The market started off the week on a bullish note on January 23 by snapping two days of losses, as the benchmark indices gained half a percent thanks to buying in most of the sectors barring metal, and positive global cues.
The BSE Sensex rallied 320 points to 60,942, while the Nifty50 climbed 91 points to 18,118 and formed a long-legged Doji pattern on the daily charts, indicating indecisiveness among buyers and sellers about the future market trend, with a higher high higher low formation and taking support at 18,000 mark.
"The Nifty moved in a range after a gap-up start; at the end, a Doji pattern was formed. The trend, however, remains positive for the short term, as the index has been sustaining above the 50 EMA (exponential moving average -18,098) as well as the 200 DMA (daily moving average - 17,288)," Rupak De, Senior Technical Analyst at LKP Securities said.
The RSI (relative strength index) is in a bullish crossover and rising.
On the higher end, a directional move may be seen upon a close above 18,200, and support on the lower end is expected at 17,950, the market expert said.
But the market breadth was in favour of bears as about 1,159 shares declined against 891 advancing shares on the NSE. The broader markets were mixed with the Nifty Midcap 100 index up half a percent and Smallcap 100 index ending flat with a negative bias.
India VIX, the fear index, dropped to a more-than-a-month low at 13.62 level, down 1.23 percent, making the trend favourable for bulls.
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
Per the pivot charts, we have the key support level for the Nifty at 18,077, followed by 18,054, and 18,016. If the index moves up, the key resistance levels to watch out for are 18,153, followed by 18,176 and 18,214.
The Nifty Bank also traded higher, rising more than 300 points to 42,821 and forming a small-bodied bearish candle on the daily charts making higher high higher low formation for the second consecutive week.
The important pivot level, which will act as crucial support for the index, is placed at 42,745, followed by 42,680, and 42,573. On the upside, key resistance levels are placed at 42,958, followed by 43,024, and 43,130.
On the monthly basis, we have seen the maximum Call open interest (OI) at 18,100 strike, with 1.11 crore contracts, which can be a crucial level in the monthly expiry week.
This is followed by 18,200 strike, comprising 1.02 crore contracts, and 18,500 strike, where we have more than 88.89 lakh contracts.
Call writing was seen at 18,300 strike, which added 21.01 lakh contracts, followed by 18,200 strike, which added 10.59 lakh contracts, and 19,100 strike, which added 36,450 contracts.
Call unwinding was seen at 18,700 strike, which shed 16.34 lakh contracts, followed by 18,100 strike, which shed 15.31 lakh contracts, and 18,000 strike, which shed 7.47 lakh contracts.
On the monthly basis, the maximum Put OI was seen at 18,100 strike, with 1.09 crore contracts, which can be a crucial level for the monthly expiry week. In fact, it is also near the 50 DEMA; hence sustaining the same level can drive the Nifty50 towards 18,300-18,500 levels in coming sessions.
This is followed by 18,000 strike, comprising 89.18 lakh contracts, and 17,800 strike, where we have 65.29 lakh contracts.
Put writing was seen at 18,100 strike, which added 31.91 lakh contracts, followed by 18,000 strike, which added 25.95 lakh contracts, and 17,900 strike which added 19.72 lakh contracts.
Put unwinding was seen at 17,500 strike, which shed 12.41 lakh contracts, followed by 17,200 strike, which shed 2.15 lakh contracts, and 18,500 strike, which shed 95,850 contracts.
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in Kotak Mahindra Bank, Muthoot Finance, ICICI Lombard General Insurance, HDFC Bank, and Infosys, 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 62 stocks, including Persistent Systems, ONGC, Coforge, Power Grid Corporation of India, and MRF.
A decline in OI, along with a decrease in price, mostly indicates long unwinding. Based on the OI percentage, 31 stocks saw long unwinding, including MCX India, Exide Industries, HDFC AMC, Vodafone Idea, and Cummins India.
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 January 23, including JK Cement, Shree Cement, Marico, Atul, and SBI Life Insurance Company.
A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI percentage, we have 73 stocks on the short-covering list on Monday, including Torrent Power, PVR, L&T Technology Services, Delta Corp, and Firstsource Solutions.
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Maruti Suzuki India, HDFC Asset Management Company, Colgate-Palmolive, CG Power and Industrial Solutions, Chalet Hotels, Gateway Distriparks, Granules India, Indoco Remedies, Indus Towers, Latent View Analytics, Macrotech Developers, Motilal Oswal Financial Services, Nazara Technologies, Pidilite Industries, PNB Housing Finance, SBI Cards and Payment Services, Sona BLW Precision Forgings, Tata Coffee, TVS Motor Company, and United Spirits will be in focus ahead of quarterly earnings on January 24.
Axis Bank: The private sector lender has reported a massive 62 percent year-on-year increase in Q3FY23 profit at Rs 5,853 crore despite higher provisions, led by healthy other income, operating profit and net interest income. Net interest income grew by 32.4 percent to Rs 11,459 crore compared to the year-ago period, with strong 15 percent loan growth and an expansion in net interest margin. Asset quality improved but slippages remained elevated on a sequential basis for the quarter.
Poonawalla Fincorp: The non-banking finance company has registered a strong 89 percent year-on-year growth in consolidated profit at Rs 182.1 crore for the quarter ended December FY23, with writeback of impairment of financial instruments for the quarter. Net interest income grew by 42 percent YoY to Rs 463.7 crore during the quarter.
Dilip Buildcon: Dilip Buildcon and Skyway Infraprojects joint venture has declared as L-1 bidder for the tender floated by Madhya Pradesh Jal Nigam Maryadit, Bhopal. The order is worth Rs 1,947.06 crore. Also, its subsidiary Raipur-Visakhapatnam-CG-2 Highways Limited has received the appointed date letter from the National Highways Authority of India and had declared the appointed date as January 9, 2023.
Amber Enterprises: The contract manufacturer of room air-conditioners reported a 56 percent year-on-year decline in consolidated profit at Rs 14.2 crore for December FY23 quarter dented by margin, with a significant increase in raw material cost, employee expenses and finance cost. Revenue from operations for the quarter grew by 38.4 percent to Rs 1,348.3 crore compared to the year-ago period.
Container Corporation of India: The state-owned logistics company has reported a 3.5 percent year-on-year growth in standalone profit at Rs 296.5 crore for quarter ended December FY23, with healthy operating profit and margin. Revenue for the quarter grew by 3.6 percent to Rs 1,988.4 crore compared to the year-ago period.
Gland Pharma: The pharma company has reported a 15 percent year-on-year decline in profit at Rs 232 crore for December FY23 quarter with lower topline as well as weak operating performance. Revenue from operations for the quarter at Rs 938 crore declined 12 percent compared to the year-ago period.
FSN E-Commerce Ventures: The Nykaa Fashion operator said the board members have appointed P Ganesh as Chief Financial Officer and key managerial personnel of the company effective February 3, 2023.
Welspun Corp: Associate company, East Pipes Integrated Company for Industry (EPIC) in the Kingdom of Saudi Arabia has signed contracts for the supply of steel pipes for water transmission with a total value of SAR 569 million. The pipes have to be supplied within 12 months and the financial impact of this will be starting in Q1FY24.
Foreign institutional investors (FII) have net-sold shares worth Rs 219.87 crore, whereas domestic institutional investors (DII) have net-bought shares worth Rs 434.96 crore on January 23, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has retained PVR, Delta Corp, and L&T Finance Holdings under its F&O ban list for January 24. 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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