Navigating Monday’s Market: 15 Essential Insights for Pre-Bell Trading
As traders gear up for Monday’s session, here’s a comprehensive overview of key market indicators, technical analysis insights, and notable developments to guide your trading decisions.
Market Overview
- Short Build-Up: A short build-up was observed in 67 stocks including Canara Bank, Oracle Financial Services Software, India Cements, Metropolis Healthcare, and India MART Intermesh.
- Market Sentiment: Despite profit booking after reaching a new high on February 23, the overall sentiment remains positive. Intermittent consolidation and correction are anticipated, with key resistance levels at 22,300 and 22,500 for the Nifty 50.
Technical Analysis Insights
Nifty 50
- Support and Resistance Levels: Immediate support at 22,000 with resistance at 22,300 and 22,500.
- Short-Term Outlook: Short-term support positioned at 21,900, suggesting buying opportunities on dips.
Bank Nifty
- Consolidation Phase: Bank Nifty consolidating in the range of 46,400 – 47,400, with an expectation of a rise towards 48,000 – 48,300 in the short term.
Options Data Analysis
- Call Options: Maximum open interest at 23,000 strike, with meaningful call writing at 23,100 strike.
- Put Options: Maximum open interest at 21,000 strike, indicating a key support level, with significant put writing at 21,200 strike.
Stocks Movement Analysis
Long Build-Up
- 40 stocks witnessed a long build-up, indicating a potential increase in bullish sentiment.
Long Unwinding
- 37 stocks saw long unwinding, suggesting a decline in bullish positions.
Short Build-Up
- 67 stocks exhibited a short build-up, indicating a bearish sentiment among traders.
Short Covering
- 42 stocks witnessed short-covering, suggesting a potential reversal in bearish sentiment.
Other Market Indicators
- PCR (Put Call Ratio): PCR fell to 1.02 on February 23, indicating increasing bearish sentiment.
- Stocks in the News: Notable updates include financial results, corporate guarantees, and infrastructure projects from companies like Rain Industries, Biocon, JSW Infrastructure, and Foseco India.
- FII and DII Data: FIIs net bought shares worth Rs 1,276.09 crore, while DIIs purchased Rs 176.68 crore worth of stocks on February 23.
F&O Segment Updates
- Stocks Under F&O Ban: Canara Bank added to the F&O ban list for February 26, with notable exclusions including Bandhan Bank and Indus Towers.
Graph: Nifty 50 Support and Resistance Levels
Table: Top Stocks with Long Build-Up and Short Build-Up
| Long Build-Up | Short Build-Up |
|---|---|
| Astral | Canara Bank |
| Indian Hotels | Oracle Financial |
| Aditya Birla | Services Software |
| Vodafone Idea | India Cements |
| Jubilant Foodworks | Metropolis Healthcare |
| … | IndiaMART InterMESH |
FAQ
What is a short build-up?
A short build-up occurs when there is an increase in open interest along with a fall in price, indicating a bearish sentiment among traders.
How is support and resistance calculated?
Support and resistance levels are calculated using technical analysis tools such as pivot point calculators, which identify key price levels where a stock is likely to encounter barriers in its movement.
What does the Put Call Ratio (PCR) indicate?
The Put Call Ratio (PCR) reflects the mood of the equity market, with a PCR above 1 indicating increasing bearish sentiment as the trading volume of Put options surpasses that of Call options.
Conclusion
With a mix of technical analysis insights, options data analysis, and market updates, traders can make informed decisions for Monday’s trading session, keeping an eye on key support and resistance levels, options activity, and notable developments in individual stocks.