The market rebounded in early trade but gave up more than half the gains by noon on January 7 as traders remained wary of developments between the US and Iran.
Benchmark indices ended off the day’s high with half a percent gains, driven by select banking & financials and Reliance Industries.
The BSE Sensex closed up 192.84 points at 40,869.47 while the Nifty 50 rose 60 points to 12,053, forming a bearish candle resembling an Insider Bar kind of pattern on daily charts as it traded within the range of the previous session but managed to hold its psychological 12,000 levels.
Experts expect the volatility to continue in coming sessions and 12,000 to act as a crucial point for directional move on either side.
“The present pullback could raise some hopes for bulls to make a comeback. But, this upside bounce could be short-lived and the Nifty is likely to reverse down in the next 1-2 sessions. Immediate resistance to be watched at 12,150 levels and crucial support is placed at 11,980,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
The broader markets outperformed frontliners as the Nifty Midcap index gained 0.7 percent and Smallcap index rose 1.21 percent amid positive breadth. About two shares advanced for every share falling on the NSE.
“Stability in crude oil prices and currency seem to have provided temporary relief to investors. Nonetheless, geopolitical developments would still be one of the key factors on investors’ radar, as any further escalation would have an adverse impact on market and economy,” Ajit Mishra, VP – Research at Religare Broking said.
Given the current set-up, the benchmark indices are expected to be volatile in the near term, he added.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, the key support level for Nifty is placed at 11,988.13, followed by 11,923.27. If the index moves up, key resistance levels to watch out for are 12,135.03 and 12,217.07.
Nifty Bank closed at 31,399.40, up 0.52 percent on January 7. The important pivot level, which will act as crucial support for the index, is placed at 31,116.4, followed by 30,833.4. On the upside, key resistance levels are placed at 31,766.9 and 32,134.4.
Call options data
Maximum call open interest (OI) of 27.5 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.
This is followed by 12,300 strike price, which holds 20.82 lakh contracts in open interest, and 12,400, which has accumulated 19.77 lakh contracts in open interest.
Significant call writing was seen at the 12,100 strike price, which added 1.39 lakh contracts, followed by 12,500 strike price that added 1.21 lakh contracts and 12,600 strike which added 0.87 lakh contracts.
Call unwinding was witnessed at 12,300 strike price, which shed 0.79 lakh contracts, followed by 12,700 strike which shed 0.75 lakh contracts.
Put options data
Maximum put open interest of 42.33 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.
This is followed by 11,500 strike price, which holds 28.16 lakh contracts in open interest, and 11,800 strike price, which has accumulated 19.04 lakh contracts in open interest.
Put writing was seen at the 12,000 strike price, which added nearly 4.01 lakh contracts, followed by 12,100 strike, which added 3.31 lakh contracts and 11,900 strike which added 1.88 lakh contracts.
Put unwinding was seen at 12,300 strike price, which shed 0.77 lakh contracts, followed by 11,500 strike which shed 0.34 lakh contracts and 12,400 which shed 0.33 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
95 stocks saw long buildup
4 stocks saw long unwinding
Based on open interest (OI) future percentage, here are the top 4 stocks in which long unwinding was seen.
30 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 open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
18 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering. Here are top 10 stocks that witnessed short-covering on January 7.
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Upcoming analyst or board meetings/briefings
Ashapura Minechem: Board meeting is scheduled on January 10 to consider the issue of approximately 45 lakh preferential warrants to the promoters.
Tata Steel: Company’s officials will meet PIMCO on January 10.
Bharat Electronics: Company will announce its October-December quarter earnings on January 30.
Clariant Chemicals: Company will announce its October-December quarter earnings on February 14.
Finolex Industries: Company will announce its October-December quarter earnings on February 12.
Oriental Hotels: Company will announce its October-December quarter earnings on January 24.
SBI Life Insurance: Company will announce its October-December quarter earnings on January 22.
Canara Bank: Company will announce its October-December quarter earnings on January 23.
Wipro: Company will announce its October-December quarter earnings on January 14.
Tata Steel: Company’s officials will meet Bank of America Merrill Lynch and Blackrock Investment Management on January 9.
Stocks in the news
NBCC India: Company got orders worth Rs 1,090 crore in December.
HT Media: Unit HT Leaming Centers to restructure its ‘Studymate’ and ‘Englishmate’ businesses.
Goa Carbon: December total production of calcined petroleum coke at 186.9 million tonnes, exports were nil.
PFC: Fitch-rated PFC’s proposed USD notes at ‘BBB-‘.
Navin Fluorine International: Post successful mechanical completion and plant trials, the company’s cGMP capacity addition at Dewas Plant, Madhya Pradesh, has commenced commercial production with effect from January 6, 2020.
Bosch: Trade Unions at the company’s plants situated at Bidadi and Naganathapura in Karnataka and Jaipur in Rajasthan are participating in the All India General Strike called by Central Trade Union on January 8.
Muthoot Finance: MD, George Alexander Muthoot, was mercilessly attacked by criminals at the instance of CITU while he was on his way to the headquarters of the company at Kochi on January 7.
NHPC: Company raised Rs 500 crore on January 3 in the second tranche through the private placement of secured, redeemable, taxable, non-cumulative, non-convertible 7.38% NHPC-Y1 Series Bonds.
Mahindra & Mahindra: CARE reaffirmed long term rating on bank loan facilities at AAA with a Stable outlook.
Cyient: Company inaugurated its state-of-the-art development centre in Warangal at Telangana.
Aananda Lakshmi Spinning Mills: Board accepted the one-time settlement received from the ICICI Bank.
Pradip Overseas: Company has accepted for the execution of One-time settlement with the State Bank of India.
Thomas Cook India: Company signed long term strategic agreement with Experience Hub to Drive 2020 Visitation to Yas Island Abu Dhabi.
Suzlon Energy: Company defaulted on payment of interest/repayment of principal amount on loans from banks / financial institutions, which was Rs 7,256.38 crore.
V2 Retail: Akash Agarwal has resigned from the post of Chief Executive Officer (CEO) due to professional engagements.
ARSS Infrastructure Projects: State Bank of India has cancelled the compromise settlement due to default in making the payment.
Modison Metals: Company plans to expand and modernized its HV & LV plants at Vapi.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 682.23 crore, whereas domestic institutional investors (DIIs) bought shares of worth Rs 311.19 crore in the Indian equity market on January 7, provisional data available on the NSE showed.
Stock under F&O ban on NSE
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