The market wiped out its previous day's gains and closed the session with half a percent loss on March 23, tracking nervousness in global counterparts after Federal Reserve hiked fed funds rate by 25 bps. Banking & financial services, and technology stocks dragged the benchmarks indices down.
The BSE Sensex fell 289 points to 57,925, while the Nifty50 declined 75 points to 17,077 and formed Tweezer Top kind of pattern on the daily charts, which is a bearish reversal pattern as high of two days' candlesticks are almost same.
"Nifty seems to have reversed down from the key hurdle on Thursday, post small upside bounce. The market could find range of around 17,200-16,950 levels in the next few sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He feels the lower area of 16,950-16,900 is expected to offer support for the market during present weakness.
A decisive move above 17,200-17,250 levels is likely to bring strength in upside bounce, he said.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices dropped 0.4 percent each on weak breadth.
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 17,048, followed by 17,010 and 16,949. If the index moves up, the key resistance levels to watch out for are 17,170, followed by 17,208 and 17,269.
The Bank Nifty bears came back strong in the second half of the session and the index witnessed selling pressure from higher levels. The index fell 382 points or 1 percent to 39,617 and formed bearish candlestick pattern with long upper shadow on the daily charts, indicating selling pressure at higher levels.
"The index needs to cross the level of 40,000 on a closing basis from continuing the up move. The index is likely to trade in the range of 39,000-40,000 and a break on either side will decide a trending move," Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities said.
The important pivot level, which will act as a support, is at 39,542, followed by 39,389 and 39,141. On the upside, key resistance levels are 40,038, followed by 40,191, and 40,439.
On a weekly basis, the maximum Call open interest (OI) was seen at 17,100 strike, with 78.57 lakh contracts, which is expected to be a crucial resistance for the Nifty in coming sessions.
This is followed by a 17,200 strike, comprising 68.64 lakh contracts, and a 17,300 strike, where there are more than 53.01 lakh contracts.
Call writing was seen at 17,100 strike, which added 34.5 lakh contracts.
We have seen Call unwinding at 17,500 strike, which shed 48.68 lakh contracts, followed by 17,400 strike which shed 44.28 lakh contracts, and 17,300 strike which shed 29.94 lakh contracts.
On a weekly basis, we have seen the maximum Put OI at 17,000 strike, with 64.32 lakh contracts, which is expected to be a crucial support level for coming sessions.
This is followed by the 16,500 strike, comprising 54.44 lakh contracts, and the 16,800 strike, where we have 43.3 lakh contracts.
Put writing was seen at 16,500 strike, which added 6.73 lakh contracts.
We have seen Put unwinding at 17,100 strike, which shed 22.46 lakh contracts, followed by 16,400 strike which shed 20.53 lakh contracts, and 16,800 strike which shed 19.23 lakh 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 Infosys, Power Grid Corporation of India, Hindustan Unilever, Reliance Industries, and Marico, 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, 25 stocks including Syngene International, Manappuram Finance, Tata Communications, ABB India, and Trent, 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, 64 stocks including PFC, Bajaj Auto, ICICI Bank, Berger Paints, and MCX India witnessed a long unwinding.
79 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, 79 stocks including Hindustan Aeronautics, Vedanta, Voltas, Alkem Laboratories, and Vodafone Idea, 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, 24 stocks were on the short-covering list. These included Deepak Nitrite, Balrampur Chini Mills, Biocon, HDFC Life Insurance Company, and Bandhan Bank.
Asian Energy Services: Promoter entity Oilmax Energy has acquired 2.21 lakh equity shares in the company that provides services to energy and minerals sector, via open market transactions. These shares were bought at an average price of Rs 104.84 per share.
Anand Rathi Wealth: Promoter entity Anand Rathi Financial Services has offloaded 3.3 lakh equity shares or 0.79 percent stake in the wealth advisory firm via open market transactions at an average price of Rs 810 per share, amounting to Rs 26.73 crore.
(For more bulk deals, click here)
Investors' meetings on March 24
Berger Paints: Abhijit Roy, Managing Director & CEO of the company will meet institutional investors at Kolkata.
Sundram Fasteners: Company's officials will interact with Dinero Wealth.
SRF: Rahul Jain, President & CFO to meet institutional investors in US.
Alkem Laboratories: Officials of the company will interact with Bajaj Allianz, and Motilal Oswal.
Meghmani Organics: Company's officials will meet Securities Investment Management, Sunidhi Securities, IIFL Asset Management, and Alpha Accurate Advisors.
Tata Steel: Officials of the company will interact with TT International.
Persistent Systems: Company is scheduled to interact with Mobius Capital Partners.
UltraTech Cement: Company's officials will interact with Abu Dhabi Investment Authority.
Blue Star: Officials of the company will interact with Phillip Capital.
lsgec Heavy Engineering: Company's officials will interact with UTI Asset Management.
Speciality Restaurants: Officials of the company will interact with Omkara Capital.
Stocks in the news
Lupin: The pharma major has received tentative approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA), Obeticholic acid tablets. Obeticholic acid tablets are a generic equivalent of Ocaliva tablets Intercept Pharmaceuticals, Inc. Obeticholic acid tablets, which are available in 5 mg and 10 mg strength, had estimated annual sales of $255 million in the US as per IQVIA MAT data of December 2022.
Bharat Electronics: The Ministry of Defence has signed two contracts worth of Rs 3,800 crore with Bharat Electronics (BEL), for supply of medium power radar and digital radar warning receiver (RWR) for Indian Air Force.
Rail Vikas Nigam: Rachana-RVNL joint venture has received LOA for upgradation to six-lane with paved shoulder of Sarkhej-Changodar section of NH-8A for Ahmedabad- Bagodara-Rajkot road on EPC mode in Gujarat (Package-7). The project cost is Rs 252.2 crore. Rachana Construction share is 60 percent and Rail Vikas Nigam (RVNL) share is 40 percent in the project.
IDFC: IDFC FHCL, subsidiary of IDFC, has received 37.75 crore equity shares of IDFC FIRST Bank on payment of the application money of Rs 2,196.30 crore to IDFC FIRST Bank. With this investment, IDFC's holding, through IDFC FHCL, in IDFC FIRST Bank will go up to 39.99 percent. In February 2023, the board of IDFC, and IDFC FHCL had approved subscribing to 37.75 crore shares of IDFC FIRST Bank on a preferential basis at a price of Rs 58.18 per equity share, through subsidiary IDFC FHCL.
Tata Steel: The company has acquired the balance 1.35 crore equity shares of Tata Steel Advanced Materials, at Rs 12.81 per share, from Tata Steel Downstream Products, for Rs 17.33 crore. After this transaction, Tata Steel Advanced Materials has become a direct wholly owned subsidiary of Tata Steel. Prior to the transaction, Tata Steel directly held 75.94 percent stake in Tata Steel Advanced Materials and the balance 24.06 percent stake was held by Tata Steel Downstream Products.
Himadri Speciality Chemical: The board has given its approval for the agreement for sale of two windmills of the company at Dhule in Maharashtra. Keeping in view that the expected life of the Windmills will expire soon and accordingly, the company has considered to sell windmills to Cleanwin Energy Nine LLP and Greenwin Energy One LLP. Sale of these windmills will have no material impact on the operations of the company.
Indiabulls Housing Finance: The housing finance company has raised Rs 91.64 crore as its Securities Issuance and Investment Committee had approved the allotment of 9.16 lakh non-convertible debentures of face value of Rs 1,000 each for cash at par on public issue basis.
Fund Flow
Foreign institutional investors (FII) have net sold shares worth Rs 995.01 crore, whereas domestic institutional investors (DII) purchased shares worth Rs 1,668.85 crore on March 23, the National Stock Exchange's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has added Hindustan Aeronautics, and retained Biocon and Indiabulls Housing Finance on its F&O ban list for March 24. 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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