Pre-market insights today: Things to know before opening bell

On November 23, 2023, the Indian stock market witnessed a flat close, with the BSE Sensex down 5.4 points at 66,018 and the Nifty50 declining 10 points to 19,802. The market has been range-bound between 19,600 and 19,875 levels for the sixth consecutive day. Technical analysis suggests a continuation of range movement, with a rising wedge-type pattern unfolding on the daily chart.

The short-term trend of Nifty remains choppy, and a decisive move above 19,900 could lead to new all-time highs. On the downside, immediate support is expected around 19,650-19,600 levels. The cooling down volatility is reflected in the decline of the fear index India VIX by 4.63 percent to 11.32 levels. The market breadth favored bulls, with 1,146 shares advancing against 951 declining shares on the NSE.

Key support and resistance levels for Nifty are identified at 19,788, 19,767, and 19,733 for support, and 19,855, 19,876, and 19,910 for resistance. The Nifty Bank outperformed the Nifty50, rising 128 points to 43,578, forming a bullish candlestick pattern resembling a Bullish Harami on the daily charts.

The Bank Nifty maintained its sideways momentum, crucially holding the support level at 43,300. The immediate hurdle for further upside is positioned at 43,700, with additional gains expected toward 44,000 upon a breakthrough. On the downside, a breach of the support level may lead to corrective moves towards 42,800-42,700 levels.

In the options market, the maximum Call open interest (OI) was at 20,000 strike, acting as a key resistance level, followed by the 20,500 strike. Maximum Put OI was at the 19,800 strike, serving as a key support level. Call writing was observed at the 20,300, 20,200, and 20,500 strikes, while Put writing was evident at the 19,800, 19,300, and 19,500 strikes.

Among the F&O stocks, Shree Cement, United Breweries, AU Small Finance Bank, Marico, and Tata Consultancy Services witnessed high delivery percentages, indicating investor interest. Long build-up was observed in 56 stocks, including Balrampur Chini Mills, Hero MotoCorp, GNFC, BPCL, and Aarti Industries.

Conversely, 36 stocks saw long unwinding, while 49 stocks showed a short build-up, including Cipla, Chambal Fertilisers, Persistent Systems, UltraTech Cement, and Bharat Electronics. Short-covering was seen in 43 stocks, such as PI Industries, Balkrishna Industries, SBI Card, IndusInd Bank, and MCX India.

The Nifty Put Call ratio (PCR) increased to 1.11 on November 23, indicating a rise in bearish sentiment. In the bulk deals, Societe Generale offloaded half a percent stake in Rategain Travel Technologies. Smallcap World Fund and Fidelity Global Investment Fund bought 3.2 percent shares in Home First Finance, while promoters offloaded 6.54 percent stake.

Stocks in the news include JSW Steel, Lupin, LTI Mindtree, NMDC, Prestige Estates Projects, and Tata Consultancy Services. JSW Steel completed its investment in JSW Paints, Lupin received tentative approval from the US FDA, and LTI Mindtree launched a Quantum-Safe VPN link. NMDC fixed prices for lump ore and fines, Prestige Estates Projects launched a residential project, and Tata Consultancy Services turned ex-buyback.

In terms of funds flow, foreign institutional investors net bought shares worth Rs 255.53 crore, while domestic institutional investors purchased Rs 457.39 crore worth of stocks on November 23. Balrampur Chini Mills and Hindustan Petroleum Corporation were added to the F&O ban list for November 24, while BHEL and NMDC were removed. Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.