The momentum remained strong in the market despite rising Covid cases, with the beginning of December quarter earnings season and supported by positive global cues, on January 12. All sectors, barring IT and Pharma, participated in the run on Wednesday.
The BSE Sensex reclaimed 61,000 mark, rising 533 points to 61,150, while the Nifty50 jumped 156.50 points to 18,212, and formed bullish candle on the daily charts, continuing uptrend for fourth consecutive session.
“Bulls continued their momentum which aided Nifty to marginally close above its interim top of 18.210 levels. However, intraday trading range once again disappointed as Nifty confined its move to 91 points with an indecisive formation which resembles a Spinning Top. Usually such moves with narrow intraday trading ranges will make the index remain vulnerable for a sudden fall,” says Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.
Going forward, he says it remains inevitable for the index to sustain above the bullish gap of the day present between 18,128 – 18,081 levels. “If Nifty manages to sustain above the said gap zone and consistently remain above 18,200 on closing basis for next two to three trading sessions then chances of testing life time highs placed at 18,604 remains much higher.”
For time being, he says any dip between 18,200 – 18,150 can be an opportunity to create fresh long positions with a stop-loss below 18,081 levels on closing basis.
The broader markets also traded in line with benchmarks as the Nifty Midcap 100 and Smallcap 100 indices rallied 1.25 percent and 0.88 percent, respectively.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 18,151.44, followed by 18,090.57. If the index moves up, the key resistance levels to watch out for are 18,250.54 and 18,288.77.
The Nifty Bank rallied 285.35 points to close at 38,727.55 on January 12. The important pivot level, which will act as crucial support for the index, is placed at 38,604.34, followed by 38,481.07. On the upside, key resistance levels are placed at 38,851.13 and 38,974.66 levels.
Call option data
Maximum Call open interest of 17.32 lakh contracts was seen at 18500 strike, which will act as a crucial resistance level in the January series.
This is followed by 18000 strike, which holds 16.73 lakh contracts, and 19000 strike, which has accumulated 12.14 lakh contracts.
Call writing was seen at 18500 strike, which added 2.79 lakh contracts, followed by 18600 strike which added 1.71 lakh contracts, and 18800 strike which added 1.67 lakh contracts.
Call unwinding was seen at 18000 strike, which shed 3.8 lakh contracts, followed by 18400 strike which shed 2.54 lakh contracts and 18100 strike which shed 1.22 lakh contracts.
Put option data
Maximum Put open interest of 28.88 lakh contracts was seen at 17500 strike, which will act as a crucial support level in the January series.
This is followed by 18000 strike, which holds 20.41 lakh contracts, and 17200 strike, which has accumulated 17.52 lakh contracts.
Put writing was seen at 18200 strike, which added 4.82 lakh contracts, followed by 18000 strike, which added 2.86 lakh contracts, and 18100 strike which added 2.51 lakh contracts.
Put unwinding was seen at 17800 strike, which shed 1.86 lakh contracts, followed by 17400 strike which shed 93,000 contracts, and 19000 strike which shed 38,200 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
75 stocks saw long build-up
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
16 stocks saw long unwinding
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
34 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen.
74 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.
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Analysts/Investors Meeting; and Results on January 13
Results on January 13: Mindtree, Tata Metaliks, Aditya Birla Money, CESC, Athena Global Technologies, Eureka Industries, Gautam Gems, GTPL Hathway, Mega Corporation, Mishtann Foods, Palm Jewels, Plastiblends India, Rotographics (India), and Surana Solar will release quarterly earnings on January 13.
Maruti Suzuki India: The company’s officials will meet investors on January 13.
Dixon Technologies: The company’s officials will meet Putnam Investments on January 13.
Compuage Infocom: The company’s officials will meet investors and analysts on January 13.
Bosch: The company’s officials will interact with Credit Suisse at ‘CS India Manufacturing Day 2022’ on January 13.
Ajmera Realty & Infra India: The company’s officials will interact with Edelweiss Securities on January 13.
Onward Technologies: The company’s officials will meet analysts and investors on January 17 to discuss financial results.
CCL Products: The company’s officials will meet analysts and investors on January 20 to discuss financial results.
DCM Shriram: The company’s officials will meet analysts and investors on January 21 to discuss financial results.
Stocks in News
Tata Consultancy Services: The company reported higher profit at Rs 9,769 crore in Q3FY22 against Rs 9,624 crore in Q2FY22, revenue jumped to Rs 48,885 crore from Rs 46,867 crore QoQ. It also approved buyback of 4 crore equity shares for up to Rs 18,000 crore, at a price of Rs 4,500 per share.
Infosys: The company reported higher profit at Rs 5,809 crore in Q3FY22 against Rs 5,421 crore in Q2FY22, revenue rose to Rs 31,867 crore from Rs 29,602 crore QoQ.
Wipro: The company reported higher revenue at $2,639.7 million in Q3FY22 against $2,580 million in Q2FY22, and expects constant currency revenue growth at 2-4% for Q4FY22.
Tata Motors: JLR retail sales dropped 37.6% YoY to 80,126 units in October-December 2021, with China sales falling 6.9% and Europe sales down 6.8% QoQ.
Kotak Mahindra Bank: The bank passed resolution to cap promoters’ voting rights at 26%.
Lumax Industries: The company has commenced its commercial production, of electronic components for automotives, at its new manufacturing plant situated at Bawal, Haryana.
PB Fintech: Paisabazaar has reached an annualised loan disbursal rate of $1.1 billion (excluding credit card issuance). In December 2021, the fintech disbursed around Rs 695 crore of loans, which included unsecured loans like personal and business loans and secured loans like home loans and loan against property.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,001.57 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,332.01 crore in the Indian equity market on January 12, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Five stocks – Delta Corp, Indiabulls Housing Finance, Vodafone Idea, RBL Bank, and SAIL – are under the F&O ban for January 13. 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.
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