Pre-Market Insights: Things to know before opening bell

On November 16, 2023, the market witnessed a late sell-off in banking and FMCG stocks, retracting from the day's peak as Nifty surpassed the crucial resistance level of 19,850. Despite this, the market maintained an overall upward trajectory during the weekly F&O expiry session. Experts suggest that if Nifty successfully closes and sustains above 19,850, the index may reach the 20,000 mark in the coming days, with support levels at 19,600-19,500.

The BSE Sensex gained 307 points to reach 65,982, while the Nifty50 rose by 90 points to 19,765, forming a bullish candlestick pattern with a long upper shadow and a minor lower shadow on the daily scale. This pattern indicates emerging selling pressure around the crucial 19,850 levels.

Nagaraj Shetti, a technical research analyst at HDFC Securities, noted that despite reacting down from key resistance, positive chart patterns like higher tops and bottoms remain intact on the daily chart. He anticipates the possibility of some consolidation or minor weakness in the market in the coming sessions, with expected Nifty support levels at 19,600-19,550.

In the broader market, the Nifty Midcap 100 and Smallcap 100 indices experienced gains of 0.8 percent and 0.6 percent, respectively.

Key data points for traders to consider:

Support and Resistance Levels on Nifty:

Support: 19,661, 19,602, 19,508

Resistance: 19,851, 19,909, 20,004

Nifty Bank:

The Bank Nifty closed lower at 44,162, facing selling pressure near the daily upper Bollinger band at 44,400.

Crucial support is expected at 44,100-43,900, with a resistance zone at 44,700 from a short-term perspective.

Call Options Data:

The 19,800 strike holds the maximum Call open interest (OI), acting as a key resistance level.

Maximum Call writing was observed at the 19,800 strike, with significant additions at 19,900 and 20,100 strikes.

Put Options Data:

The 19,700 strike has maximum Put open interest, serving as key support.

Substantial Put writing was noted at the 19,700 and 19,800 strikes.

Stocks with High Delivery Percentage:

Petronet LNG, Abbott India, Godrej Consumer Products, Bharti Airtel, and Marico saw high delivery percentages.

Long Build-up:

Long build-up observed in 65 stocks, including India Cements, Manappuram Finance, Coforge, ONGC, and Mahanagar Gas.

Long Unwinding:

Long unwinding seen in 25 stocks, including IndusInd Bank, Trent, L&T Finance Holdings, GNFC, and Shriram Finance.

Short Build-up:

Short build-up observed in 35 stocks, including Torrent Pharma, Voltas, National Aluminium Company, Bharat Electronics, and Cipla.

Short Covering:

Short-covering observed in 62 stocks, including Siemens, Mphasis, Escorts Kubota, Oberoi Realty, and MCX India.

Put Call Ratio (PCR):

Nifty PCR dropped slightly to 1.18, indicating a marginal decrease in bullish sentiment.

Bulk Deals:

Notable bulk deals include SoftBank's plan to sell a $150 million stake in Delhivery via a block deal.

Stocks in the News:

Market news includes developments in SJVN, Delhivery, TVS Motor Company, DCX Systems, JSW Steel, JSW Infrastructure, and more.

FII and DII Data:

Foreign institutional investors net bought shares worth Rs 957.25 crore, while domestic institutional investors purchased Rs 705.65 crore worth of stocks on November 16.

Stocks under F&O Ban on NSE:

Stocks under the F&O ban on NSE include Chambal Fertilisers and Chemicals, India Cements, Manappuram Finance, while Indiabulls Housing Finance is removed from the ban list.

As always, traders are advised to exercise caution, conduct thorough research, and seek expert advice before making investment decisions.