The market on Tuesday showed signs of continuing its upward momentum, with the Nifty slowly inching higher. The index has gained 300 points in the last three sessions, reversing the losses it made last Wednesday. While institutional participation was minimal, experts believe that there is no prominent weakness on the charts and any intermittent declines on the Nifty can be used as buying opportunities. However, the Nifty is likely to face strong resistance at 21,500-21,600 levels.
Key Support and Resistance Levels on the Nifty
According to the pivot point calculator, the Nifty is likely to see immediate resistance at 21,455, followed by 21,507 and 21,564 levels. On the lower side, it can take support at 21,360, followed by 21,325 and 21,268 levels. Rajesh Bhosale, technical analyst at Angel One, believes that the upcoming sessions around the 21,550 – 21,600 range are critical, representing a formidable resistance formed by the reciprocal retracement of the October decline.
Nifty Bank Outlook
The Nifty Bank index, an underperformer during Friday’s session, moved in tandem with the Nifty and traded in a 400-point range. It did not attempt a record high but ended around 100 points lower from the day’s high of 47,838. For the December series, the index has gained around 2,200 points or 7%, making it one of the best series the index has had in a year it has otherwise underperformed. The sentiment for the Nifty Bank has turned positive again as it closed above the 47,500 mark. Put writers aggressively built positions at the 47,500 strike, which will now act as a support for the index. A strong close above levels of 48,000 is needed for the Nifty Bank to see further momentum.
F&O Cues and Analysis
The Nifty 50’s December futures added 4.2% in Open Interest on Tuesday, with current rollovers standing at 52%. The Nifty Bank’s December futures added 2.5% in Open Interest, with a rollover of 51% going into their expiry session. The Nifty 50’s Put-Call Ratio is at 1.23, indicating a slightly bearish sentiment. RBL Bank has entered the F&O ban list from Wednesday’s session along with NALCO, Balrampur Chini, Delta Corp, and Hindustan Copper.
Stocks to Watch Out For
Several stocks have made headlines with significant developments. Adani Ports is set to hold a board meeting on January 3, 2024, to consider fund raising. Vishnu Prakash R Punglia has received a Letter of Award for projects worth ₹899 crore from the Uttarakhand Government. Kansai Nerolac is set to sign a pact with Aethon Developers, a subsidiary of Runwal Developers, to sell its Lower Parel land parcel for ₹726 crore. Aditya Birla Capital has invested ₹850 crore in Aditya Birla Finance on a rights basis and also invested ₹50 crore in Aditya Birla Capital Digital. SEAMEC has signed an MoU with HAL Offshore for charter hire of offshore support sea vessel “Sea Pearl.” LIC is planning to set up a branch at the International Financial Services Centre in GIFT City. Zee Learn is facing an insolvency petition filed by Axis Bank before the NCLT. UGRO Capital is considering fund raising by issuance of NCDs via a public issue on December 29. Power Grid has acquired Vataman Transmission Ltd. for ₹18.19 crore and has commissioned the 500 MW Tuticorin Wind Energy Zone Project. SJVN has received a 100 MW Solar Power order from Gujarat Urja Vikas Nigam for executing the project at a cost of ₹550 crore.
Bulk Deals and Funds Flow
Among the stocks with high delivery percentage, Max Financial Services, Dabur India, Hindustan Unilever, Sun Pharmaceutical Industries, and UltraTech Cement saw the highest delivery among the F&O stocks. There was a long build-up seen in 58 stocks, including Tata Communications, Tata Chemicals, Atul, M&M Financial Services, and Hero MotoCorp. On the other hand, 33 stocks saw long unwinding, including National Aluminium Company, MCX India, Bata India, Sun TV Network, and Manappuram Finance. A short build-up was seen in 25 stocks, which included RBL Bank, Cholamandalam Investment & Finance, Abbott India, HDFC Life Insurance Company, and Muthoot Finance. 71 stocks were on the short-covering list, including Indiabulls Housing Finance, Hindustan Copper, IndiaMART InterMESH, Dr Lal PathLabs, and Indraprastha Gas.
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