Stock Market Live Updates 20 February 2024: Sensex, Nifty open in red on weak global cues
● From Price Action Perspective:
In yesterday’s session, Nifty gained 0.37 percent, hitting a fresh life high. Strong outperformance was visible in Pharma & Auto space, which gained 0.8% apiece, while Bank Nifty too gained 0.35% in line with the broader Index.
● Decoding Asset Relationships:
While the Dollar Index and 10-year Bond yields are stable at elevated levels of 104.20 and 4.25%, it’s Brent Crude Oil prices that have witnessed fresh momentum on the upside and are currently quoting near its previous swing high.
● Key Nifty levels:
With Nifty having managed to cross its previous swing high above 22125 and having formed a Higher Top Higher Bottom pattern since past 4 sessions, Key support zone for the Indices are placed at 22100-22125 zone while resistance at higher levels around 22250-22270 zone.
Below 22100, Index could witness correction upto 21980-21910 zone.
● OI data Interpretation:
Nifty futures gained 0.28% while OI too gained by 1.28%, implying long buildup in the Index.
Nifty PCR is currently strong at 1.19 level.
Call writing was witnessed across 22200-22300 strikes, while put writing was witnessed in 22000-22100 strikes, implying that the range for the coming few sessions could be 21970 on the downside & 22300 on the upside.
● Key Bank Nifty Levels:
Bank Nifty has been able to successfully hold its short-term moving averages of 10 & 20 DEMA, which is placed around 46000. Along with that, the Indices have formed a Higher Top Higher Bottom pattern since the past 4 sessions.
Going forward, we feel 46000-46200 is likely to offer strong support, while the 50 DMA level of 46750-46800 is likely to act as a near-term resistance.
On the Open Interest Data Front, Bank Nifty futures end the day up 0.32% while OI declined by 3.59%
Bank Nifty PCR is currently stronger at 1.16.
Significant call writing was seen at 46600-46700 strikes and 46500-46300 puts, implying a range of 46800 and 46200 for the coming few sessions.
● Sectors & stocks in Momentum:
Pharma sector witnessed continuation of the ongoing strong momentum with the likes of Dr Reddy, Sun Pharma, Cipla, and Zydus Life, further gaining strength and hinting at likelihood of fresh moves from here-on too.
From the broader market, selective bullish setups were observed in Dixon, Indianb, Jsw energy, Concor, Cumminsind, Icicibank, Reliance, Mrpl, Quess, Aegischem, Bajaj-auto and Maruti.
● FII – DII Data Synopsis:
In Cash Markets, FIIs sold to the tune of 754.59 Cr while DIIs bought to the tune of 452.7 Cr.
FIIs’ Long short ratio for index futures is still around 39.25 as on a net basis, they bought 4981 index futures.
On the stock futures front, FIIs have sold to the tune of 21111 contracts, while on the Options Front, FIIs sold 58727 call contracts and sold 70971 Put Option contracts.
