Bears tightened their grip over Dalal Street on December 22, the weekly expiry day, as the market extended a downtrend for the third consecutive session. Selling in almost all sectors, COVID-19 concerns, and hawkish commentary by RBI in its policy minutes dented investor sentiment.
The BSE Sensex declined 241 points to 60,826, while the Nifty50 fell 72 points to 18,127 and formed a bearish candle on the daily charts making a lower high lower low.
"A long negative candle was formed on the daily chart, which indicates a downtrend continuation pattern amidst range movement. We observe overlapping candles over the last few sessions which reflect the market's inability to sustain the gains," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He feels the short-term trend of Nifty remains weak.
"Any slow down in the downside momentum around the support of 18,100-18,000 levels in the next 1-2 sessions could result in a sharp upside bounce from the lows. There is no sign of any bottom reversal forming around the supports so far," the market expert said, adding immediate resistance is placed at the 18,240 level.
The Nifty Midcap 100 and Smallcap 100 indices also traded lower, falling 0.9 percent, and 1.6 percent, respectively.
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 18,076, followed by 18,017 & 17,921. If the index moves up, the key resistance levels to watch out for are 18,267 followed by 18,326 and 18,422.
The Nifty Bank extended selling pressure, falling 209 points to 42,409, and formed yet another bearish candlestick pattern on the daily charts.
The important pivot level, which will act as crucial support for the index, is placed at 42,256, followed by 42,091 and 41,822 levels. On the upside, key resistance levels are placed at 42,793 followed by 42,958 & 43,227 levels.
We have seen the maximum Call open interest at 19,000 strike, with 85.69 lakh contracts, which can act as a crucial resistance level in the December series.
This is followed by 18,500 strike, which holds 66.82 lakh contracts, and 18,400 strike, which have more than 57.93 lakh contracts.
Call writing was seen at 19,000 strike, which added 48.55 lakh contracts, followed by 18,200 strike, which added 44.17 lakh contracts, and 19,200 strike which added 35.39 lakh contracts.
Call unwinding was seen at 16,500 strike, which shed 3,100 contracts, followed by 17,000 strike which shed 2,600 contracts and 17,300 strike which shed 1,550 contracts.
We have seen a maximum Put open interest at 18,000 strike, with 52.59 lakh contracts which can act as a crucial support level in the December series.
This is followed by 18,200 strike, which holds 49.02 lakh contracts, and 17,000 strike, which has accumulated 45.84 lakh contracts.
Put writing was seen at 18,200 strike, which added 23.62 lakh contracts, followed by 17,000 strike, which added 22.4 lakh contracts and 16,500 strike which added 14.75 lakh contracts.
Put unwinding was seen at 18,300 strike, which shed 6.57 lakh contracts, followed by 18,400 strike which shed 3.13 lakh contracts, and 18,600 strike which shed 40,800 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 Samvardhana Motherson International, Colgate Palmolive, Hindustan Unilever, HDFC, and SBI Life Insurance Company, 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 14 stocks on Thursday, including M&M Financial Services, Punjab National Bank, REC, Torrent Pharma, and Abbott India.
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 51 stocks witnessed long unwinding on Thursday including IRCTC, Ipca Laboratories, Coal India, SRF, and RBL Bank.
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, a short build-up was seen in a total of 96 stocks on Thursday including Metropolis Healthcare, Torrent Power, Power Finance Corporation, BHEL, and Nifty Financial.
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, we have a total of 33 stocks in the short-covering list on Thursday including Amara Raja Batteries, Mphasis, Sun Pharma, Indus Towers, and United Breweries.
Sula Vineyards: Jupiter India Fund has bought 6.32 lakh shares in the country's largest wine producer at an average price of Rs 361 per share, and Goldman Sachs Funds Goldman Sachs India Equity Portfolio acquired additional 6.95 lakh shares at an average price of Rs 351.48 per share. Goldman Sachs already held 12 lakh shares or 1.43% stake in the company.
Ajanta Pharma: Promoter entities have offloaded Rs 637.2 crore shares or 4.28 percent stake in the pharma company via open market transactions, with Aayush Agrawal Trust selling 38.53 lakh shares and Ravi Agrawal Trust offloading 16.38 lakh shares at an average price of Rs 1,160.1 per share. Promoters informed exchanges that they have sold total 4.38 percent stake in the company and are proposed to utilise these funds for financing their respective private businesses, including repayment of loans taken against pledge of shares of the company. However, ICICI Prudential Mutual Fund acquired 10.86 lakh shares in the pharma company and Nippon India Mutual Fund purchased 7.15 lakh shares at an average price of Rs 1,160.1 per share.
Thyrocare Technologies: Bajaj Allianz Life Insurance Company sold 2.75 lakh shares in the company at an average price of Rs 659.69 per share.
(For more bulk deals, click here)
Investors Meetings on December 23
CG Power and Industrial Solutions: Officials of company will interact with Morgan Stanley, and Axis Capital.
Trent: Officials of the company will interact with Morgan Stanley, and Phillip Capital (India).
Latent View Analytics: Officials of the company will interact with Akshin Capital Management.
Kaynes Technology India: Officials of the company will interact with Aditya Birla International, Aditya Birla Sun Life Insurance Company, Haitong Securities, ICICI Direct, Anand Rathi, B&K Securities, Ambit Capital, Dolat Capital, Elara Securities, and Kotak Securities.
Varroc Engineering: Officials of the company will interact with Rare Enterprises, Safe Enterprises, Mahinda Manulife Mutual Fund, White Oak Capital, and Athena Investment.
Stocks in News
Reliance Industries: Subsidiary Reliance Jio Infocomm says Indian Oil Corporation selected Reliance Jio managed network services for its retail outlets. Jio will provide SD-WAN solution that will power IOCL's retail automation and critical business processes. JioBusiness will be deploying and managing SD-WAN (software defined wide area network) for IOCL across its 7,200 retail outlets for a period of 5 years.
Landmark Cars: The premium automobile retailer will make its debut on the bourses on December 23. The issue price has been fixed at Rs 506 per share.
Abans Holdings: The financial services subsidiary Abans Group will list shares on the BSE and NSE on December 23. The final offer price has been fixed at Rs 270 per share.
GR Infraprojects: The company has received completion certificate from Authority's engineer for construction of eight lane access-control expressway carriageway in Madhya Pradesh. The authority has declared the said project fit for entry into commercial operation with effect from November 30, 2022.
Indian Railway Catering and Tourism Corporation: The Government of India is proposing to offer up to 40 lakh equity shares of the company to the eligible employees at a price of Rs 680 per equity share. The offer for sale for employees will remain open from December 23 to December 26.
RailTel Corporation of India: The company has bagged the work order from Webel Technology for acting as system integrator for capacity enhancement of West Bengal state data centre, Monibhandar in Kolkata. The total value of the work is Rs 98.56 crore.
PNC Infratech: Subsidiaries Hathras Highways and Yamuna Highways have received financial closure from National Highways Authority of India. Both road projects are in Uttar Pradesh on hybrid annuity mode.
Lupin: Lupin Pharmaceuticals Inc is voluntarily recalling 4 lots of Quinapril tablets due to the presence of a nitrosamine impurity, N-Nitroso-quinapril, observed in recent testing above the acceptable daily intake (ADI) level. Till date, Lupin has received no reports of illness that appear to relate to this issue. Lupin discontinued the marketing of Quinapril tablets in September 2022. Quinapril tablet is an angiotensin-converting enzyme (ACE) inhibitor indicated for the treatment of hypertension, to lower blood pressure.
Rail Vikas Nigam: The company has received contract for 'construction of Bhesan depot cum workshop, for Surat Metro Rail Project Phase-1, DC 2, from Gujarat Metro Rail Corporation (GMRC). The total cost of project is Rs 198.93 crore.
Fund Flow
Foreign institutional investors (FIIs) have bought shares worth Rs 928.63 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 2,206.59 crore on December 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Indiabulls Housing Finance under its F&O ban list for December 23. 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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