The market gained strength in the last couple of hours of trade after volatility seen from the opening trade, and closed a percent higher on December 22 following bounce-back in the European peers and passing of COVID relief bill by the US Congress.
The BSE Sensex rallied 452.73 points to 46,006.69, while the Nifty50 climbed 137.90 points to 13,466.30 and formed a Hammer kind of pattern on the daily charts, which is a bullish reversal pattern formed after a decline.
"For the positive momentum to continue we need the Nifty50 index to be above the 13,550 levels. Meanwhile, if the market breaks the 13,100 levels, we may see another decline to 12,900/12,800 levels. On Wednesday, the Nifty would be hit hard at 13,550 and 13,650 levels," Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, told Moneycontrol.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments also echoed the view, saying that for the time being, the markets are directionless. "Monday's fall has made traders nervous and since the volatility is high, the stops will be large too. It is therefore advised to wait and watch for a few days till a clear direction is confirmed," he said.
The broader markets gained too, as the Nifty Midcap index was up 0.85 percent and Smallcap rose 0.77 percent.
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 13,275.47, followed by 13,084.63. If the index moves up, the key resistance levels to watch out for are 13,574.57 and 13,682.83.
The Nifty Bank climbed 169.50 points to close at 29,626 on December 22. The important pivot level, which will act as crucial support for the index, is placed at 29,164.73, followed by 28,703.57. On the upside, key resistance levels are placed at 29,899.13 and 30,172.37.
Call option data
Maximum Call open interest of 24.95 lakh contracts was seen at 14,000 strike, which will act as a crucial level in the December series.
This is followed by 13,000 strike, which holds 20.83 lakh contracts, and 13,500 strike, which has accumulated 20 lakh contracts.
Call writing was seen at 14,000 strike, which added 2.99 lakh contracts, followed by 13,400 strike which added 2.64 lakh contracts and 13,300 strike which added 2.08 lakh contracts.
Call unwinding was seen at 13,900 strike, which shed 3.58 lakh contracts, followed by 14,100 strike which shed 1.59 lakh contracts.
Put option data
Maximum Put open interest of 44.92 lakh contracts was seen at 13,000 strike, which will act as crucial level in the December series.
This is followed by 13,200 strike, which holds 23.25 lakh contracts, and 13,500 strike, which has accumulated 22.77 lakh contracts.
Put writing was seen at 13,000 strike, which added 5.16 lakh contracts, followed by 13,200 strike, which added 2.12 lakh contracts and 13,300 strike which added 1.87 lakh contracts.
Put unwinding was seen at 13,500 strike, which shed 3.86 lakh contracts, followed by 13,600 strike, which shed 2.58 lakh contracts, and 13,700 strike which shed 1.89 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
50 stocks saw long build-up
Based on the open interest future percentage, here are the 10 stocks in which a long build-up was seen.
Seven stocks saw long unwinding
Based on the open interest future percentage, here are those seven stocks in which long unwinding was seen.
Eight 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 those eight stocks in which a short build-up was seen.
73 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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Sterling and Wilson Solar: The company's officials will attend DAM Capital Conference on December 23.
Finolex Industries: The company's officials will interact with Dhanki Securities on December 23.
Jindal Stainless: Board meeting is scheduled on December 29 to explore / evaluate various options of reorganization / consolidation of stainless steel businesses of the company and of other group entities by way of scheme of arrangement or otherwise.
Mphasis: Board meeting is scheduled on January 21 to the financial results for the period ended December 31, 2020.
Stocks in the news
Forbes & Company: The firm to sell Chandivali (Mumbai) land to GPX India and Equinix India for Rs 200 crore.
Wipro: The share buyback offer will open on December 29 and close on January 11. The company signed a strategic digital and IT deal with METRO AG.
Bajaj Auto: The company signed an MoU with the Maharashtra government to set up a manufacturing unit in Chakan and will invest Rs 650 crore.
Aster DM Healthcare: The company selected Cayman Islands to set up a Clinical Excellence hub for the Western Hemisphere.
Punjab National Bank: Life Insurance Corporation of India increased its stake in the bank to 7.73 percent from 4.12 percent via QIP.
Ravinder Heights: Serum Institute of India Pvt Ltd and PACs received 13.89 percent stake pursuant to a scheme of arrangement between the company and Panacea Biotec.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,153 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 661.51 crore in the Indian equity market on December 22, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Four stocks - Canara Bank, Punjab National Bank, SAIL and Sun TV Network - are under the F&O ban for December 23. 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.