The market corrected a third of a percent amid consolidation and a rangebound session on December 6, as traders looked cautious ahead of the Reserve Bank of India Monetary Policy Committee's interest rate decision on December 7. Weak global cues also weighed on market sentiment.
The BSE Sensex declined 208 points to 62,626, while the Nifty50 fell 58 points to 18,643 and formed a bullish candle on the daily charts as the closing was higher than the opening levels.
"On the daily charts, the Nifty formed a small body bullish candle indicating shrunken volatility. The momentum indicator RSI (relative strength index) is moving down. However, it is sustaining above 60 levels which reflects the presence of positive momentum in the prices," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
As per the overall price structure and evidence provided by indicators, the market expert feels that the Nifty will stay in the range between 18,886 and 18,365 levels.
The broader markets also corrected on Tuesday, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.46 percent and 0.16 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 18,596, followed by 18,578 & 18,548. If the index moves up, the key resistance levels to watch out for are 18,655 followed by 18,673 and 18,702.
The Nifty Bank fell 194 points to 43,139, and formed a Doji kind of candlestick pattern again on the daily charts on December 6. The important pivot level, which will act as crucial support for the index, is placed at 43,086, followed by 43,031 and 42,943 levels. On the upside, key resistance levels are placed at 43,262 followed by 43,316 & 43,404 levels.
We have seen the maximum Call open interest at 19,000 strike, with 35.18 lakh contracts, which can act as a crucial resistance level in the December series.
This is followed by 20,000 strike, which holds 25.36 lakh contracts, and 19,500 strike, which have more than 18.42 lakh contracts.
Call writing was seen at 18,700 strike, which added 4.59 lakh contracts, followed by 18,600 strike, which added 3.48 lakh contracts, and 18,800 strike which added 2 lakh contracts.
Call unwinding was seen at 19,300 strike, which shed 69,550 contracts, followed by 18,400 strike which shed 68,850 contracts and 18,900 strike which shed 68,600 contracts.
We have seen a maximum Put open interest at 18,000 strike, with 32.04 lakh contracts which can act as a crucial support level in the December series.
This is followed by 18,500 strike, which holds 27.51 lakh contracts, and 17,000 strike, which has accumulated 25.84 lakh contracts.
Put writing was seen at 18,700 strike, which added 2.78 lakh contracts, followed by 18,500 strike, which added 2.15 lakh contracts and 18,600 strike which added 1.89 lakh contracts.
Put unwinding was seen at 18,000 strike, which shed 78,850 contracts, followed by 17,000 strike which shed 67,650 contracts and 18,400 strike which shed 66,350 contracts.
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in ICICI Bank, HDFC Bank, Trent, ICICI Lombard General Insurance, and Dr Lal PathLabs, 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 27 stocks on Tuesday, including Punjab National Bank, SBI Life Insurance, Piramal Enterprises, Hindustan Unilever, and UltraTech Cement.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, 66 stocks have seen long unwinding on Tuesday including Nifty Financial, Bank Nifty, Hindalco Industries, HCL Technologies, and Federal Bank.
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 62 stocks on Tuesday including IRCTC, Colgate Palmolive, Dr Reddy's Laboratories, Tata Chemicals, and Crompton Greaves Consumer Electrical.
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 37 stocks on the short-covering list on Tuesday including Bosch, Indraprastha Gas, Coal India, Abbott India, and AU Small Finance Bank.
Jindal Stainless: Quant Mutual Fund has picked half a percent stake in the company via open market transactions. Quant Mutual Fund via its Small Cap Fund acquired 26.3 lakh shares in the company at an average price of Rs 182.97 per share.
New Delhi Television: Vikasa India EIF I Fund pared more stake in NDTV via open market transactions as it sold 4.71 lakh shares (0.7 percent stake) at an average price of Rs 375.39 per share.
Craftsman Automation: Investor Marina III (Singapore) Pte Limited exited the auto ancillary company by selling the entire shareholding of 11.56 lakh shares at an average price of Rs 3,200 per share. However, White Oak Capital Management Consultants LLP bought 1.28 lakh shares, Abu Dhabi Investment Authority purchased 2.4 lakh shares and India Acorn ICAV bought 3.33 lakh shares at an average price of Rs 3,200 per share.
Sapphire Foods India: Investor Fennel Private Limited sold 6.01 lakh shares or 0.94 percent stake in the company via open market transactions, at an average price of Rs 1,390 per share.
Veritas (India): Swan Energy bought additional 6.6 lakh shares (2.46 percent) in the company at an average price of Rs 152.15 per share. However, promoter Niti Nitinkumar Didwania was the seller in this deal. With this, Swan Energy's stake in the company increased to 36.4 percent, up from 33.93 percent earlier.
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Investors Meetings on December 7
Clean Science and Technology: Officials of the company will interact with Sundaram Mutual Fund.
Tata Motors: Officials of the company will interact with Capital Global.
Varun Beverages: Officials of the company will interact with investors at JP Morgan India Emerging Opportunities Forum 2022.
Hindustan Zinc: Officials of the company will interact with prospective investors via non-deal road shows, for disinvestment of residual government's shareholding in the company.
Laxmi Organic Industries, Godrej Agrovet, Aether Industries: Officials of the company will participate in Kotak Institutional Equities' Annual India Chemical Forum.
Titan Company: Officials of the company will interact with ICICI Prudential Mutual Fund, ICICI Prudential Life Insurance, Motilal Oswal Asset Management, Kotak Life Insurance, Elephant Asset Management, White Oak Capital, and UG Funds.
Navin Fluorine International: Officials of the company will participate in Kotak Institutional Equities Chemical Forum.
Redington India: Officials of the company will participate in JP Morgan India Emerging Opportunities Forum.
Kotak Mahindra Bank: Officials of the bank will interact with investors in BNP Paribas India Virtual Investors Days.
Allcargo Logistics: Officials of the company will attend the Sell side group meeting.
DCM Shriram: Officials of the company will interact with Arihant Capital.
Syngene International: Officials of the company will interact with Newport Asia LLC.
Tata Steel: Officials of the company will interact with BlackRock Investment Management.
Sundram Fasteners: Officials of the company will interact with ICICI Prudential Life.
UltraTech Cement: Officials of the company will interact with Oaktree Capital Management.
Bikaji Foods International: The ethnic snacks company has reported a 43.5 percent year-on-year growth in consolidated profit after tax of Rs 40.92 crore led by operating performance and top line. Revenue for the quarter grew by 32 percent to Rs 577 crore compared to the year-ago period as it has witnessed a good double-digit growth in all categories YoY. EBITDA margin expanded to 11.1 percent, from 10.4 percent in same period.
Dynacons Systems and Solutions: The company has received a Rs 116 crore private cloud solution order from Union Bank of India. The order covers supply, installation, and maintenance for hyper-converged infrastructure and software solution for the bank’s on-Premises Private Cloud from Union Bank of India.
Siemens: The company has emerged as the lowest bidder (L1) for the 9000 HP electric locomotives project in Dahod, Gujarat. Hence, the trading window under the company’s code of conduct for the prohibition of insider trading will remain closed till December 8.
Ircon International: The company has received an order for signalling and telecommunication system from Sri Lanka Railways. The order worth Rs 122 crore is under the Indian line of credit.
Ugro Capital: The company said its board will meet on December 9 to consider raising funds via the issuance of market-linked non-convertible debentures on a private placement basis.
Foreign institutional investors (FIIs) have net-sold shares worth Rs 635.35 crore, while domestic institutional investors (DIIs) net-offloaded shares worth Rs 558.67 crore on December 6, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has added Punjab National Bank, and retained GNFC, and Indiabulls Housing Finance, under its F&O ban list for December 7. Securities thus banned under the F&O segment include companies where derivative contracts have 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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