It was yet another consolidation day for the market on December 12 with the Nifty50 taking good support at 18,300 as well as 18,400 and closing a volatile session on a flat note. Traders await the interest rate decision by Federal Reserve scheduled to be taken on December 14.
The BSE Sensex fell 51 points to 62,130, while the Nifty50 gained 0.60 points at 18,497 and formed a bullish candle on the daily charts as the index recouped opening losses and closed much higher than opening levels.
But the Bank Nifty continued to see record closing high, which is a positive sign for the market.
"A reasonable positive candle was formed on the daily chart, which signals the comeback of bulls after a minor downward correction. After the downside breakout of 18,500-18,550 levels seen last Friday, Nifty not showing any sharp follow-through weakness on Monday could signal chances of false downside breakout at the said resistance," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The short-term trend of Nifty remains negative, but the emergence of buying from the intraday lows of Monday could be a cheering factor for bulls to make a comeback, Shetti feels.
A sustainable upmove only above the hurdle of 18,650 levels could confirm an uptrend continuation pattern, with immediate support at 18,350 levels, the market expert said.
The broader markets performed better than benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.4 percent and 0.55 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 of the current month.
Key support and resistance levels on the Nifty
As per the pivot charts, the key support level for the Nifty is placed at 18,388, followed by 18,346 & 18,279. If the index moves up, the key resistance levels to watch out for are 18,522 followed by 18,563 and 18,631.
The Nifty Bank extended gains further by 75 points on December 12 to end at a record closing high of 43,709, outperforming the Nifty50 and forming a bullish candle on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 43,470, followed by 43,378 and 43,230 levels. On the upside, key resistance levels are placed at 43,766 followed by 43,858 & 44,006 levels.
We have seen the maximum Call open interest at 19,000 strike, with 35.43 lakh contracts, which can act as a crucial resistance level in the December series.
This is followed by 20,000 strike, which holds 23.12 lakh contracts, and 18,500 strike, which have more than 21.95 lakh contracts.
Call writing was seen at 19,100 strike, which added 47,800 contracts, followed by 18,300 strike, which added 40,650 contracts, and 18,900 strike which added 37,650 contracts.
Call unwinding was seen at 18,700 strike, which shed 2.42 lakh contracts, followed by 18,600 strike which shed 1.73 lakh contracts and 19,500 strike which shed 1.03 lakh contracts.
We have seen a maximum Put open interest at 18,000 strike, with 36.92 lakh contracts which can act as a crucial support level in the December series.
This is followed by 18,500 strike, which holds 29.9 lakh contracts, and 17,500 strike, which has accumulated 28.28 lakh contracts.
Put writing was seen at 18,000 strike, which added 3.45 lakh contracts, followed by 18,400 strike, which added 2.22 lakh contracts and 18,500 strike which added 1.36 lakh contracts.
Put unwinding was seen at 18,700 strike, which shed 2.72 lakh contracts, followed by 18,600 strike which shed 2.3 lakh contracts and 18,800 strike which shed 1.29 lakh 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 HDFC, ICICI Bank, Larsen & Toubro, HDFC Bank, and Kotak Mahindra Bank, among others.
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, we have seen a long build-up in a total of 58 stocks on Monday, including Dalmia Bharat, Honeywell Automation, Persistent Systems, InterGlobe Aviation, and Ramco Cements.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, a total of 24 stocks have seen long unwinding on Monday including Colgate Palmolive, Vedanta, Shree Cements, Dixon Technologies, and Indian Energy Exchange.
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, we have seen a short build-up in a total of 51 stocks on Monday including United Breweries, Metropolis Healthcare, Navin Fluorine International, Alkem Laboratories, and Crompton Greaves Consumer Electrical.
61 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, we have a total of 61 stocks in the short-covering list on Monday including Nifty Financial, Punjab National Bank, Coal India, Info Edge, and Indian Hotels.
Cerebra Integrated Technologies: Hermes Global Fund sold 28,47,411 equity shares in the company at an average price of Rs 26.97 per share.
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Investors Meetings on December 13
Indian Energy Exchange: Officials of the company will interact with Quantum Advisors.
Sigachi Industries: Officials of the company will interact Acacia Partners.
Bosch: Officials of company will interact with Kotak Mahindra Asset Management Company, ICICI Prudential Asset Management Company, SBI Life Insurance Company, ICICI Securities, Premji Invest, and Securities Investment Management.
Tata Motors: Officials of company will interact with BlackRock ESG.
Clean Science and Technology: Officials of company will interact with Mahindra Manulife MF.
Symphony: The company will host an 'Investors and Analysts Meet'.
NOCIL: Officials of company will interact with Motilal Oswal Financial Services.
Eicher Motors: Officials of company will interact with BlackRock Asset Management.
LT Foods: Officials of company will interact with several institutional investors and analysts including ICICI Securities, M3 Investments, Yes Securities, Voyager Capital, and Demeter Advisors.
Nuvoco Vistas Corporation: Officials of company will interact with ICICI Securities.
Globus Spirits: Officials of company will interact with Electrum Portfolio Managers.
Stocks in News
Tata Motors: The commercial and passenger vehicle maker has received in-principle approval from the board of directors to explore the possibility of partial divestment of its investment in subsidiary Tata Technologies [TTL] through an IPO route at an opportune time. The company will make further announcements of all material developments relating to IPO.
KEC International: The infrastructure EPC major has received orders worth Rs 1,349 crore across its various businesses. The transmission & distribution business has secured orders for T&D projects in India, SAARC, Middle East and Americas, while the business has bagged orders for building a data centre and for infra works in the Hydrocarbon segment in India.
Mahindra CIE Automotive: The auto ancillary firm has acquired 27.35 percent equity stake in Strongsun Solar for Rs 2.4 crore. The investment in Strongsun will help the company optimize the power cost and increase the consumption of green energy at its various power intensive plants.
V-Guard Industries: Kochi-based consumer electrical and electronics company has signed definitive agreements for acquiring 100 percent stake in Sunflame Enterprises (SEPL) for Rs 660 crore, on a cash-free, debt-free basis. The transaction is expected to close by mid of January 2023.
BGR Energy Systems: The company has received orders worth Rs 330 crore from Indian Oil Corporation. The order includes construction of civil and structural works in Panipat refinery project complex. The contract completion period is 18 months.
GR Infraprojects: The company has entered into Share Purchase Agreement with Lokesh Builders for transfer of entire shares being held by the company in its subsidiary GR Highways Investment Manager (GHIMPL). After the transfer, GHIMPL would cease to be subsidiary of the company. The transaction cost is Rs 15 crore.
Ethos: Promoter Yashovardhan Saboo sold 50,000 shares in the company via open market transactions, at an average price of Rs 1,022.94 per share on December 12, reducing shareholding from 0.86 percent to 0.64 percent. Promoter entity Dream Digital Technology sold 62,885 shares at an average price of Rs 1,016.28 per share on December 9, lowering shareholding from 0.27 percent to 0 percent.
Fund Flow
Foreign institutional investors (FIIs) have sold shares worth Rs 138.81 crore, while domestic institutional investors (DIIs) bought shares worth Rs 695.60 crore on December 12, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has retained BHEL, Delta Corp, Punjab National Bank, and GNFC under its F&O ban list for December 13. 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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