The market started off the week on a positive note as the benchmark indices ended at a fresh record closing high on January 4, backed by technology, auto, metals, and pharma stocks. Positive global cues and DCGI approval to COVID-19 vaccines lifted sentiment.
The BSE Sensex climbed 307.82 points to 48,176.80, while the Nifty50 rallied 114.40 points to 14,132.90 and formed a small bullish candle with a long lower shadow which resembles a Hanging Man kind of pattern on the daily charts.
"Technically, this pattern indicates a possibility of an upside breakout of a small high low range in the market. This is a positive indication and one may expect further upside in the coming session," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
The overall market breadth was positive on Monday and broader market indices like Nifty Midcap and Smallcap indices have closed higher by 1.41 percent and 1.23 percent, respectively.
"We observe positive sequential movements like higher highs and higher lows as per daily timeframe chart. One day's sharp declines have been resulting in a strong upside bounce in the subsequent sessions so far. Though Nifty placed at the new high of 14,147, still there is no indication of any reversal forming at the highs. Any one day dips in the next few sessions could be a buying opportunity in the near term," he said.
"The short term upside targets to be watched at 14,350 and immediate support is placed at 14,060," he added.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 14,008.47, followed by 13,884.03. If the index moves up, the key resistance levels to watch out for are 14,202.67 and 14,272.43.
The Nifty Bank fell further by 13.30 points to close at 31,212.50 on January 4. The important pivot level, which will act as crucial support for the index, is placed at 30,907.53, followed by 30,602.66. On the upside, key resistance levels are placed at 31,503.43 and 31,794.46.
Call option data
Maximum Call open interest of 20.98 lakh contracts was seen at 14,000 strike, which will act as a crucial level in the January series.
This is followed by 14,500 strike, which holds 13.59 lakh contracts, and 15,000 strike, which has accumulated 12.52 lakh contracts.
Call writing was seen at 14,600 strike, which added 1.51 lakh contracts, followed by 14,500 strike which added 1.45 lakh contracts and 14,100 strike which added 1.14 lakh contracts.
Call unwinding was seen at 13,900 strike, which shed 74,325 contracts, followed by 13,500 strike which shed 60,750 contracts.
Put option data
Maximum Put open interest of 20.74 lakh contracts was seen at 13,500 strike, which will act as crucial support level in the January series.
This is followed by 14,000 strike, which holds 19.20 lakh contracts, and 13,600 strike, which has accumulated 15.15 lakh contracts.
Put writing was seen at 14,000 strike, which added 3.6 lakh contracts, followed by 13,600 strike, which added 3.21 lakh contracts and 14,100 strike which added 2.11 lakh contracts.
There was hardly any Put unwinding seen on January 4.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
67 stocks saw a long build-up
Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
7 stocks saw long unwinding
Based on the open interest future percentage, here are the 7 stocks in which long unwinding was seen.
20 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen.
47 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.
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Asian Paints: Board meeting is scheduled for January 21 to consider December quarter results.
Stocks in the news
Force Motors: Company sold 1,084 vehicles in December 2020 including domestic sales at 787 vehicles.
Sun Pharma: Company started Phase-2 trials of oral drug SCD-044 in patients with moderate to severe plaque psoriasis.
MOIL: Company to form JV with Gujarat Mineral Development Corporation for manganese ore mining JV in Gujarat.
NBCC: Company awarded work order worth Rs 351 crore to Gaursons Hi-Tech.
KNR Constructions: Company bagged order worth Rs 603.63 crore in Chennai.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,843.22 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 715.21 crore in the Indian equity market on January 4, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Not a single stock is under the F&O ban for January 5. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.