Markets remained under pressure for the sixth consecutive session, with benchmark indices falling by nearly a third on February 24, taking overall weekly losses to over 2.5 per cent for the first time since June 2022. All sectors, except Pharma and Oil & Gas, closed in the red.
The BSE Sensex fell 142 points to 59,464, while the Nifty 50 fell 45 points to 17,466, its lowest level since October 17 last year.
Experts said the next important support to watch could be the Budget day low of 17,353, which coincides with the 200-day SMA (Simple Moving Average), while 17,600 acts as near-term resistance for the Nifty 50. expected to work.
Broader markets also traded in line with the benchmarks as the Nifty Midcap 100 and Smallcap 100 indices declined 0.2 per cent each on a weak breadth. About three scrips declined for every two scrips rising on the NSE.
“Technically, we are in a short-term downtrend, but we are very close to the crucial support level of the 200-day moving average, which also happens to be the budget day low. Hence the bulls attempt to defend Nifty’s 200- day moving average,” said Santosh Meena, head of research at Swastika Investmart.
He feels that if Nifty is able to maintain its 200-DMA, the index will make a double bottom, which could lead to a market pullback.
On the upside, the 20-DMA near 17,770 will continue to act as an important hurdle; Above this, we can expect a short-covering move towards 18,000-18,100 range. However, there will be more selling pressure if Nifty is unable to sustain its 200-DMA, and 17130 will be the next support level, Santosh said.
We have gathered 15 data points to help you locate profitable trades:
Note: The Open Interest (OI) and Volume data of the stock in this article is the sum of three months data and not just the current month.
Key Support and Resistance Levels on Nifty
As per Pivot charts, Nifty has support at 17,428, followed by 17,386 and then 17,318. If the index moves up, the key resistance levels to watch are 17,564, followed by 17,606 and 17,674.
nifty bank
Nifty Bank was also under pressure, trading in line with the broader markets and fell 92 points to 39,909. The index has formed a bearish candle on the daily charts but has seen higher highs and higher lows after forming a doji candle on the previous day.
“NIFTY BANK INDEX is stuck in a broad range between 39,500 and 40,500. However, the undertone remains bearish and one should maintain a SELL outlook. The index will see bigger moves once it breaks out of the mentioned range Will go,” said. Kunal Shah, senior technical and derivatives analyst at LKP Securities.
They feel that the momentum indicator RSI (Relative Strength Index) is trading below the 30 level, which confirms the weakness.
Important pivot levels, which will act as a support, lie at 39,823, followed by 39,698 and 39,496. On the upside, the major resistance levels are 40,228, followed by 40,352 and 40,555.
call option data
On a weekly basis, maximum Call Open Interest (OI) with 96.16 lakh contracts was seen at 17,600 strike, which may remain an important resistance level for Nifty in coming sessions.
This is followed by the strike of 18,500, which covers 91.23 lakh contracts, and the strike of 18,000, where there are over 76.3 lakh contracts.
Call writing was seen at 17,600 strike which added 51.08 lakh contracts, followed by 28.73 lakh contracts at 18,000 strike and 28.34 lakh contracts at 17,700 strike.
We have not seen any call unwinding in the band of 16,500-18,500 levels on the first day of the March series.
put option data
On a weekly basis, we have seen OI at maximum 17,000 strike with 54.41 lakh contracts, which is expected to act as an important support area for Nifty 50 in March series.
This is followed by the 17,600 strike, which includes 44.75 lakh contracts, and the 17,400 strike, where we have 40.31 lakh contracts.
Put writing was seen at 17,000 strike which added 22.19 lakh contracts, followed by 17,600 strike which added 19.55 lakh contracts and 17,400 strike which added 16.54 lakh contracts.
We have seen put unwinding at 17,500 strike which liquidated 7.56 lakh contracts, followed by 17,800 strike which liquidated 1.01 lakh contracts, and 17,900 strike liquidated 90,150 contracts.
stocks with high distribution percentage
A high distribution percentage indicates that investors are showing interest in these stocks. Power Grid Corporation of India, Petronet LNG, Colgate Palmolive, Container Corporation of India and Dalmia Bharat, among others, saw the highest number of deliveries.
Long build-up is being seen in 46 stocks
Increase in Open Interest (OI) and rise in price mostly indicates creation of long positions. On OI percentage basis, 46 stocks, Gail India, Piramal Enterprises, GNFC, HDFC AMC and Mphasis witnessed a long build-up.
Long unwinding seen in 33 stocks
A drop in OI and a decrease in price, in most cases, indicate unwinding in the long term. On OI percentage basis, 33 stocks saw long unwinding including Zee Entertainment Enterprises, ONGC, Voltas, Tech Mahindra, and Glenmark Pharma.
Short build-up seen in 74 stocks
An increase in OI with a decrease in price mostly indicates creation of short positions. On OI percentage basis, 74 stocks – Adani Enterprises, Escorts, Berger Paints, Hindalco Industries and Hindustan Petroleum Corporation – saw short build-up.
Short covering was seen in 38 stocks
A decrease in OI along with an increase in price is a sign of short-covering. On OI percentage basis, 38 stocks were on the short covering list. These include Aarti Industries, Ashok Leyland, Exide Industries, Shriram Finance and Indian Hotels.
bulk deals
reddington: Synnex Mauritius has offloaded entire 24.13 per cent stake or 18.85 crore shares in the company through an open market transaction on February 24. Synnex Technology International Corporation, a Taiwan-based company engaged in the sale of computer, communications and consumer products, was the buyer for it. These shares in the block trade at an average price of Rs 170.45 per share. The stake sale was worth Rs 3,214.54 crore.
,For more wholesale deals, click here,
Investors Meet on 27 February
FSN E-Commerce Ventures: Company officials will hold talks with Mathews Asia and GIC (Singapore).
HCL Technologies: Company officials will participate in the Global IT Services Virtual Investor Trip organized by Citi.
Cipla: Company officials will participate in the Goldman Sachs: India Pharma and Healthcare Tour.
Anupam Chemicals India: The company’s management team will participate in the investment promotion roadshow in Japan.
Grasim Industries: Company officials will meet investors of Nomura Asset Management.
UltraTech Cement: Company officials will interact with Thelemy Partners.
Crompton Greaves Consumer ElectricalsCompany officials will meet Mahindra Asset Management.
Phoenix Mills: Company officials will meet Mathews of Asia.
Indian Energy Exchange: Company executives will talk to Bailey Gifford.
Medplus Health Services: Company officials will participate in Ambit India Access – Healthcare Tour.
stock in news
Tega IndustriesThe company is set to acquire McNally Sayaji Engineering. NCLT has approved Tega’s resolution plan for the acquisition of McNally Sayaji through the CIRP process. Once completed, this will be Tega’s first acquisition in India and fourth globally. The acquisition is in line with the company’s objective to broaden its product portfolio to better serve global and Indian businesses.
Power Grid Corporation of India: The Committee of Directors on Investments of the Company has approved 4 projects worth Rs.803.57 Crore, which includes implementation of Western Region Expansion Plan-XXV and North Eastern Region Expansion Plan-XX.
IRB Infrastructure Developers: The road developer has received Letter of Award from National Highways Authority of India (NHAI) for the project of upgradation to six-laning with paved shoulder of NH-27 from Samakhiali to Santalpur section in Gujarat on BOT (Toll) mode.
Kalpataru Power Transmission: The company has successfully completed the sale and transfer of additional 25 per cent stake in Kohima-Mariani Transmission to Aprava Energy. Post the transaction, the company has now transferred a total stake of 48 per cent in KMTL, with an agreement to sell the remaining 26 per cent to Aparva, after obtaining necessary regulatory and other approvals. The company had 74 percent equity stake in Kohima-Mariani Transmission, and the remaining 26 percent was held by Techno Electric & Engineering Company.
Pfizer: The pharma company has completed the sale of its Thane business venture to Vidhi Research & Development LLP after obtaining all necessary approvals from the relevant authorities. The company shifted its business undertaking to Thane along with the land, plant and machinery and all the workmen employed in the said undertaking.
Indiabulls Housing Finance: The Securities Issuance Committee of the company has approved a public issue of secured redeemable non-convertible debentures of Rs 100 crore with an option to retain oversubscription up to Rs 800 crore, taking the total issue up to Rs 900 crore Is. This is within the shelf limit of Rs 1,400 crore. The said Tranche V issue will open for subscription during March 3 and March 17, 2023.
tube investment in india: Subsidiary TI Clean Mobility (TICMPL) signs definitive documents with Tube Investments, Multiples Private Equity Fund III, State Bank of India among other co-investors to raise capital up to Rs 1,950 crore in the form of equity and CCPS Are. The total investment by multiples, SBI and other co-investors will be Rs 1,200 crore. The total investment by Tube Investments will be Rs 750 crore, out of which Tube Investments has already invested Rs 639 crore through equity and ICDs. In addition, TICMPL plans to raise an additional fund of Rs 1,050 crore by the end of March 2024, taking the total fund raised to Rs 3,000 crore.
Phoenix Mills: Subsidiary company Palladium Construction (PCPL) has completed the acquisition of approximately 5.5 acres of land in Alipore, Kolkata for Rs 414.31 crore. This acquisition provides the company to build a residential development of over 1 million sq ft of salable area.
SpiceJet: The Board of Directors of the Company will meet again on February 27 to consider issue of equity shares on a preferential basis consequent to conversion of outstanding liabilities into equity shares and to raise fresh capital by way of issue of eligible securities to qualified institutional buyers Could
fund flow
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,470.34 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,400.98 crore on February 24, provisional data from the National Stock Exchange showed.
Stocks under F&O restrictions on NSE
National Stock Exchange has not added any stock to its F&O ban list for February 27. Prohibited securities under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market wide position limit.
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