BizBuzz Pre-market Briefing: Key Updates Ahead of Market Opening

On December 13, 2023, the Indian stock market showed signs of resilience, with the Nifty50 rebounding in the last couple of hours of trade to end flat with a positive bias. The market had been holding support at 20,800-20,850 for the past six days, and analysts suggested that the Nifty50 might be gearing up for a move towards the 21,000-21,100 zone amid ongoing consolidation.

The BSE Sensex rose by 34 points to 69,585, while the Nifty50 gained 20 points to reach 20,926. The daily charts formed a Doji candlestick pattern, indicating indecision among buyers and sellers about future market trends.

Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, noted that the dip in the market was bought into, indicating buying interest at lower levels. He pointed out that the hourly momentum indicator was on the verge of giving a positive crossover, suggesting a potential upward cycle. Gedia identified an immediate hurdle at 21,000-21,050, and once surpassed, he expected a quick surge to 21,202-21,447. On the downside, he highlighted Wednesday's low of 20,770 as a crucial support level from a short-term perspective.

Kunal Shah, a senior technical & derivative analyst at LKP Securities, expressed a bullish sentiment, advising traders to initiate fresh long positions.

The broader markets also showed strength, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.9 percent each. The fear index India VIX dropped by 5 percent to 12.07 levels.

Key support and resistance levels on the Nifty were identified using a pivot point calculator, indicating immediate resistance at 20,951, followed by 20,993 and 21,062. On the downside, support levels were anticipated at 20,813, 20,770, and 20,701.

In the banking sector, the Bank Nifty, which held the 47,000 mark amid consolidation, was expected to be range-bound between 47,500-46,900 in the short term. The index found support at the 40-hour moving average placed at 46,900.

Call options data revealed that the 21,000 strike had the maximum open interest (OI), followed by the 21,100 strike. Meaningful Call writing was observed at the 20,900 strike.

On the Put side, the 20,500 strike had the maximum open interest, acting as a key support area. Meaningful Put writing was noted at the 20,500 strike.

Stocks with high delivery percentage, indicating investor interest, included SBI Life Insurance Company, Shriram Finance, Dabur India, Bata India, and Bharti Airtel.

The analysis also highlighted stocks with long build-up, long unwinding, short build-up, and short-covering based on open interest percentages. Notably, 68 stocks were on the short-covering list, including Birlasoft, Dr Reddy's Laboratories, United Spirits, Can Fin Homes, and Alkem Laboratories.

The Nifty Put Call ratio (PCR) remained below 1 but increased to 0.96 on December 13, indicating an increase in bullish sentiment.

In terms of fund flow, foreign institutional investors (FIIs) net bought shares worth Rs 4,710.86 crore, while domestic institutional investors (DIIs) sold Rs 958.49 crore worth of stocks on December 13.

The NSE had retained certain stocks under the F&O ban list for December 14, including Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, National Aluminium Company, and Zee Entertainment Enterprises.

Additionally, the article provided information on bulk deals and highlighted stocks in the news, including Biocon, Sandhar Technologies, Indian Railway Catering and Tourism Corporation, Uno Minda, NBCC (India), Gokul Agro Resources, and GMM Pfaudler.