It was about to be a strong day. But selling in the last hour of trade erased gains, and as a result, the market closed with moderate gains on May 23. The benchmark indices extended their northward journey for the third consecutive session.
The BSE Sensex rose 18 points to 61,982, while the Nifty50 climbed 34 points to 18,348 and formed a small-bodied bearish candlestick pattern with a long upper shadow and small lower shadow on the daily charts, indicating selling at higher levels but strongly held 18,300 mark and continued higher tops and higher bottoms formation for yet another session.
"During the day, the Nifty index exhibited a predominantly sideways movement, hovering around the 18,400 level. Despite the lack of significant fluctuations, market sentiment remained optimistic as the Nifty managed to sustain its position above the support level of 18,300," Rupak De, Senior Technical analyst at LKP Securities said.
A notable resistance was observed at 18,500. If the Nifty manages to break through this resistance decisively, it could potentially trigger a rally towards the 18,800 level, he feels.
The broader markets also closed higher with the Nifty Midcap 100 index rising 0.6 percent and Smallcap 100 index up 0.02 percent.
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 the current month.
Key support, resistance levels on Nifty
Pivot charts indicate that the Nifty may get support at 18,327, followed by 18,305 and 18,268. If the index advances, 18,401 would be the key resistance level to watch out for followed by 18,423 and 18,460.
The Bank Nifty rebounded 69 points to close at 43,954 after rangebound trade, and formed a Doji kind of candlestick pattern on the daily timeframe, indicating the tug of war between bulls and bears.
"The ongoing battle between bulls and bears suggests a struggle for control in the market. The index found immediate support at 43,500 and faced resistance at 44,100, highlighting key levels to watch. A break above or below this range could trigger significant directional moves in the market," Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
Traders and investors should closely monitor the index for a potential shift in momentum, he advised.
As per the pivot point calculator, the Bank Nifty is likely to take support at 43,874, followed by 43,817 and 43,724. The key resistance level to watch out for would be 44,060, followed by 44,117, and 44,210.
On the monthly options front, the maximum Call open interest (OI) was at 18,400 strike, with 1.11 crore contracts, which is expected to be a crucial resistance level for the Nifty.
This was followed by 18,500 strike comprising 1.09 crore contracts and 18,600 strike with more than 89.79 lakh contracts.
Call writing was seen at 18,400 strike, which added 34.64 lakh contracts, followed by 18,600 strike, which added 23.66 lakh contracts, and 18,700 strike, which added 21.47 lakh contracts.
Call unwinding was at 18,200 strike, which shed 28.26 lakh contracts, followed by 18,100 strike, which shed 9.23 lakh contracts, and 19,100 strike, which shed 5.28 lakh contracts.
The maximum Put open interest was at 18,300 strike, with 1.148 crore contracts, which is expected to be an important support in the coming sessions.
This was followed by the 18,200 strike, comprising 1.147 crore contracts, and 18,000 strike with 1 crore contracts.
Put writing was seen at 18,300 strike, which added 39.06 lakh contracts, followed by 18,400 strike, which added 32.33 lakh contracts, and 17,900 strike, which added 11.23 lakh contracts.
Put unwinding was seen at 17,700 strike, which shed 20.73 lakh contracts, followed by 18,000 strike, which shed 12.67 lakh contracts, and 18,200 strike, which shed 12.51 lakh contracts
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Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. The highest delivery was seen in Power Grid Corporation of India, United Spirits, Sun Pharmaceutical Industries, Crompton Greaves Consumer Electricals, and Dabur India among others.
An increase in open interest (OI) and price typically indicates a build-up of long positions. Based on the OI percentage, 47 stocks, including Delta Corp, Crompton Greaves Consumer Electricals, Aditya Birla Fashion & Retail, IndusInd Bank, and Hero MotoCorp saw long build-ups.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 50 stocks, including Alkem Laboratories, Intellect Design Arena, InterGlobe Aviation, L&T Finance Holdings, and Balrampur Chini Mills saw long unwinding.
36 stocks see a short build-up
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, 36 stocks, including Vedanta, Power Grid Corporation of India, ONGC, Apollo Hospitals Enterprise and Ashok Leyland saw a short build-up.
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 57 stocks were on the short-covering list. These included Metropolis Healthcare, Whirlpool, MCX India, Infosys, and Balkrishna Industries.
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Stocks in the news
Ashok Leyland: The commercial vehicle maker has recorded a 16.6 percent year-on-year decline in standalone profit at Rs 751.4 crore for the quarter ended March FY23 due to a high base, but topline and operating numbers remained healthy. It reported an exceptional gain of Rs 56.43 crore in Q4FY23 against Rs 470.26 crore in Q4FY22. Revenue from operations for the quarter increased significantly by 33 percent to Rs 11,626 crore compared to the same period last year.
JSW Energy: The utility company has reported a 68.5 percent year-on-year fall in consolidated profit at Rs 272 crore for the March FY23 quarter, dented by higher finance and fuel costs, and lower other income. Revenue from operations grew by 9.4 percent to Rs 2,670 crore compared to the year-ago period.
Tata Chemicals: The company said the board of directors has reappointed R Mukundan as Managing Director and CEO for five years with effect from November 26, 2023. The reappointment is subject to the approval of the members at the forthcoming Annual General Meeting of the company.
Shriram Properties: The south-based real estate developer, through its wholly owned subsidiary Shrivision Elevations, has acquired 100 percent development rights in an ongoing project in Chennai. The remaining two phases having a saleable area of 1.9 million square feet are yet to be launched. The project has a revenue potential of around Rs 1,200 crore in the next five years.
Wipro: The IT services provider has expanded its partnership with Google Cloud to bring advanced generative artificial intelligence (AI) capabilities to clients across the globe. It will integrate generative AI into its entire suite of capabilities, accelerators, IP, and solutions.
Mahindra CIE Automotive: Promoter Mahindra & Mahindra is likely to sell 1.2 crore shares or 3.2 percent equity in Mahindra CIE Automotive via a block deal soon, reports CNBC-Awaaz quoting sources. The block deal in Mahindra CIE is likely at a discount of 5-6 percent to the current market price.
Dish TV India: Anil Kumar Dua has resigned as Chief Executive Officer of the company effective from August 22 this year. Hence, the board proposed the appointment of Manoj Dobhal as the Chief Executive Officer-designate and further advised the management to seek approval from the Ministry of Information and Broadcasting (MIB) for the appointment of Dobhal as the new CEO. Dobhal is the current Chief Operating Officer of the company.
Fund Flow
Foreign institutional investors (FIIs) bought shares worth Rs 182.51 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 397.29 crore on May 23, provisional data from the National Stock Exchange showed.
Stocks under F&O ban on NSE
The National Stock Exchange has added Delta Corp, and retained Indiabulls Housing Finance to its F&O ban list for May 24. 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.
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