Jayant Manglik, President at Religare Broking said in the near term, he would remain cautiously optimistic on the Indian market as volatility and choppiness could remain high.
The market recouped losses in the last hour of trade and closed sharply higher for the fourth straight day on January 9, primarily driven by banking and financials, FMCG and auto stocks. Global indices also traded in the green as three-day talks between the US and China -- to quell trade tensions -- concluded.
The 30-share BSE Sensex rallied 231.98 points to 36,212.91 while the Nifty 50 climbed 53 points to 10,855.20, forming the Long Legged Doji kind of pattern on the daily charts.
Considering the volatility followed by a positive close over the last few sessions, experts have advised maintaining a cautious stance as the index is expected to be rangebound and Q3 earnings will be closely watched.
"The closing point is almost near to the opening point, but the kind of recovery we had, it certainly bodes well for the bulls. We have been talking about the 'Triangle' pattern and we are now on the verge of breaking out in the upward direction," Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking told Moneycontrol.
He said for the coming session, a move beyond 10,870 would unfold the rally towards 10,940 and beyond levels. "On the flipside, 10,733 has proved its significance and now has become a sacrosanct level for the market."
A typical long-legged Doji pattern is formed when the opening price is almost equal to the closing price, with a lot of intraday movement on either side. It also resembles a 'Dragon Fly Doji' kind of pattern, but this is more relevant when the market is in a downtrend.
Jayant Manglik, President at Religare Broking said, "In the near term, we continue to remain cautiously optimistic on the Indian markets as we believe volatility and choppiness are likely to remain high."
Domestically, investors would focus on the GST council meet scheduled for January 10, announcement of companies' Q3FY19 results and domestic Marco data (IIP, CPI & WPI), which would dictate market trends in the coming sessions.
Meanwhile, broader markets continued to underperform frontliners as Nifty Midcap and Smallcap indices closed flat. Among sectors, Nifty Bank, Auto, Financial Service, FMCG and Pharma gained 0.5-1 percent.
India VIX fell by 2.74 percent at 15.27 levels. VIX has to continue to hold below 16 zones to bounce back in the market.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,855.15 on January 9. According to Pivot charts, the key support level is placed at 10,779.6, followed by 10,704. If the index starts moving upward, key resistance levels to watch out are 10,900.6 and then 10,946.
The Nifty Bank index closed at 27,720.40, up 210.90 points on January 9. The important Pivot level, which will act as crucial support for the index, is placed at 27,501.8, followed by 27,283.2. On the upside, key resistance levels are placed at 27,846.7, followed by 27,973.
Call Options Data
Maximum Call open interest (OI) of 38.14 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.
This was followed by the 11,200 strike price, which now holds 30.98 lakh contracts in open interest, and 11,100, which has accumulated 29.59 lakh contracts in open interest.
Meaningful Call writing was seen at 11,100, which added 3.94 lakh contracts, followed by 10,900 strike which added 1.47 lakh contracts.
Call unwinding was seen at 11,200 strike, which shed 3.67 lakh contracts, followed by 10,800 strike which shed 3.33 lakh contracts and 10,700 strike which shed 1.14 lakh contracts.
Put Options data
Maximum Put open interest of 38.25 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.
This was followed by the 10,700 strike price, which now holds 32.98 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 23.94 lakh contracts in open interest.
Significant Put writing was seen at the strike price of 10,900, which added 2.25 lakh contracts, followed by 10,800 strike which added 0.72 lakh contracts and 10,600 strike which added 0.32 lakh contracts.
Put unwinding was seen at the strike of 10,400, which shed 2.58 lakh contracts, followed by 10,700 strike which shed 1.85 lakh contracts and 10,500 strike which shed 1.3 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 276.14 crore and Domestic Institutional Investors purchased Rs 439.67 crore worth of shares in the Indian equity market on January 9, as per provisional data available on the NSE.
Fund Flow Picture
Stocks with high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
41 stocks saw a long buildup
41 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
57 stocks saw a short build-up
An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.
62 stocks saw long unwinding
Bulk Deals on January 9
IOL Chemical: Oregon Public Employees Retirement System bought 3,03,706 shares of the company at Rs 196.88 per share on the NSE.
Rolta India: Central Bank of India (Capital Market Service Branch) sold 16,97,862 shares of the company at Rs 8.6 per share on the NSE.
Shalimar Paints: Equity Intelligence India bought 3,00,000 shares of the company at Rs 67.17 per share while Atul Goel sold 3,35,967 shares at Rs 67.38 per share and Rajasthan Global Securities sold 2,55,334 shares at Rs 67.3 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Shree Pushkar Chemicals & Fertilisers: Officials of the company will be attending the investor conference hosted by HDFC Securities on January 10 in Mumbai.
EPC Industrie: Board meeting is scheduled on January 30 to consider the un-audited financial results for the quarter ended on December 2018.
Alembic Pharma: Company will hold post results conference call on January 22.
Biocon: Board meeting is scheduled on January 24 to consider the unaudited financial results (both standalone and consolidated) for the quarter ended December 2018.
Avenue Supermarts: Board meeting is scheduled to be held on January 12 to consider raising of funds by issuance of commercial paper.
Oriental Hotels: Board meeting is scheduled on January 23 to consider the unaudited financial results for the quarter and period ended December 2018.
ITC: Board meeting is scheduled on January 23 to consider the unaudited financial results for the quarter and nine months ended December 2018.
Shree Cement: Board meeting will be held on January 22 to consider standalone un-audited financial results for the quarter and nine months ended on December 2018 and payment of interim dividend for the year 2018-19.
Tata Coffee: Board meeting is scheduled on January 29 to consider the financial results for the third quarter and nine months period ended December 2018.
Raymond: Board meeting is scheduled on January 23 to consider the unaudited financial results for the third quarter and nine months ended on December 2018.
Shreyas Shipping & Logistics: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.
Zim Laboratories: Meetings with investors/analyst is scheduled to be held on January 10 in Mumbai.
DHFL: Board meeting is scheduled on January 25 to consider the un-audited financial results of the company for the third quarter / nine months ended December 2018.
Hero MotoCorp: Board meeting is scheduled to be held on January 31 to consider the unaudited financial results for the quarter and nine months ended December 2018.
Suzlon Energy: Company would be meeting certain investors / analysts in Mumbai on January 10.
5Paisa Capital: Board meeting is scheduled on January 16 to consider the standalone and consolidated unaudited financial results for the quarter and nine months ended December 2018.
HPCL: Company's officials will participate in a conference hosted by HDFC Securities at Mumbai on January 10.
TTK Healthcare: Board meeting is scheduled on January 30 to consider the unaudited financial results for the third quarter ended December 2018.
Bhageria Industries: Management team of the company will participate in a conference hosted by HDFC Securities at Mumbai on January 10, where the team will interact with various funds and institutional investors.
Ramco Industries: Board meeting is scheduled on January 29 to consider the unaudited financial results for the quarter and nine months ended December 2018.
GRP: Officials of the company will be meeting analyst and investors on January 10.
NOCIL: Company's officials will participate in a conference hosted by HDFC Securities at Mumbai on January 10.
Stocks in news
Adani Enterprises: Government of Andhra Pradesh signs MoU with Adani Group to build Data Center Parks up to 5 GW capacities in and around Visakhapatnam over the next 20 years.
Delta Corp: Board fixed January 21 as record date for ascertaining entitlement for the payment of interim dividend.
Dilip Buildcon: Subsidiary DBL Anandapuram Anakapalli Highways Private Limited received the financial closure from the National Highways Authority of India for six laning of Anandapurdm-PenduthiAnakapalli section of NH-5 (new NH-16) in Andhra Pradesh under Bahratmala Pariyojana on Hybrid Annuity Mode.
Yes Bank: Board finalised names of potential candidates for the position of MD & CEO and will submit an application to the Reserve Bank of India on January 10, seeking approval for the appoinbnent of the new MD & CEO.
Puravankara: ICRA has maintained the previous rating and assigned a long-term rating of BBB+ (stable) and short term rating of A2 for an enhanced amount of Rs 3,000 crore bank facilities of Puravankara.
Polyplex Corporation: CARE reaffirmed rating for long term bank facilities aggregating to Rs 357 crore (enhanced from Rs 196.36 crore) as A+/Stable and rating for short term bank facilities aggregating to Rs 48 crore (enhanced from Rs 42 crore) as A1+.
AGC Networks: Subsidiary completed the acquisition of Black Box Corporation, a leading digital solutions provider in the US.
NRB Industrial Bearings: Board approved the allotment of 50,00,000 cumulative, redeemable, non-convertible preference shares of Rs 10 each aggregating to Rs 5 crore on private placement basis to Devesh Singh Sahney, Chairman, Managing Director and Promoter of the company.
Majesco: Due to the federal government shutdown company has changed its record date for its previously announced rights offering from January 7 to January 29 and its expiration date from January 28 to February 19.
Ashok Leyland: Company bags orders for 2580 buses from state transports, buses to be delivered before March 2019.
Ashok Leyland: Company acquired additional 5,00,010 shares (constituting 12.50 percent in the paid-up share capital of Ashley Aviation Limited. Consequent to the said acquisition, the company's shareholding in Ashley Aviation Limited stands increased to 88.75 percent.
Delta Corp Q3: Profit rises to at Rs 50.53 crore versus Rs 44.74 crore; revenue increases to Rs 205.81 crore versus Rs 162.17 crore YoY, driven by gaming operations.
Tata Steel BSL: Board approved (a) issuance of non-convertible redeemable preference shares an amount upto Rs 12,000 crore and/or (b) Issuance of non-cumulative optionally convertible redeemable preference of up to Rs 12,000 crore on a private placement basis to Tata Steel.
Vakrangee: There were no irregularities in matters (which are resignation of Price Water House as statutory auditor of the company, abnormal trading in share price, Income Tax Assessment order & Tax Audit report of last five years, details regarding the bullion & jewellery business and shareholding structure) in the preliminary findings provided by the Ministry of Corporate Affairs during inspection.
Kamron Laboratories: Board passed the resolution increasing the investment limit of non-resident Indians upto 24 percent of the paid-up capital of the company.
Bajaj Finance: Company announced allotment of secured redeemable non-convertible debentures on private placement basis.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.For January 10, Adani Power and Jet Airways is present in this list.