Moneycontrol PRO
Live: LIVE | Joshimath Crisis: Why Is The Hill Town Sinking?

Trade setup for today: Top 15 things to know before the opening bell

Based on the OI percentage, 52 stocks saw long unwinding on Tuesday, including Hero MotoCorp, Indiabulls Housing Finance, GNFC, M&M Financial Services, and RBL Bank

January 11, 2023 / 08:49 AM IST

The market caught in a bear trap on January 10 after a day of strong rally, with the benchmark indices declining 1 percent impacted by selling pressure across sectors barring auto.

The BSE Sensex plunged 632 points to 60,115, while the Nifty50 shed 187 points to 17,914 and formed a long bearish candle which seems to resemble a Bearish Engulfing kind of pattern on the daily charts, indicating control of bears over Dalal Street.

"A Bearish Engulfing pattern on the daily chart points towards a further correction," Rupak De, Senior Technical Analyst at LKP Securities said.

He says the index, however, has been hovering within the bands of 17,750 and 18,250. A decisive breakout on either side may trigger a strong directional move, the market expert said.

The broader markets were also under pressure as the Nifty Midcap 100 index fell 0.5 percent and Smallcap 100 index declined 0.6 percent on weak breadth. About two shares declined for every rising share on the NSE.

The rising volatility also made the trend unfavourable for bulls. India VIX, the fear index, jumped nearly 6 percent to 15.51 level, from the 14.65 level.

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 of the current month.

Key support and resistance levels on the Nifty

Per the pivot charts, we have the key support level for the Nifty at 17,862, followed by 17,798, and 17,694. If the index moves up, the key resistance levels to watch out for are 18,070, followed by 18,134 and 18,238.

Nifty Bank

The Nifty Bank index also corrected sharply, declining 568 points to 42,015 on January 10 and forming a long bearish candle which to some extent resembles a Bearish Engulfing kind of pattern formation on the daily charts.

The important pivot level, which will act as crucial support for the index, is placed at 41,855, followed by 41,657, and 41,336. On the upside, key resistance levels are placed at 42,495, followed by 42,693, and 43,013.

Call option data

We have seen the maximum Call open interest (OI) at 18,000 strike, with 26.55 lakh contracts, which can act as a crucial resistance level in the coming sessions of the January series.

This is followed by 19,000 strike, comprising 25.94 lakh contracts, and 18,500 strike, where we have more than 24.31 lakh contracts.

Call writing was seen at 18,000 strike, which added 7.68 lakh contracts, followed by 18,100 strike, which added 4.94 lakh contracts, and 18,300 strike, which added 3.06 lakh contracts.

Call unwinding was seen at 19,100 strike, which shed 1.34 lakh contracts, followed by 19,000 strike, which shed 1 lakh contracts, and 18,900 strike, which shed 72,250 contracts.

Image141012023

Put option data

We have seen maximum Put OI at 18,000 strike, with 31.29 lakh contracts, followed by 17,500 strike, comprising 26.93 lakh contracts, and 17,000 strike, where we have 25.72 lakh contracts.

Put writing was seen at 17,800 strike, which added 1.54 lakh contracts, followed by 17,900 strike, which added 1.51 lakh contracts, and 18,200 strike, which added 1.17 lakh contracts.

Put unwinding was seen at 17,000 strike, which shed 2.12 lakh contracts, followed by 17,500 strike, which shed 1.02 lakh contracts, and 17,300 strike, which shed 86,200 contracts.

Image151012023

Stocks with a high delivery percentage

A high delivery percentage suggests that investors are showing interest in these stocks. We have seen the highest delivery in Oracle Financial, Marico, HDFC Bank, Abbott India, and Colgate Palmolive, among others.

26 stocks saw long build-up

An increase in OI, along with an increase in price, mostly indicates a build-up of long positions. Based on the OI percentage, we have seen a long build-up in 26 stocks on Tuesday, including Hindustan Copper, Max Financial Services, MRF, L&T Finance Holdings, and Rain Industries.

52 stocks saw long unwinding

A decline in OI, along with a decrease in price, mostly indicates long unwinding. Based on the OI percentage, 52 stocks saw long unwinding on Tuesday, including Hero MotoCorp, Indiabulls Housing Finance, GNFC, M&M Financial Services, and RBL Bank.

75 stocks saw short build-up

An increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI percentage, we have seen a short build-up in 75 stocks on Tuesday, including Adani Enterprises, Crompton Greaves Consumer Electricals, Vodafone Idea, Eicher Motors, and Dixon Technologies.

39 stocks witnessed short-covering

A decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI percentage, we have 39 stocks on the short-covering list on Tuesday, including Alkem Laboratories, Syngene International, JK Cement, Mahindra & Mahindra, and Coal India.

Bulk Deals

Bilcare: Rekha Jhunjhunwala sold further 7.94 lakh shares in the company via open market transactions, at an average price of Rs 46 per share. However, Guttikonda Vara Lakshmi bought 8.24 lakh shares in the company at an average price of Rs 45.88 per share. In the previous session, Jhunjhunwala had sold 1.35 lakh shares of Bilcare.

Tuticorin Alkali Chemicals and Fertilizers: Citrine Fund has sold 40.10 lakh shares in the company via open market transactions, at an average price of Rs 62.30 per share. However, Mercantile Ventures bought 40 lakh shares at the same price.

(For more bulk deals, click here)

Investors' meetings on January 11

Result January 1101_001_001

Tata Steel: Officials of the company will interact with Ontario Teachers’ Pension Plan.

Greaves Cotton: The company's officials will meet Equirus Capital, Dolat Capital, Arjav Partners, Elara Capital, Arihant Capital, AV Fincorp, and Motilal Oswal AMC.

Electronics Mart India: Officials of the company will meet investors and analysts in Mumbai.

Jindal Stainless: The company's officials will attend investor meetings.

Xpro India: The company's representatives will meet analysts and investors.

Stocks in the news

Adani Ports and Special Economic Zone: Adani Ports and Gadot Group has completed the acquisition of Haifa Port Company from the Government of Israel. The consortium had won the bid for HPC, at an offer price of $1.18 billion during July 2022. The concession period of the port is up to 2054.

PC Jeweller: During the quarter ended December 2022, the company recorded a domestic turnover of Rs 829.10 crore as compared to the turnover of Rs 600.18 crore in the corresponding quarter of the previous year, indicating a growth of more than 38 percent. It has also opened a new franchisee showroom at Katihar (Bihar) during the quarter.

Uttam Sugar Mills: The company has increased its distillery capacity (ethanol) from 150 KLPD to 250 KLPD at Barkartpur plant. Considering the government's policy and increased demand for ethanol at the national level, it has decided to increase the distillery capacity. It has also increased the cane crushing capacity from 23,750 TCD to 26,200 TCD.

Tata Motors: Subsidiary Tata Passenger Electric Mobility has completed the acquisition of Sanand property and the VM plant and machinery of Ford India. Both companies had executed a Unit Transfer Agreement in August 2022 for the acquisition of Ford India's manufacturing plant at Sanand, Gujarat, for Rs 725.7 crore.

Bank of Baroda: The public sector lender has hiked the marginal cost of funds-based lending rate (MCLR) by up to 35 bps across tenors. The rate hike will be effective from January 12.

Cupid: The company has received an order from United Nations Population Fund for the supply of male condoms and water-based lubricant worth Rs 5.21 crore. The said order will be executed by June 2023.

Fund Flow

Image81012023

FII and DII data

Foreign institutional investors (FII) net-sold shares worth Rs 2,109.34 crore, while domestic institutional investors (DII) net-bought shares worth Rs 1,806.62 crore on January 10, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

The National Stock Exchange has retained Indiabulls Housing Finance and GNFC under its F&O ban list for January 11. Securities thus banned under the F&O segment include companies where derivative contracts have 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.
Sunil Shankar Matkar
first published: Jan 10, 2023 09:24 pm