The market continued its northward journey for the second day in a row despite volatility on March 22, tracking rally in Asian counterparts. The Nifty50 climbed 44 points to close a tad above 17,150 but failed to hold on to an intraday high of above 17,200 which is expected to be a crucial level for further upside.
The BSE Sensex gained 140 points to close at 58,215, while the broader markets also gained more strength, rising for the second straight session. The Nifty Midcap 100 and Smallcap 100 indices rose a third of a percent and half a percent respectively.
"The Nifty has witnessed a pullback move in the last couple of sessions from its support zone of 16,800-16,900, but is yet to cross its near-term hurdle of 17,225," Ruchit Jain, Lead Research at 5paisa.com said.
As far as levels are concerned, the 20-day EMA (exponential moving average) hurdle for the Nifty is around 17,320, while 16,850 will be seen as crucial support, he said.
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 17,118, followed by 17,094 and 17,094. If the index moves up, the key resistance levels to watch out for are 17,194, followed by 17,217 and 17,255.
The Bank Nifty ended with moderate gains of 104 points at 39,999, forming a Doji kind of pattern on the daily timeframe, making higher high higher low formation for the second day in a row.
The index has remained mostly sideways as the investors preferred waiting until after the Federal Reserve meeting on the rates and the follow-up commentary, which is more important.
"On the higher end, the index has found resistance at the 14DMA (40,166) during the day's trade on March 22. The momentum indicator is in a bullish crossover. A decisive breakout above 40,000 may induce a rally in the index, above which the index may move up towards 40,500-41,000 over the near term. On the lower end, support lies at 39,500," Rupak De, Senior Technical Analyst at LKP Securities said.
The important pivot level, which will act as a support, is at 39,880, followed by 39,821 and 39,726. On the upside, key resistance levels are 40,069, followed by 40,127, and 40,222.
On a weekly basis, the maximum Call open interest (OI) was seen at 17,500 strike, with 1.01 crore contracts, which is expected to be a crucial resistance for the Nifty in coming sessions.
This is followed by a 17,300 strike, comprising 82.96 lakh contracts, and a 17,400 strike, where there are more than 82.17 lakh contracts.
Call writing was seen at 17,500 strike, which added 29.08 lakh contracts, followed by 17,400 strike, which gave an addition of 15.63 lakh contracts, and 17,300 strike which saw 12.89 lakh contracts addition.
We have seen Call unwinding at 17,800 strike, which shed 47.12 lakh contracts, followed by 17,000 strike which shed 19.3 lakh contracts, and 17,100 strike which shed 17.09 lakh contracts.
On a weekly basis, we have seen the maximum Put OI at 17,000 strike, with 80.62 lakh contracts, which is expected to be a crucial support level for coming sessions.
This is followed by the 16,800 strike, comprising 62.53 lakh contracts, and the 17,100 strike, where we have 58.81 lakh contracts.
Put writing was seen at 16,800 strike, which added 15.42 lakh contracts, followed by 17,100 strike with 12.55 lakh contracts, and 17,200 strike with 9.48 lakh contracts.
We have seen Put unwinding at 16,200 strike, which shed 12.31 lakh contracts, followed by 16,300 strike which shed 6.44 lakh contracts, and 16,100 strike which shed 2.96 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 Marico, Pidilite Industries, Tata Communications, SRF, and M&M Financial Services, 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, 53 stocks including JK Cement, Metropolis Healthcare, GAIL India, Max Financial Service, and Manappuram Finance, 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, 23 stocks including Siemens, NTPC, Mahanagar Gas, Titan Company, and Crompton Greaves Consumer Electricals witnessed a long unwinding.
56 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, 56 stocks including Berger Paints, Muthoot Finance, PVR, LIC Housing Finance, and Coal India 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, 60 stocks were on the short-covering list. These included Bank of Baroda, ICICI Bank, SBI Life Insurance Company, Voltas, and Coforge.
Kajaria Ceramics: Foreign portfolio investor Small Cap World Fund Inc has offloaded 12.5 lakh shares or 0.78 percent stake in the ceramic and vitrified tiles manufacturer via open market transactions, at an average price of Rs 1,040.03 per share, which amounted to Rs 130 crore. Small Cap World Fund Inc had held a 1.06 percent stake or 16.88 lakh shares in the company as of December 2022.
Krishna Institute of Medical Sciences: Foreign portfolio investor Polar Capital Funds Plc via Healthcare Opportunities Fund has sold 11.05 lakh shares or 1.38 percent stake in the company via open market transactions, at an average price of Rs 1,300.03 per share, amounting to Rs 143.77 crore. Polar Capital Funds had owned 1.87 percent or 14.97 lakh shares in the company as of December 2022.
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Investors' meetings on March 23
Crompton Greaves Consumer Electricals: The company's officials will interact with TT International, London.
InterGlobe Aviation: The company has scheduled a meeting with analysts in Gurugram.
Clean Science and Technology: The officials of the company will interact with Janchor Partners.
Allcargo Logistics: The company's officials will participate in Elara Investor Conference.
SRF: Rahul Jain, President & CFO to meet institutional investors in the US.
Ramkrishna Forgings: The officials of the company will interact with Mission Holdings.
RateGain Travel Technologies: The company's officials will interact with iThought Analytics, Equity Intelligence, and Roha Asset Management.
CE Info Systems: The officials of the company will interact with PGIM India MF.
Subros: The company's officials will meet White Oak Asset Management.
Stocks in the news
Hindustan Aeronautics: The Government of India is going to sell up to 1.75 percent (58.51 lakh) equity shares via offer for sale on March 23 and March 24. It has an option to additionally sell 1.75 percent (58.51 lakh) equity shares of the company, which is an oversubscription option. In case the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 3.50 percent (1.17 crore) equity shares of HAL. The floor price for the offer will be Rs 2,450 per share, which is at a discount of 6.7 percent to the closing price of March 22.
GR Infraprojects: Dibang Power consortium, a joint venture between GR Infraprojects and Patel Engineering, has emerged as the L-1 bidder for the construction of civil works for LOT-4 comprising head race tunnels including intake, pressure shafts, penstocks, power house and transformer cavern, tail race tunnels, pothead yard, adits etc. for Dibang Multipurpose Project 2880 MW (12 X 240 MW) in Arunachal Pradesh. The bid project cost is Rs 3,637.12 crore and the share of GR Infraprojects in the contract is 50 percent. In addition, GR Infraprojects has emerged as the L-1 bidder for a road project worth Rs 872.17 crore in Maharashtra to be executed in Hybrid Annuity Mode under Bharatmala Pariyojana.
PNC Infratech: Subsidiary Sonauli Gorakhpur Highways received the appointed date (March 6) for the HAM project of National Highways Authority of India (NHAI). The project comprises the four-laning of the Sonauli - Gorakhpur section of NH-29E in Hybrid Annuity Mode in Uttar Pradesh and the construction period is 912 days.
HG Infra Engineering: HG Infra Engineering has been declared as the L-1 bidder by National Highways Authority of India for the project in Jharkhand. The road project cost is Rs 764.01 crore and the construction period is 730 days.
Nazara Technologies: Subsidiary Absolute Sports (Sportskeeda) has signed an agreement to acquire a 73.27 percent stake in Pro Football Network LLC (PFN), a premier source of coverage and analysis of the NFL (United States’ most watched sport) and college football. This marks the first acquisition of Absolute Sports in the US sports media market. The acquisition cost is $1.82 million (Rs 16 crore). In CY22, PFN had revenues of $2.1 million.
Coromandel International: The board approved the company's plan to expand operations in crop protection chemicals and foray into the contract development and manufacturing organisation (CDMO) business. The board further approved the plan to diversify into new growth areas - specialty and industrial chemicals. The company plans to invest Rs 1,000 crore over the next two years in these businesses and leverage the macro tailwinds in the chemicals sector to build a business of scale.
Hero MotoCorp: The country's largest two-wheeler maker will make an upward revision in the ex-showroom prices of its select motorcycles and scooters, effective from April 1, 2023. The price revision is mainly due to cost increases on account of OBD-2 transition. The price revision will be around 2 percent and the exact quantum of increase will vary by specific models and markets.
Fund Flow
Foreign institutional investors (FII) have turned buyers for the first time in the last 10 straight sessions, buying shares worth Rs 61.72 crore, while domestic institutional investors (DII) purchased shares worth Rs 383.51 crore on March 22, the National Stock Exchange's provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Biocon and Indiabulls Housing Finance on its F&O ban list for March 23. 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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