The market has seen a decent recovery in the later part of the session and ended with moderate losses on December 20, as there was selling pressure in most sectors barring IT, metal, and oil and gas.
The BSE Sensex declined 104 points to 61,702, while the Nifty50 fell 35 points to 18,385 and formed a small-bodied bullish candle with a long lower shadow which resembles a Hammer kind of pattern on the daily charts, indicating the emergence of buying interest from lower levels.
"The candle pattern of Tuesday signals a formation of bullish Hammer pattern that is placed beside the long positive candle of the previous session," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The negative chart pattern of lower tops and bottoms is intact and the low of Tuesday at 18,202 could be considered as a new lower bottom of the sequence.
"One may expect further upside in the short term towards the lower top formation. Immediate resistance is at 18,450-18,500 levels," the market expert said.
The broader markets have also seen a downtrend trend with the Nifty Midcap 100 and Smallcap 100 indices falling 0.2 percent and 0.4 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 18,254, followed by 18,206 & 18,129. If the index moves up, the key resistance levels to watch out for are 18,408 followed by 18,456 and 18,533.
The Nifty Bank traded lower on December 20, falling more than 50 points to 43,360 and forming a bullish candle on the daily charts as the closing was lower than the opening levels.
The important pivot level, which will act as crucial support for the index, is placed at 43,067, followed by 42,956 and 42,776 levels. On the upside, key resistance levels are placed at 43,427 followed by 43,538 & 43,718 levels.
We have seen the maximum Call open interest at 18,500 strike, with 36.48 lakh contracts, which can act as a crucial resistance level in the December series. This seems to be indicating that the Nifty50 may not see 19,000 mark in the December series, which had seen maximum Call open interest till December 19, considering the current volatile and rangebound trade.
This is followed by 19,000 strike, which holds 36.09 lakh contracts, and 18,600 strike, which have more than 29.01 lakh contracts.
Call writing was seen at 18,400 strike, which added 8.08 lakh contracts, followed by 18,300 strike, which added 7 lakh contracts, and 18,500 strike which added 5.65 lakh contracts.
Call unwinding was seen at 18,700 strike, which shed 2.89 lakh contracts, followed by 19,000 strike which shed 2.18 lakh contracts and 19,300 strike which shed 1.61 lakh contracts.
We have seen a maximum Put open interest at 18,300 strike, with 42.49 lakh contracts which can act as a crucial support level in the December series.
This is followed by 18,000 strike, which holds 41.58 lakh contracts, and 17,500 strike, which has accumulated 30.39 lakh contracts.
Put writing was seen at 18,200 strike, which added 5.02 lakh contracts, followed by 18,300 strike, which added 3.32 lakh contracts and 17,700 strike which added 2.75 lakh contracts.
Put unwinding was seen at 17,400 strike, which shed 1.90 lakh contracts, followed by 18,500 strike which shed 1.88 lakh contracts, and 18,600 strike which shed 1.47 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 HDFC, Torrent Pharma, ICICI Lombard General Insurance, Dabur India, and SBI 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 a long build-up in 20 stocks on Tuesday, including Apollo Tyres, Adani Enterprises, Mahanagar Gas, IndiaMART InterMESH, and Axis Bank.
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, 59 stocks have seen long unwinding on Tuesday including Nifty Financial, Bank Nifty, MCX India, Britannia Industries, and HDFC.
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 81 stocks on Tuesday including Voltas, SBI Life Insurance Company, Dabur India, Metropolis Healthcare, and Tata Motors.
32 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 32 stocks on the short-covering list on Tuesday including Balrampur Chini Mills, Havells India, Crompton Greaves Consumer Electrical, Container Corporation of India, and Coforge.
New Delhi Television: LTS Investment Fund has sold 4.08 lakh shares in NDTV via open market transactions at an average price of Rs 362.14 per share.
Sudarshan Chemical Industries: Norges Bank on account of the Government Pension Fund Global has sold 7.03 lakh shares in the chemical company at an average price of Rs 377.01 per share.
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Investors Meetings on December 21
eMudhra: Officials of the company will interact with Nippon India Mutual Fund.
Blue Star: Officials of the company will interact with Emkay Global and Goldman Sachs.
Tata Consumer Products: Officials of the company will interact with Enam Asset Management Company, Millennium Capital Management, B&K Securities, Schonfeld Strategic Advisors, and Motilal Oswal Financial Services.
Tata Chemicals: Officials of the company will interact with LIC Mutual Fund Asset Management and HDFC Life Insurance Company.
Dr Lal PathLabs: Officials of the company will interact with Ninety One Asset Management.
Gati: Officials of the company will interact with Matthews Asia.
Eris Lifesciences: Officials of the company will interact with Entrust FO Investment Advisors, and M3 Investments.
Nelcast: Officials of the company will interact with ICICI Prudential AMC, JM Financial AMC, Monarch Networth Capital, i-Wealth Management, and Indsec Securities.
Cantabil Retail India: Officials of the company will interact with Lucky Securities, Birla Sun Life Insurance, Tikona Capital, Equitree Capital, and Arthya wealth advisors.
Polycab India: Officials of the company will interact with Fidelity International and Aspex Management.
Persistent Systems: The company will interact with HDFC Life Insurance.
Action Construction Equipment: Officials of the company will interact with Envision Capital.
PSP Projects: Officials of the company will interact with Anvil Share & Stock Broking.
Stocks in News
VIP Clothing: The company has recently sold its Umbergaon factory and raised Rs 10.41 crore. The capital gained by selling this asset will now be utilised in business at a different level from production, technology, innovation and marketing.
City Union Bank: The private sector lender has announced divergence in NPAs to the tune of Rs 259 crore consisting of 13 borrower accounts (with an outstanding balance of more than Rs 1 crore) for an amount of Rs 230 crore and 218 borrowers (with an outstanding balance of less than Rs 1 crore) for an amount of Rs 29 crore for the year ended March 2022. Also, there was a divergence in provisioning to the tune of Rs 40 crore for the same period. The divergence is the difference between NPAs reported by the bank and assessed by the RBI.
Jubilant Ingrevia: The company has raised Rs 150 crore via the issuance of commercial papers. The date of maturity is February 2023, with a coupon rate of 7.05 percent per annum.
Uno Minda: The company has entered into a licence agreement with Ascentec, Korea to strengthen its advance automotive sensors product portfolio. Asentec, a subsidiary of Sejong Industrial, specialises in mobility parts centred on sensors and actuators with manufacturing facilities in Korea, Vietnam and China.
Mindspace Business Parks REIT: The company has completed the issuance of commercial papers of Rs 100 crore. CRISIL has rated these commercial papers as 'A1+'. The funds will be utilised towards the working capital requirements of Mindspace REIT's asset SPVs.
Bharti Airtel: The company has entered into an agreement for the acquisition of 8 percent stake in a technology startup, Lemnisk (Immensitas Private Limited). The acquisition is under Airtel's Start-Up Accelerator Program. Lemnisk is a Bengaluru-based start-up that offers real-time marketing automation and secure customer data platform.
GAIL India: The company has raised Rs 1,575 crore via issuance of 15,750, 7.34 percent non-convertible debentures (Series-I) of Rs 10 lakh on a private placement basis.
Fund Flow
Foreign institutional investors (FIIs) have net-bought shares worth Rs 455.94 crore, while domestic institutional investors (DIIs) net-purchased shares worth Rs 494.74 crore on December 20, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
The National Stock Exchange has retained Delta Corp, GNFC, Indiabulls Housing Finance, IRCTC, and Punjab National Bank under its F&O ban list for December 21. 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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