The stock market on February 16 wiped out most of the gains due to gradual profit booking especially after the Nifty50 surpassed the 18,100 mark in early trades and finally settled the session with moderate gains, supported by technology, metal and select pharma stocks. However, selling in select banking & financial services, auto, and FMCG stocks provided some solace to the market.
The BSE Sensex rose 44 points to 61,320, while the Nifty50 gained 20 points at 18,036 and formed a bearish candle on the daily charts, but experts feel the sentiments are still positive as the current consolidation may be on expected lines after the recent up move. The indexes closed higher as well as made higher high higher low formation for the third straight session.
“A small negative candle was formed on the daily chart, which indicates the emergence of minor weakness from the highs. This pattern also signals the formation of a bearish counterattack-type candle pattern (not a classical one). But this needs to be confirmed with sizable weakness in the subsequent sessions,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
Overall, Shetti feels the short-term uptrend status of Nifty remains intact and the market has started to face hurdles from near the highs of around 18,150-18,200 levels.
A further decline from here could trigger minor weakness for the short term and a sustainable move above 18,150 levels could open more upside towards the 18,250 level, the market expert said.
But the performance of broader markets compared to benchmarks was better on Thursday, as the Nifty Midcap 100 index gained 0.7 percent and Smallcap 100 index rose 1 percent on positive breadth.
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 and resistance levels on the Nifty
As per the pivot charts, the Nifty has support at 18,006, followed by 17,974 and then 17,923. If the index moves up, the key resistance levels to watch out for are 18,108, followed by 18,140 and 18,191.
The Nifty Bank underperformed broader markets, falling nearly 100 points to 41,631 and forming a bearish candle on the daily scale, but continued higher high higher low formation for the third straight session.
The Bank Nifty failed to climb above the 42,000 mark. “The index witnessed aggressive Call writing at 42,000 strike and a breach above this will lead to further short covering on the upside. The immediate downside support stands at 41,400 and if breached will lead to further selling pressure,” Kunal Shah, Senior Technical Analyst at LKP Securities said.
The important pivot level, which will act as a support, is at 41,536 followed by 41,428 and 41,254. On the upside, key resistance levels are 41,885, followed by 41,993, and 42,168.
On a monthly basis, we have seen the maximum Call open interest (OI) at 18,100 strike, with 63.36 lakh contracts, which may be a crucial resistance in the coming sessions.
This is followed by an 18,000 strike, comprising 55.18 lakh contracts, and an 18,500 strike, where there are more than 48.57 lakh contracts.
Call writing was seen at 18,100 strike, which added 41.58 lakh contracts, followed by 18,800 strike which added 29.41 lakh contracts and 18,700 strike which added 25.9 lakh contracts.
We have seen Call unwinding in 17,700 strike, which shed 5.14 lakh contracts, followed by 17,900 strike, which shed 3.31 lakh contracts, and 17,600 strike which shed 2.66 lakh contracts.
On a monthly basis, the maximum Put OI was seen at 18,000 strike, with 56.52 lakh contracts, which is expected to act as a crucial support area for the Nifty50 in coming sessions.
This is followed by the 17,500 strike, comprising 52.07 lakh contracts, and the 17,800 strike, where we have 43.15 lakh contracts.
Put writing was seen at 18,100 strike, which added 23.36 lakh contracts, followed by 18,000 strike, which added 22.3 lakh contracts, and 17,000 strike which added 10.02 lakh contracts.
We have seen hardly Put unwinding in the range of 16,600-19,500 strikes.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in InterGlobe Aviation, Godrej Consumer Products, SBI Card, Larsen & Toubro, and Hindustan Unilever, among others.
An increase in open interest (OI) and an increase in price mostly indicate a build-up of long positions. Based on the OI percentage, 72 stocks, including ONGC, Aarti Industries, Dixon Technologies, Mahanagar Gas, and PI Industries, saw a long build-up.
A decline in OI and a decrease in price, in most cases, indicate long unwinding. Based on the OI percentage, 19 stocks including Reliance Industries, PVR, ICICI Bank, Ramco Cements, and Siemens, witnessed long unwinding.
46 stocks see a short build-up
An increase in OI accompanied by a decrease in price mostly indicate a build-up of short positions. Based on the OI percentage, 46 stocks, including Crompton Greaves Consumer Electricals, InterGlobe Aviation, Hindustan Unilever, BPCL, and Muthoot Finance, saw a short build-up.
A decrease in OI along with an increase in price is an indication of short-covering. Based on the OI percentage, 55 stocks were on the short-covering list. These included City Union Bank, Lupin, MCX India, Torrent Power, and Bajaj Finserv.
InterGlobe Aviation: Promoter Shobha Gangwal has sold 52 lakh shares in the low-cost airline operator via open market transactions at an average price of Rs 1,885.72 per share, another 52 lakh shares at Rs 1,889.19 per share, and a further 52 lakh shares at an average price of Rs 1,886.29 per share on the BSE. Overall, the stake sold was 4.04 percent against her shareholding as of December 2022, which stood at 7.04 percent.
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Investors Meet on February 17
Metro Brands: Company’s officials will interact with Alquity Investment.
Rail Vikas Nigam: Officials of the company will meet investors / analysts /institutions to discuss financial results.
Bajaj Electricals, Prince Pipes and Fittings: Companies’ officials will participate in Ground View 360 conference organised by Phillip Capital.
Alkem Laboratories: Officials of the company will interact with Capital Global.
BLS International Services: Company’s officials will interact with Somerset Capital.
Hindalco Industries: Officials of the company will interact with Eastspring Investments (Singapore).
The Phoenix Mills: Company’s officials will meet Cohen & Steers, HK.
REC: Company to host analyst meets.
Kaynes Technology India: Company’s officials will interact with several analysts and institutional investors.
Tarsons Products: Officials of the company will participate in investor conference organised by Dolat Capital.
Radico Khaitan: Company’s officials will interact with Taiyo Pacific Partners.
Stocks in the news
CRISIL: The Board of Directors is scheduled to meet on February 17 to consider consolidated and standalone financial results for the quarter and year ended December 2022 and recommend dividends, if any, for the financial year (2022).
NLC India: The company has received a power allocation order from the Ministry of Power for its projects in Uttar Pradesh and Odisha. NLC through its Joint Venture Company Neyveli Uttar Pradesh Power (NUPPL) is in the process of setting up of 1,980 MW coal-based thermal power project at Ghatampur, Uttar Pradesh; for which the entire power has been tied up with UP and Assam after allocation order issued by Ministry of Power. Further NLC has also planned to set up another coal-based pit head thermal power project of 2,400 MW at Talabira, Odisha; for which also the entire power has been tied up with Tamil Nadu, Union Territory of Pondicherry, Kerala, and Odisha.
RPP Infra Projects: The company has won an order for the construction of integrated stormwater drain works in M1 & M2 components in the Kovalam basin in expanded areas in Greater Chennai Corporation Package 8 covering various streets of zone 14. The work order is worth Rs 59.92 crore and is expected to be completed within 24 months from the appointed date. The same set of contracts has been received by the company in Kovalam Basin in expanded areas in Greater Chennai Corporation Package 4 covering various streets of zone 12 & 14, which is worth Rs 70.50 crore.
Angel One: Narayan Gangadhar has resigned from the post of Chief Executive Officer of the company with effect from May 16 this year due to personal reasons. With this, the day-to-day affairs of the company will be under Dinesh Thakkar as Chairman and Managing Director.
Vedanta: Diversified natural resources company Vedanta Resources-owned Vedanta is declared as the preferred bidder for nickel, chromium and associated platinum group elements block in Chhattisgarh. The preferred bidder is based on the highest final price offer of 4.15 percent submitted by the company.
Bharat Forge: Bharat Forge, Hindustan Aeronautics’ foundry & forge division and Saarloha Advanced Materials have signed MOU for collaboration in the development and production of aerospace-grade steel alloys. They also accentuate the development, certification & proven out and application of new materials for use in the production of aircraft, engines, and accessories.
Schaeffler India: The industrial and automotive supplier has recorded a 21.2 percent year-on-year growth in profit at Rs 231 crore for the quarter ended December 2022 as revenue for the quarter increased by 17.8 percent YoY to Rs 1,795 crore. On the operating front, EBITDA grew by 20.2 percent YoY to Rs 345.22 crore with margin expansion of 38 bps for Q4CY22. For the year 2022, profit surged 40 percent to Rs 879.2 crore and revenue increased 23.5 percent to Rs 6,867.4 crore compared to the previous year. Its board recommended a dividend of Rs 24 per share for the year.
Minda Corporation: The company is likely to acquire upto 15.7 percent stake in Pricol via reverse book building for Rs 400 crore, reports CNBC-TV18 citing sources. The stake buy in Pricol is expected to take place at Rs 209 per share. Pricol shares closed at Rs 208.3 on the NSE on February 16.
Fund Flow
Foreign institutional investors (FII) bought shares worth Rs 1,570.62 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,577.27 crore on February 16, NSE’s provisional data showed.
Stocks under F&O ban on NSE
The National Stock Exchange has retained BHEL, Punjab National Bank, Ambuja Cements and Indiabulls Housing Finance on its F&O ban list for February 17. Securities 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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