Bizz Buzz Pre-market Wednesday: Things to know before the opening bell

The market appears to be facing challenges in maintaining the 21,500 mark, identified as the immediate support level. Bears have attempted to break this support, but bulls have strongly resisted, resulting in the Nifty 50 closing above this level. As long as the index holds this support, experts suggest a continuation of range-bound trade with resistance at 21,750-21,850 levels. However, a break below 21,500 could trigger significant bearish action, indicating a potential major correction.

On January 9, the benchmark indices had a strong opening, but gains were erased in the last hour of trade. The BSE Sensex was up 31 points at 71,386, while the Nifty 50 gained 32 points at 21,545. The daily charts showed a bearish candlestick pattern as the closing was lower than opening levels.

According to Nagaraj Shetti, senior technical research analyst at HDFC Securities, the technical indicators suggest a negative indication and the possibility of sharp weakness around the overhead hurdles at 21,750 levels. The Nifty 50 has started visiting the immediate supports of the 10-day Exponential Moving Average (EMA) frequently, and a decisive break below the support at 21,500 could lead to further weakness.

Kunal Shah, senior technical & derivative analyst at LKP Securities, highlights two possibilities for a significant directional movement for Nifty. A closing above 21,750 could reclaim bullish momentum, while a close below 21,500 might prompt additional selling pressure, potentially pulling the Nifty index toward the 21,200 mark.

Key Support and Resistance Levels on the Nifty:

Immediate resistance at 21,564, followed by 21,723 and 21,802 levels.

Immediate support at 21,517, followed by 21,468 and 21,389 levels.

Nifty Bank:

Bank Nifty extended selling pressure for the third consecutive session, forming lower highs and lower lows.

Closed below 10-day and 20-day EMA, forming a bearish candlestick pattern.

Crucial support in the range of 47,000 – 46,900, with resistance at 47,315, 47,930, and 48,229 levels.

Call Options Data:

21,700 strike owned the maximum Call open interest, acting as a key resistance.

21,600 strike and 21,800 strike also showed significant open interest.

Meaningful Call writing at 22,100 strike, with the maximum Call unwinding at 22,200 strike.

Put Options Data:

Maximum open interest at 21,000 strike, acting as key support.

Meaningful Put writing at 21,200 strike, with Put unwinding at 20,900 strike.

Stocks with High Delivery Percentage:

ICICI Prudential Life Insurance Company, Pidilite Industries, Hindustan Unilever, Grasim Industries, and Godrej Consumer Products saw the highest delivery among F&O stocks.

Long Build-Up:

48 stocks saw a long build-up, including Bajaj Auto, JK Cement, DLF, Petronet LNG, and Godrej Properties.

Long Unwinding:

30 stocks saw long unwinding, including Godrej Consumer Products, Zee Entertainment Enterprises, ACC, Bajaj Finance, and Vodafone Idea.

Short Build-Up:

49 stocks saw a short build-up, including Polycab India, Dr Lal PathLabs, Navin Fluorine International, SRF, and Page Industries.

Short Covering:

58 stocks were on the short-covering list, including Birlasoft, Bandhan Bank, Hindustan Copper, Chambal Fertilisers & Chemicals, and Adani Ports.

Put Call Ratio (PCR):

Nifty PCR rose to 0.88 on January 9, indicating an increase in bullish sentiment.

FII and DII Data:

FIIs sold shares worth Rs 990.90 crore, while DIIs purchased Rs 104.23 crore worth of stocks on January 9.

Stocks in the News:

SpiceJet: Carlyle Aviation discussed prospects and strategies for SpiceJet & SpiceXpress.

Steel Strips Wheels: Acquired AMW Autocomponent for Rs 138.5 crore.

Delta Corp: Q3 net profit fell 59.34 percent, revenue fell 15.58 percent.

Power Finance Corporation: Received no objection letter from RBI to set up a wholly-owned subsidiary finance company in IFSC.

Stocks under F&O Ban on NSE:

Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers & Chemicals, Delta Corp, Escorts Kubota, GNFC, Hindustan Copper, Indian Energy Exchange, India Cements, National Aluminium Company, Piramal Enterprises, and SAIL are in the F&O ban list for January 10.

Disclaimer: The views and investment tips expressed by experts are their own, and readers are advised to seek professional advice before making any investment decisions.