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

The stock market is showing signs of a short build-up in 62 stocks, including notable ones like L&T Technology Services, Hindustan Aeronautics, Vodafone Idea, HDFC Asset Management Company, and Ashok Leyland.

Market experts are observing a potential bearish reversal pattern in the Nifty 50, as it formed a Tweezer Top candlestick pattern on January 16. This pattern occurs when the high points of two consecutive candlesticks remain the same after an uptrend, signaling a possible reversal. Confirmation of this reversal pattern will be sought in the follow-up candle.

Consolidation and normal profit booking are expected to continue in the index, with immediate support at 21,900-21,800 and crucial support at 21,500. On the upside, a rebound may face resistance at 22,200 levels.

Technical analysts emphasize that only below the 20-day moving average (DMA) of 21,640 could trigger profit booking, with subsequent support levels at 21,450 and 21,000. On the upside, the next hurdle is expected at 22,222.

A buy-on-dip strategy is recommended by analysts as long as the level of 21,600 is protected on the downside.

The broader markets have also corrected in line with the frontline indices, with the Nifty Midcap 100 and Smallcap 100 indices down 0.4 percent and 0.5 percent, respectively.

Key support and resistance levels for the Nifty and Bank Nifty are indicated, with the pivot point calculator suggesting immediate resistance at 22,046 and support at 21,983.

Bank Nifty has witnessed consolidation, forming a Doji candlestick pattern on the daily timeframe, indicating indecisiveness. However, analysts expect the momentum to continue on the upside, with a short-term target of 48,650 – 49,000.

Call options data shows that the 22,500 strike holds the maximum Call open interest, acting as a key resistance level, followed by the 22,100 and 22,200 strikes. Meaningful Call writing is observed at the 22,100 strike.

On the Put side, the 22,000 strike has the maximum open interest, serving as a key support area. Meaningful Put writing is seen at the 21,300 strike.

Stocks with high delivery percentage, indicating investor interest, include Hindustan Unilever, PI Industries, SBI Life Insurance Company, Shriram Finance, and Infosys.

The report also highlights data on stocks with long build-up, long unwinding, short build-up, and short-covering, providing insights into market trends.

The Nifty Put Call ratio (PCR) fell to 1.22 on January 16, indicating an increase in bearish sentiment.

Bulk deals, results announcements for January 17, and stocks in the news are also covered in the report.

HDFC Bank, L&T Technology Services, TV18 Broadcast, ICICI Securities, Adani Energy Solutions, and ICICI Lombard General Insurance Company are among the companies reporting their earnings on January 17.

The report concludes with data on funds flow, FII and DII activity, and a list of stocks under the F&O ban on NSE.

Disclaimer: The views and investment tips expressed by experts are their own, and readers are advised to consult certified experts before making investment decisions. The report is for informational purposes only and is not a recommendation to buy or sell securities.