The market had a healthy rally after five days of correction but profit booking in late trade wiped out all those gains. It resulted in the continuation of a negative close for the sixth consecutive session on February 23, ahead of the expiry of February derivative contracts. Nervousness remained in the market amid geopolitical tensions and elevated oil prices.
The BSE Sensex fell 69 points to 57,232, while the Nifty50 corrected 29 points to 17,063 and formed a bearish candle on the daily charts but has defended the 17,000 mark, which is expected to act as crucial support.
"The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if the Nifty crosses and sustains above 17,150 level, it would witness buying which would lead the index towards 17,300-17,400 levels," says Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities.
However, he feels that if the index breaks below the 17,000 level, it would witness selling which would take the index towards 16,900-16,800.
The Nifty is trading below 20-day SMA (17,319) indicating negative bias in the short to medium term. "The Nifty continues to remain in a downtrend in the short to medium term. Hence selling on rallies continues to be our preferred strategy," says Palviya.
However, the Nifty Midcap 100 snapped a five-day losing streak by reporting 0.64 percent gains, while the Smallcap 100 index gained for the first time in the last five consecutive sessions, rising 1.16 percent.
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
As per the pivot charts, the key support levels for the Nifty are placed at 16,987, followed by 16,911. If the index moves up, the key resistance levels to watch out for are 17,180 and 17,297.
The Nifty Bank managed to eke out gains amid volatility, rising 20 points to close at 37,392 on February 23. The important pivot level, which will act as crucial support for the index, is placed at 37,215, followed by 37,038. On the upside, key resistance levels are placed at 37,672 and 37,951 levels.
Maximum Call open interest of 95.77 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the February series.
This is followed by 17500 strike, which holds 92.56 lakh contracts, and 17400 strike, which has accumulated 78.22 lakh contracts.
Call writing was seen at 17200 strike, which added 43.9 lakh contracts, followed by 17400 strike which added 39.57 lakh contracts, and 17300 strike which added 21.37 lakh contracts.
Call unwinding was seen at 17700 strike, which shed 18.9 lakh contracts, followed by 17000 strike which shed 8.38 lakh contracts, and 17800 strike which shed 3.33 lakh contracts.
Maximum Put open interest of 87.45 lakh contracts was seen at 16500 strike, which will act as a crucial support level in the February series.
This is followed by 17000 strike, which holds 53.88 lakh contracts, and 16000 strike, which has accumulated 47.44 lakh contracts.
Put writing was seen at 16500 strike, which added 39.7 lakh contracts, followed by 17100 strike, which added 15.45 lakh contracts, and 17200 strike which added 9.72 lakh contracts.
Put unwinding was seen at 17000 strike, which shed 11.52 lakh contracts, followed by 17500 strike which shed 6.9 lakh contracts, and 16900 strike which shed 4.06 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
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.
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 top 10 stocks in which long unwinding was seen.
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.
95 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.
VIP Clothing: Promoter Lalita Jaykumar Pathare has sold more than 5.83 lakh equity shares, representing 0.7 percent of total paid-up equity, via open market transactions on the NSE. The stake has been sold at an average price of Rs 22.98 per share. Pathare had held a 12.48 percent stake in the company as of December 2021.
Beardsell: Promoter Anumolu Bharat has offloaded over 3.01 lakh shares or 0.8 percent via open market transactions on the NSE. The stake was sold at an average price of Rs 13.56 per share. Bharat held a 5.4 percent equity stake in the company as of January 22, 2022.
(For more bulk deals, click here)
Analysts/Investors Meetings, and Results on February 24
Results on February 24: KSB, Linde India, and Vesuvius India will release their results for the quarter ended December 2021, on February 24.
Medplus Health Services: The company's officials will meet GSAM, and Fidelity Management and Research on February 24.
Axis Bank: The company's officials will attend Goldman Sachs India Thematic Financials Tour on February 24.
RSWM: The company's officials will meet Phillip Capital on February 24.
Kirloskar Ferrous Industries: The company's officials will meet Ventura Securities on February 24.
Deep Industries: The company's officials will meet Akash Ganga Investments on February 24.
Cipla: The company's officials will attend Kotak Chasing Growth's 2022 Conference on February 24.
PVR: The company's officials will attend Kotak Chasing Growth's 2022 Conference on February 24.
Tega Industries: The company's officials will meet HDFC Mutual Fund on February 24.
Tata Consumer Products: The company's officials will meet Elara Securities (India) on February 24; and Wasatch Advisors Inc on February 28.
Kesoram Industries: The company's officials will meet investors on February 25.
Tatva Chintan Pharma Chem: The company's officials will meet Axis Mutual Fund on February 24; and GIC Singapore on February 28.
Endurance Technologies: The company's officials will meet T Rowe Price Hong Kong on February 24.
CRISIL: The company's officials will meet Capital International on February 24; and Yes Securities on February 28.
Stocks in News
L&T Finance Holdings: Citigroup Global Markets Mauritius & CBNA London has offloaded 4.88 percent equity stake in the company via open market transactions on February 21. With this, their shareholding stands at 3.87 percent now, down from 8.75 percent earlier.
Sanofi India: The final dividend of Rs 181 per equity share for the year ended December 2021 has been approved by the board of directors. In addition, the firm has also declared a special dividend of Rs 309 per share for the year. The decision of special dividend has been taken especially after the selling of nutraceuticals business during the year. Also the net profit declined 26.5 percent year-on-year to Rs 90.4 crore for the quarter ended December 2021, and revenue during the same period fell 4.5 percent to Rs 688 crore YoY.
Forbes & Company: The firm said the board has given its approval for a binding term sheet for sale of the company's entire shareholding in subsidiary Forbes Facility Services to SILA Solutions. The said transaction of Rs 42 crore is expected to be completed by the first quarter of FY23. Further, there would be termination of its Joint Venture agreement with Sterling Investment Corporation, G S Enterprises in relation to Shapoorji Pallonji Forbes Shipping (SPFSL), but the company would continue to hold 25 percent equity and preference share capital in SPFSL. The termination is taking place with mutual consent.
Wipro: The firm said it has joined the global partnership network of o9 Solutions. The partnership will help companies rapidly transform complex supply chains and eliminate the inefficiencies of long-standing supply chain solutions, by digitizing their integrated planning and operations management capabilities. o9 Solutions is a leading enterprise AI software platform provider for transforming planning and decision-making.
Piramal Enterprises: The firm said the Committee of the Board of Directors on February 28 will consider the fundraising by the issue of non-convertible debentures up to Rs 100 crore along with an option to retain oversubscription up to Rs 400 crore. With this, the total fundraising via NCDs would be Rs 500 crore on a private placement basis.
SKF India: Anurag Bhagania has resigned from the position of chief financial officer.
Fund Flow
Foreign institutional investors (FIIs) have net sold Rs 3,417.16 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 3,024.37 crore worth of shares in the Indian equity market on February 23, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks - Indiabulls Housing Finance, Vodafone Idea and Punjab National Bank - are under the F&O ban for February 24. 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.
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