"We're seeing buying interest emerging on every dip and it is indeed a positive sign," said Ajit Mishra, VP - Research, Religare Broking.
Benchmark indices snapped their winning streak of four consecutive sessions on January 15 as investors embarked on profit-booking after the December quarter numbers of some banks dented sentiments.
"After the solid pre-budget rally, the market is getting a bit sceptical after higher than expected NPA numbers in the recent Q3 bank results and very high consumer inflation which may stay for another month or two," said Vinod Nair, Head of Research, Geojit Financial Services.
The market traded volatile and finally settled marginally lower, taking a pause after the recent surge. The bias was negative from the beginning due to weak Asian cues ahead of the US-China trade deal. Also, the decline in the banking pack further dragged the index lower.
Sensex closed 80 points, or 0.19 percent, down at 41,872.73, while Nifty finished 19 points, or 0.15 percent, lower at 12,343.30.
However, the BSE Midcap and Smallcap indices outperformed the benchmark Sensex, ending with healthy gains of 0.66 percent and 1.04 percent, respectively.
"We're seeing buying interest emerging on every dip and it is indeed a positive sign. Besides, traction in the broader markets is further strengthening the trend. We advise focussing more on stock selection and using intermediate corrective moves to accumulate quality stocks," said Ajit Mishra, VP - Research, Religare Broking.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, the key support level for Nifty is placed at 12,296.33, followed by 12,249.37. If the index moves up, key resistance levels to watch out for are 12,372.73 and 12,402.17.
Nifty Bank closed 0.77 percent down at 31,824.90. The important pivot level, which will act as crucial support for the index, is placed at 31,663.17, followed by 31,501.43. On the upside, key resistance levels are placed at 31,993.77 and 32,162.63.
Call options data
Maximum call open interest (OI) of 27.88 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.
This is followed by 12,400 strike price, which holds 18.52 lakh contracts in open interest, and 12,600, which has accumulated 16.03 lakh contracts in open interest.
Significant call writing was seen at the 12,300 strike price, which added 1.45 lakh contracts, followed by 12,500 strike price that added 1.07 lakh contracts.
Call unwinding was witnessed at 12,600 strike price, which shed 1.41 lakh contracts, followed by 12,100 which shed 1.17 lakh contracts and 12,200 which shed 1.15 lakh contracts.
Put options data
Maximum put open interest of 42.11 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.
This is followed by 12,200 strike price, which holds 26.82 lakh contracts in open interest, and 12,100 strike price, which has accumulated 16.5 lakh contracts in open interest.
Put writing was seen at the 11,900 strike price, which added 1.92 lakh contracts.
Put unwinding was seen at 12,000 strike price, which shed 2.27 lakh contracts, followed by 12,100 which shed 1.35 lakh contracts and 12,200 strike which shed 1.14 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
93 stocks saw long build-up
Based on open interest (OI) future percentage, here are the top 10 stocks in which long build-up was seen.
5 stocks saw long unwinding
39 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 open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
10 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering.
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Upcoming analyst or board meetings/briefings
Dishman Carbogen Amcis: The board will meet on January 16 to consider 'employees stock option plan' and buyback of shares.
Deccan Health Care: The board will meet on January 16 to consider and approve the preferential issue of shares.
UCO Bank: The board will meet on January 16 to consider and approve the preferential issue of shares.
GAIL (India): The board will meet on January 16 for general purpose.
Stocks in the news
Results: Tata Metaliks, South Indian Bank, Karnataka Bank, Rallis India, Cyient, Hathway Cable & Datacom, Sanathnagar Enterprises, Roselabs Finance, Rishabh Digha Steel & Allied Products, Fervent Synergies and Dhruv Estates are among the companies that will release their December quarter numbers on January 16.
Den Networks: The company reported a net profit of Rs 12.3 crore for Q3FY20 against a loss of Rs 31.2 crore in Q3FY19. Revenue from operations for the quarter came at Rs 318 crore for the said quarter against Rs 308 crore in the same quarter a year ago.
Indian Oil Corporation: The company has informed the exchange regarding the issue of unsecured debentures on private placement basis.
Reliance Industrial Infrastructure: Company's net profit jumped 12.6 percent YoY to Rs 2.46 crore in Q3FY20 against Rs 2.18 crore in Q3FY19.
Asian Paints: CCI will probe anti-trust moves of the company against JSW Paints.
Alps Industries: Allahabad HC dismissed winding-up petition filed by Kotak Mahindra Bank.
Torrent Pharma: Board will consider raising funds via equity on January 27.
Kotak Mahindra Bank: Lender sold its entire stake of 5.56 percent in Equifax Credit Info Services.
Sterlite Tech: Q3 profit fell 43.1 percent to Rs 91 crore, revenue declined 11.5 percent to Rs 1,203 crore QoQ.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 279.53 crore, while domestic institutional investors (DIIs) sold shares of worth Rs 648.34 crore in the Indian equity market on January 15, provisional data available on the NSE showed.
Stock under F&O ban on NSEYes Bank is under the F&O ban for January 16. 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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.