Indian stock market ended marginally higher on weekly expiry day amid volatility. At close, the Sensex was up 85.26 points or 0.14 percent at 61,235.30. The broader Nifty was up 45.50 points or 0.25 percent at 18,257.80. About 1,630 shares have advanced, 1,609 shares declined, and 62 shares are unchanged. Nifty Midcap 100 index closed 0.65% higher.
Weekly Expiry Day Market Summary
Frontline indices whipsawed around the flat line on Thursday as tepid economic data hit sentiment. Besides, weekly F&O expiry also added to the volatility. The NSE Nifty50 hit a high of 18,272 and a low of 18,164 during the day. It ended at 18,257, up 44 points or 0.24 per cent. Bank Nifty ended in red, fallen 257.60 points or 0.67% to close at 38469.95. India VIX slipped 2.74% to end around 16.71 levels, Bank Nifty underperformed the Nifty index by 0.9%.
On the sectoral front
In yesterday’s trade the best performing index was NIFTY METAL, it was up by 3.48 percent, followed by NIFTY PHARMA, which was up by 1.57 per cent. The worst-performing index was NIFTY REALTY, which was down by -0.72 per cent.
Major Gainer and Loser of Nifty 50
TATA STEEL (up 6.26%), JSW STEEL (up 4.32%) & SUN PHARMA (up 3.57%) were among the Top gainers in yesterday’s trading session.
WIPRO (down 5.97%) & ASIAN PAINTS (down 2.42%) were among the Top losers in yesterday’s trading session.
FII’s were net sellers of the day, sold shares worth Rs 1390.85 crores. DII’s were net buyers of the day, bought shares worth Rs 1065.32 crores.
Tomorrow, we have quarterly results lined up of HCL Tech and Tinplate. You can find technical support and resistance of same on our website.
Now what’s next??
The not so decisive move in the index combined with a dip in the banking space is pointing towards some consolidation. And, we feel it would be healthy, considering the surge from the December lows. However, there’ll be no shortage of trading opportunities, thanks to rotational buying across sectors. Participants should focus on metal and pharma along with select counters from chemical, sugar and power space for long positions.
Technical View of Nifty and Bank Nifty
Nifty
Benchmark index opened near 2 months high on the weekly expiry day and continued the winning streak by ended the day marginally higher in the volatile session.
Technically, the index continued to trade higher and took good support from a rising trend line on an hourly chart.
On the daily time frame index formed a Hammer candlestick formation which indicates indecisiveness between bulls and bears.
The Relative Strength Index (RSI) indicator on the four-hourly chart reached its highest level since mid-October near 76. The last time the RSI was that high, the index staged a technical correction. Which indicated some profit booking may come in an upcoming session.
Support is around 18100 levels. Whereas the upside hurdle is around 18350–18500 (Spot levels).
On the options front, Nifty open interest put-call ratio is around 1.09 levels. Maximum call open interest additional was seen in 19000 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 18320 for the targets of 18400–18450 or Sell below 18190 levels for the downside targets of 18150–18100 (Futures levels).
Bank Nifty
Financial benchmark indices broke the winning streak and ended the session on a negative note, weighing the initial positive earnings results and weak global cues. Globally, western markets traded lower due to 4-decade high inflation as the US consumer price index rose by 7% YoY in December.
The near-term technical outlook suggests that the index might stage a technical correction before targeting new multi-month highs. As the bank nifty index breaks the rising trend line with a small margin on hourly charts. Thich indicating some profit booking may come in an upcoming session.
On a daily chart bank nifty formed a bearish candle after a Doji type candlestick pattern witnessed a short-term bearish momentum.
The hourly momentum indicator continues to show negative divergence near the overbought zone, this also shows that the index is losing momentum on the upside.
Mostly all the private banks ended slightly lower.
Once the level of 38800 is crossed and sustained then the index can march towards 40000–40200. Till then there is the near-term support at 38200–38000 (Spot levels).
On the options front, the Bank Nifty open interest put-call ratio is around 0.73 levels. Maximum call open interest addition was seen at 39000 strike. Whereas the maximum put open interest is around 38500 strike, indicating a range of trading in upcoming sessions.
Bank Nifty Futures strategy for the day
Strategy – Either buy above 38720 for the targets of 38850–40000 or sell below 38500 levels for the downside targets of 38350–38200 (Futures levels).
Top Stocks for today (14th Jan 2022)
NESCO (Cash)
We have seen a strong breakout on the daily chart in the last trading session. Now we will expect a major upside move in days to come.
Strategy – Traders can initiated their buy position on dips around 600 levels for the upside targets of 630 and then to 650. Support and stop loss will be below 575.
SIEMENS (FUTURES)
The stock formed a bullish pattern on the charts. We will expect a major breakout of the trendline in days to come.
Strategy – Traders can enter above 2365 for the upside move till 2440 and then to 2480 in the coming days. Support and stop loss will be below 2325 on closing basis.
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