The Indian market had a volatile week marred by US-Iran conflict but managed to touch new highs on Friday after the tension simmered.
The Nifty50 touched the uncharted 12,300 territory but failed to hold onto the gains settling at 12,226.65, down 0.16 percent for the week ended January 10. The BSE Sensex closed the week 0.27 percent lower at 41,464.61.
Experts suggest that the volatility will only increase as we move closer to the Union Budget scheduled for February 1. October-December quarterly earnings will also play a major factor, they said.
“Markets are heading for testing times given that the result season has set in and budget parlays too will have to be digested in weeks to come. Volatility is expected to increase, although prices are not expected to move much till Budget. However, sector-specific rallies are likely to continue,” Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote told Moneycontrol.
US and China are expected to sign a partial trade deal on January 15. China’s Vice Premier Liu He, head of the country’s negotiation team in the US-China trade talks, is visiting the US on January 13-15 to sign a ‘phase one’ trade deal.
Experts feel it would be major relief for global equity markets and the economy, which has been facing trade concerns for more than 16 months now.
As per the data available on exchanges, 75 companies will declare their December quarter earnings in the coming week which include Reliance Industries, TCS, Wipro, HCL Technologies, Mindtree, HDFC Bank, IndusInd Bank, Delta Corp, Bhandhan Bank, L&T Infotech, L&T Finance, L&T Technology, ICICI Lombard among others.
On the macro data front, CPI inflation for December will be announced on Monday, January 13, which is likely to increase further (from more than three-year high of 5.54 percent in November 2019) on an increase in food prices.
“In the short-term, the market will be careful given the limited room for growth due to premium valuation and minuscule improvement in business, while the Budget and Q3 results will give clear cut direction for the market. The global risk has reduced in 2020 with a likely trade deal between US-China, Brexit and in anticipation of improvement in the world economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
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 12,209.6 followed by 12,162.4. If the index moves up, key resistance levels to watch out for are 12,307.6 and 12,358.4.
The important pivot level, which will act as crucial support for the index, is placed at 31,918.13 followed by 31,738.87. On the upside, key resistance levels are placed at 32,311.93 and 32,526.46.
Call options data
Maximum Call open interest (OI) of 26.14 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 12,400 strike price, which holds 17.88 lakh contracts in open interest.
Significant call writing was seen at the 12,600 strike price, which added 4 lakh contracts, followed by 12,700 strike price that added 1.05 lakh contracts.
Call unwinding was witnessed at 12,300 strike price, which shed 4.25 lakh contracts, followed by 12,100 strike which shed 1.6 lakh contracts.
Put options data
Maximum Put open interest of 44.25 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.
This is followed by 12,200 strike price, which holds 23.56 lakh contracts in open interest.
Put writing was seen at the 12,300 strike price, which added over 2.91 lakh contracts, followed by 12,200 strike, which added 1.16 lakh contracts.
Pu unwinding was witnessed at 11,900 strike, which shed 1.91 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
49 stocks saw long buildup
Based on open interest (OI) future percentage, here are the top 10 stocks in which long buildup was seen.
21 stocks saw long unwinding
Based on open interest (OI) future percentage, here are the top 10 stocks in which long unwinding was seen.
31 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.
44 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering. Here are the top 10 stocks that witnessed short-covering on January 10.
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Upcoming analyst or board meetings/briefings
TCS: To consider and approve the financial results for the period ended December 31, 2019, and dividend.
KRBL: To consider and approve the financial results for the period ended December 31, 2019.
Lotus Eye Hospital: Board of Directors meeting to appoint the chief financial officer of the company and to consider any other matters with the permission of the chair.
Delta Corp: To consider and approve the financial results for the quarter and nine months ended December 31, 2019, and to consider Interim Dividend.
Wipro: To consider and approve the financial results for the period ended December 31, 2019.
Bandhan Bank: To consider and approve the financial results for the quarter ended December 31, 2019.
Stocks in the news
Avenue Supermarts Q3: Standalone net profit grew 53.3% at Rs 394.3 crore against Rs 257.1 crore YoY. Standalone revenue went up 23.9% at Rs 6,751.9 crore against Rs 5,450.9 crore YoY.
Tata Steel: Netherland arm announces successful refinancing of €1.75 billion of European debt.
HCC: Lenders initiate Rs 2,100 crore Debt/Asset carve-out
Torrent Power: CRISIL upgrades long-term rating Co’s NCDs & Bank Facilities to AA from AA-
Supreme Infra: Supreme Court approves draft scheme of compromise & arrangement between Co & creditors
Infosys Q3: Profit grew 10.9 percent and 2 percent on the revenue front in the quarter ended December 2019. Dollar revenue, as well as constant currency growth for the quarter, stood at 1 percent each compared to the same period last year, which matched analyst estimates.
Cholamandalam Investment: Company would raise Rs 400 crore tier-II debt from the UK-based CDC Group Plc through unsecured, subordinated, rupee-denominated masala bonds.
Union Bank: Bank will cut the marginal cost of funds based lending rate (MCLR) by 0.10 percentage points across tenors from Saturday. The bank has reduced the MCLR by 10 basis points across all tenors with effect from January 11, 2020, Union Bank of India said in a release.
Yes Bank: Ropes in top investment bankers to advise on fundraising process, sources said.
Bank Of Baroda: Revises one-month MCLR to 7.60% from 7.65%
IL&FS: Request being made to MCA for probe into a suspicious transaction
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 578.28 crore, while domestic institutional investors (DIIs), sold shares of worth Rs 251.74 crore in the Indian equity market on January 10, provisional data available on the NSE showed.
Stock under F&O ban on NSE
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