The market ended lower for the first time in nine sessions on December 2, closing around 0.6 percent down from the previous day on profit booking and weak global cues.
The Sensex dropped below 63,000 to close 416 points lower at 62,868, while the Nifty declined 116 points to 18,696 and formed a bearish candle on the daily charts.
"A small negative candle was formed on the daily chart, which is back to back in the last two sessions. This pattern indicates a resumption of minor profit-booking in the market from all-time highs. The present weakness seems to be a minor one as compared to the sharp upmove in the last two weeks," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The Nifty, as per the weekly chart, formed a long positive candle with an upper shadow. The near-term uptrend remains intact and there is a possibility of a bounce from the lows over the next one or two sessions, the market expert said. The immediate support for the Nifty is at 18,550-18,450.
The broader market, however, continued to perform well. The Nifty midcap 100 and smallcap 100 indices gained 0.9 percent and 0.6 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 for the Nifty is at 18,651, followed by 18,617 and 18,563. If the index moves up, the key resistance levels to watch out for are 18,760, 18,794 and then 18,848.
The Nifty Bank was also under pressure, falling 157 points to 43,104 on December 2. The important pivot level, which will act as a crucial support, is placed at 42,984, followed by 42,938 and 42,864. On the upside, key resistance is at 43,132, 43,178 and 43,254.
The maximum Call open interest was at 19,000 strike, with 33.63 lakh contracts, which can act as a crucial resistance level in the December series.
This is followed by 20,000 strike, which holds 24.05 lakh contracts, and 19,500 strike, which has more than 18.28 lakh contracts.
Call writing was seen at 18,800 strike, which added 3.88 lakh contracts, followed by 18,700 strike, which added 2.26 lakh contracts, and 19,700 strike, which added 2.04 lakh contracts.
Call unwinding was seen at 18,500 strike, which shed 3.33 lakh contracts, followed by 18,300 strike, which shed 1.91 lakh contracts and 18,400 strike, which shed 1.27 lakh contracts.
The maximum Put open interest was at 18,000 strike, with 32.94 lakh contracts that can act as a crucial support level in the December series.
This is followed by 18,500 strike, which holds 29.25 lakh contracts, and 17,000 strike, which has accumulated 27.64 lakh contracts.
Put writing was seen at 17,800 strike, which added 1.64 lakh contracts, followed by 18,100 strike, which added 1.12 lakh contracts and 18,400 strike, which added 52,450 contracts.
Put unwinding was seen at 18,500 strike, which shed 8.96 lakh contracts, followed by 18,600 strike, which shed 3.25 lakh contracts, and 17,500 strike, which shed 3.24 lakh contracts.
A high delivery percentage suggests that investors are showing interest in those stocks. The highest delivery was seen in Colgate Palmolive, Petronet LNG, HCL Technologies, ICICI Bank and Alkem Laboratories 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, long build-up was seen in 48 stocks on December 2. These include United Breweries, Oracle Financial, Vedanta, L&T Finance Holdings, and JK Cement.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, 34 stocks, including HCL Technologies, Sun Pharma, Nifty, Bank of Baroda, and Abbott India, saw long unwinding on December 2.
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 44 stocks, including Nifty Financial, Eicher Motors, Sun TV Network, Bajaj Finance, and Syngene International, on December 2.
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, 65 stocks saw short-covering, including BHEL, Atul, Polycab India, L&T Technology Services, and Metropolis Healthcare.
PB Fintech: Societe Generale and Morgan Stanley Mauritius Company picked Rs 243 crore worth of shares in the Policybazaar operator. Societe Generale bought 26 lakh shares in PB Fintech and Morgan Stanley Mauritius 27.3 lakh shares at an average price of Rs 456.4 a share. SVF India Holdings (Cayman) sold 2.28 crore shares in PB Fintech at the same price, which were worth Rs 1,042.5 crore.
IIFL Wealth Management: Promoter Nirmal Madhu Family Private Trust offloaded shares worth Rs 94.50 crore as it sold 5.25 lakh shares in the company through open market transactions at an average price of Rs 1,800.08 a share.
Krishna Institute of Medical Sciences: Investor General Atlantic Singapore Kh Pte Ltd sold 14.50 lakh shares in KIMS via open market transaction at an average price of Rs 1,480 a share, which was worth Rs 214.6 crore. Amansa Holdings bought 13.95 lakh of these shares at the same price.
Veritas (India): Investor Swan Energy bought 7 lakh shares or a 2.6 percent stake in the company through an open market transaction at an average price of Rs 143.65 a share. Promoter Niti Nitinkumar Didwania sold the shares at the same price.
NDTV: Vikasa India EIF I Fund sold 3.89 lakh equity shares (0.6 percent stake) in the media company through open market transactions at an average price of Rs 414.54 a share. The fund held 4.42 percent stake in NDTV as of September 30, 2022.
(For more bulk deals, click here)
Investor meetings on December 5
Larsen & Toubro: Officials of the company will participate in Macquarie India Summit.
Hindustan Zinc: Officials of the company will interact with prospective investors through non-deal roadshows for the disinvestment of the residual government shareholding in the company.
Mahindra & Mahindra, Nazara Technologies: Officials of the company will participate in B&K Securities Indian Inc Leaders' Conference
Voltas: Officials of the company will attend BNP Paribas India Investors Days.
Computer Age Management Services, Titan Company: Officials of companies will interact with WCM Investment Management.
Dixon Technologies: Officials of the company will interact with Taiyo Pacific, APJ Asset Management and Emkay Global.
Hindustan Unilever: Officials of the company will be participating in a Non-Deal Roadshow for group and one-on-one meetings in Singapore.
Nuvoco Vistas Corporation: Officials of the company will interact with HSBC Securities.
Bank of India: Representatives of the bank will interact with Premji Trust.
Mahanagar Gas: Officials of the company will interact with Nirmal Bang.
Alkem Laboratories: Officials of the company will interact with Nippon AMC.
Bank of India: The public sector lender has raised Rs 1,500 crore by allotting Basel-III compliant additional Tier-I bonds to seven investors. The bonds issue, which opened on December 1, received a good response from investors, getting bids worth Rs 6,367 crore against an offer size of Rs 1,500 crore.
Inox Green Energy Services: The wind power operation and maintenance service provider posted a net loss of Rs 11.87 crore on a consolidated basis for the quarter ended September FY23. The losses widened from Rs 11.58 crore in the previous quarter. Revenue from operations rose marginally to Rs 61.9 crore from Rs 61.79 crore in the same period.
Mahindra & Mahindra Financial Services: The company said that in November the business continued its momentum with the disbursement of approximately Rs 4,500 crore, delivering a 75 percent YoY growth on a positive macro environment. The year-to-date disbursement at Rs 31,050 crore grew by 99 percent YoY. The collection efficiency was at 96 percent for November 2022 against 94 percent in the year-ago period. The company expects further improvement in Stages 2 and 3 assets in December.
Ion Exchange (India): The company has received a Rs 343.36-crore contract from Indian Oil Corporation. The work includes designing, engineering, manufacturing, supply, erection, testing, pre-commissioning, commissioning, performance guarantee test run and operation & maintenance for five years of zero liquid discharge plant at IOC's Panipat refinery. The project is to be commissioned within 16 months from the date of the letter of acceptance.
Hindustan Aeronautics: The state-run defence company has received an income-tax refund order from the office of the deputy commissioner of income tax for the year 2011-12. The order allows an R&D expenditure of Rs 595.23 crore as capital expenditure, resulting in a refund of Rs 427.45 crore. The refund includes an interest of Rs 176.93 crore.
Foreign institutional investors (FIIs) net bought shares worth Rs 214.76 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 712.34 crore on December 2, provisional NSE data shows.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Punjab National Bank, Delta Corp and Indiabulls Housing Finance under its F&O ban list for December 5. Securities thus banned include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
