The market snapped a three-day losing streak and clocked more than one percent gain on January 9 as all sectors participated in the recovery. The short-covering in beaten-down quality stocks and the uptrend in global peers supported the market.
The BSE Sensex rallied 847 points to 60,747, while the Nifty50 rose 242 points to 18,101 and formed a bullish candle on the daily charts, making higher high higher low formation. The index has taken strong support at 17,750 as well as a psychological 18,000 level.
"A long bull candle was formed on the daily chart, which indicates an upside bounce in the market after a decline of a few sessions. After the formation of lower tops and bottoms on the daily chart, the Nifty seems to have formed a higher bottom on Friday at 17,795 levels. But this needs to be confirmed with follow-through upmove in the subsequent sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
He feels the present upside bounce could be a cheering factor for the bulls to make a comeback.
"The upside could extend towards the crucial overhead resistance of around 18,250-18,300 levels in the next few sessions. But a decisive move above this hurdle is likely to bring bulls into the market. Immediate support is placed at the 18,000 level," the market expert said.
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 17,981, followed by 17,933, and 17,854. If the index moves up, the key resistance levels to watch out for are 18,138, followed by 18,186 and 18,265.
The Nifty Bank index also bounced back, rising nearly 400 points to 42,583 on January 9 and forming a long bullish candle on the daily charts.
The important pivot level, which will act as crucial support for the index, is placed at 42,293, followed by 42,168, and 41,965. On the upside, key resistance levels are placed at 42,698, followed by 42,823, and 43,026.
We have seen the maximum Call open interest (OI) at 19,000 strike, with 26.95 lakh contracts, which can act as a crucial resistance level in January series.
This is followed by 18,500 strike, comprising 23.01 lakh contracts, and 18,000 strike, where we have more than 18.87 lakh contracts.
Call writing was seen at 19,000 strike, which added 1 lakh contracts, followed by 18,900 strike, which added 59,350 contracts, and 18,400 strike, which added 37,250 contracts.
Call unwinding was seen at 18,200 strike, which shed 4.02 lakh contracts, followed by 18,000 strike, which shed 2.46 lakh contracts, and 18,100 strike, which shed 2.1 lakh contracts.
We have seen maximum Put OI at 18,000 strike, with 32.07 lakh contracts, which can act as a crucial support level in January series.
This is followed by 17,500 strike, comprising 27.95 lakh contracts, and 17,000 strike, where we have 27.84 lakh contracts.
Put writing was seen at 18,000 strike, which added 2.47 lakh contracts, followed by 17,300 strike, which added 1.21 lakh contracts, and 17,400 strike, which added 52,800 contracts.
Put unwinding was seen at 17,000 strike, which shed 3.74 lakh contracts, followed by 17,100 strike, which shed 2.44 lakh contracts, and 18,200 strike, which shed 2.33 lakh contracts.
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in Power Grid Corporation of India, Abbott India, Oracle Financial, Infosys, and PI Industries, 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 70 stocks on Monday, including Mahindra & Mahindra, Power Grid Corporation of India, ONGC, Berger Paints India, and Nestle India.
A decline in OI, along with a decrease in price, mostly indicates long unwinding. Based on the OI percentage, 10 stocks saw long unwinding on Monday, including Max Financial Services, Abbott India, Apollo Tyres, Havells India, and Coromandel International.
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 27 stocks on Monday, including GNFC, City Union Bank, Titan Company, Atul, and Bajaj Finserv.
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI percentage, we have 85 stocks on the short-covering list on Monday, including Polycab India, Tech Mahindra, Coforge, Reliance Industries, and Persistent Systems.
Bilcare: Ace investor Rekha Jhunjhunwala sold 1.35 lakh equity shares or more than half a percent stake in the company via open market transactions, at an average price of Rs 41.78 per share.
(For more bulk deals, click here)
Atharv Enterprises, Excel Realty N Infra, Gala Global Products, GI Engineering Solutions, Marsons, Quest Capital Markets, and Visagar Financial Services will be in focus ahead of quarterly earnings on January 10.
TCS: TCS declared 19.1 percent YoY growth in consolidated revenues to Rs 58,229 crore, a growth of 13.5 percent YoY in constant currency terms. The operating margin contracted 0.5 percent to 24.5 percent. Net profit rose 11 percent on year to Rs 10,846 crore. The company has an order book of $7.8 billion and the LTM attrition rate stood at 21.3 percent. The company declared a total dividend of Rs 75 per share including a special dividend of Rs 67 with a record date of January 17, 2023, and the said dividend will be paid by February 3, 2023.
Lupin: The Spanish Ministry of Health has approved the reimbursement of Lupin’s NaMuscla (mexiletine) for the symptomatic treatment of myotonia in adults with non-dystrophic myotonic (NDM) disorders on the National Health and Pharmacy Service. NaMuscla is the first and only licensed product for this indication in Europe and will be commercialised by Lupin’s partner Exeltis in Spain.
Sona BLW Precision Forgings: The company will acquire a 54 percent stake in a Serbian company NOVELIC d.o.o. Beograd – Zvezdara. The company has executed a binding term sheet with the shareholders of Novelic. NOVELIC is a self-sustaining provider of mmWave radar sensors, perception solutions, and full-stack embedded systems with an annual turnover of 9.33 million euro as on December 2022.
IRB Infrastructure Developers: IRB Infra and its private InvIT arm reported a 32 percent YoY increase in the toll collection in December 2022, across all projects under it. The toll collection in December 2022 stood at Rs 388 crore as against Rs 294 crore in December 2021. On a sequential basis, the toll collection is up 6 percent from Rs 366 crore achieved during November 2022.
Tata Motors: Tata Motors reported a 15 percent on-year increase in wholesale sales of Jaguar Land Rover to 79,591 units, a sequential increase of 5.7 percent. The growth was driven by North American, British and Overseas markets, while there was a decline in volumes in China and Europe. The retail sales at 84,827 units were up 5.9 percent on year but down 3.7 percent sequentially. JLR has a record order book of over 2.15 lakh units.
Star Health and Allied Insurance: The company reported a 13 percent YoY growth in gross direct premium for nine months of FY23 from Rs 7,774 crore to Rs 8,752 crore. The retail health premium is up 19 percent on year to Rs 8,045.5 crore; the group health premium is down 38 percent on year to Rs 572 crore; and the personal accident premium grew 23 percent on year to Rs 133.5 crore.
Foreign institutional investors (FII) net sold shares worth Rs 203.13 crore, while domestic institutional investors (DII) net bought shares worth Rs 1,723.79 crore on January 9, as per provisional data available on the NSE.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
