The market started off the new year 2023 on a strong note as the benchmark indices reversed all their previous day's gains and closed with half a percent gains on January 2, aided by uptrend in European peers and buying in most of sectors barring healthcare.
The BSE Sensex rallied 327 points to 61,168, while the Nifty50 jumped 92 points to 18,197 and formed a bullish candle on the daily charts, indicating a positive mood.
The mood in broader markets, too, was positive as the Nifty Midcap 100 and Smallcap 100 indices gained 0.88 percent and 0.7 percent respectively on positive breadth. About two shares advanced for every falling share on the NSE.
"A reasonable positive candle was formed on the daily chart, which has placed beside the long negative candle of Friday. This signals the minor strength of bulls to come back from the lows. A decisive move above 18,265 levels could negate the bearish pattern of Dark Cloud Cover formed last Friday," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The Nifty is continuously tagging the hurdle of down sloping trend line over the last 4-5 sessions. After the downside breakout of the said trend line on December 23, the Nifty failed to show any decisive follow-through weakness since then. This could raise some hopes for bulls to make a comeback, he feels.
Hence, the market expert said a sustainable move above 18,265-18,300 levels could pull the Nifty towards another hurdle of 18,500 levels in a quick period of time. Immediate support is placed at the 18,080 level.
We have collated 14 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 of the current month.
Key support and resistance levels on the Nifty
Per the pivot charts, we have the key support level for the Nifty at 18,117, followed by 18,087, and 18,038. If the index moves up, the key resistance levels to watch out for are 18,215, followed by 18,246 and 18,295.
The Nifty Bank index also delivered a similar kind of return on January 2, rising half a percent or 217 points to 43,203 and forming a bullish candlestick pattern on the daily charts or inside bar kind of pattern.
The important pivot level, which will act as crucial support for the index, is placed at 43,022, followed by 42,922, and 42,762. On the upside, key resistance levels are placed at 43,343, followed by 43,443, and 43,604.
We have seen the maximum Call open interest (OI) at 19,000 strike, with 25.45 lakh contracts, which can act as a crucial resistance level in January series.
This is followed by 18,500 strike, comprising 16.12 lakh contracts, and 18,200 strike, where we have more than 12.52 lakh contracts.
Call writing was seen at 19,000 strike, which added 2.46 lakh contracts, followed by 18,300 strike, which added 1.83 lakh contracts, and 18,800 strike, which added 1.61 lakh contracts.
Call unwinding was seen at 18,000 strike, which shed 14,350 contracts, followed by 17,500 strike, which shed 7,050 contracts, and 17,000 strike, which shed 6,500 contracts.
We have seen maximum Put OI at 18,000 strike, with 34.78 lakh contracts, which can act as a crucial support level in January series.
This is followed by 17,000 strike, comprising 29.78 lakh contracts, and 17,500 strike, where we have 28.19 lakh contracts.
Put writing was seen at 17,200 strike, which added 2.47 lakh contracts, followed by 17,300 strike, which added 2.23 lakh contracts, and 17,500 strike, which added 2.22 lakh contracts.
Put unwinding was seen at 19,000 strike, which shed 21,750 contracts, followed by 18,500 strike, which shed 19,250 contracts, and 17,600 strike which shed 12,050 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in ICICI Lombard General Insurance, Infosys, NTPC, Bata India, and Kotak Mahindra Bank, among others.
An increase in OI, along with an increase in price, mostly indicates a build-up of long positions. Based on the OI percentage, we have seen a long build-up in 84 stocks on Monday, including Tata Steel, SAIL, Rain Industries, Hindustan Copper, and PFC.
A decline in OI, along with a decrease in price, mostly indicates long unwinding. Based on the OI percentage, 16 stocks saw long unwinding on Monday, including Larsen & Toubro, Mphasis, United Spirits, Hero MotoCorp, and Britannia Industries.
An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI percentage, we have seen a short build-up in 48 stocks on Monday, including MCX India, Aditya Birla Fashion & Retail, Atul, Tech Mahindra, and City Union Bank.
44 stocks witnessed short-covering
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI percentage, we have 44 stocks on the short-covering list on Monday, including Canara Bank, Tata Communications, Cummins India, Escorts, and Tata Motors.
Investor meets on January 3
Dixon Technologies: Officials of the company will interact with HSBC Mutual Fund.
Bharat Wire Ropes: Key managerial persons of the company will interact with a group of investors.
Jupiter Wagons: The company will be participating in non-deal roadshows and meeting with prospective investors from January 3-January 20.
Stocks in the news
Zomato: Gunjan Patidar, co-founder and chief technology officer of the company, has tendered his resignation. Patidar was one of the first employees of Zomato and built the core tech systems for the company.
HFCL: The company along with its subsidiary HTL has received orders worth Rs 95.38 crore from Reliance Projects & Property Management Services for the supply of optical fibre cables to one of the leading private telecom operators of the country. The orders will be executed by February 2023.
PSP Projects: The company has emerged as the lowest bidder (L1) for a government project worth Rs 1,364.47 crore in Gujarat. It will construct a high-rise office building at Surat for Surat Municipal Corporation.
Mahindra & Mahindra Financial Services: In December 2022, the non-banking finance company said the business continued its momentum with the disbursement of Rs 4,650 crore, a 67 percent YoY growth led by a positive macro environment. In Q3FY23 disbursements at Rs 14,450 crore registered an 80 percent growth YoY and with this, the year-to-date (YTD) disbursement stood at Rs 35,750 crore, up 95 percent YoY. Its collection efficiency (CE) was at 98 percent for December 2022 and that of Q3 was 95 percent.
Likhitha Infrastructure: The company has received orders worth Rs 120 crore from various oil and gas distribution companies during the quarter ended December 2022.
Hindustan Zinc: The company's mined metal production at 254kt increased by 1 percent YoY driven by higher ore production and down 1 percent QoQ due to overall mined metal grades, while refined metal production at 257kt fell 2 percent YoY as per mined metal availability, but sequentially grew 5 percent with better plant and mined metal availability. Wind power generation for Q3FY23 at 50 million units, down 15 percent YoY and down 59 percent QoQ, owing to lower wind velocity and seasonality impact.
South Indian Bank: The Kerala-based private sector lender has clocked 18 percent year-on-year growth in gross advances at Rs 70,168 crore for the quarter ended December FY23 and deposits in the same period grew by 3 percent to Rs 90,714 crore. CASA ratio improved to 33.84 percent, from 31.95 percent YoY.
Fund Flow
Foreign institutional investors (FII) net-sold shares worth Rs 212.57 crore, while domestic institutional investors (DII) net-bought shares worth Rs 743.35 crore on January 2, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has not added any stock under its F&O ban list for January 3. Securities thus 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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