The bears returned to power on Dalal Street after the expected outcome of the RBI policy meeting and dragged the Nifty 50 below the 10-day EMA (exponential moving average – 21,750), which acted as support in the recent past. The Nifty50 is likely to see more selling pressure in the coming days, but 21,500 is expected to be a crucial support to watch, experts said, adding that as long as 21,500 holds, the index can recover and remain at the range of 21,500-22,126.
On February 8, stocks in banking and financial services, automobiles and consumer goods sent the market tumbling. The BSE Sensex plunged 724 points or 1 per cent to 71,428, while the Nifty 50 fell 212.5 points to 21,718 and formed a long bearish candlestick pattern on the daily charts with higher volumes.
“After repeated testing of the key resistance of the previous opening on January 17 at 21,970 levels in the last 3-4 sessions, the bulls seem to have finally given up and the market fell from Thursday’s highs,” Nagaraj said. Shetti, Senior Technical Research Analyst, HDFC Securities.
Consider that Nifty’s short-term trend seems to have declined and further weakness can be expected in the near term. “The short-term uptrend of the market remains intact and further weakness to the immediate support of 21,550-21,500 levels could be a buying opportunity,” he said.
Overall, Jatin Gedia, Sharekhan Technical Research Analyst at BNP Paribas, also expects consolidation to continue with a negative bias.
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Key Support and Resistance Levels in Nifty and Bank Nifty
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The pivot point calculator indicates that the Nifty is likely to get immediate support at 21,666 followed by 21,584 and 21,452 levels, while on the upper side, you can see immediate resistance at 21,750 levels followed by 22,012 and 22,144 levels.
Meanwhile, on February 8, the Bank Nifty played a crucial role in the market’s downtrend, falling 807 points to 45,012 and forming a long bearish candlestick pattern on the daily charts after decisively breaking consolidation, with higher volumes. The index is now just 350 points away from its 200 day EMA.
Therefore, Jatin Gedia expects the weakness to persist and expects the Bank Nifty to deviate towards 44,430-44,000 from a short-term perspective. However, on the positive side, he believes that 45,500-45,600 will act as an immediate hurdle.
According to the pivot point calculator, the Bank Nifty is expected to get support at 44,871 followed by 44,566 and 44,075 levels, while on the upper side, the index may find resistance at 45,130 followed by 46,158 and 46,650 levels.
Purchase option data
On the weekly options data front, the maximum Call open interest was seen at 22,000 strike with 1.26 crore contracts, which may act as a key resistance level for the Nifty in the near term. It was followed by the strike of 21,700, which had contracts of Rs 1.15 million, while the strike of 21,800 had contracts of Rs 98.87 million.
Significant call drafting was seen in the 21,700 strike, which added contracts of 1.05 lakh crore, followed by 21,800 and 22,000 strikes which added contracts of 84.13 lakh and 38.17 lakh, respectively.
The maximum settlement of the call came in the strike of 23,000, which eliminated 17.84 lakh contracts, followed by 22,300 and 22,900 strikes, which eliminated 11.43 lakh and 8.14 lakh contracts.
put options data
On the Put front, the 21,700 strike held the maximum open interest, which may act as a key support level for Nifty, with contracts at 1.74 crore. It was followed by a strike of 21,500 people involving contracts of Rs 1.08 million and then a strike of 21,600 people involving contracts of Rs 1.03 million.
Significant Put writing was 21,700 strikes, which added 98.67 lakh contracts, followed by 21,600 strikes and 21,500 strikes, which added 52.44 lakh contracts and 40.39 lakh contracts.
The liquidation was seen in 21,900 strikes, which eliminated 62.72 lakh contracts, followed by 21,800 strikes, which eliminated 53.28 lakh contracts and 21,000 strikes, which eliminated 16.79 lakh contracts.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. United Spirits, Dalmia Bharat, Havells India, PVR INOX and Shriram Finance recorded the highest deliveries among F&O stocks.
24 stocks experience long accumulation
Long accumulation was seen in 24 stocks including PI Industries, Power Grid Corporation of India, Alkem Laboratories, Apollo Hospitals Enterprise and Page Industries. An increase in open interest (OI) and price indicates an accumulation of long positions.
48 stocks see a long sell-off
As per OI percentage, 48 stocks saw prolonged sell-off including Delta Corp, Balrampur Chini Mills, Maruti Suzuki, Aditya Birla Capital and SAIL. A decline in OI and price indicates a prolonged sell-off.
81 stocks see brief accumulation
Brief recovery was seen in 81 stocks including Chambal Fertilisers, Britannia Industries, Bajaj Finserv, HDFC Life Insurance Company and Nestle India. A rise in OI coupled with a fall in price points to an accumulation of short positions.
34 stocks see short covering
Based on OI percentage, 34 stocks were on the short covering list. This included Lupine, Cummins India, Trent, Indian Hotels and IndiaMART InterMESH. 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, remained at 1 on February 8, compared to the previous session. The PCR at 1 indicates that the trading volume of put options is equal to that of call options, which generally indicates a neutral trend in the future.
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Results for February 9 and 10
Hero MotoCorp, Tata Power Company, Honasa Consumer, Zydus Lifesciences, Alkem Laboratories, Bandhan Bank, Campus Activewear, Cello World, DOMS Industries, Emami, Finolex Cables, Indian Railway Finance Corporation, MRF, The New India Assurance Company, Pfizer, PI Industries , Shree Renuka Sugars and Sundaram-Clayton will release December quarter earnings on February 9.
Oil and Natural Gas Corporation, Aurobindo Pharma, Divis Laboratories, Multi Commodity Exchange of India, Amber Enterprises India, Flair Writing Industries, Jagran Prakashan, TVS Electronics, Updater Services and Uflex will release December quarter earnings on February 10.
Actions in the news
Life Insurance Corporation of India: The state-owned life insurance company posted a standalone profit of Rs 9,444.4 crore in the quarter ended December FY23, a strong growth of 49.1 per cent over the year-ago period. Net premium income for the quarter stood at Rs 1,17,017 crore, up 4.7 per cent compared to the corresponding period of last fiscal, and net commission grew 3.2 per cent year-on-year to 6,520 crores for the quarter.
Bharat Heavy Electricals (BHEL): The state-owned electrical equipment manufacturer has received an order from HPGCL (Haryana Power Generation Corporation) to set up the 1×800 MW ultra supercritical expansion unit at DCRTPP Yamuna Nagar. The contract value exceeds Rs 5,500 crore.
Biocon: The biopharmaceutical company posted a consolidated net profit of Rs 660 crore for the October-December period of FY24, against a loss of Rs 41.8 crore in the corresponding period of the last fiscal year. Revenue from operations for the quarter of Rs 3,953.7 crore increased 34.4 percent from the year-ago period.
United Breweries: Beer maker Kingfisher reported a standalone net profit of Rs 84.85 crore for Q3FY24, against a loss of Rs 2.14 crore in the corresponding period of last fiscal, backed by figures healthy operations and higher other income. Operating income for the quarter grew 13.1 percent year-on-year to Rs 1,822.66 crore.
torrent power: The Gujarat-based power company posted a consolidated net profit of Rs 359.8 crore for the quarter ended December FY24, a sharp decline of 47.4 per cent compared to the year-ago period, impacted by lower revenues and dismal operating figures with higher fuel costs. Revenue from operations fell 1.2 per cent year-on-year to Rs 6,366 crore during the quarter.
Suryoday Small Financial Bank: The small finance bank posted a 217 percent year-on-year rise in net profit to Rs 57.22 million for the October-December period of FY24, with other income rising 102.3 percent year-on-year to Rs 51.9 million. of rupees and pre-provision operating profit rose 80.5 per cent to Rs 114.2 crore for the quarter. Net interest income during the quarter rose 33.9 per cent to Rs 245.7 crore compared to the same period last year.
Fund Flow (Million Rupees)
FII and DII data
Foreign institutional investors (FIIs) sold net shares worth Rs 4,933.78 crore, while domestic institutional investors (DIIs) bought shares worth Rs 5,512.32 crore on February 8, provisional data from the NSE.
Stocks under F&O ban on NSE
The NSE has added Aurobindo Pharma, Biocon and Punjab National Bank to the F&O ban list for February 9, while retaining Ashok Leyland, Balrampur Chini Mills, Delta Corp, Hindustan Copper, India Cements, Indus Towers, National Aluminum Company, SAIL and UPL. to said list. However, Zee Entertainment Enterprises was removed from 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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