Sahaj Agrawal of Kotak Securities said markets are expected to remain highly volatile in the near term on account of the Union Budget 2019.
The market continued to consolidate for the second consecutive session and closed the day on a flat note on January 30 as traders remained cautious ahead of the expiry of January derivative contracts, and the outcome of Federal Reserve meeting. Traders also await Interim Budget scheduled on February 1.
The 30-share BSE Sensex was down 1.25 points at 35,591.25 while the 50-share NSE Nifty fell 0.40 points to 10,651.80 and formed bearish candle on the daily scale.
The index traded in a tight range of 10,687-10,620 levels throughout the day, with positive sentiments majorly supported by banking & metal sector.
"Nifty surprised by forming higher top & higher bottom formation almost after 5 downtrend trading sessions, indicating the start of uptrend unless low of the day is not breached while confirmation is a close above 10,690-mark," Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors told Moneycontrol.
He said index trading above Wednesday’s high (10,710) will accelerate up move taking it higher towards immediate resistance zone of 50 DMA & 100 DMA placed around 10,780 levels; however, a close below the strong support (10,620) will push prices lower towards 10,580 levels.
India VIX fell by 3.15 percent to 17.85 but overall higher volatility is keeping the volatile swing in the market with restricted upside.
"Markets are expected to remain highly volatile in the near term on account of the Union Budget 2019," Sahaj Agrawal of Kotak Securities said, adding the broader range is seen at 10,400-11,000.
The Nifty Midcap and Smallcap indices gained more than half a percent, outperforming frontliners. Among sectors, Nifty Bank was up 1 percent and Metal rallied 1.9 percent whereas FMCG lost a percent.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,651.80 on January 30. According to Pivot charts, the key support level is placed at 10,606.33, followed by 10,560.87. If the index starts moving upward, key resistance levels to watch out are 10,703.73 and then 10,755.67.
The Nifty Bank index closed at 26,825.50 on January 30. The important Pivot level, which will act as crucial support for the index, is placed at 26,707.4, followed by 26,589.3. On the upside, key resistance levels are placed at 26,929.9, followed by 27,034.3.
Call Options Data
Maximum Call open interest (OI) of 41.13 lakh contracts was seen at the 10,800 strike price. This will act as a crucial resistance level for the January series.
This was followed by the 11,000 strike price, which now holds 37.16 lakh contracts in open interest, and 10,900, which has accumulated 28.76 lakh contracts in open interest.
Meaningful Call writing was seen at 10,800, which added 4.8 lakh contracts, followed by 10,700 strike which added 1.18 lakh contracts and 10,600 strike which added 0.52 lakh contracts.
Call unwinding was seen at 10,900 strike, which shed 9.56 lakh contracts, followed by 11,000 strike which shed 7.35 lakh contracts and 11,200 strike which shed 3.84 lakh contracts.
Put Options data
Maximum Put open interest of 26.38 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 10,600 strike price, which now holds 25.21 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 19.51 lakh contracts in open interest.
There was hardly any Put writing seen.
Put unwinding was seen at the strike price of 10,700, which shed 8.76 lakh contracts, followed by 10,800, which shed 2.86 lakh contracts and 10,900, which shed 2.39 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 130.25 crore and Domestic Institutional Investors purchased Rs 502.26 crore worth of shares in the Indian equity market on January 30, 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.
24 stocks saw a long buildup
70 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.
50 stocks saw long unwinding
Bulk Deals on January 30
Godha Cabcon and Insulation: Mark Corporate Adviosrs Pvt Ltd sold 80,000 shares of the company at Rs 29.25 per share on the NSE.
Bodhtree Consulting: Vandana Daga bought 2,03,400 shares of the company at Rs 42.50 per share on the BSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Rattanindia Power: Board meeting is scheduled on February 2 to consider the letter of intent expected to be received from the fund based lenders of the company with respect to the one time settlement proposal submitted by the company.
Puravankara: Board meeting will be held on February 8 to consider October-December quarter earnings.
Hindalco Industries: Q3FY19 earnings conference call on financial results for Novelis Inc. (wholly owned subsidiary of the company) for quarter ended December 2018 is scheduled on February 5.
Rolta India: Board meeting will be held on February 9 to consider October-December quarter earnings.
Fortis Malar Hospitals: Board meeting will be held on February 6 to consider October-December quarter earnings.
HCC: Board meeting will be held on February 7 to consider October-December quarter earnings.
Punjab National Bank: Board meeting will be held on February 5 to consider October-December quarter earnings.
Future Enterprises: Board meeting will be held on February 5 to consider October-December quarter earnings.
Viceroy Hotels: Board meeting will be held on February 13 to consider October-December quarter earnings.
Gammon India: Board meeting will be held on February 7 to consider October-December quarter earnings.
Eros International Media: Board meeting will be held on February 7 to consider October-December quarter earnings.
PTC India Financial Services: Board meeting will be held on February 8 to consider October-December quarter earnings.
Ashapura Minechem: Board meeting will be held on February 11 to consider October-December quarter earnings.
DLF: Board meeting will be held on February 5 to consider October-December quarter earnings.
Cox & Kings: Board meeting will be held on February 14 to consider October-December quarter earnings.
Apex Frozen Foods: Board meeting will be held on February 7 to consider October-December quarter earnings.
Future Consumer: Board meeting will be held on February 6 to consider October-December quarter earnings.
Stocks in news
Results on January 31: Bharti Airtel, Hero MotoCorp, Vedanta, UPL, Power Grid Corporation of India, Dabur India, eClerx Services, Oriental Carbon & Chemicals, Signet Industries, Creditaccess Grameen, Laurus Labs, Apollo Micro Systems, JITF Infralogistics, Menon Bearings, Srikalahasthi Pipes, Mold-Tek Packaging, Cigniti Technologies, SQS India BFSI, Uniphos Enterprises, Tokyo Plast International, Aegis Logistics, Accelya Kale Solutions, Sundaram Finance, Solar Industries India, Selan Exploration Technology, Datamatics Global Services, V-Guard Industries, TCI Finance, Dena Bank, TD Power Systems, Jamna Auto, Maral Overseas, JMC Projects (India), Gangotri Textiles, 21st Century Management Services, JBF Industries, NMDC, IFB Industries, HSIL, Essar Shipping, Petronet LNG, Ballarpur Industries, Chambal Fertilizers & Chemicals, Magma Fincorp, LG Balakrishnan & Bros, Kabra Extrusion Technik, EIH Associated Hotels, LGB Forge, Emami, Gujarat Alkalies and Chemicals
IL&FS Transportation Networks: Interest due on January 30 on NCD not paid to debenture holders due to insufficient funds.
ICICI Bank Q3: Profit down 2.8 percent to Rs 1,604.9 crore versus Rs 1,650 crore; net interest income rises 20.5 percent to Rs 6,875.2 crore versus Rs 5,705.2 crore YoY. Net NPA down to 2.58 percent versus 3.65 percent and gross NPA falls to 7.75 percent versus 8.54 percent QoQ.
Jindal Stainless Q3: Profit falls 59 percent to Rs 55 crore versus Rs 133.6 crore; revenue dips 8.4 percent to Rs 2,233 crore versus Rs 2,438.5 crore YoY.
International Paper Q3: Profit jumps to Rs 58 crore versus Rs 21 crore; revenue rises 14.6 percent to Rs 376 crore versus Rs 328 crore YoY.
Ratnamani Metals Q3: Profit surges 37.1 percent to Rs 62.8 crore versus Rs 45.8 crore; revenue rises 36 percent to Rs 728.5 crore versus Rs 535.6 crore YoY.
Mahindra Holidays Q3: Profit drops 33 percent to Rs 21.24 crore versus Rs 31.75 crore; revenue dips 9.5 percent to Rs 236 crore versus Rs 260.7 crore YoY.
LIC Housing Finance Q3: Profit jumps 25.5 percent to Rs 596.3 crore versus Rs 475.1 crore; revenue rises 5.6 percent to Rs 4,438.8 crore versus Rs 3,635.9 crore YoY.
Torrent Pharma Q3: Profit surges to Rs 246 crore versus Rs 58 crore; revenue rises 40.2 percent to Rs 2,051 crore versus Rs 1,463 crore YoY. Board approved issuance of unsecured / secured redeemable non-convertible debentures / bonds by way of private placement within the borrowing limits of the company.
Hexaware Q4: Profit dips 28.3 percent to Rs 123.4 crore versus Rs 172.3 crore; revenue rises 3.5 percent to Rs 1,252.4 crore versus Rs 1,209.6 crore QoQ. Guidance for 2019: Company sees organic revenue growth of 12-14 percent.
NTPC Q3: Profit rises 1 percent to Rs 2,385.4 crore versus Rs 2,360.8 crore; revenue surges 16.1 percent to Rs 24,120.4 crore versus Rs 20,774.4 crore YoY. Board approves 1 for 5 bonus share issue.
Ashoka Buildcon Q3: Profit rises 32.3 percent to Rs 62.2 crore versus Rs 47 crore; revenue jumps 61.6 percent to Rs 1,065 crore versus Rs 658.9 crore YoY.
Ajanta Pharma: Company approved buyback of up to 7.69 lakh shares at a price up to Rs 1,300 per share. Company approved February 12 as the record date for determining the entitlement of the eligible shareholders for the proposed buyback of the equity shares of the company.
Shemaroo Entertainment Q3: Profit rises to Rs 19.56 crore versus Rs 17.95 crore; revenue increases to Rs 149 crore versus Rs 133 crore YoY.
Cadila Healthcare: Zydus Wellness and its subsidiary Zydus Wellness—Sikkim (a partnership firm) acquired 100 percent of the equity share capital of Heinz India Private Limited.
Zydus Wellness: Tarun G Arora to be Chief Executive Officer and Whole Time Director.
Shervani Industrial Syndicate: Board approved the buy back of ordinary shares of the company from all shareholders on proportionate basis though tender offer.
Tata Communications Q3: Profit jumps to Rs 173.3 crore versus Rs 2.15 crore; revenue rises Rs 4,269.5 crore versus Rs 4,068.22 crore QoQ.
Sagar Cements Q3: Consolidated loss at Rs 2.97 crore versus profit at Rs 3.01 crore; revenue rises Rs 319.11 crore versus Rs 249.4 crore YoY.
Ajanta Pharma Q3: Profit falls to Rs 66.9 crore versus Rs 147.5 crore; revenue declines to Rs 485.11 crore versus Rs 587.05 crore YoY.
EIH Q3: Profit rises to Rs 63.9 crore versus Rs 42.65 crore; revenue jumps to Rs 443.9 crore versus Rs 362 crore YoY.
Blue Dart Express Q3: Profit dips to Rs 31.35 crore versus Rs 45.5 crore; revenue rises to Rs 855.45 crore versus Rs 704.6 crore YoY.
Bajaj Holdings and Investment Q3: Profit rises to Rs 781.1 crore versus Rs 661.25 crore; revenue increases to Rs 109.6 crore versus Rs 102.6 crore YoY.
Cholamandalam Investment and Finance Company Q3: Profit rises to 304.4 crore versus Rs 219.4 crore; revenue increases to Rs 1,830.7 crore versus Rs 1,389.4 crore YoY; gross NPA lower at 2.7 percent versus 2.8 percent and net NPA down at 1.5 percent against 1.6 percent QoQ.
Jindal Stainless Hisar Q3: Profit dips to Rs 55 crore versus Rs 133.63 crore; revenue falls to Rs 2,233 crore versus Rs 2,438.6 crore YoY.
Castrol India Q3: Profit rises to Rs 211.9 crore versus Rs 196.7 crore; revenue increases to Rs 1,033.4 crore versus Rs 970.3 crore YoY.
Emkay Global Q3: Profit dips to Rs 1.6 crore versus Rs 9.5 crore; revenue declines to Rs 35.32 crore versus Rs 43.3 crore YoY.
AAVAS Financiers Q3: Profit jumps to Rs 56.3 crore versus Rs 25.9 crore; revenue rises to Rs 194.8 crore versus Rs 125.66 crore YoY.
Bharti Airtel: Qatar Investment Authority agreed to invest $200 million through a primary equity issuance in Airtel Africa. The proceeds will be used to further reduce Airtel Africa's existing net debt.
EPC Industrie Q3: Profit rises to Rs 3.93 crore versus Rs 2.6 crore; revenue jumps to Rs 77.34 crore versus Rs 54 crore YoY.
63 Moons Technologies: Supreme Court has dismissed the Special Leave Petitions of NSEL Investor Action Group (NIAG) and Government of Maharashtra, declining to interfere with the Bombay HC order of releasing assets of 63 moons (formerly known as FTIL) attached under the Maharashtra Protection of Interest of Depositors (MPID) Act.
Talwalkars Better Value Fitness: Company made investment in company in India - Rushzone Wellness Private Limited.
Dixon Technologies Q3: Profit rises to Rs 17.64 crore versus Rs 15.24 crore; revenue rises to Rs 794 crore versus Rs 680 crore YoY.
TTK Healthcare Q3: Profit declines to Rs 4.88 crore versus Rs 12.24 crore; revenue rises to Rs 149 crore versus Rs 146 crore YoY.
4 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 31, DHFL, Bank of India, Adani Power and Adani Enterprises are present in this list.