Bizz Buzz Pre-Market Friday: Things to know before the opening bell

The stock market showed signs of resilience on December 21 as it rebounded and maintained the crucial 21,000 level, following a sharp recovery. Analysts anticipate the ongoing consolidation to persist, with short-term support at 21,000. A decisive break below this level could trigger a significant correction, while surpassing the record high of 21,593 may initiate another leg of the rally.

On December 21, the BSE Sensex gained 359 points, closing at 70,865, while the Nifty 50 rose by 105 points to 21,255. Although a bullish candlestick pattern emerged on the daily charts, there was a lower high and lower low formation.

According to Subash Gangadharan, a senior technical and derivative analyst at HDFC Securities, the short-term trend remains downward. Momentum indicators, such as the 14-day RSI, continue to decline, indicating a short-term downtrend.

To reverse the current downtrend, the Nifty needs to surpass the recent high of 21,593. Crucial support levels to watch are at 20,976, according to Gangadharan.

While the overall market breadth remained strong, suggesting a firm market, key levels for the Nifty include immediate resistance at 21,292, followed by 21,366 and 21,485. On the downside, support is expected at 21,054, followed by 20,981 and 20,862.

In the banking sector, the Bank Nifty closed 395 points higher at 47,840 on December 21. The index's resistance is seen at 47,951, 48,190, and 48,577, while support is expected at 47,177, 46,938, and 46,551.

Options data reveals that the 22,000 strike has the maximum Call open interest, acting as a key resistance level. On the Put side, the 21,000 strike has the maximum open interest, serving as a key support area.

In stock-specific developments, Dabur India, Asian Paints, Syngene International, Godrej Consumer Products, and Marico saw the highest delivery among F&O stocks.

Technical indicators identified 84 stocks with a long build-up, including Coromandel International, Hindustan Copper, Britannia Industries, IRCTC, and GMR Airports Infrastructure. Nine stocks saw long unwinding, including Bajaj Auto, Ashok Leyland, Maruti Suzuki India, Mahindra & Mahindra, and Dr Reddy's Laboratories.

Short build-up was observed in 15 stocks, including City Union Bank, Marico, ICICI Bank, Dabur India, and Bandhan Bank. Additionally, 80 stocks were identified for short-covering, such as PI Industries, NALCO, Eicher Motors, Indiabulls Housing Finance, and Godrej Properties.

The Nifty Put Call ratio (PCR) climbed to 1.11 on December 21, indicating an increase in bearish sentiment.

In corporate news, LIC obtained an exemption from the Department of Economic Affairs, extending the deadline for achieving the 25 percent minimum public shareholding threshold to 2032.

GMR Airports Infrastructure, a subsidiary of GMR Airports, entered into a binding agreement with the National Investment and Infrastructure Fund (NIIF) to invest Rs 675 crore in the upcoming airport at Bhogapuram, Andhra Pradesh.

Bata India announced the resignation of Pankaj Gupta as Head of Retail and Franchisee Operations, effective March 1, 2024, with Badri Beriwal taking on additional responsibilities.

MOIL reported that production crossed 16 lakh tonnes by December 20, 2023, a 26 percent increase over the previous high in 2019.

Suven Pharmaceuticals appointed Himanshu Agarwal as CFO from January 2, 2024, replacing Subba Rao Parupalli, who had resigned.

360 ONE WAM entered into a share purchase agreement with MAVM Angels to acquire the remaining 9 percent stake, making the company a wholly-owned subsidiary.

Market participants are advised to remain vigilant, considering the current market conditions and the key levels mentioned by experts. Traders are encouraged to focus on stock-specific opportunities and practice proper risk management.