The market reversed its previous two days' gains and saw triple-digit losses on March 9, as the selling pressure was seen across sectors, barring metal. The indication by Fed Chair Jerome Powell about continuity in aggressive policy tightening and global growth concerns weighed on sentiment.
The BSE Sensex fell 542 points to 59,806, while the Nifty50 shed 165 points to 17,590 and formed a Bearish Engulfing candlestick pattern on the daily charts, which is a bearish reversal pattern, indicating the possibility of further weakness in the counter.
"Besides the formation of Bearish Engulfing pattern, the index has slipped back into the declining channel; however, on the lower end, it found support at the 14-day MA (moving average)," Rupak De, Senior Technical Analyst at LKP Securities said.
The index has managed to take support at 200 EMA (exponential moving average) placed at 17,585.
"The trend is likely to remain bearish until it remains below 17,700. On the lower end, the bears may take the Nifty to 17,500-17,400," De said.
The broader markets have seen less correction compared to benchmarks. The Nifty Midcap 100 and Smallcap 100 indices declined half a 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 the current month.
Key support and resistance levels on the Nifty
As per the pivot charts, the Nifty has support at 17,569, followed by 17,522 and 17,446. If the index moves up, the key resistance levels to watch out for are 17,721, followed by 17,768 and 17,844.
The banking sector was one of the contributors to the fall, as the Bank Nifty dropped 320 points to 41,257 and formed a bearish candlestick pattern, which resembles a Bearish Harami kind of pattern (though not the exact one) on the daily charts.
The index largely got stuck in the trading range of the previous session between 41,100 to 41,600 levels. "Now it has to hold above 41,250 levels to make an up move towards 41,500 and then 41,750 levels, while on the downside, support has been shifted lower at 41,000 and then 40,750 levels," Chandan Taparia, Vice President, Analyst-Derivatives at Motilal Oswal Financial Services said.
The important pivot level, which will act as a support, is at 41,202, followed by 41,096 and 40,924. On the upside, key resistance levels are 41,547, followed by 41,653, and 41,826.
On a monthly basis, the maximum Call open interest (OI) was seen at 18,000 strike, with 32.27 lakh contracts, which may remain a crucial hurdle on the higher side, for the Nifty in the coming sessions.
This is followed by a 17,700 strike, comprising 22.12 lakh contracts, and a 17,600 strike, where there are more than 20.99 lakh contracts.
Call writing was seen at 17,700 strike, which added 4.83 lakh contracts, followed by 17,600 strike, which gave an addition of 4.7 lakh contracts, and 17,900 strike which saw 4.15 lakh contracts addition.
We have seen Call unwinding at 17,400 strike, which shed 3.19 lakh contracts, followed by 18,300 strike which shed 69,400 contracts, and 16,800 strike which shed 10,300 contracts.
On a monthly basis, we have seen the maximum Put OI at 17,000 strike, with 52.33 lakh contracts, which is expected to act as a crucial support zone for the Nifty50 in coming sessions.
This is followed by the 17,500 strike, comprising 37.88 lakh contracts, and the 17,600 strike, where we have 23.78 lakh contracts.
Put writing was seen at 17,700 strike, which added 1.46 lakh contracts, followed by 17,500 strike with 1.18 lakh contracts, and 17,800 strike with 1.07 lakh contracts.
We have seen Put unwinding at 17,000 strike, which shed 72,000 contracts, followed by 18,000 strike which shed 57,550 contracts, and 16,800 strike which shed 27,850 contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Colgate Palmolive, HDFC AMC, Dabur India, Power Grid Corporation of India, and Hindustan Unilever, among others.
An increase in open interest (OI) and an increase in price mostly indicate a build-up of long positions. Based on the OI percentage, 20 stocks including NTPC, Cipla, Hindalco Industries, REC, and Petronet LNG, witnessed a long build-up.
In most cases, a decline in OI and a decrease in price indicate a long unwinding. Based on the OI percentage, 59 stocks including Balrampur Chini Mills, Aditya Birla Capital, Trent, Atul, and Federal Bank witnessed a long unwinding.
94 stocks see a short build-up
An increase in OI accompanied by a decrease in price mostly indicates a build-up of short positions. Based on the OI percentage, 94 stocks including GNFC, Crompton Greaves Consumer Electricals, RBL Bank, Tech Mahindra, and Mphasis, saw a short build-up.
A decrease in OI along with an increase in price is an indication of short-covering. Based on the OI percentage, 20 stocks were on the short-covering list. These included Honeywell Automation, Gujarat Gas, Shriram Finance, Torrent Power, and Bajaj Auto.
Gokaldas Exports: Aditya Birla Sun Life Pure Value Fund and Aditya Birla Sun Life Small Cap Fund acquired 7.69 lakh shares in the company via open market transactions at an average price of Rs 390 per share. Ashoka India Equity Investment Trust bought 3.59 lakh shares in the company at an average price of Rs 390.51 per share, and Goldman Sachs Collective Trust - Emerging Markets Equity ex-China Fund purchased 7.2 lakh shares at an average price of Rs 391.68 per share. However, promoter Clear Wealth Consultancy Services LLP has offloaded 60 lakh shares at an average price of Rs 390.91 per share, which were worth Rs 234.5 crore.
Home First Finance Company India: Fidelity Funds - Asian Smaller Companies Pool purchased 4.93 lakh shares in the company via open market transactions, and The Nomura Trust and Banking Co Ltd as the trustee of Nomura Indian Stock Mother Fund bought 7 lakh shares at an average price of Rs 685 per share. However, Bessemer India Capital Holdings II Limited offloaded 68.11 lakh shares at an average price of Rs 686.07 per share.
(For more bulk deals, click here)
Investors' meetings on March 10
PI Industries: The company's officials will interact with Capital World.
Metro Brands: Officials of the company will interact with VT Capital.
Tata Communications: Officials of the company will participate in ICICI Securities Corporate Roadshow in the US.
Elin Electronics: The management of the company will meet representatives of SBI Life.
Eicher Motors: The company's officials will interact with Marcellus Investment Managers, and White Oak Capital Partners.
Allcargo Logistics: Officials of the company will participate in a non-deal roadshow to meet investors and analysts.
Tata Chemicals: The company's officials will interact with UBS Securities India and Morgan Stanley Research.
Blue Star: Officials of the company will meet Harding Loevner.
Crompton Greaves Consumer Electricals: The company's officials will interact with ICICI Prudential Life Insurance, Aditya Birla Sunlife AMC, and Nippon India Mutual Fund.
Sapphire Foods India: Officials of the company will meet B & K, and ICICI Prudential Asset Management Company.
Satin Creditcare Network, Manappuram Finance: The companies' officials will participate in YES Securities Microfinance Sector Conference.
Metro Brands: Officials of the company will interact with Fidelity Management & Research.
Va Tech Wabag: The company's officials will meet Marcellus Investment Managers.
Stocks in the news
IRB Infrastructure Developers: The road infrastructure developer has reported toll collection at Rs 352 crore for February 2023, increasing by 27 percent compared to Rs 277.5 crore of gross toll revenue in the same month last year. Its private InvIT subsidiary IRB Infrastructure Trust recorded 12.7 percent YoY growth in toll collection at Rs 75.52 crore for February 2023.
Glenmark Life Sciences: The board members of the company are scheduled to meet on March 16 to consider and declare payment of interim dividend, if any, for the financial year 2022-23. The trading window will remain closed from March 10-March 18, 2023 for the interim dividend.
Shriram Finance: Investors Dynasty Acquisition (FPI) and Arkaig Acquisition (FPI) have exited the Shriram Group company by selling their shareholding of 2.49 percent and 0.67 percent respectively via block trades on March 8.
NBCC (India): The state-owned project management consultancy and EPC company has received work orders worth Rs 229.81 crore, from Indian Institute of Foreign Trade (IIFT). The company will construct a new campus for IIFT in Kakinada.
Dredging Corporation of India: The dredging company has received the annual maintenance dredging contract worth Rs 64 crore from Southern Naval Command Kochi, for FY23. The contract includes annual dredging of 1.5 million cubic metre at Naval Channel, Ernakulam, Kochi.
PNC Infratech: The company is declared as L1 (lowest) bidder for two highway projects of NHAI, with an aggregate bid project cost of Rs 2,004.43 crore. These two highway projects, which come under Bharatmala Pariyojana in Bihar on Hybrid Annuity Mode, are to be constructed in 24 months and operated for 15 years, post construction.
Zydus Lifesciences: The leading pharma company has received final approval from the United States Food and Drug Administration (USFDA) for Erythromycin tablets. These tablets are used to prevent and treat infections in many different parts of the body, including respiratory tract infections, skin infections, diphtheria, intestinal amebiasis, acute pelvic inflammatory disease, legionnaire's disease, pertussis and syphilis. The drugs will be manufactured at the group’s formulation manufacturing facility in Moraiya, Ahmedabad (India). Erythromycin tablets had annual sales of $25.1 million in the United States as per IQVIA MAT data of December 2022.
PSP Projects: The company has received work orders worth Rs 123.38 crore in institutional, industrial and residential categories, including the order for the construction of the iconic project “360” in Ahmedabad, from Anjney Finebuild, and design & construction of an industrial shed in Ahmedabad, from Adishwaram Innovative LLP. With the above orders, the total order inflow for the current financial year stands at Rs 3,415.97 crore.
Fund Flow
Foreign institutional investors (FII) sold shares worth Rs 561.78 crore, whereas domestic institutional investors (DII) bought shares worth Rs 42.41 crore on March 9, the National Stock Exchange's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has added Balrampur Chini Mills and GNFC to its F&O ban list for March 10. Securities 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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