Traders Guide: From stocks in news to Nifty's technical outlook - 10 things to know before market opens on Monday, February 20

Traders Guide: The Indian markets on Friday traded under pressure and lost nearly half a percent, pressurized by weak global cues. The benchmark indices tried to pare losses but continuous selling in the banking majors combined with a downtick in the IT majors pushed the index lower.

The Nifty50 and BSE Sensex index settled at 17944.20 and 61,002.57 levels, down by 0.5 per cent each. The broader indices too witnessed a decline and lost over half a percent each.

Here is a list of things to watch out for on February 20, 2023

What should investors do on Monday?

Weak global cues combined with continuous pressure in the banking majors is weighing on sentiment. We feel traders should restrict positions amid mixed cues and wait for some clarity.

Also Read: Market Next Week: Derivatives expiry, global cues and FII flows among top factors for Dalal Street

Investors, on the other hand, can utilize this phase to gradually accumulate quality stocks from banking, auto, IT and FMCG space.

- Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Technical Outlook

Technically, Nifty succeeded in breaking the 17972 high sets on budget day, but it now encounters resistance in the supply zone between 18100 and 81200, which is where the Adani Saga began.

The 20-DMA around 17840 will be a crucial and immediate support level, and if it holds this level, we may anticipate another attempt at a new breakout towards 18250. The Nifty may move towards the 17650–17600 region if it drops below its 20-day moving average.

Banknifty has slipped below support at 41100 and is still unable to surpass its budget day high of 42015. However, 40800 is also a respectable support. If it can hold this level, we can anticipate a rebound once again. If not, selling pressure could get worse and go closer to the 40,000 mark.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Key support & resistance levels for Nifty50:

The Nifty50 closed 0.51 per cent lower at 17,944.20. Key Pivot points (Fibonacci) support for the index is placed at 17897.18, 17861.88, and 17804.73, while resistance is placed at 18011.48, 18046.78, and 18103.93.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 1.2 per cent higher at 41,131.75. Key Pivot points (Fibonacci) support for the index is placed at 40934.9, 40785.37, and 40543.33, while resistance is placed at 41418.97, 41568.5, and 41810.54.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Image Source - Stockedge

Stocks in News

Dilip Buildcon bags order worth Rs 1,947 crore.

Cipla: US FDA issues 8 observations in Form 483 for Cipla's Pithampur Manufacturing Facility.

NSE to include Adani Wilmar, Adani Power to few indices from March 31.

RITES bags new order worth Rs 76.08 crore.

KEC International bags new orders worth Rs 3,023 crore.

HUL signs agreement for the sale of its brands, Annapurna & Captain Cook, to Uma Global Foods & Uma Consumer Products for Rs 60.4 cr.

South Indian Bank hikes lending rates by 15-20 bps across tenures effective February 20, 2023.

Pennar Industries bags orders worth Rs 851 crore across its various business verticals.

United Breweries MD & CEO Rishi Pardal resigns.

FII Activity on Friday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 624.61 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 85.29 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Mold-Tek Technologies Ltd: Rohan S Hegde sold 2,04,644 equity shares in the company at the weighted average price Rs 223.28 per share on the NSE, the bulk deals data showed.

Prince Pipes Fittings Ltd: Parag Jayant Chheda sold 8,23,000 equity shares in the company at the weighted average price Rs 585 per share on the NSE, the bulk deals data showed.

Sah Polymers Limited: Leading Light Fund VCC The Triumph Fund sold 3,74,602 equity shares in the company at the weighted average price Rs 83.9 per share on the NSE, the bulk deals data showed.

Pricol Limited: Radhey Buildhome Private Limited sold 7,20,000 equity shares in the company at the weighted average price Rs 209 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Ambuja Cements and Indiabulls Housing Finance is placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs