Bulls retained control over Dalal Street for the second consecutive session on December 22. The BSE Sensex rallied 1,100 points in those two days, while the broader markets strongly outperformed frontline indices with the Nifty Midcap 100 and Smallcap 100 indices rising 1.55 percent and 2.15 percent, respectively.
The BSE Sensex jumped 611.55 points or 1.09 percent to 56,930.56, while the Nifty50 rallied 184.70 points or 1.10 percent to 16,955.50 and formed a bullish candle on the daily charts.
"Albeit Nifty displayed a show of strength by bridging the bearish gap present in the zone of 16,840–16,966 levels it will be too early to call a bottom at recent corrective swing low of 16,410 levels," says Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory at Chartviewindia.in.
He further says the last two sessions of strength might have instilled some confidence among bulls and hence if the index sustains above 16,970 levels in the next session, the strength may eventually extend towards 17,500 levels in the next couple of sessions which can be the best-case scenario for the near term.
However, "as the current bounce is just two days old and if the Nifty closes below 16,800 in the next session then sideways move with negative bias should resume," Mazhar says. For the time being if someone is long they should hold with a stop-loss below 16,800 levels and look for a near-term target of 17,200 levels, he advises.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 16,859.6, followed by 16,763.8. If the index moves up, the key resistance levels to watch out for are 17,011.1 and 17,066.8.
Nifty Bank
The Nifty Bank also rallied in line with benchmarks, climbing 421.70 points or 1.22 percent to 35,029.50 on December 22. The important pivot level, which will act as crucial support for the index, is placed at 34,774.03, followed by 34,518.57. On the upside, key resistance levels are placed at 35,198.53 and 35,367.57 levels.
Call option data
Maximum Call open interest of 32.67 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the December series.
This is followed by 17500 strike, which holds 26.36 lakh contracts, and 17000 strike, which has accumulated 25.88 lakh contracts.
Call writing was seen at 17200 strike, which added 4.91 lakh contracts, followed by 17500 strike which added 3.96 lakh contracts, and 17800 strike which added 3.68 lakh contracts.
Call unwinding was seen at 16800 strike, which shed 1.78 lakh contracts, followed by 16700 strike which shed 1.1 lakh contracts and 16600 strike which shed 84,550 contracts.
Put option data
Maximum Put open interest of 39.84 lakh contracts was seen at 16500 strike, which will act as a crucial support level in the December series.
This is followed by 17000 strike, which holds 32.27 lakh contracts, and 16000 strike, which has accumulated 23.61 lakh contracts.
Put writing was seen at 16900 strike, which added 5.04 lakh contracts, followed by 17000 strike which added 3.42 lakh contracts and 16800 strike which added 3.28 lakh contracts.
Put unwinding was seen at 17400 strike, which shed 1.12 lakh contracts, followed by 17200 strike which shed 84,800 contracts and 17300 strike which shed 71,400 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
96 stocks saw long build-up
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, here are the top 10 stocks in which a long build-up was seen.
2 stocks saw long unwinding
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the two stocks in which long unwinding was seen.
14 stocks saw short build-up
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, here are the top 10 stocks in which a short build-up was seen.
78 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.
Bulk deals
(For more bulk deals, click here)
Analysts/Investors Meeting
Cipla: The company's officials will meet Antique Stock Broking on December 23.
Polycab India: The company's officials will meet IIFL AMC on December 23.
Eris Lifesciences: The company's officials will meet Motilal Oswal Financial Services and Emkay Global Financial Services on December 23.
Max Healthcare Institute: The company's officials will meet Polar Capital and Putnam Investments on December 23.
Stocks in News
Medplus Health Services: The company will make its debut on the bourses on December 23. The final issue price is fixed at Rs 796 per share.
PSP Projects: Gujarat Pollution Control Board has granted a Consent to Establish (NOC) for setting up of industrial plant for manufacturing of precast, and the company has started manufacturing activities.
Ceinsys Tech: The company announced the acquisition of Allygrow Technologies, a technology-driven firm having a presence in the US, Europe and India and specialising in product design and robotics automation (manufacturing engineering) services.
Axiscades Technologies: The company has approved the appointment of Shashidhar SK as Chief Financial Officer.
Kotak Mahindra Bank: Subsidiary Kotak Mahindra Prime acquired the passenger vehicle financing portfolio of Ford Credit India, the Indian captive financing arm of Ford Motor company.
Vivanta Industries: The company has received a Letter of Intent from Vitaanova Healthcare Uganda, for the execution of a pharmaceutical project for manufacturing tablets, capsules and oral liquids on a turnkey basis including planning, designing, engineering, construction, supply, installation and commissioning of plant and machinery along with obtaining WHO approval. The entire project with an aggregate value of $5.9 million is to be completed within a period of 18 months from the date of signing the contract.
Fund Flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 827.26 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,593.41 crore in the Indian equity market on December 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Four stocks - Escorts, Indiabulls Housing Finance, Vodafone Idea, and Zee Entertainment Enterprises - are under the F&O ban for December 23. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
Disclaimer: The views and investment tips expressed by investment 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
