The market bounced back after a day of correction and closed with a half a percent gains on January 13, supported by metal, banking & financial services, auto, and technology stocks. Positive global cues also supported sentiment.
The BSE Sensex rallied 303 points to 60,261, while the Nifty50 climbed nearly 100 points to 17,957 and formed bullish candle on the daily charts. On the weekly basis, there was Long Legged Doji pattern on the weekly scale and the index registered half a percent gains.
"The market action of Friday could be a cheering factor for bulls to make a comeback. However, a decisive move above 18,100 level could be considered as an important bottom reversal pattern and that could have more upside in the near term," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Immediate support is at 17,760 levels, he feels.
A doji or a high wave type candle pattern was formed on the weekly chart with swing lows of 17,761 level, which is encouraging signal for bulls for the short term, the market expert said.
But the broader markets had a mixed trend as the Nifty Midcap 100 index was down 0.1 percent, whereas the Nifty Smallcap 100 index gained 0.3 percent. The market breadth was tilted towards bulls as about 1,139 shares advanced against 862 declining shares on the NSE.
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, we have the key support level for the Nifty at 17,824, followed by 17,771, and 17,685. If the index moves up, the key resistance levels to watch out for are 17,996, followed by 18,049 and 18,135.
The Nifty Bank index recouped all its previous day's losses and closed 289 points higher at 42,371, forming bullish candle on the daily charts with long lower shadow. In fact, the index has been seeing support-based buying for a third straight session.
The important pivot level, which will act as crucial support for the index, is placed at 42,020, followed by 41,886, and 41,669. On the upside, key resistance levels are placed at 42,454, followed by 42,588, and 42,805.
On the weekly basis, we have seen the maximum Call open interest (OI) at 17,900 strike, with 58.52 lakh contracts, which can act as a crucial level for maintaining further upside in coming sessions of January series.
This is followed by 19,000 strike, comprising 53.81 lakh contracts, and 18,000 strike, where we have more than 51.9 lakh contracts.
Call writing was seen at 18,300 strike, which added 16.41 lakh contracts, followed by 18,200 strike, which added 14.99 lakh contracts, and 18,400 strike, which added 14.37 lakh contracts.
Call unwinding was seen at 19,000 strike, which shed 3.3 lakh contracts, followed by 18,600 strike, which shed 1.54 lakh contracts, and 17,500 strike, which shed 26,450 contracts.
On the weekly basis, the maximum Put OI was seen at 17,900 strike, with 76.09 lakh contracts, which can act as a crucial support for the Nifty50 in coming sessions of January series.
This is followed by 17,800 strike, comprising 58.48 lakh contracts, and 17,000 strike, where we have 43.21 lakh contracts.
Put writing was seen at 17,900 strike, which added 36.53 lakh contracts, followed by 17,800 strike, which added 35.9 lakh contracts, and 17,200 strike which added 23.74 lakh contracts.
Put unwinding was seen at 16,900 strike, which shed 31,400 contracts, followed by 18,300 strike, which shed 12,250 contracts, and 18,500 strike, which shed 1,200 contracts.
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in HDFC, Kotak Mahindra Bank, United Breweries, Coromandel International, and ICICI Lombard General Insurance, among others.
An increase in OI, along with an increase in price, mostly indicates a build-up of long positions. Based on the OI percentage, we saw a long build-up in 83 stocks on Friday, including Persistent Systems, Federal Bank, Rain Industries, Aditya Birla Fashion & Retail, and MCX India.
A decline in OI, along with a decrease in price, mostly indicates long unwinding. Based on the OI percentage, 18 stocks saw long unwinding on Friday, including Navin Fluorine International, Metropolis Healthcare, PVR, Havells India, and TVS Motor Company.
An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI percentage, we have seen short build-up in 44 stocks on Friday, including L&T Technology Services, Whirlpool, Shriram Finance, JK Cement, and Coforge.
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI percentage, we have total 47 stocks in the short-covering list on Friday, including Max Financial Services, Godrej Consumer Products, ICICI Prudential Life Insurance, Infosys, and Divis Laboratories.
Veritas (India): Swan Energy bought 8.15 lakh equity shares, or a 3 percent stake in the company via open market transactions, at an average price of Rs 243.70 per share. However, promoter Niti Nitinkumar Didwania was the seller in this deal.
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Federal Bank, Angel One, JSW Ispat Special Products, Tinplate Company of India, Kesoram Industries, Bank of Maharashtra, Shree Ganesh Remedies, and Trident Texofab will be in focus ahead of quarterly earnings on January 16.
Wipro: The IT services company has reported nearly 15 percent sequential growth in consolidated profit at Rs 3,053 crore for quarter ended December FY23, led by better operating performance and higher other income. Revenue for the quarter at Rs 23,055.7 crore grew by 3.1 percent sequentially and revenue in dollar terms increased by 0.2 percent QoQ to $2,803.5 million with revenue growth in constant currency at 0.6 percent. Operating performance was better than analysts' expectations, with EBIT growing 11 percent QOQ to Rs 3,750.4 crore and margin expanding 119 bps to 16.3 percent for the quarter. Wipro expects revenue growth in the range of 11.5-12 percent in constant currency terms for FY23.
HDFC Bank: The leading private sector lender registered a 18.5 percent year-on-year growth in standalone profit at Rs 12,259.5 crore for quarter ended December FY23, supported by strong net interest income, operating profit and lower provisions. Net interest income grew by 24.6 percent to Rs 22,988 crore, beating analysts' expectations, for the quarter. Gross non-performing assets as well as net NPAs remained unchanged at 1.23 percent and 0.33 percent on sequential basis, respectively.
Avenue Supermarts: The operator of hypermarket retail chain DMart clocked 6.7 percent year-on-year growth in consolidated profit at Rs 589.7 crore for quarter ended December FY23 despite healthy topline, impacted by weak operating margin performance. Revenue from operations grew by 25.5 percent YoY to Rs 11,569 crore during the quarter, while EBITDA increased by 11.4 percent to Rs 965.3 crore but margin fell 110 bps YoY to 8.3 percent for the quarter dented by higher input cost.
L&T Finance Holdings: The non-banking finance company reported consolidated profit at Rs 454 crore for quarter ended December FY23, growing 39 percent YoY. Net interest income grew by 24 percent YoY to Rs 1,693 crore for the quarter with net interest margin (including fees) expanding by 70 bps YoY to 8.8 percent. The company concluded divestment of the mutual fund business and received sale consideration of Rs 3,485 crore along with surplus cash balance Rs 764 crore, thereby aggregating to Rs 4,249 crore. L&T Finance Holdings' board has approved merger of 3 subsidiaries - L&T Finance, L&T Infra Credit, & L&T Mutual Fund Trustee - with the company.
Dr Reddy's Laboratories: The pharma company has acquired trademark rights of breast cancer drug, PRIMCYV, from Pfizer Products India. With these rights, the company will use drug in the Indian market. Since May 2022, company has been marketing the drug in collaboration with Pfizer Products India under the brand name PRIMCYV in India.
Delhivery: The logistics company completed the acquisition of Algorhythm Tech. With this, Algorhythm has become a wholly owned subsidiary of the company w.e.f. January 13, 2023.
Just Dial: The Indian local search engine reported a 288.4 percent year-on-year increase in consolidated profit at Rs 75.32 crore for the quarter December FY23, driven by strong operating performance and topline. Revenue from operations grew by 39 percent to Rs 221.4 crore for the quarter YoY. For nine months ended December FY23, profit grew by 62.2 percent YoY to Rs 79.1 crore and revenue increased by 27.5 percent to Rs 612.2 crore compared to year-ago period.
RattanIndia Enterprises: The company completed acquisition of 100 percent shareholding in the electric motorcycles company Revolt Motors. Revolt Motors is the highest selling electric bike in the country with its manufacturing facility in Manesar, Haryana. It has expanded its footprint pan-India with 30 dealerships spread across the country.
Sula Vineyards: The company recorded 13 percent year-on-year growth in its own brands gross billings at Rs 187.2 crore for quarter ended December FY23, led by strong growth in volumes as well as realisations. Wine tourism has grown 13 percent YoY to Rs 23 crore, with a 48 percent improvement in nine-month period for FY23 against same period of last year.
Foreign institutional investors (FII) have net sold shares worth Rs 2,422.39 crore, continuing selling for 16th session in a row, but domestic institutional investors (DII) have managed to offset the FII outflow, to major extent, by net buying shares worth Rs 1,953.40 crore on January 13, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Indiabulls Housing Finance and GNFC will remain under the NSE F&O ban list for January 16. 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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