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

The stock market is anticipated to face bearish control in the short term, with the Nifty50 seeking support around the 21,500 level. A breakdown below this point could extend selling pressure to around 21,300, according to experts. On January 2, the BSE Sensex experienced a 380-point decline to 71,893, while the Nifty50 fell 76 points to 21,666, forming a bearish candlestick pattern with a long lower shadow. This pattern suggests a short-term reversal, and historical instances of such minor weaknesses after range movements have often presented buying opportunities on dips, as noted by Nagaraj Shetti, a senior technical research analyst at HDFC Securities.

Technical charts still display positive patterns, such as higher tops and bottoms, and the current consolidation aligns with the formation of a new higher bottom in the sequence. However, the confirmation of a bottom reversal will be crucial at the lows. The immediate support lies at 21,500, and a sustained move above 21,840 could bring back bullish momentum.

Key support and resistance levels for the Nifty are expected at 21,684, 21,783, and 21,859 (resistance) and 21,583, 21,535, and 21,459 (support). For the Bank Nifty, support is seen around 47,630, where the 20-day moving average is situated, and resistance is projected at 47,711, 48,188, and 48,392. The Put Call ratio (PCR) for the Nifty dropped below 1 to 0.92 on January 2, indicating a rise in bullish sentiment as traders showed a preference for buying more Call options than Puts.

In terms of options data, the 21,800 strike holds the maximum Call open interest with one crore contracts, acting as a significant resistance level. On the Put side, the 21,000 strike has the highest open interest, serving as a key support area. The overall market outlook suggests the need for a cautious and stock-specific approach, with traders advised to look for buying opportunities in stocks displaying relative outperformance against the benchmark.

In the bulk deals segment, Amansa Holding acquired shares worth Rs 119.87 crore in Strides Pharma Science, while Radhakishan Shivkishan Damani purchased a 1.4 percent stake in VST Industries through open market transactions. Noteworthy stocks in the news include Avenue Supermarts, Hero MotoCorp, Bank of Maharashtra, Birlasoft, Hindustan Zinc, Rail Vikas Nigam, and Coal India, each with significant developments affecting their stock performance. Foreign institutional investors (FIIs) bought shares worth Rs 1,602.16 crore, while domestic institutional investors (DIIs) sold Rs 1,959.04 crore worth of stocks on January 2. Delta Corp, Indian Energy Exchange, SAIL, and Zee Entertainment Enterprises have been added to the NSE's F&O ban list for January 3, while Balrampur Chini Mills and Hindustan Copper remain on the list.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own, and readers are advised to consult with certified experts before making investment decisions.