BizzBuzz Pre-Market: Key Insights Before the Opening Bell

On November 30, 2023, the stock market witnessed positive momentum, with the Nifty50 closing above the 20,100 mark. The bullish trend, marked by higher highs and higher lows, continued for the third consecutive session. Last-hour buying played a crucial role in this upward movement.

The optimism in the market was further fueled by renewed Foreign Institutional Investor (FII) buying interest and significant trading volume on the monthly expiry day. The BSE Sensex rose 87 points to 66,988, and the Nifty50 gained 37 points to reach 20,133. A small-bodied bullish candlestick pattern with a long lower shadow on the daily timeframe suggested buying interest at lower levels.

Experts anticipated that the Nifty50 might surpass its previous record high of 20,222 in the initial days of the December series, with a potential target of 20,500. Immediate support was identified at 20,000, and as long as the Nifty remained above this level, the sentiment was expected to remain strong.

The Put writers at the 20,000 strike were seen defending this level, according to Rupak De, a senior technical analyst at LKP Securities. He suggested that a drop below 20,000 could weaken sentiment, but until then, a buy-on-dips strategy was likely to prevail.

On the technical side, resistance zones were identified at 20,200-20,230. If breached, the index could move towards 20,450-20,500. The broader markets also showed an uptrend, with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.7 percent and 1.1 percent, respectively.

Key support and resistance levels for the Nifty were calculated using the pivot point calculator. Immediate resistance was expected at 20,157, followed by 20,191 and 20,245. Support levels were identified at 20,048, 20,014, and 19,960.

The Bank Nifty, after a four-day winning streak, corrected slightly on November 30 but stayed above key levels. A bearish candlestick pattern with a long lower shadow suggested buying at lower zones. Chandan Taparia, a senior vice president and analyst-derivatives at Motilal Oswal Financial Services, outlined key levels for the Bank Nifty, including support at 44,444 and resistance at 44,695, 44,816, and 45,011.

In the options market, the 20,500 strike had the maximum Call open interest (OI), acting as a key resistance level. Meaningful Call writing was observed at the 20,500 strike. On the Put side, the 20,100 strike had the maximum OI, serving as a key support area.

Delivery percentages indicated investor interest in stocks like Reliance Industries, Dalmia Bharat, Vedanta, Oberoi Realty, and Power Grid Corporation of India.

The report also highlighted stocks with high rollovers, long build-up, long unwinding, short build-up, and short-covering. Notably, 123 stocks were identified on the short-covering list, including ONGC, NTPC, BPCL, Bharti Airtel, and Navin Fluorine International.

The Nifty Put Call ratio (PCR) fell to 1.26, indicating a shift in sentiment towards more Put options, suggesting a potential increase in bearish sentiment.

In terms of bulk deals and stocks in the news, Flair Writing Industries was set to debut, Biocon's subsidiary completed the integration of Viatris' biosimilars business, Whirlpool Corporation planned to sell a stake in Whirlpool of India, and Power Grid Corporation of India secured transmission projects in Rajasthan.

On the funds flow front, Foreign Institutional Investors (FIIs) bought shares worth Rs 8,147.85 crore, while Domestic Institutional Investors (DIIs) sold stocks worth Rs 780.32 crore on November 30. The information and views presented are based on experts' opinions, and readers are advised to consult certified experts before making investment decisions.