The market staged good performance after consolidation of last several sessions, and closed with six-tenth of a percent higher on December 13. The fall in CPI inflation for November to an 11-month low and positive global cues lifted sentiment.
The BSE Sensex rallied 403 points to 62,533, while the Nifty50 rose 111 points to 18,608 and formed decent bullish candle on the daily charts, indicating positive mood at Dalal Street.
"A reasonable positive candle was formed on the daily chart on Tuesday which is indicating a comeback of bulls after a small downward correction," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
After an attempt of downside breakout of the support at 18,550 levels on December 9, the market failed to show follow-through weakness in the next couple of sessions. This pattern indicates a false downside breakout of the support and such actions more often results in sharp upside movement, he feels.
Any sustainable move above the hurdle of 18,650 is expected to be an upside breakout of the crucial overhead resistance, and the said upside breakout is likely to open doors for new all0time highs in the near term, with an immediate support at 18,500 level, the market expert said.
The broader markets also extended gains as the Nifty Midcap 100 and Smallcap 100 indices climbed around half a percent each, while the volatility index India VIX fell by 3.26 percent to 12.88, the lowest closing level since August 2021, giving more comfort to 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
As per the pivot charts, the key support level for the Nifty is placed at 18,523, followed by 18,493 & 18,445. If the index moves up, the key resistance levels to watch out for are 18,620 followed by 18,650 and 18,699.
The Nifty Bank ended at fresh record closing high of 43,947, up 238 points on December 13, and formed bullish candle on the daily charts with making higher highs higher lows formation.
The important pivot level, which will act as crucial support for the index, is placed at 43,817, followed by 43,766 and 43,683 levels. On the upside, key resistance levels are placed at 43,982 followed by 44,033 & 44,115 levels.
We have seen the maximum Call open interest at 19,000 strike, with 36.80 lakh contracts, which can act as a crucial resistance level in the December series.
This is followed by 20,000 strike, which holds 22.8 lakh contracts, and 18,500 strike, which have more than 22.24 lakh contracts.
Call writing was seen at 18,900 strike, which added 7.63 lakh contracts, followed by 19,000 strike, which added 1.36 lakh contracts, and 19,100 strike which added 1.29 lakh contracts.
Call unwinding was seen at 18,800 strike, which shed 1.24 lakh contracts, followed by 19,700 strike which shed 85,200 contracts and 18,400 strike which shed 63,650 contracts.
We have seen a maximum Put open interest at 18,000 strike, with 37.39 lakh contracts which can act as a crucial support level in the December series.
This is followed by 18,500 strike, which holds 34.35 lakh contracts, and 17,500 strike, which has accumulated 27.81 lakh contracts.
Put writing was seen at 18,500 strike, which added 4.44 lakh contracts, followed by 18,400 strike, which added 4.22 lakh contracts and 18,600 strike which added 2.42 lakh contracts.
Put unwinding was seen at 17,000 strike, which shed 2.55 lakh contracts, followed by 17,900 strike which shed 2.53 lakh contracts and 17,200 strike which shed 1.14 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in Alkem Laboratories, Indian Hotels, Mphasis, Godrej Properties, and HDFC Life Insurance Company, 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 long build-up in total 43 stocks on Tuesday, including Polycab India, Chambal Fertilizers, Astral, Abbott India, and City Union Bank.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, total 35 stocks have seen long unwinding on Tuesday including Siemens, Tata Steel, Dabur India, Shree Cement, and Dalmia Bharat.
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 short build-up in total 58 stocks on Tuesday include Dr Lal PathLabs, Laurus Labs, Metropolis Healthcare, Can Fin Homes, and BPCL.
57 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, we have total 57 stocks in the short-covering list on Tuesday including Punjab National Bank, HCL Technologies, Info Edge India, Whirlpool, and Alkem Laboratories.
IIFL Wealth Management: General Atlantic Singapore Fund Pte Ltd has sold Rs 564 crore stake in the company via open market transactions. The fund offloaded 31.15 lakh shares in IIFL Wealth at an average price of Rs 1,810.09 per share. However, Capital Income Builder bought 30.43 lakh shares in the company at an average price of Rs 1,810 per share.
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Investors meetings on December 14
Chambal Fertilisers and Chemicals: Officials of company will interact with Elara Capital (India), Prabhudas Lilladher, Batlivala & Karani Securities India, Kotak Securities, Motilal Oswal Securities, Arihant Capital Markets, IIFL Securities, Phillip Capital (India), Systematix Shares and Stocks (India), and Antique Stock Broking.
Tata Chemicals: Officials of company will interact with Nirmal Bang Securities.
eMudhra: Officials of company will interact with Emerge Capital.
Titan Company: Officials of company will interact with Sumitomo Mitsui Ds Asset Management Company, and Blackrock Global Emerging Markets Equity.
Nazara Technologies: Officials of the company will interact with HDFC MF.
Axis Bank: Officials of the bank will have group meeting with select investors.
Globus Spirits: Officials of company will interact with Abakkus Asset Manager, Electrum Portfolio Managers, and Anand Rathi.
Nelcast: Officials of company will interact with LIC Mutual Fund.
Safari Industries (India): Officials of company will interact with Alchemy Capital.
Trent: Officials of company will interact with Phillip Capital (India).
Eicher Motors: Officials of company will interact with Enam Asset Management, and Citadel International Equities.
Max India: Officials of company will interact with several analysts and investors including AUM Fund Advisors, Green Lantern LLP, Dinero Wealth, and Incred Capital.
Tata Consumer Products: Officials of company will interact with RBC Global Asset Managements.
Stocks in News
One 97 Communications: The operator of mobile payments and financial services company Paytm received board's approval for a Rs 850-crore share buyback. The maximum buyback price is at Rs 810 per share, a 50 percent premium to the closing price of December 13. The company will undertake a buyback via open market route, which is to be completed within a maximum period of 6 months.
TVS Motor Company: The company plans to launch Euro-5 two-wheelers in Turkey. The company will further strengthen its presence in Turkey with products like TVS Jupiter, TVS NTORQ Race Edition, TVS Raider and TVS Apache RTR 200 4V which will be Euro5 compliant.
Adani Transmission: The company has incorporated its wholly owned subsidiary - Adani Cooling Solutions. The new arm will carry on district cooling system business.
Patel Engineering: The board of directors will meet on December 16 to consider raising of funds through issue of equity shares on rights basis to the existing equity shareholders of the company.
UltraTech Cement: The cement major has commissioned of 1.9 mtpa greenfield clinker backed grinding capacity at Pali cement works, Rajasthan. The company along with its subsidiary now has 16.25 mtpa cement capacity in Rajasthan spread over 5 separate plant locations and now its total cement manufacturing capacity in India stands at 121.35 mtpa.
Piramal Enterprises: The company's subsidiary Piramal Capital & Housing Finance (PCHFL) acquired 100 percent stake in PRL Agastya for Rs 90 crore. Post-acquisition, PRL Agastya will be a wholly-owned subsidiary of PCHFL.
IFB Industries: The company has received approval from board of directors for investment of up to Rs 97 crore in equity issue of IFB Refrigeration in one or more tranches.
Axis Bank: The private sector lender has received board approval for allotment of 12,000 non-convertible, Basel III compliant Tier II bonds (Series – 30) of the face value of Rs 1 crore each. The total fund raising would be Rs 12,000 crore at a coupon rate of 7.88 percent per annum payable annually, on a private placement basis.
Fund Flow
Foreign institutional investors (FIIs) have net bought shares worth Rs 619.92 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 36.75 crore on December 13, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has retained BHEL, Delta Corp, and GNFC under its F&O ban list for December 14. 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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