February 20, 2024

Nifty more likely to face resistance at 21,900

Technically, the market appeared robust and appears to be negating decrease highs, decrease lows formation on the every day charts within the coming periods. The index appears to be surpassing 21,750 and is more likely to march in the direction of 21,850-21,900 ranges given the momentum in coming periods, with assist at 21,600-21,500 ranges, consultants mentioned. They added that the Financial institution Nifty appears to have bottomed out final week with a powerful bounce from the 200-day EMA (exponential shifting common).

On January 29, the market began off the February collection on a powerful notice because the Nifty50 jumped 385 factors or 1.8 % to 21,738 and shaped a protracted bullish candlestick sample on the every day charts, indicating the bullish reversal development out there.

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Shrikant Chouhan, head-equity analysis at Kotak Securities is of the view that the present market texture is bullish however because of short-term overbought situations, he may see some rangebound motion quickly.

“21,650-21,600 would act as key assist zones whereas 21,850-21,900 may very well be the instant resistance areas. Nonetheless, under 21,600, the uptrend could be susceptible,” he mentioned.

Now, the index has retraced 61.8 % of the latest correction in a single buying and selling day. The RSI oscillator on the hourly charts is indicating a constructive momentum nevertheless it’s but to present a constructive crossover on the every day chart. An in depth above 21,900 may affirm a resumption of the uptrend, whereas on the decrease facet, 21,570-21,500 could be seen because the instant assist from a really short-term perspective,” Ruchit Jain, lead analysis at 5paisa.com mentioned.

The BSE Sensex climbed 1.8 % or 1,241 factors to 71,942.

The broader markets additionally joined the rally because the Nifty Midcap 100 and Smallcap 100 indices gained 1.6 % and 1.5 %, respectively, whereas the India VIX jumped 13.09 % to fifteen.68 ranges.

We’ve got collated 15 knowledge factors that can assist you spot worthwhile trades:

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Key assist and resistance ranges on the Nifty and Financial institution Nifty

The pivot level calculator signifies that the Nifty is more likely to take instant assist at 21,516, adopted by 21,437, and 21,310 ranges, whereas on the upper facet, it might see instant resistance at 21,768, adopted by 21,850 and 21,977 ranges.

In the meantime, on January 29, the Financial institution Nifty additionally participated out there run-up, rising 576 factors or 1.28 % to 45,442 and shaped a bullish candlestick sample with a protracted higher shadow on the every day scale, whereas the quantity was increased.

“Financial institution Nifty is within the means of retracing the autumn it has witnessed from 48,300-44,500 and therefore the pullback can proceed until 46,000 – 46,200 from a short-term perspective,” Jatin Gedia, technical analysis analyst at Sharekhan by BNP Paribas mentioned.

On the draw back, he feels 45,110 is essential assist from short-term perspective.

As per the pivot level calculator, the Financial institution Nifty is predicted to take assist at 45,195, adopted by 45,065 and 44,855 ranges, whereas on the upper facet, the index may even see resistance at 45,493, adopted by 45,744 and 45,954 ranges.

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Name choices knowledge

As per the weekly choices knowledge, the utmost Name open curiosity was seen at 22,500 strike with 55.49 lakh contracts, which might act as a key stage for the Nifty within the quick time period. It was adopted by the 22,000 strike, which had 41.86 lakh contracts, whereas the 22,400 strike had 33.93 lakh contracts.

Significant Name writing was seen on the 22,400 strike, which added 21.14 lakh contracts adopted by 22,500 and 22,000 strikes including 18.52 lakh and 16.81 lakh contracts, respectively.

The utmost Name unwinding was on the 21,400 strike, which shed 8.83 lakh contracts adopted by 21,300 and 21,500 strikes which shed 7.08 lakh and 5.8 lakh contracts.

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Put choice knowledge

On the Put entrance, the 21,500 strike owned the utmost open curiosity, which might act as a key stage for Nifty, with 49.15 lakh contracts. It was adopted by 21,000 strike comprising 42.48 lakh contracts after which 21,400 strike with 37.93 lakh contracts.

Significant Put writing was at 21,600 strike, which added 32.66 lakh contracts, adopted by 21,500 strike and 21,700 strike, which added 32.26 lakh contracts, and 25.02 lakh contracts.

There was no Put unwinding in any of the strike within the vary of 20,300 to 23,100 on the Nifty 50.Image929012024

Shares with excessive supply share

A excessive supply share means that buyers are displaying curiosity within the inventory. ICICI Prudential Life Insurance coverage Firm, Bosch, Godrej Client Merchandise, Pidilite Industries and Havells India noticed the best supply among the many F&O shares.

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86 shares see a protracted build-up

An extended build-up was seen in 86 shares, which included Godrej Properties, GAIL India, InterGlobe Aviation, Nationwide Aluminium Firm and Coal India. A rise in open curiosity (OI) and worth signifies a build-up of lengthy positions.Image429012024

4 shares see lengthy unwinding

Primarily based on the OI share, 4 shares noticed lengthy unwinding which have been Can Fin Properties, Balkrishna Industries, Torrent Pharma and Bajaj Auto. A decline in OI and worth signifies lengthy unwinding.

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29 shares see a brief build-up

A brief build-up was seen in 29 shares together with SBI Playing cards and Fee Providers, Metropolis Healthcare, AU Small Finance Financial institution, SRF and Zee Leisure Enterprises. A rise in OI together with a fall in worth factors to a build-up of quick positions.Image629012024

66 shares see short-covering

Primarily based on the OI share, 66 shares have been on the short-covering listing. This included Petronet LNG, SBI Life Insurance coverage Firm, Federal Financial institution, Energy Grid Company of India and Siemens. A lower in OI together with a worth enhance is a sign of short-covering.

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PCR

The Nifty Put Name ratio (PCR), which signifies the temper of the fairness market, climbed to 1.21 on January 29, from 1.04 ranges within the earlier session. The above 1 PCR signifies that the Put volumes are increased than the Name volumes, which typically signifies a rise in bearish sentiment.

Bulk offersImage129012024

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Outcomes on January 30

Larsen & Toubro, Dr Reddy’s Laboratories, Bajaj Finserv, PB Fintech, Arvind, Astral, Adani Complete Gasoline, Blue Star, Cochin Shipyard, Coromandel Worldwide, Gillette India, KEC Worldwide, KPIT Applied sciences, Mahindra & Mahindra Monetary Providers, Piramal Pharma, Keystone Realtors, Star Well being and Allied Insurance coverage Firm, Symphony, Triveni Engineering & Industries, VIP Industries and Voltas will likely be in focus forward of December FY24 quarter earnings on January 30.

Shares within the information

ITC: The cigarette-FMCG-to-hotel main has recorded a ten.75 % on-year progress in standalone internet revenue at Rs 5,572 crore for the quarter ended December FY24 regardless of weak working numbers, aided by increased different earnings, and decrease tax value. Standalone income from operations elevated by 1.6 % to Rs 16,483.3 crore in comparison with the year-ago interval, pushed by cigarette and FMCG segments.

Bajaj Finance: The non-banking finance firm has registered a 22 % on-year progress in consolidated internet revenue at Rs 3,639 crore for the October-December interval of FY24 regardless of increased mortgage losses and provisions. Internet curiosity earnings throughout the quarter elevated by 29 % to Rs 7,655 crore in comparison with the year-ago interval.

Vodafone Concept: The telecom operator has posted a internet lack of Rs 6,986 crore for the quarter ended December FY24, narrowing from a lack of Rs 8,738 crore within the earlier quarter with margin enchancment. Income throughout the quarter fell 0.4 % sequentially to Rs 10,673.1 crore in comparison with the earlier quarter.

Petronet LNG: The state-owned liquefied pure fuel importer recorded a consolidated internet revenue of Rs 1,213 crore for the October-December interval of FY24, rising sharply by 41.7 % over the earlier quarter, backed by wholesome working numbers. Income from operations grew by 17.7 % quarter-on-quarter to Rs 14,747.2 crore throughout the quarter.

Marico: The FMCG firm has reported consolidated internet revenue at Rs 386 crore for the quarter ended December FY24, rising practically 16 % over a year-ago interval regardless of a decrease topline, backed by wholesome working numbers with a fall in enter value. Consolidated income from operations fell practically 2 % year-on-year to Rs 2,422 crore, with home quantity progress at 2 % for the quarter.

Piramal Enterprises: The corporate posted a consolidated internet lack of Rs 2,377.6 crore for the October-December interval of FY24, towards a revenue of Rs 3,545.4 crore within the year-ago interval, impacted by an distinctive lack of Rs 3,539.8 crore in respect to its investments in different funding funds. Income from operations fell by practically 12 % year-on-year to Rs 2,476 crore throughout the quarter.

Funds Stream (Rs crore)

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FII and DII knowledge

Overseas institutional buyers (FIIs) turned internet consumers within the money section after promoting within the earlier seven days, shopping for shares value Rs 110.01 crore, whereas home institutional buyers (DIIs) bought Rs 3,221.34 crore value of shares on January 29, provisional knowledge from the NSE confirmed.

Shares underneath F&O ban on NSE

The NSE has not added any inventory to the F&O ban listing for January 30.

Securities banned underneath the F&O section embrace corporations the place spinoff contracts cross 95 % of the market-wide place restrict.

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