Bulls maintain firm grip on Dalal Street amid positive global cues as indices rally for 4th straight session. At close, the Sensex was up 533.15 points or 0.88 percent to close at 61,150.04. Nifty was up 156.50 points or 0.87 percent to close at 18,212.30. About 1,694 shares have advanced, 1554 shares declined, and 54 shares are unchanged. The broader market outperformed the main indices. Nifty Mid Cap gained 1.25% while Small Cap index was up 0.9%.
Led by realty, auto, energy, and banking stocks, benchmark indices continued their winning streak despite the fast spread of covid cases. At close, the Nifty was up 156.60 points or 0.87% at 18,212.35. Bank Nifty too touched the day’s high of 38,851.45 before closing on 38727.55, up 285.35 points or 0.74%. India VIX slipped 3.27% to end the day around 17.18 levels, Bank Nifty underperformed Nifty 50, by 0.10%.
Post market hours Infosys posted good inline results :
Infosys Q3 Net profit Rs5809cr (up 7.5% QoQ) – expectation Rs 5900cr
Income Rs31867cr (up 7.7% QoQ) – expectation Rs31500cr
FY22 hikes growth guidance to 19.5% – 20% from 16.5% – 17.50.%
Dollar revenue at $4250mn(up 6.3% QoQ) – Expectation $4163mn
Ebit Rs7484cr (up 7% QoQ) – expectation Rs7400cr
Ebit margin 23.5% vs 23.6% – expectation 23.5%
On the sectoral front
All sectoral indices were closed higher except Nifty Pharma (down 0.15%) while Nifty Realty gained 1.9% followed by Auto (up 1.45%) and Nifty Metal (up 1.33%).
Major Gainer and Loser of Nifty 50
BHARTIARTL (up 3.65%), INDUSINDBK (up 2.78%) & RELIANCE (up 2.54%) were among the top gainers in yesterday’s trading session.
TITAN (down 1.6%) &TCS (down 1.5%) were among the top losers in yesterday’s trading session.
FII’s sold stocks worth Rs 1001.57 crores. While DII’s bought stocks worth Rs 1332.01 crores during the day.
Now, what’s next??
Today we have quarterly results lined up of Mindtree and Tata Metaliks. You can find technical support and resistance levels of same on our website.
It’s going to be a critical session on Thursday as participants will react to the results of IT majors like Infosys, TCS, and Wipro and macroeconomic data (IIP and CPI Inflation) in early trade.
Besides, the scheduled weekly expiry would also keep the volatility high. We’re still seeing opportunities across the board, so traders should maintain their focus on the selection part and align positions accordingly.
Technical View of Index
Indian benchmark index opened on a positive note and has successfully closed around 18200. Global markets showed strength as markets reacted positively to US Federal Reserve chairman Jerome Powell’s testimony.
Technically, the index takes a pause after a strong 3-4 day’s rally, which was today. This suggests that the Bulls tighten their grip and bears has to take a step back for some session.
Also, the index has been trading above 21 & 5 0-DMA as well as a momentum indicator MACD & STOCHASTIC are trading with a positive crossover on the daily timeframe which suggests strength in the counter.
If we get intraday slips or corrections then traders can look at these opportunities to buy into the index for higher targets.
The support is at around 18000 levels. Whereas the upside hurdle is around 18300–18350 (Spot levels).
On the options front, the Nifty open interest put-call ratio is around 1.29 levels. Maximum call open interest additional was seen at 18400 strike. Whereas the maximum put open interest is around 18000 strike, indicating a range of trading in upcoming sessions.
Nifty Futures strategy for the day
Strategy – Either buy above 18250 for the targets of 18330–18400 or Sell below 18150 levels for the downside targets of 18100–18000 (Future levels).
Financial benchmark index opened on a positive note and managed to close the session above 38700 with a gain of 285 points.
Technically, Bank Nifty traded in a narrow range of less than 250 points, meanwhile the index is preparing for a good momentum.
On daily charts, the index has formed a Hammer candlestick formation which indicates indecisiveness between bulls and bears. The short-term formation is still on the bullish side.
HDFC Bank and AU BANK ended slightly lower.
Once the level of 38900 is crossed and sustained then the index can march towards 40000–40200. Till then there is the near-term support at 38500–38200 (Spot levels).
On the options front, the Bank Nifty open interest put-call ratio is around 0.98 levels. Maximum call open interest additional was seen at 39000 strike. Whereas the maximum put open interest is around 38000 strike, indicating a range of trading in upcoming sessions.
Bank Nifty Futures strategy for the day
Strategy – Either buy above 40,000 for the targets of 40,200–40,300 or Sell below 38700 levels for the downside targets of 38500 (Futures Levels).
Top Stock Recommendations for Today (13th Jan 2022)
The stock formed a bullish pattern and was ready for the fresh breakout on the daily chart. We will expect a huge upside move-in days to come.
Strategy – Traders can buy around 533 for the upside move till 560 and then to 575 in the coming days. Support and stop loss will be below 510 on a closing basis.
The stock is continuously holding its upward momentum & forming higher highs and higher lows on charts. We can expect more up-move in days to come.
Strategy – Traders can enter above 2760 for the upside move till 2800 and then to 2830 in days to come. Support and stop loss will be below 2720 on a closing basis.
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