Pre-market Insights for Tuesday: Key Factors to Consider Ahead of Opening Bell

The market continued its record high run for yet another session after a decisive breakout. Experts expect the momentum to continue in the near term, but with consolidation and volatility. The BSE Sensex spiked 759 points to 73,328, led by technology, banks, and Reliance Industries. The Nifty 50 jumped 203 points to 22,098, forming a bullish candlestick pattern with a long lower shadow on the daily timeframe, indicating buying interest at lower levels.

The bullish candlestick pattern indicates a confirmation of a sharp upside breakout of an important hurdle. If Monday's opening upside gap remains unfilled at 21,900 levels for the next 2-3 sessions, it could be considered a bullish runaway gap, typically formed in the middle of sustainable uptrends. The next upside levels to be watched are around 22,200-22,300, with immediate support at 22,000 levels.

Nifty and Bank Nifty Levels:

The Nifty is likely to face resistance at 22,111, followed by 22,153 and 22,211. On the downside, support levels are 22,001, 21,965, and 21,907. The Bank Nifty extended its uptrend for the fourth consecutive session, reaching 48,158, with resistance levels at 48,197, 48,339, and 48,500, and support at 47,916, 47,816, and 47,655.

Options Data:

Weekly options data shows maximum Call open interest at 22,500 strike, followed by 22,300 and 22,200 strikes. Significant Call writing was observed at 22,800 strike, with unwinding at 21,900 strike. On the Put side, maximum open interest was at 22,000 strike, with meaningful Put writing at the same level. Put unwinding was observed at 20,800 strike.

Stocks Activity:

High delivery percentage was observed in Pidilite Industries, PI Industries, SBI Life Insurance Company, Navin Fluorine International, and Britannia Industries. Long build-up was seen in 71 stocks, including ONGC, Tata Communications, Granules India, IndiaMART InterMESH, and Wipro. Long unwinding was observed in 28 stocks, while short build-up was seen in 39 stocks. Short-covering was noted in 49 stocks.

PCR (Put Call Ratio):

The Nifty Put Call ratio (PCR) jumped to 1.52, the highest level since July 17, 2023. A PCR above 1 indicates that traders are buying more Puts options than Calls, suggesting an increase in bearish sentiment.

Bulk Deals:

Bulk deals included Motilal Oswal fund paring stake in Zomato, and Bandhan Core Equity Fund buying stake in Hi Tech Pipes.

Upcoming Results (January 16):

HDFC Bank, ICICI Lombard General Insurance Company, L&T Technology Services, Federal Bank, and others will announce their December FY24 quarter earnings.

Stocks in the News:

Jio Financial Services recorded a consolidated profit of Rs 293.82 crore for the quarter ended December FY24.

PNC Infratech and its subsidiary executed definitive agreements to divest 12 road assets.

Angel One recorded a net profit of Rs 260.3 crore for October-December FY24.

Rail Vikas Nigam emerged as the lowest bidder for 11 KV line associated works in Jabalpur.

Aster DM Healthcare is set to complete the transaction of stake sale in GCC business.

FII and DII Data:

Foreign institutional investors (FIIs) bought shares worth Rs 1,085.72 crore, while domestic institutional investors (DIIs) sold Rs 820.69 crore worth of stocks on January 15.

Stocks under F&O ban on NSE (January 16):

Biocon was added to the F&O ban list, while Bandhan Bank, BHEL, Chambal Fertilisers & Chemicals, Delta Corp, Escorts Kubota, Hindustan Copper, India Cements, Indus Towers, Metropolis Healthcare, Piramal Enterprises, Polycab India, PVR INOX, SAIL, and Zee Entertainment Enterprises remained on the list. National Aluminium Company was removed from the ban list.

Disclaimer: The views and investment tips expressed by experts are their own, and readers are advised to verify information and consult with certified experts before making investment decisions.