The broader market traded with strong gains on Monday’s trading session. The S&P BSE Sensex was up 650.98 points or 1.09% to close at 60,395.79. The Nifty 50 index added 190.6 points or 1.07% to close at 18,003.30. About 2,649 shares rose and 993 shares fell. A total of 106 shares were unchanged. The S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index added 1.19%.
STOCK MARKET SUMMARY
The Indian equity benchmark indices gained for a second straight session on Monday with the Nifty 50 index up 190.60 points or 1.07% at 18,003.30 closing above the important psychological level of 18,000 for the first time since November 15, 2021. Bank Nifty touched a day’s high of 38,400.35 before closing at 38347.90, up 608.30 points or 1.16%. India VIX gains 0.45% to end around 17.68 levels. Bank Nifty outperformed the Nifty index by 0.6%.
On the sectoral front,
Buying was visible across the board as all the 15 sector gauges compiled by the National Stock Exchange were traded higher led by the Nifty PSU Bank indices over 3 percent gain. Nifty Media, Realty, Private Bank, Financial Services, Auto, and Bank indices also rose between 1.5–2.25 percent.
Major Gainers and Losers
UPL (up 4.57%), HEROMOTOCO (up 3.28%) & TITAN (up 3.14%) were among the Top gainers in yesterday’s trading session.
WIPRO (down 2.34%) & NESTLEIND (down 1.02%) were among the Top losers in yesterday’s trading session.
FII’s sold stocks worth Rs 124.23 crores. While DII’s were net buyers of the day bought stocks worth Rs 481.55 crores.
Now, what’s next??
Markets are showing tremendous resilience amid the rising COVID cases and the focus would now shift to the earnings season. Besides, key macro data such as IIP and CPI would also be on investors’ radars. Amid all, global cues would continue to induce volatility. We’re now eyeing 18,100+ zone in Nifty. Apart from banking, participants should focus on metal, energy and select auto counters for long positions.
Technical View of Nifty and Bank Nifty
Nifty
Nifty opened with the gap up and was able to sustain the gap and reclaimed the 18000 mark despite weak global markets and rising covid cases.
Technically, it manages to close above the psychological level of 18000 which indicated a further upside momentum in the coming days.
On a daily time frame, It formed a bullish candlestick. Whereas intraday charts giving a breakout of a triangle pattern.
Benchmark Index continued to trade above all the major moving averages, which acts as a support. Indicator MACD & RSI is still trading with a positive crossover that supports the bullish trend.
The support is around 17900–17800 levels. Whereas the upside hurdle is around 18200–18350 (Spot levels).
On the options front, the Nifty open interest put-call ratio is around 1.26 levels. Maximum call open interest additional was seen at 18500 strike. Whereas the maximum put open interest is around 17800 strike, indicating a range of trading in upcoming sessions.
Nifty Futures strategy for the day
Strategy – Either buy above 18100 for the targets of 18160–18250 or sell below 17900 levels for the downside targets of 17800–17720 (Futures levels).
Bank Nifty
The Bank Nifty, post a gap up opening, consolidated near the swing high of 38200. Towards the end of the session, it got stretched beyond the 38300.
Technically, Bank was nifty able to trade above the inside bar candlestick pattern which indicated a short-term bullish trend in the financial sector.
On a daily time frame, Bank Nifty formed a bullish candle, and on intraday charts index formed a flag & pole type pattern.
Only INDUSIND bank ended marginally lower.
PSU Banks led the sectorial rally as reports suggested an increase in FPI limits.
If it crosses and sustains above 38500 then the index can march towards 38800–39000. Till then there is the near-term support at 38000–37800 (Spot levels).
On the options front, the Bank Nifty open interest put-call ratio is around 1.12 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 38600 for the targets of 38800–39000 or Sell below 38400 levels for the downside targets of 38200–38100 (Futures levels).
Top Stock Recommendations for Today (06th Jan 2022)
GMDC LTD. (CASH)
We have seen a strong buying in this counter on the daily chart. Now the stock formed a bullish pattern on the daily time frame. We will expect a fresh breakout in the stock in days to come.
Strategy – Traders can initiate their fresh positions around 79.50 for the initial target of 84 and then to our next target of 88 in the coming days. Near support and stop loss will be below 75 on a closing basis.
IBULHSGFIN (FUTURES)
From the past few days stock is consolidating in a narrow range but now the stock has given a consolidation break out with good volume on 15 mins time frame. We will expect more upside move-in days to come.
Strategy – Traders can grab it above 228.50 for the targets of 232.50 & then 235.50 in the coming days. Support and stop loss will be below 225 on a closing basis.
Traders can trade safely with levels. More will update during market hours. To receive live market updates on your WhatsApp, click on the image given below.
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