Monday's Pre-market Insights: Key Factors for a Strong Opening

The stock market outlook for Monday, October 23, 2023, suggests a cautious sentiment with the Nifty50 index holding at a crucial support level of 19,500-19,480. Here are some key points to consider before the opening bell:

Market Overview: The market remained rangebound with a negative bias throughout the session on October 20, closing down 1 percent for the week. The Nifty50 managed to hold the crucial support area of 19,500-19,480.

Technical Analysis: The BSE Sensex fell 232 points to 65,398, and the Nifty50 slipped 82 points to 19,543. A Doji candlestick pattern was formed on the daily charts, while a long bearish candlestick pattern emerged on the weekly scale.

Technical Expert's View: According to Nagaraj Shetti, a technical research analyst at HDFC Securities, the short-term trend of Nifty remains negative. If the Nifty breaks below the immediate support of 19,480, it could move towards an important support level at 19,350.

Support and Resistance Levels (Nifty): The pivot point calculator indicates that Nifty may find support at 19,523, followed by 19,505 and 19,477. On the upside, immediate resistance levels are at 19,580, 19,598, and 19,627.

Bank Nifty: The Bank Nifty opened lower but managed to close off the day's low at 43,723, forming a bullish candlestick pattern with a long upper shadow on the daily charts. A crucial "make or break" point is at 43,500. A breach below this level could trigger additional selling pressure, while holding above it may prompt a short-covering rally with a potential target around 44,500.

Call Options Data: The maximum Call open interest (OI) was seen at the 20,000 strike, followed by the 19,800 and 19,600 strikes. Meaningful Call writing occurred at the 19,600 strike, followed by the 19,700 and 19,500 strikes. Maximum Call unwinding was visible at the 20,200 strike.

Put Options Data: The maximum Put open interest was at the 19,000 strike, followed by the 19,500 and 19,400 strikes. Meaningful Put writing occurred at the 19,400 strike, followed by the 18,700 and 19,300 strikes. Put unwinding was observed at the 19,700 strike.

Stocks with High Delivery Percentage: Stocks with high delivery percentage include IndiaMART InterMESH, Metropolis Healthcare, Dabur India, Max Financial Services, and Tata Consumer Products.

Long Build-Up: 11 stocks, including SBI Life Insurance Company, Metropolis Healthcare, Dr. Lal PathLabs, Dixon Technologies, and United Breweries, saw a long build-up.

Long Unwinding: A total of 87 stocks, including LTIMindtree, Gujarat Gas, Atul, UltraTech Cement, and Ipca Laboratories, saw long unwinding.

Short Build-Up: 70 stocks, including Mahanagar Gas, Indraprastha Gas, Crompton Greaves Consumer Electricals, Dabur India, and Vodafone Idea, saw a short build-up.

Short Covering: 19 stocks, including MCX India, Muthoot Finance, Kotak Mahindra Bank, Berger Paints India, and Balrampur Chini Mills, saw short-covering.

Earnings Results: Several companies, including Torrent Pharmaceuticals, PNB Housing Finance, Mahindra Logistics, Mahindra Holidays & Resorts India, Lloyds Metals and Energy, and others, will release their quarterly earnings on October 23.

Stocks in the News: Companies in the news include ICICI Bank, Kotak Mahindra Bank, One 97 Communications, Ipca Laboratories, RBL Bank, and Yes Bank, with highlights of their quarterly results.

Fund Flow: Foreign institutional investors (FII) bought shares worth Rs 456.21 crore, while domestic institutional investors (DII) purchased Rs 8.53 crore worth of stocks on October 20.

Please note that this information is for informational purposes only and should not be considered as financial advice. It's essential to consult with certified experts before making any investment decisions.