With the bulls gaining strength in the last few trading hours despite weak global cues, the Nifty50 may extend its upward journey in the coming sessions. If the uptrend continues, then the index could face resistance at the psychological mark of 22,000, followed by a near-record high of 22,126, while immediate support is expected to be at 21,700 and crucial support remains at 21,500 level. , the experts said.
On February 14, the BSE Sensex rose 268 points to 71,823, while the Nifty 50 recovered just over 300 points from the day’s low and ended with gains of 97 points at 21,840, forming a long bullish candlestick pattern on the daily chart. that has enveloped the small bullish candles of the previous sessions.
This pattern could be considered as a bullish engulfing pattern, indicating a short-term bottom reversal for the Nifty. The index defended 21,500 as well as an upward sloping support trend line.
“The immediate support of 21,500 held in the volatile session on Wednesday and the short-term uptrend seems to be gaining momentum. Nifty is currently on the verge of clearing the immediate hurdle of 21,850 levels and a decisive move above is likely of this resistance. to take Nifty towards 22,000-22,100 levels in the near term,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities.
According to him, the immediate support is at 21,720 levels.
On the upper side, Ruchit Jain, Research Leader at 5paisa.com, also believes that the Nifty needs to surpass the recent highs (22,126) to confirm the continuation of the uptrend.
Technically, the Nifty index has been in a consolidation phase for the past few days, which appears to be a temporary correction. “The index has managed to defend the support of 40 DEMA, which now stands around 21,500. Therefore, this becomes a decisive level in the short term and only in case of a break below this should corrections be expected in the price”. he said.
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Key Support and Resistance Levels in Nifty and Bank Nifty
The pivot point calculator indicates that the Nifty is likely to get immediate support at 21,617 levels, followed by 21,536 and 21,406 levels, while on the upper side, you can see immediate resistance at 21,871 levels, followed by 21,958 and 22,088.
Meanwhile, on February 14, the Bank Nifty extended its gains one more session, rising 406 points to 45,908 and formed a long bullish candlestick pattern on the daily charts after consistently defending the upward-sloping support trend line.
“The Bank Nifty has once again respected the 200-day moving average (44,900) and until it falls below that figure we can expect the positive momentum to continue till 46,500-46,900,” said Jatin Gedia, Technical Research Analyst at Sharekhan. by BNP Paribas.
According to the pivot point calculator, the Bank Nifty is expected to find support at 45,146 followed by 44,837 and 44,337 levels, while on the upper side, the index may find resistance at 46,028 followed by 46,456 and 46,956 levels.
Purchase option data
On the weekly options data front, Call maximum open interest was seen at 22,000 strike with 1.14 crore contracts, which may act as a key resistance level for the Nifty in the near term. It was followed by the 22,200 strike, which had 74.29 lakh contracts, while the 22,100 strike had 73.2 lakh contracts.
Significant call writing was visible in the 22,100 strike, which added 31.02 lakh contracts, followed by 22,000 and 22,100 strikes which added 23.39 lakh and 17.29 lakh contracts, respectively.
The maximum settlement of the call came in the strike of 21,800, which eliminated 13.13 lakh contracts, followed by 21,700 and 22,600 strikes, which eliminated 10.87 lakh and 10.75 lakh contracts.
put options data
On the sell side, the 21,000 strike held the maximum open interest, which may act as a key support level for Nifty, with contracts at 97.02 lakh. This was followed by 21,500 strikes comprising 87.93 lakh contracts and then 21,600 strikes comprising 87 lakh contracts.
Significant Put writing was 21,300 strikes, which added 45.11 lakh contracts, followed by 21,600 strikes and 21,800 strikes, which added 42.72 lakh contracts and 42.28 lakh contracts.
The liquidation was seen in 20,800 strikes, which eliminated 5.58 lakh contracts, followed by 20,900 strikes, which eliminated 3.79 lakh contracts and 20,500 strikes, which eliminated 30,700 contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. Marico, Bharti Airtel, Hindustan Unilever, UltraTech Cement and Pidilite Industries recorded the highest deliveries among F&O stocks.
72 Stocks See Long Accumulation
Long accumulation was seen in 72 stocks including Hindustan Copper, IndiaMART InterMESH, Indian Oil Corporation, Vedanta and Indian Hotels. An increase in open interest (OI) and price indicates an accumulation of long positions.
15 stocks see a long sell-off
As per OI percentage, 15 stocks saw prolonged sell-off including Ipca Laboratories, Sun Pharmaceutical Industries, Gujarat Gas, Aurobindo Pharma and Samvardhana Motherson International. A decline in OI and price indicates a prolonged sell-off.
38 Stocks See Brief Accumulation
Brief recovery was seen in 38 stocks including Hindalco Industries, L&T Technology Services, Info Edge India, Coforge and JK Cement. A rise in OI coupled with a fall in price points to an accumulation of short positions.
62 stocks see short covering
Based on OI percentage, 62 stocks were on the short covering list. This included National Aluminum Company, Bosch, Steel Authority of India, Axis Bank and REC. A decrease in OI along with an increase in price is an indication of short covering.
The Nifty Put Call Index (PCR), which indicates the mood of the stock market, jumped to 1.24 on February 14, from 0.99 levels in the previous session. PCR above 1 indicates that the trading volume of put options is greater than that of call options, which generally indicates increasing bearish sentiment.
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Results on February 15
EPACK Durable, R Systems International and Ballarpur Industries will release their quarterly earnings scorecard on February 15.
Actions in the news
Utkarsh Small Finance Bank: The board of directors of the small financial bank will meet in due course to evaluate the proposal of reverse merger of the holding company Utkarsh CoreInvest with the bank.
One 97 Communications: The company, its subsidiaries and its associate, Paytm Payments Bank, have received notices and requests for information, documents and explanations from the authorities, including the Enforcement Directorate (ED), in respect of customers who may have conducted business with the respective entities. . The company and its associates have continued to provide the authorities with the information, documents and explanations they request. Paytm Payments Bank does not make foreign remittances.
NMDC: The state-owned iron ore company posted a 62.6 per cent year-on-year growth in consolidated net profit at Rs 1,470 crore for the quarter ended December FY24, backed by healthy revenue and operating figures. Consolidated revenue from operations grew 45.4 per cent year-on-year to Rs 5,410 crore during the quarter.
Glenmark Pharmaceuticals: The pharmaceutical company posted a consolidated net loss of Rs 449.6 crore for the October-December period of FY24 as against a profit of Rs 185.8 crore in the year-ago period, hit by slump in business in India and the US Revenue from operations fell 19.1 per cent year-on-year to Rs 2,506.7 crore during the quarter.
Hindustan Unilever: The consumer goods major is in talks with the Andhra Pradesh government to collaborate on palm oil production in the state.
Fund Flow (Million Rupees)
FII and DII data
Foreign institutional investors (FIIs) sold net shares worth Rs 3,929.60 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,897.98 crore on February 14, provisional data from the NSE.
Stocks under F&O ban on NSE
The NSE has added Hindustan Copper to the F&O ban list for February 15, while retaining Aditya Birla Fashion & Retail, Ashok Leyland, Aurobindo Pharma, Balrampur Chini Mills, Bandhan Bank, Biocon, Delta Corp, India Cements, Indus Towers and National Aluminum Company. , Punjab National Bank, SAIL and Zee Entertainment Enterprises to the said list.
Prohibited securities in the F&O segment include companies where derivative contracts exceed 95 percent of the market-wide position limit.
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