The market snapped an eight-day losing streak by registering nearly a percent gain on March 1 as buying was seen in most beaten-down stocks. Metal, technology, banking and financial services, auto, oil and gas, and select FMCG stocks supported the market.
The BSE Sensex climbed 449 points to 59,411, while the Nifty50 jumped 147 points to 17,451 and formed a bullish candlestick pattern on the daily charts, negating lower highs and lower lows formation of the last eight straight sessions.
"A long bull candle was formed on the daily chart, which indicates a short-term upside reversal in the market. Hence, the low of Tuesday at 17,255 could now be considered as a short-term bottom reversal for the market," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.
However, the medium-term downtrend in the Nifty remains intact and the present upside bounce could be considered as a pullback rally of a bearish trend, he says.
"Further sustainable upside from here could open a short-term upside bounce in the market ahead. Immediate support is at 17,250 levels and on the higher side, the Nifty could encounter strong resistance at 17,600 levels," the market expert said.
The broader markets also joined the bulls' party with the Nifty Midcap 100 and Smallcap 100 indices rising 1.5 percent and 1.3 percent respectively, on strong breadth, while the volatility index dropped by 7.3 percent to 13 levels.
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 17,374, followed by 17,346 and 17,299. If the index moves up, the key resistance levels to watch out for are 17,468, followed by 17,497 and 17,544.
The Nifty Bank also joined the bull run, rising 429 points or 1 percent to 40,698, and forming a bullish candlestick pattern on the daily charts making higher highs and higher lows for the second consecutive session, after the recent double-bottom formation.
"We can see a double bottom formation on the Banknifty, which indicates a possible short-term bottom. However, the 20-DMA near 41,000 will be a key resistance level, and if it succeeds in breaking through it, we can anticipate a short covering move in the direction of the 41,500-42,000 region," Santosh Meena, Head of Research at Swastika Investmart said.
The important pivot level, which will act as a support, is at 40,442, followed by 40,351 and 40,205. On the upside, key resistance levels are 40,735, followed by 40,825, and 40,972.
On a weekly basis, the maximum Call open interest (OI) was seen at 17,500 strike, with 1.13 crore contracts, which may remain a crucial resistance level for the Nifty in the coming sessions.
This is followed by a 17,600 strike, comprising 1.10 crore contracts, and a 17,800 strike, where there are more than 75.74 lakh contracts.
Call writing was seen at 17,500 strike, which added 3.09 lakh contracts.
We have seen Call unwinding at 17,400 strike, which shed 63.06 lakh contracts, followed by 18,500 strike which shed 37.73 lakh contracts, and 17,300 strike which shed 35.81 lakh contracts.
On a weekly basis, we have seen the maximum Put OI at 17,400 strike, with 1.1 crore contracts, which is expected to act as a crucial support zone for the Nifty50 in coming sessions.
This is followed by the 17,300 strike, comprising 81.16 lakh contracts, and the 17,000 strike, where we have 80.89 lakh contracts.
Put writing was seen at 17,400 strike, which added 63.73 lakh contracts, followed by 17,500 strike, which added 25.29 lakh contracts and 17,200 strike which added 19.82 lakh contracts.
We have seen Put unwinding at 16,900 strike, which shed 12.74 lakh contracts, followed by 16,500 strike which shed 7.39 lakh contracts, and 17,600 strike which shed 3.48 lakh 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 Petronet LNG, Page Industries, Honeywell Automation, HDFC, and Can Fin Homes, 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, 98 stocks including Polycab India, Max Financial Services, IndiaMART InterMESH, Gujarat Gas, and Adani Enterprises, saw a long build-up.
A decline in OI and a decrease in price, in most cases, indicate long unwinding. Based on the OI percentage, 3 stocks - Britannia Industries, Glenmark Pharma, and ICICI Lombard General Insurance Company - witnessed a long unwinding.
16 stocks see a short build-up
An increase in OI accompanied by a decrease in price mostly indicate a build-up of short positions. Based on the OI percentage, 16 stocks including Dabur India, Cipla, Alkem Laboratories, BPCL, and Petronet LNG, 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, 76 stocks were on the short-covering list. These included Dixon Technologies, Delta Corp, GNFC, Bajaj Auto, and Shriram Finance.
Delhivery: Foreign investor SVF Doorbell (Cayman), an entity owned by SoftBank, has offloaded a 3.8 percent stake in the logistics company. SVF has sold 2.8 crore shares of the company via open market transactions, at an average price of Rs 340.80 per share.
(For more bulk deals, click here)
Investors' meetings on March 2
Bharat Forge: The company's officials will interact with Lord Abbett.
Eicher Motors: Officials of the company will interact with Point72 Asset Management.
HCL Technologies: The company's officials will participate in Global IT Services Virtual Investor Trip hosted by Citi.
Advanced Enzyme Technologies: Officials of the company will interact with Nalanda Capital.
Medplus Health Services: The company's officials will participate in Goldman Sachs India Pharma and Healthcare Tour 2023, and Investec Equity Conference.
Ramkrishna Forgings: Officials of the company will meet several institutional investors.
Clean Science and Technology: The company's officials will meet several funds and investors at the non-deal roadshow in Singapore.
Century Textiles and Industries: Officials of the company will meet Theleme Partners.
Asian Paints: The company's officials will be meeting FSSA Investment Managers.
Mrs Bectors Food Specialities: Officials of the company will participate in Investec - India Promoter Conference.
Speciality Restaurants: The company's officials will interact with Equitree Capital, and Stallion Asset Management.
Stocks in the news
Rail Vikas Nigam: The state-owned railway company has emerged as the lowest bidder (L1) for 'manufacturing cum maintenance of Vande Bharat trainsets including up-gradation of the government manufacturing units & trainset depots' in a joint venture with three partners. The total quantity is 200 trainsets and the cost per set is Rs 120 crore.
Hero MotoCorp: The world's largest manufacturer of motorcycles and scooters sold 3.94 lakh units in February 2023, a 10 percent growth over the corresponding month of the previous year, when the company had sold 3.58 lakh units, with domestic sales volumes increasing by 15.3 percent YoY to 3.82 lakh units but exports falling 55 percent to 12,143 units in the same period.
Bajaj Finserv: The diversified financial services group has received the final registration from the Securities and Exchange Board of India (Sebi) to commence its mutual fund operations under Bajaj Finserv Mutual Fund. Further, Bajaj Finserv Asset Management has also received approval to act as an asset management company for Bajaj Finserv Mutual Fund. Bajaj Finserv MF will soon offer a range of mutual fund products including equity, debt, and hybrid funds, both in the active and passive segments, to investors.
Dreamfolks Services: The largest airport service aggregator platform has received board approval to acquire 60 percent equity shares of Vidsur Golf. Now, Vidsur will become a subsidiary of the company. The company will also incorporate a subsidiary in Singapore.
KNR Constructions: The construction engineering company has received a Letter of Acceptance for the development of six lanes from Marripudi to Somvarappadu of Bengaluru-Vijayawada economic corridor on HAM mode under Bharatmala Pariyojana Phase-1 in Andhra Pradesh. The cost of the project is Rs 665 crore, while the completion period of the project is 24 months and the operation period is 15 years from the commercial operational date.
Eicher Motors: Royal Enfield sold 71,544 motorcycles in February 2023, growing 21 percent over 59,160 motorcycles sold in the same period last year. Its international business recorded a 1 percent YoY growth by selling 7,108 motorcycles. The growth was largely driven by motorcycles with engine capacity up to 350cc that reported a 31 percent YoY rise at 64,180 units, but motorcycles with engine capacity over 350cc segment registered a 30 percent YoY decline at 6,734 units.
CreditAccess Grameen: The total income tax demand for AY19 at Rs 2,333 crore has now been reduced to Rs 122.63 crore under the fresh assessment order received from the assessment unit of the Income Tax Department.
Sunteck Realty: The Mumbai-based real estate development company has leased out 2 lakh square feet of built-up area of its premium commercial building Sunteck BKC51 to Upgrad Education for 29 years. Upgrad will be paying starting rentals of close to Rs 300 per square feet per month on a carpet area basis. The total revenue generated from the project will be close to Rs 2,000 crore over the entire lease tenure.
Fund Flow
Foreign institutional investors (FII) sold shares worth Rs 424.88 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,498.66 crore on March 1, the National Stock Exchange's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has not added any stock in its F&O ban list for March 2. 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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