.43 and 32,280.87.
Call option data
Maximum Call open interest of 19.25 lakh contracts was seen at 14,000 strike, which will act as a crucial level in the January series.
This is followed by 14,500 strike, which holds 17.17 lakh contracts, and 15,000 strike, which has accumulated 13.60 lakh contracts.
Call writing was seen at 14,200 strike, which added 2.62 lakh contracts, followed by 14,500 strike which added 1.66 lakh contracts and 14,400 strike which added 1.14 lakh contracts.
Call unwinding was seen at 14,100 strike, which shed 74,100 contracts, followed by 14,000 strike which shed 67,425 contracts.
Put option data
Maximum Put open interest of 23.46 lakh contracts was seen at 13,500 strike, which will act as crucial support level in the January series.
This is followed by 14,000 strike, which holds 21.29 lakh contracts, and 13,600 strike, which has accumulated 15.06 lakh contracts.
Put writing was seen at 14,200 strike, which added 3.44 lakh contracts, followed by 13,900 strike, which added 1.8 lakh contracts and 13,400 strike which added 1.74 lakh contracts.
Put unwinding was seen at 13,600 strike, which shed 60,750 contracts, followed by 14,000 strike, which shed 8,325 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
53 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
17 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
38 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.
33 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, here are the top 10 stocks in which short-covering was seen.
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Balrampur Chini Mills: Company officials will interact with Capital World on January 8.
Tata Elxsi: Investors' Conference call on Q3 FY21 results of the company will be held on January 13 during which the Leadership team will discuss the financial performance of the company.
ICICI Lombard General Insurance: The company to declare its December quarter results on January 19.
Stocks in the news
Tata Consultancy Services: The company will declare its December quarter earnings on January 8.
Bharat Rasayan: The company to consider the proposal of buyback of equity shares on January 12.
Sanghvi Brands: Rajesh Srinivas Bail resigned as Chief Executive Officer of the company.
AGC Networks: CRISIL assigned long-term credit rating for the company's bank loan facilities at BBB- and the outlook is stable.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 382.3 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 989.5 crore in the Indian equity market on January 7, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - SAIL - is under the F&O ban for January 8. 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.