Bulls gained control of Dalal Street on January 2 as strong global and local cues pushed Nifty within striking distance of fresh record highs and led to over 300-point rally in the BSE Sensex.
The S&P BSE Sensex rose 321 points to 41,627 while the Nifty 50 ended at fresh record closing high of 12,282 with gains of nearly 100 points.
According to Vinod Nair, Head of Research at Geojit Financial Services, government’s plan of more than doubling CAPEX over the next 5 years, and the firming up of steel prices after the US and China announced a date to sign the trade deal, pushed the market higher. He believes expectations from the Union Budget, and positive data like GST revenue and 7-month high on India factory production led to the broad-based rally.
“The hike in steel prices undertaken by steelmakers boosted the market sentiment heavily. The move indirectly suggests a recovery in the core economy-related sectors like infra, capital goods, cement, commodities and transport going ahead. Technically, Nifty is heading towards 12,350 level, while on the lower side, 12,250-12,240 would act as major supports for the market,” said Shrikant Chouhan, Senior Vice-President - Equity Technical Research at Kotak Securities.
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 12,221.63, followed by 12,161.07. If the index continues moving up, key resistance levels to watch out for are 12,316.33 and 12,350.47.
Nifty Bank
Nifty Bank closed 1.04 percent up at 32,443.85. The important pivot level, which will act as crucial support for the index, is placed at 32,221.67, followed by 31,999.53. On the upside, key resistance levels are placed at 32,565.67 and 32,687.53.
Call options data
Maximum call open interest (OI) of 22.63 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 12,700 strike price, which holds 16.47 lakh contracts in open interest, and 12,200, which has accumulated 14.8 lakh contracts in open interest.
Significant call writing was seen at the 12,700 strike price, which added 1.49 lakh contracts, followed by 12,600 strike price that added 1.42 lakh contracts.
Call unwinding was witnessed at 12,300 strike price, which shed 2.2 lakh contracts, followed by 12,200 which shed 1.6 lakh contracts.
Put options data
Maximum put open interest of 38.7 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 19.32 lakh contracts in open interest, and 11,800 strike price, which has accumulated 14.75 lakh contracts in open interest.
Put writing was seen at the 12,300 strike price, which added nearly 4.36 lakh contracts, followed by 12,000 strike, which added 3.26 lakh contracts.
A minor put unwinding was seen at 12,500 strike price, which shed 8,025 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
74 stocks saw long buildup
Based on open interest (OI) future percentage, here are the top 10 stocks in which long buildup was seen.
5 stocks saw long unwinding
26 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.
40 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering. Based on open interest (OI) future percentage, here are the top 10 stocks in which short-covering was seen.
Bulk deals
(For more bulk deals, click here)
Upcoming analyst or board meetings/briefings
Authum Investment & Infrastructure: The board will meet on January 3 for a general-purpose.
Octaware Technologies: The board will meet on January 3 for a general-purpose.
Deccan Bearings: The board will meet on January 3 to consider and approve their quarterly results.
Mitshi India: The board will meet on January 4 to consider and approve preferential issuance of shares.
Unitech: The board will meet on January 4 to consider and approve their quarterly results.
Stocks in the news
SBI, Union Bank: The State Bank of India (SBI) and Union Bank of India are looking to sell their non-performing loans totalling Rs 2,836 crore to banks, asset reconstruction companies and other financial institutions.
ONGC: The company on January 2 walked away with all the seven oil and gas blocks on offer in the latest bid round that saw just eight bids coming in.
Hero MotoCorp: The country's largest two-wheeler maker Hero MotoCorp on January 2 reported a 6.41 percent decline in total sales at 4,24,845 units in December 2019.
MTNL: MTNL has started the process to monetise assets worth Rs 23,000 crore as it aims to turn profitable in the next fiscal year, PTI reported.
TVS Motor Company: The company reported a 14.67 percent decline in total sales to 2,31,571 units in December 2019.
IIFL Securities: Billionaire investor Rakesh Jhunjhunwala's RARE Enterprises bought 27,84,879 shares of the company in a bulk deal on BSE.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 688.76 crore, while domestic institutional investors (DIIs), too, bought shares of worth Rs 63.95 crore in the Indian equity market on January 2, provisional data available on the NSE showed.
Fund flow
Stock under F&O ban on NSE
Yes Bank is under the F&O ban for January 3. 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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