Rebound in the second half of the session helped the stock market snap a three-day losing streak on February 8. Declining oil prices from seven-year high and short covering were the major factors behind the uptrend. Select Metal, Pharma, Auto, Banking & Financial stocks led the support.
The BSE Sensex ended 187.39 points higher at 57,808.58, while the Nifty50 settled at at 17,266.80, up 53.20 points and formed a small bearish candle which resembles Hammer kind of pattern formation on the daily charts.
"A small body of negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of bullish Hammer. A formation of such pattern after a reasonable weakness signal an upside bounce in the market post confirmation of reversal pattern," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Shetti feels three sessions of sharp decline seems to have halted and the overall chart indicates another minor upside bounce from here or from the lows of around 17,000 mark. "The expected upside bounce could be short lived and one may expect another lower top formation below 17,800 levels."
On the broader market front, the Nifty Midcap 100 and Smallcap 100 indices underperformed equity benchmarks, falling 0.7 percent and 1.72 percent, respectively.
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 17,104.87, followed by 16,942.93. If the index moves up, the key resistance levels to watch out for are 17,367.57 and 17,468.34.
The Nifty Bank rose 33 points to 38,028.45 on February 8. The important pivot level, which will act as crucial support for the index, is placed at 37,490.97, followed by 36,953.54. On the upside, key resistance levels are placed at 38,393.97 and 38,759.54 levels.
Maximum Call open interest of 25.81 lakh contracts was seen at 18,000 strike, which will act as a crucial resistance level in the February series.
This is followed by 17,500 strike, which holds 17.63 lakh contracts, and 18,500 strike, which has accumulated 14.71 lakh contracts.
Call writing was seen at 17,200 strike, which added 1.41 lakh contracts, followed by 17,100 strike which added 87,550 contracts, and 17,300 strike which added 85,250 contracts.
Call unwinding was seen at 17,700 strike, which shed 1.1 lakh contracts, followed by 17,800 strike which shed 82,600 contracts and 18,000 strike which shed 35,400 contracts.
Maximum Put open interest of 36.62 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the February series.
This is followed by 17,000 strike, which holds 29.09 lakh contracts, and 18,000 strike, which has accumulated 18.65 lakh contracts.
Put writing was seen at 17,100 strike, which added 99,650 contracts, followed by 16,900 strike, which added 86,100 contracts, and 17,200 strike which added 84,050 contracts.
Put unwinding was seen at 17,500 strike, which shed 1.58 lakh contracts, followed by 17,400 strike which shed 1.03 lakh contracts, and 18,000 strike which shed 1 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
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, here are the top 10 stocks in which a long build-up was seen.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
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.
54 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.
Ishan Dyes & Chemicals: Shankar Sharma acquired 7 lakh shares in the company at Rs 121.71 per share and Standard Greases and Specialities bought 1 lakh shares at Rs 123 per share. However, promoter Piyushbhai Natvarlal Patel sold 20 lakh equity shares at Rs 123.83 per share on the BSE, the bulk deal data showed.
Osia Hyper Retail: Care Wealth Advisors LLP acquired 1.6 lakh shares in the company at Rs 315 per share while Sumit R Haran sold 1,30,800 equity shares at Rs 315 per share on the NSE, the bulk deal data showed.
Shankara Building Products: Param Capital bought 1.25 lakh shares in the company at Rs 583.27 per share on the NSE, the bulk deal data showed.
(For more bulk deals, click here)
Analysts/Investors Meeting; and Results on February 9
Results on February 9: Power Grid Corporation of India, Tata Power, ACC, Bosch, FSN E-Commerce Ventures (Nykaa), Aurobindo Pharma, Berger Paints, 3i Infotech, Abbott India, Aries Agro, BASF India, Bharat Bijlee, DCB Bank, Engineers India, Entertainment Network (India), Finolex Cables, GMR Infrastructure, HEG, Indiabulls Housing Finance, Jindal Stainless (Hisar), Lumax Auto Technologies, Nuvoco Vistas Corporation, Paras Defence and Space Technologies, Patel Engineering, Petronet LNG, Procter & Gamble Health, Hitachi Energy India, Prestige Estates Projects, Pricol, SAIL, Solara Active Pharma Sciences, Spencers Retail, Sundaram-Clayton, Talbros Automotive Components, TTK Healthcare, and Welspun Specialty Solutions will release their quarterly earnings on February 9.
Bata India: The company's officials will meet investors and analysts on February 9 to discuss financial results.
Vedanta: The company's officials will attend Edelweiss India e-Conference 2022 – India 2025: The New Edge on February 9.
Colgate Palmolive: The company's officials will attend Edelweiss India e-Conference 2022 – India 2025: The New Edge on February 10.
Devyani International will attend Edelweiss India e-Conference 2022 – India 2025: The New Edge on February 10 and February 11.
AU Small Finance Bank's officials will meet analysts and investors on February 10.
Navkar Corporation's officials will meet analysts and investors on February 10, to discuss financial performance.
Man Industries (India): The company's officials will meet analysts and investors on February 11, to discuss financial results.
The Phoenix Mills' officials will participate in Edelweiss India Conference on February 11.
Blue Star: The company's officials will participate in Antique's Investors Conference on February 11.
Capacite Infraprojects's officials will meet investors and analysts on February 15, to discuss financial performance.
Stocks in News
Bharti Airtel: The company reported lower profit at Rs 829.6 crore in Q3FY22 against Rs 1,134 crore in Q2FY22, revenue increased to Rs 29,866.6 crore from Rs 28,326.4 crore QoQ.
Bata India: The company recorded sharply higher profit at Rs 72.32 crore in Q3FY22 against Rs 26.4 crore in Q3FY21, revenue surged to Rs 841.3 crore from Rs 615.6 crore YoY.
Vedanta: The company completed reorganisation review and concluded that current structure is optimal. It also announced Capital Allocation policy.
Latent View Analytics: The company recorded profit of Rs 49.92 crore in Q3FY22 against profit of Rs 22.45 crore in Q3FY21, revenue spiked to Rs 107.75 crore from Rs 78.25 crore YoY.
Lupin: The company has received approval from US FDA for Arformoterol Tartrate inhalation solution.
Data Patterns (India): The company clocked profit of Rs 8.96 crore in Q3FY22 against loss of Rs 4.4 crore in Q3FY21, revenue nearly doubled to Rs 43.84 crore from Rs 22.41 crore YoY.
IRCTC: The company posted a sharp rise in ne profit at Rs 208.8 crore in Q3FY22 against Rs 78.08 crore in Q3FY21, revenue more than doubled to Rs 540.21 crore from Rs 224.37 crore YoY.
Jindal Steel & Power: The company posted lower profit at Rs 1,621.68 crore in Q3FY22 against Rs 2,439.89 crore in Q3FY21, revenue increased to Rs 12,524.86 crore from Rs 9,280.54 crore YoY.
Fund Flow
Foreign institutional investors (FIIs) net sold shares worth Rs 1,967.89 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,115 crore in the Indian equity market on February 8, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - BHEL - is under the F&O ban for February 9. 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.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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