The market continued its bull run for the third consecutive session on January 4, hitting the highest closing level since November 17, backed by banking and financials, and select FMCG and IT stocks.
The BSE Sensex shot up by 672.71 points or 1.14 percent to 59,855.93, while the Nifty50 jumped 179.60 points or 1.02 percent to 17,805.30 and formed a bullish candle on the daily charts.
“Bulls continued their upsurge for the third consecutive session in a row which has pushed the indices into some sort of overbought levels. Moreover, almost a vertical upmove of last 11 trading sessions from the lows of 16,410 levels to a high of 17,827 facilitated a buy signal on the daily MACD (moving average convergence divergence) chart,” says Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
Usually, it is observed that such buy signals after a vertical move will pave the way for a pause before resuming the upmove. Hence, the next session can be an ideal opportunity to book profits and wait for more clarity, Mohammad says.
However, he believes a slightly deeper cut can be expected if the Nifty closes below 17,590 levels which as of now looks like a buying opportunity for logical targets present around 18,135 levels.
The broader markets underperformed frontline indices. The Nifty Midcap 100 and Smallcap 100 indices gained 0.3 percent each.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 17,656.67, followed by 17,508.13. If the index moves up, the key resistance levels to watch out for are 17,890.67 and 17,976.13.
The Nifty Bank rallied 418.25 points or 1.15 percent to 36,840.15 on January 4. The important pivot level, which will act as crucial support for the index, is placed at 36,513.74, followed by 36,187.37. On the upside, key resistance levels are placed at 37,027.14 and 37,214.17 levels.
Call option data
Maximum Call open interest of 19.77 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the January series.
This is followed by 17500 strike, which holds 16.91 lakh contracts, and 18500 strike, which has accumulated 11.08 lakh contracts.
Call writing was seen at 17700 strike, which added 1.25 lakh contracts, followed by 17800 strike which added 1.12 lakh contracts, and 18600 strike which added 77,900 contracts.
Call unwinding was seen at 17500 strike, which shed 3.01 lakh contracts, followed by 17600 strike which shed 1.73 lakh contracts and 17300 strike which shed 1.19 lakh contracts.
Put option data
Maximum Put open interest of 34.27 lakh contracts was seen at 17000 strike, which will act as a crucial support level in the January series.
This is followed by 17500 strike, which holds 25.71 lakh contracts, and 17200 strike, which has accumulated 17.61 lakh contracts.
Put writing was seen at 17700 strike, which added 4.37 lakh contracts, followed by 17100 strike, which added 2.39 lakh contracts, and 17800 strike which added 2.13 lakh contracts.
Put unwinding was seen at 17300 strike, which shed 1.15 lakh contracts, followed by 17500 strike which shed 1.01 lakh contracts, and 17200 strike which shed 70,400 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
64 stocks saw long build-up
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, here are the top 10 stocks in which a long build-up was seen.
29 stocks saw long unwinding
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
57 stocks saw short build-up
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, here are the top 10 stocks in which a short build-up was seen.
50 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, here are the top 10 stocks in which short-covering was seen.
(For more bulk deals, click here)
Vishal Fabrics: The company’s officials will interact with investors on January 5.
Stove Kraft officials will interact with institutional investors and analysts on January 5.
Satin Creditcare Network: The firm’s executives will interact with investors on January 5.
Antony Waste Handling Cell officials will meet investors and analysts on January 5 and January 6.
Balrampur Chini Mills officials will meet UBS Securities on January 6.
Affle India officials will meet Franklin Templeton on January 6.
Tarsons Products: The company’s officials will meet investors and analysts on January 7.
UltraTech Cement‘s officials will meet analysts on January 17, to discuss Q3FY22 earnings performance.
Angel One‘s officials will meet analysts and investors on January 18, to discuss the financial results.
Sonata Software: The company’s officials will meet analysts and investors on January 18 to discuss its financial results.
Stocks in News
Affle India: Hong Kong-based Value Partners High-Dividend Stocks Fund acquired 1,05,739 equity shares in the company at Rs 1,194.25 per share. However, Malabar India Fund Limited FDI was the seller on the BSE, the block deal data showed.
Hatsun Agro Product: Hong Kong-based Value Partners High-Dividend Stocks Fund bought 1,12,685 equity shares in the company at Rs 1,262.15 per share; however, Malabar India Fund Limited (a hedge fund run by New York-based Sumeet Nagar) was the seller on the BSE, the block deal data showed.
IndiaMART InterMESH: Hong Kong-based Value Partners High-Dividend Stocks Fund purchased 15,365 equity shares in the company at Rs 6,574.15 per share; Malabar Select Fund was the seller on the BSE, the block deal data showed.
Go Fashion India: SBI Funds Management acquired 0.85 percent stake in the company via an open market transaction on January 3, increasing shareholding in the company to 5.43 percent from 4.57 percent earlier.
Jyoti: Finquest Financial Solutions sold 0.69 percent stake in the company via open market transactions, reducing shareholding in the company to 10.46 percent from 11.15 percent earlier.
GAIL India: GAIL acquired an equity stake of 26 percent held by IL&FS Energy Development Company (IEDCL) and IL&FS Financial Services Ltd (IFIN) in ONGC Tripura Power Company (OTPC). OTPC owns and operates a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura.
Thermax: The company has concluded an order of Rs 545.6 crore from an Indian power public sector company to set up flue gas desulphurisation (FGD) systems for their two units of 500 MW capacity each in Uttar Pradesh.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,273.86 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 532.97 crore in the Indian equity market on January 4, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
As we are in the beginning of January series, there is not a single stock under the F&O ban for January 5. 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.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.