Bizz Buzz Pre-market Tuesday: Things to know before opening bell

In the stock market update for January 22, 2024, analysts suggest that the Nifty 50 is likely to remain range-bound with support at 21,300 and a crucial hurdle at 21,850. The BSE Sensex fell 260 points to 71,424, and the Nifty 50 was down 51 points to 21,572 on January 20. A bearish candlestick pattern, resembling Bearish Engulfing, was formed on the daily charts, indicating the possibility of increased bearish activity.

On the weekly chart, the Nifty closed with a long bear candle, signaling a potential Bearish Engulfing pattern. This bearish formation after a long time on the long-term chart suggests an emergence of selling pressure at new highs, according to Nagaraj Shetti, senior technical research analyst at HDFC Securities.

The short-term trend for Nifty is expected to remain choppy, with potential weakness after a small rise. Rohit Srivastava, Founder of Strike Money Analytics and Indiacharts, suggests that the rally from the October low may be over, and a correction could be setting in.

Key support and resistance levels on the Nifty and Bank Nifty are crucial for traders. The pivot point calculator indicates immediate support at 21,543, followed by 21,501, and 21,433 levels, with resistance at 21,588, 21,722, and 21,790 levels.

The Bank Nifty outperformed the Nifty 50, climbing above the 46,000 mark, rising 357 points to 46,058. The recent decline in Bank Nifty appears impulsive, indicating a potential further decline in the coming weeks, as per Rohit Srivastava. However, a short-term bounce is possible before heading back to the 200-day EMA at 44,555.

On the options front, the 22,500 strike holds the maximum Call open interest, acting as a key resistance level for the Nifty. Call writing is observed at the 21,700 strike, adding 20.79 lakh contracts.

On the Put side, the maximum open interest is at the 20,500 strike, serving as a key support area for Nifty. Put writing is observed at the 21,000 strike, adding 9.25 lakh contracts.

Stocks with high delivery percentage include PI Industries, SBI Life Insurance Company, SRF, Max Financial Services, and Hindustan Unilever, indicating investor interest.

In terms of stock futures, a long build-up is seen in 39 stocks, while 53 stocks see long unwinding, and 79 stocks witness a short build-up. Additionally, 16 stocks are on the short-covering list.

The Nifty Put Call ratio (PCR) fell to 0.86 on January 20, indicating an increase in bullish sentiment as traders buy more Call options than Puts.

Results for various companies, including Axis Bank, Indus Towers, JSW Energy, L&T Finance Holdings, and others, are expected on January 23.

Stocks in the news include Zee Entertainment Enterprises, ICICI Bank, Persistent Systems, Coforge, Colgate-Palmolive India, Tata Motors, and others.

In terms of fund flow, foreign institutional investors (FIIs) continued to be net sellers for four consecutive days, selling shares worth Rs 545.58 crore. Domestic institutional investors (DIIs) offloaded Rs 719.31 crore worth of stocks on January 20.

A total of 11 stocks are in the F&O ban list for January 23, including IRCTC, Aditya Birla Fashion & Retail, Balrampur Chini Mills, and others. Hindustan Copper was removed from the list.

Please note that the views and investment tips expressed are those of the experts and not necessarily those of the website or its management. Investors are advised to check with certified experts before making any investment decisions.