The market continued to correct for the third consecutive session on January 25 even though it made a few attempts to recover in the afternoon trade. Weak global cues and the clash between India-China troops in Sikkim, too, added to the woes.
The S&P BSE Sensex fell 530.95 points or 1.09 percent to 48,347.59, while the Nifty50 corrected 133 points or 0.93 percent to close at 14,238.90 and formed a bearish candle on the daily charts.
"Decline in the index for the three consecutive sessions happened after the time span of four months. Hence, this pattern could be in-line with the reversal formation in the market at the highs. Hence, the last swing high of 14,753 of January 21st could be a reversal high for the near-term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"The short term trend of Nifty continues to be weak, but the consistent decline of the last three sessions could be hinting at the possibility of reversal in the market. A sustainable move below 14,200 is expected to drag Nifty to 13,800 levels in the near term. Any upside towards 14,360-14,400 could be a sell on rise opportunity," he said.
The broader market also corrected in line with the frontliners. The Nifty Midcap 100 index was down 0.94 percent and Smallcap 100 index fell 1.18 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 14,141.3, followed by 14,043.7. If the index moves up, the key resistance levels to watch out for are 14,413.8 and 14,588.7.
The Nifty Bank outperformed the Nifty50, rising 31.15 points to close at 31,198.40 on January 25. The important pivot level, which will act as crucial support for the index, is placed at 30,908.87, followed by 30,619.33. On the upside, key resistance levels are placed at 31,592.77 and 31,987.13.
Call option data
Maximum Call open interest of 58.55 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in the January series.
This is followed by 14,500 strike, which holds 49.53 lakh contracts, and 14,600 strike, which has accumulated 40.47 lakh contracts.
Call writing was seen at 14,400 strike, which added 24.36 lakh contracts, followed by 14,500 strike which added 16.05 lakh contracts and 14,300 strike which added 10.81 lakh contracts.
Call unwinding was seen at 15,100 strike, which shed 7.74 lakh contracts, followed by 14,900 strike which shed 4.12 lakh contracts and 14,800 strike which shed 89,025 contracts.
Put option data
Maximum Put open interest of 32.01 lakh contracts was seen at 14,000 strike, which will act as crucial support level in the January series.
This is followed by 13,500 strike, which holds 26.87 lakh contracts, and 14,200 strike, which has accumulated 25.18 lakh contracts.
Put writing was seen at 14,200 strike, which added 6.32 lakh contracts, followed by 14,100 strike, which added 2.58 lakh contracts and 13,800 strike which added 2.38 lakh contracts.
Put unwinding was seen at 14,500 strike, which shed 6.6 lakh contracts, followed by 14,400 strike, which shed 5.9 lakh contracts and 14,600 strike which shed 3.21 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
18 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
44 stocks saw long unwinding
Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
51 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.
29 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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Results on January 27
Axis Bank, Hindustan Unilever, Bank of Baroda, Canara Bank, Marico, Emami, HG Infra Engineering, Hindustan Organic Chemicals, ICICI Prudential Life Insurance Company, India Cements, JK Paper, Jyothy Labs, Lakshmi Machine Works, Mahindra EPC Irrigation, Nippon Life India Asset Management, PNB Housing Finance, PSP Projects, Quess Corp, Tata Coffee, United Spirits and Welspun India are among 50 companies that are scheduled to release their quarterly numbers on January 27.
Stocks in the news
Larsen & Toubro: The company reported a consolidated profit of Rs 2,466.7 crore in Q3FY21 against Rs 2,352 crore in Q3FY20 while revenue fell to Rs 35,596.4 crore from Rs 36,243 crore YoY.
RPG Life Sciences: The company reported sharply higher profit at Rs 12.87 crore in Q3FY21 against Rs 7.9 crore in Q3FY20, revenue jumped to Rs 107.6 crore from Rs 94.4 crore YoY.
Astec LifeSciences: The company reported a profit of Rs 7 crore for Q3FY21 against Rs 12.1 crore reported in the corresponding quarter of the previous fiscal. Revenue declined to Rs 116 crore from Rs 124.8 crore YoY.
Sharda Cropchem: The company reported a sharp increase in its consolidated profit at Rs 48.3 crore in Q3FY21 against Rs 5.86 crore in Q3FY20; revenue rose to Rs 493.8 crore from Rs 382.4 crore YoY. The company appointed Ashok Kumar Vashisht as Chief Financial Officer.
Navin Fluorine International: The company reported a consolidated profit of Rs 58.9 crore in Q3FY21 against Rs 45.4 crore in Q3FY20, while revenue jumped to Rs 309.09 crore from Rs 260.5 crore YoY.
ICICI Securities: The company has reported a profit of Rs 267 crore in Q3FY21 against Rs 137.2 crore in Q3FY20. Revenue jumped to Rs 620.11 crore from Rs 422.24 crore YoY.
Auto stocks in focus: The government has approved scrappage policy, which will come into effect from April 2022.Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 765.3 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 387.76 crore in the Indian equity market on January 25, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks - NALCO, PNB and SAIL - are under the F&O ban for January 27. 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.