The market extended an uptrend for the second straight session, driven by the rebound in late trade on March 17. Banking and financial services, technology and metal stocks led the charge. The rescue package from 11 US banks for First Republic Bank and the financial aid to Credit Suisse from Swiss Central Bank, along with the fall in oil prices supported the market.
The BSE Sensex climbed 355 points to 57,990, while the Nifty50 jumped 114 points to 17,100 and formed a long-legged Doji candlestick pattern for the second consecutive session, making higher high higher low formation, indicating that the market may be looking for a rebound.
"A Doji pattern followed by a recovery candle on the daily chart indicates the possibility of a bullish reversal. On the higher end, immediate resistance is placed at 17,250, where the bears might try to return to the market," Rupak De, Senior Technical Analyst at LKP Securities said.
However, if bulls take the Nifty above 17,250, the index may move towards 17,500–17,600, whereas on the lower end, support remains intact at 16,950, he said.
The broader markets also joined frontliners as the Nifty Midcap 100 and Smallcap 100 indices gained a third of percent and seven-tenth of percent on positive breadth. The volatility also cooled down significantly with the India VIX declining 9 percent to 14.77 levels, from 16.22 levels, giving comfort to bulls.
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 16,996, followed by 16,952 and 16,880. If the index moves up, the key resistance levels to watch out for are 17,140, followed by 17,184 and 17,256.
Banks played a key role in recovery, as the Bank Nifty jumped 465 points or 1.2 percent to 39,598 and formed a Hammer kind of pattern on the daily charts which also looked like a Morning Star kind of pattern formation.
"The index if it manages to hold the support of 39,000 on the downside can witness a pullback rally towards 40,000. A sustained move above 40,000 will open up room for a big rally toward the 41,000 level," Kunal Shah, Senior Technical Analyst at LKP Securities said.
The important pivot level, which will act as a support, is at 39,113, followed by 38,929 and 38,632. On the upside, key resistance levels are 39,707, followed by 39,891, and 40,188.
On a weekly basis, we have seen the maximum Call open interest (OI) at 17,800 strike, with 79.7 lakh contracts, which is expected to be a crucial resistance for the Nifty in March series.
This is followed by 17,500 strike, comprising 61 lakh contracts, and a 17,000 strike, where there are more than 55.23 lakh contracts.
Call writing was seen at 17,200 strike, which added 26.2 lakh contracts, followed by 17,100 strike, which gave an addition of 20.17 lakh contracts, and 17,600 strike which saw 19.91 lakh contracts addition.
We have seen Call unwinding at 17,000 strike, which shed 5.69 lakh contracts, followed by 16,900 strike which shed 2.48 lakh contracts, and 18,200 strike which shed 1.83 lakh contracts.
On a weekly basis, the maximum Put OI was seen at 17,000 strike, with 76.65 lakh contracts, which is expected to be a crucial support level for coming sessions.
This is followed by the 17,100 strike, comprising 34.08 lakh contracts, and the 16,000 & 16,500 strikes, where we have 32.4 lakh contracts each.
Put writing was seen at 17,100 strike, which added 24.26 lakh contracts, followed by 17,000 strike with 20.24 lakh contracts, and 16,800 strike with 17.54 lakh contracts.
We have seen Put unwinding at 15,800 strike, which shed 1.4 lakh contracts, followed by 17,800 strike which shed 2,250 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 Crompton Greaves Consumer Electricals, United Spirits, Reliance Industries, Hindustan Unilever, 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, 54 stocks including Bajaj Auto, National Aluminium Company, TCS, Aditya Birla Capital, and Dr Reddy's Laboratories, 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, 24 stocks including NTPC, Power Grid Corporation of India, Shree Cement, Hindustan Petroleum Corporation, and Asian Paints witnessed a long unwinding.
40 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, 40 stocks including Biocon, PFC, Dr Lal PathLabs, Marico, and HDFC AMC, 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, 71 stocks were on the short-covering list. These included Nestle India, Hindalco Industries, JK Cement, Intellect Design Arena, and Gujarat Gas.
Biocon: Foreign portfolio investor Ahan-I has sold 1.89 crore equity shares or 1.57 percent stake in the company via open market transactions at an average price of Rs 200.74 per share.
Delhivery: Vanguard Total International Stock Index Fund bought 47.62 lakh equity shares in the logistics company and Vanguard Emerging Markets Stock Index Fund A Series of VIEIF acquired 47.98 lakh shares at an average price of Rs 323.07 per share, which in total represented 1.3 percent stake. However, Integrated Core Strategies (Asia) Pte Ltd sold 39.26 lakh shares at an average price of Rs 320.83 per share, and Internet Fund III Pte Ltd offloaded 55.13 lakh shares at an average price of Rs 321.21 per share.
Equitas Small Finance Bank: Vanguard Total International Stock Index Fund bought 57.19 lakh shares in the small finance bank at an average price of Rs 68.01 per share, and Norges Bank on Account of the Government Pension Fund Global purchased 87.7 lakh shares at an average price of Rs 67.96 per share. Integrated Core Strategies (Asia) Pte Ltd sold 66.39 lakh shares at an average price of Rs 67.99 per share.
Jaiprakash Power Ventures: Vanguard Total International Stock Index Fund bought 3.66 crore shares in the company at an average price of Rs 6.08 per share.
Jindal Stainless: Norges Bank on Account of the Government Pension Fund Global purchased 28.21 lakh shares in the stainless steel company at an average price of Rs 292.51 per share. However, Integrated Core Strategies (Asia) Pte Ltd sold 37.64 lakh shares in the company at an average price of Rs 292.04 per share
Reliance Infrastructure: Vanguard Total International Stock Index Fund acquired 20.12 lakh shares in the company at an average price of Rs 148.7 per share. However, Integrated Core Strategies (Asia) Pte Ltd offloaded 20.12 lakh shares in the company at an average price of Rs 148.46 per share.
Choice International: Scoutbit General Trading LLC bought 21.82 lakh equity shares or a 2.19 percent stake in the company at an average price of Rs 255 per share.
(For more bulk deals, click here)
Investors' meetings on March 20
Zomato, One 97 Communications: The companies' officials will participate in Credit Suisse Asian Investment Conference.
V-Guard Industries: Officials of the company will interact with Enam AMC.
Blue Star: The company's officials will participate in Centrum Consumer Durables Summer Conference.
Sundram Fasteners: Officials of the company will interact with Anvil Wealth Management.
PI Industries: The company's officials will meet Sunidhi Securities.
Stocks in the news
Rail Vikas Nigam: RVNL has emerged as the lowest bidder (L1) for a composite contract package in connection with the new BG railway line of HORC project by Haryana Rail Infrastructure Development Corporation. The cost of the project is Rs 1,088.49 crore and the said project is expected to be executed within 1,460 days.
Torrent Pharmaceuticals: The US Food and Drug Administration has conducted a pre-approval inspection (PAI) of the company's oral-oncology manufacturing facility in Gujarat from March 13 - March 17, 2023. After the said inspection, the US health regulator issued a 'Form 483' with 1 observation, which is procedural in nature.
Navin Fluorine International: Subsidiary Navin Fluorine Advanced Sciences said its board of directors has approved a capital expenditure of Rs 450 crore for setting up a new 40,000 tonnes per annum hydrofluoric acid capacity at Dahej. Currently, the company has an AHF manufacturing plant with a capacity of approximately 20,000 tonnes per annum at Surat. The new capacity is expected to come on stream in two years.
Havells India: The electric equipment maker has commenced commercial production of air-conditioners at its Sri-City plant from March 17. In July 2022, it had intimated about setting up of new facility to manufacture air-conditioners at Sri City in Andhra Pradesh.
SKF India: The automotive and industrial engineered solutions company has agreed to make an investment in renewable energy company Cleanmax Taiyo by acquiring its 2,600 fully paid-up equity shares, equivalent to 26 percent shareholding. In November 2022. SKF board had approved investment via equity participation (26 percent stake) in the special purpose vehicle company for commissioning a captive project (wind + solar) via open access for the Bangalore plant. The acquisition will be completed by June 2023.
Welspun Corp, Sintex Plastics Technology: The National Company Law Tribunal has approved the resolution plan submitted by the consortium of Propel Plastic Products, a wholly owned subsidiary of Welspun Corp, and Plastauto (earlier known as Tubular Pipes), a related party of Welspun Corp, with respect to corporate insolvency resolution process of Sintex-BAPL on March 17. Sintex-BAPL is a wholly owned subsidiary of Sintex Plastics Technology.
Tata Consumer Products: The company has ceased negotiations with Bisleri with regard to a potential transaction and confirmed that the company has not entered into any definitive agreement or binding commitment on this matter. In November last year, the company had said it evaluated various strategic opportunities for growth and expansion of its business, and pursuant to this, the management remained in discussions with various parties, including Bisleri International.
Fund Flow
Foreign institutional investors (FII) sold shares worth Rs 1,766.53 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,817.14 crore on March 17, the National Stock Exchange's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Indiabulls Housing Finance and GNFC in its F&O ban list for March 20. 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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