The market managed to rebound but lost all those gains in afternoon and extended fall for the fifth consecutive session on March 15, as the selling pressure was seen in all sectors barring metal and pharma. Sharp fall in European banks after the Silicon Valley Bank fallout dented market sentiment.
The BSE Sensex declined 344 points to 57,556, while the Nifty50 closed below psychological 17,000 mark, falling 71 points to 16,972 and formed long bearish candlestick pattern on the daily charts. The index remained below 200-day SMA (simple moving average) as well as 200-day EMA (exponential moving average) for fourth straight session.
"A long negative candle was formed on the daily chart, that has completely overlapped the similar negative candle of previous session. Technically, this pattern indicates an inability of the market to sustain the gains. Normally, such overlapping candles after a reasonable downward corrections hints at a possibility of reversal pattern on the upside post confirmation," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The positive divergence pattern has started to form in Nifty/RSI daily and in intraday (60 mins) timeframe charts, but still there is no price confirmation for the same.
He feels the short term trend of Nifty continues to be weak. "Having moved into oversold region, there is a possibility of an upside bounce from around 16,900-16,800 levels in the short term. Immediate resistance is at 17,200 levels," the market expert said.
However, the broader markets outperformed equity benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained 0.07 percent and 0.41 percent respectively.
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 16,937, followed by 16,872 and 16,768. If the index moves up, the key resistance levels to watch out for are 17,145, followed by 17,209 and 17,313.
The Bank Nifty also corrected further, falling 360 points to 39,051 and formed long bearish candlestick pattern on the daily charts.
The index has been making lower lows for fourth straight session.
"Bank Nifty has sustained below the critical short-term moving averages on the daily chart. The momentum indicator is in bearish crossover. A fall below 39,000 may trigger further corrections towards 38,800-38,500. On the higher end, resistance is visible at 39,500," Rupak De, Senior Technical Analyst at LKP Securities said.
The important pivot level, which will act as a support, is at 38,926, followed by 38,695 and 38,321. On the upside, key resistance levels are 39,674, followed by 39,905, and 40,280.
On a weekly basis, the maximum Call open interest (OI) was seen at 17,200 strike, with 1.21 crore contracts, which is expected to be a crucial resistance for the Nifty in the coming sessions.
This is followed by an 17,500 strike, comprising 1.17 crore contracts, and a 17,300 strike, where there are more than 97.22 lakh contracts.
Call writing was seen at 17,200 strike, which added 46.38 lakh contracts, followed by 17,100 strike, which gave an addition of 45.38 lakh contracts, and 17,000 strike which saw 44.47 lakh contracts addition.
We have seen Call unwinding at 17,700 strike, which shed 34.68 lakh contracts, followed by 17,800 strike which shed 19.88 lakh contracts, and 17,600 strike which shed 16.45 lakh contracts.
On a weekly basis, we have seen the maximum Put OI at 16,800 strike, with 65.28 lakh contracts, which is expected to act as a crucial support zone for the Nifty50 in coming sessions.
This is followed by the 16,900 strike, comprising 58.95 lakh contracts, and the 16,700 strike, where we have 52.94 lakh contracts.
Put writing was seen at 16,900 strike, which added 24.42 lakh contracts, followed by 16,700 strike with 22.62 lakh contracts, and 16,800 strike with 12.02 lakh contracts.
We have seen Put unwinding at 17,000 strike, which shed 12.25 lakh contracts, followed by 17,400 strike which shed 11.38 lakh contracts, and 16,100 strike which shed 3.08 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 Dabur India, Infosys, HDFC AMC, HDFC Life Insurance Company, and NTPC, 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, 28 stocks including GMR Airports Infrastructure, Petronet LNG, Navin Fluorine International, Mphasis, and Polycab India, 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, 46 stocks including Astral, Gujarat Gas, Mahanagar Gas, United Spirits, and Dixon Technologies witnessed a long unwinding.
66 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, 66 stocks including Cummins India, Atul, Maruti Suzuki India, Piramal Enterprises, and Indraprastha Gas, 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, 52 stocks were on the short-covering list. These included Coforge, JK Cement, Crompton Greaves Consumer Electricals, Metropolis Healthcare, and Glenmark Pharma.
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Investors' meetings on March 16
PI Industries: Company's officials will interact with Rainier Funds.
Allcargo Logistics: Officials of the company will meet investors and analysts in non-deal roadshow organized by Jefferies.
Crompton Greaves Consumer Electricals: Company's officials will interact with Dolat Capital, McInroy & Wood, and William Blair & Company, US.
Wonderla Holidays: Officials of the company will participate in Monarch Networth Capital - Opportunities Unlimited 3.0 conference.
Hindustan Petroleum Corporation: Company's officials will meet analysts and institutional investors.
HEG: Senior Management of the company is scheduled to meet Geraldine Arrigoni, Edgbaston, Investment Partners, UK.
Punjab National Bank: Bank's officials will interact with Marcellus Investment Managers.
Kalyan Jewellers India: Officials of the company will meet Allianz Asia, HSBC Global Asset Management USA, Matthews Asia, CI Investments Inc, and Segantii Capital Management.
Dr Lal PathLabs: Company's officials will interact with Schroder Investment Management (London).
Indian Energy Exchange: Officials of the company will meet Ward Ferry.
Stocks in the news
JSW Energy: The power producer has raised Rs 250 crore via non-convertible debentures as its Finance Committee has approved the allotment of 25,000 non-convertible debentures of Rs 1 lakh each. In October last year, the board had approved raising of funds upto Rs 2,500 crore via NCDs on private placement basis. The date of maturity is March 13, 2026.
TIL: Life Insurance Corporaion of India sold 2.12 percent stake or 2.12 lakh shares in the material handling equipment manufacturer via open market transactions. After stake sale, its shareholding in the company dropped to 8.07 percent, down from 10.199 percent earlier.
Sona BLW Precision Forgings: GIC Private Ltd on account of Government of Singapore and the Monetary Authority of Singapore acquired additional 5.13 percent stake in the auto ancillary company via open market transactions on March 13. With this, their shareholding in the company increased to 6.6 percent, up from 1.47 percent earlier.
Mindspace Business Parks REIT: The company has completed the first REIT level green bond issuance in India. Mindspace REIT has raised Rs 550 crore with a tenor of three years and thirty days at a fixed quarterly coupon of 8.02 percent per annum payable quarterly. The issuance is rated AAA/Stable each by CRISIL Ratings and ICRA.
Sarda Energy & Minerals: The company has received the consent to operate from Chhattisgarh Environment Conservation Board, Raipur, for expansion in existing rolling mill from 1.8 lakh tonnes per annum to 2.5 lakh tonnes per annum.
Ramkrishna Forgings & Titagarh Wagons: Ramkrishna Forgings in consortium with Titagarh Wagons has been declared the lowest bidder (L1) by the Ministry of Railways for manufacturing and supplying of forged wheels under the 'Atmanirbhar Bharat' initiative. This tender is aimed at reducing the Indian Railway's import-dependence, by inviting the industry to set up a facility to produce these wheels, which will primarily be used for semi-high speed trains (Vande Bharat) and high-speed trains (bullet train).
Federal Bank: The board of Directors will meet on March 18 to consider the proposal to raise funds by way of issue of unsecured Basel III Tier-II subordinate bonds in the nature of debentures, amounting to Rs 1,000 crore on a private placement basis.
Fund Flow
Foreign institutional investors (FII) sold shares worth Rs 1,271.25 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,823.94 crore on March 15, 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 retained GNFC in its F&O ban list for March 16. 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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