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Trade setup for Wednesday: Top 7 things to know before Opening Bell

Nagaraj Shetti of HDFC Securities expects more upside towards 14,655 and higher in the next couple of sessions.

January 20, 2021 / 06:50 AM IST

The market recouped more than half of previous two-day losses and closed 1.7 percent higher on January 19, driven by buying across sectors and positive global cues.

The BSE Sensex rallied 834.02 points to 49,398.29, while the Nifty50 climbed 239.90 points to 14,521.20 and formed a bullish candle on the daily charts after bearish candle seen in the previous two consecutive sessions.

"This pattern could indicate a sharp comeback of bulls from the lower levels. Most of the losses of the last two sessions have been erased in one session on Tuesday. This signals intact of short-term uptrend and one may expect Nifty to challenge the recent all-time high of 14,653 soon," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.

He expects more upside towards 14,655 and higher in the next couple of sessions. Immediate support is placed at 14,450, he said.

The market breadth has turned sharply positive and the broad market segments like Nifty Midcap 100 and Smallcap 100 indices have closed higher by 2.32 percent and 1.72 percent, respectively.

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We have collated 7 data points to help you spot profitable trades:

Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- month data and not of the current month only.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty are placed at 14,399.33, followed by 14,277.47. If the index moves up, the key resistance levels to watch out for are 14,594.53 and 14,667.87.

Nifty Bank

The Nifty Bank surged 613 points or 1.93 percent to close at 32,424.80 on January 19. The important pivot level, which will act as crucial support for the index, is placed at 32,037.5, followed by 31,650.2. On the upside, key resistance levels are placed at 32,638.5 and 32,852.2.

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Results on January 20

Bajaj Finance, Bajaj Finserv, HDFC Asset Management Company, Federal Bank, Hindustan Zinc, Havells India, L&T Technology Services, Newgen Software Technologies, Phillips Carbon Black, Sagar Cements, Allsec Technologies, GMM Pfaudler, Sasken Technologies, Agro Tech Foods, Confidence Petroleum India, Dhruv Estates, Everest Industries, G G Engineering, Indo Rama Synthetics, Sterlite Technologies, Syngene International, Tejas Networks, Tinplate Company of India and VST Industries are among 36 companies that are slated to announce their quarterly earnings on January 20.

Stocks in the news

Tata Communications: The company reported consolidated profit at Rs 309.4 crore in Q3FY21 against Rs 384.8 crore in Q2FY21, revenue fell to Rs 4,222.8 crore from Rs 4,401.1 crore QoQ.

Federal Bank: Rakesh Jhunjhunwala reduced stake in the bank to 2.4% in December quarter from 2.71% in September quarter. Mutual funds raised shareholding to 29.90% from 25.02%, but FPIs reduced to 21.69% from 24.64% in same periods.

ICICI Lombard General Insurance Company: The company reported profit at Rs 313.53 crore in Q3FY21 against Rs 294.11 crore in Q3FY20, total income rose to Rs 3,058.91 crore from Rs 2,798.9 crore, premium income increased to Rs 2,611.41 crore from Rs 2,456.16 crore YoY.

Vedanta: MFs reduced stake in the company to 5.56% in December quarter from 8.64% in September quarter 2020, while FPIs also reduced shareholding to 16.06% from 17.50% in same periods but Investment Opportunities V Pte Ltd name appeared with 1.49% stake in December quarter but Societe Generale, which was having 2.33% stake in September quarter, did not appear in December quarter.

Skipper: The company reported consolidated profit at Rs 11.45 crore in Q3FY21 against Rs 4.63 crore in Q3FY20, revenue rose to RS 459.8 crore from Rs 299.8 crore YoY.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 257.55 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 199.3 crore in the Indian equity market on January 19, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks - BHEL, Vodafone Idea and SAIL - are under the F&O ban for January 20. 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.
Sunil Shankar Matkar
first published: Jan 19, 2021 09:30 pm
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