The market showed a smart recovery in the last hour of trade and closed the monthly F&O expiry day in positive terrain on December 29 despite weak Asian cues, driven by banking, metal, and oil and gas stocks.
The BSE Sensex reclaimed 61,000, rising 224 points to 61,134, while the Nifty50 gained 69 points at 18,191 and formed a long bullish candle on the daily charts, continuing bullish candle formation for the fourth straight session.
"The index could reclaim the 50-day EMA (exponential moving average) of 18,250 on the daily timeframe, suggesting a rise in optimism among investors," Rupak De, Senior Technical Analyst at LKP Securities said.
The momentum indicator RSI (relative strength index - 14) is in a bullish crossover. Over the near term, he feels the index is likely to remain positive as long as it remains above 17,950. Therefore, buying on dips would be a good strategy until 17,950 is held, he advised.
On the higher end, the resistance is placed at 18,350, the market expert observed.
The broader markets closed flat with a positive bias as the Nifty Midcap 100 index rose 0.08 percent and Smallcap 100 index gained 0.2 percent.
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 18,047, followed by 17,991 and 17,901. If the index moves up, the key resistance levels to watch out for are 18,228 followed by 18,284 and 18,375.
The Nifty Bank saw renewed buying interest on December 29, rising 425 points to 43,252 and formed a long bullish candlestick pattern on the daily charts.
The important pivot level, which will act as crucial support for the index, is placed at 42,695, followed by 42,457 and 42,072 levels. On the upside, key resistance levels are placed at 43,465 followed by 43,703 and 44,088 levels.
The maximum Call open interest was seen at 18,200 strike, with 1.24 crore contracts, which can act as a crucial resistance level at the beginning of the January series.
This is followed by 18,300 strike, which holds 95.11 lakh contracts, and 18,500 strike, which have more than 74.24 lakh contracts.
Call writing was seen at 18,200 strike, which added 15.12 lakh contracts, followed by 18,300 strike, which added 6.35 lakh contracts.
Call unwinding was seen at 18,500 strike, which shed 32.04 lakh contracts, followed by 18,100 strike which shed 30.68 lakh contracts and 18,400 strike which shed 23.64 lakh contracts.
A maximum Put open interest was seen at 18,000 strike, with 83.88 lakh contracts which can act as a crucial support level in the January series.
This is followed by 17,500 strike, which holds 67 lakh contracts, and 18,100 strike, which has accumulated 57.09 lakh contracts.
We have not seen any Put writing on the monthly F&O expiry day.
Put unwinding was seen at 18,000 strike, which shed 40 lakh contracts, followed by 17,800 strike which shed 30.88 lakh contracts, and 17,500 strike which shed 26.29 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery is seen in Kotak Mahindra Bank, Torrent Pharma, HDFC, Bajaj Auto, and ICICI Bank, among others.
Here are the top 10 stocks which saw the highest rollovers on expiry day including HDFC, Shree Cements, Bharti Airtel, HDFC Bank, and Torrent Pharma, with more than 98 percent rollovers.
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 five stocks on Thursday, which are Punjab National Bank, TVS Motor Company, HDFC, Zydus Life Sciences and Alkem Laboratories.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, 82 stocks have seen long unwinding on Thursday including Shriram Transport Finance, Gujarat Gas, Aarti Industries, Polycab India, and Metropolis Healthcare
Nine 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, we have seen a short build-up in nine stocks on Thursday including UltraTech Cement, Shree Cement, Bajaj Auto, Coromandel International, and Colgate Palmolive.
95 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 95 stocks on the short-covering list on Thursday including Federal Bank, Dixon Technologies, Adani Enterprises, Coforge, and Balrampur Chini Mills.
KFin Technologies: Morgan Stanley Asia (Singapore) Pte has sold 10 lakh shares (0.6 percent stake) in the technology-driven financial services platform via open market transactions, at an average price of Rs 365.04 per share. Morgan Stanley held a 1.45 percent stake in the company before listing of shares on Thursday.
(For more bulk deals, click here)
Investors Meetings on December 30
Stocks in News
Reliance Industries: Reliance Retail Ventures subsidiary Reliance Consumer Products will acquire a 51 percent controlling stake in Lotus Chocolate Company, for Rs 74 crore, and make an open offer to acquire up to 26 percent more. The capital infusion by Reliance Consumer Products will help drive the growth and expansion of Lotus into a comprehensive confectionery, cocoa, chocolate derivatives and related products manufacturer.
Craftsman Automation: The auto ancillary company is going to acquire a 76 percent stake in aluminium cylinder heads manufacturer DR Axion India for Rs 375 crore. After the completion of the transaction, DR Axion India will be a subsidiary of the company. The acquisition is expected to be completed before March 31, 2023.
Eicher Motors: The parent company of Royal Enfield will make a strategic investment of 50 million euro in Spanish electric mobility company, Stark Future SL. This investment will pave the way for a long-term partnership in collaborative research and development in electric motorcycles, technology sharing, technical licensing, and manufacturing.
Poonawalla Fincorp: Promoter entity Rising Sun Holdings has bought an additional 2.19 percent stake in Poonawalla Fincorp via open market transactions. With this, its shareholding in the company increased to 62.05 percent, up from 59.86 percent earlier.
Elin Electronics: The electronics manufacturing services provider will list shares on the BSE and NSE on December 30. The issue price has been fixed at Rs 247 per share.
Welspun India: The company has picked a 26 percent stake in Clean Max Thanos (CTPL) to get renewable energy under a captive structure, as a part of the ESG journey. It has paid Rs 3.8 crore for a 26 percent stake in CTPL to Cleanmax Group, and the remaining 74 percent shareholding is held by Cleanmax Group. CTPL will set up a renewable energy project under the hybrid policy of the Gujarat government and the company’s Vapi factory will acquire renewable energy from the proposed project of CTPL.
HG Infra Engineering: The company has received the Letter of Award from National Highways Authority of India (NHAI) for a road project in Haryana. The company will construct 6-lane greenfield Karnal ring road under Bharatmala Pariyojana in Haryana on hybrid annuity mode (HAM) within 730 days, and the bid project cost is Rs 997.11 crore.
Fund Flow
Foreign institutional investors (FIIs) have net-offloaded shares worth Rs 572.78 crore, while domestic institutional investors (DIIs) net-purchased shares worth Rs 515.83 crore on December 29, as per provisional data available on the NSE.
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