A break below this level can also lead to a swath of investors who will look to book profits and can push the index as low as 13,100 levels. Hence, experts believe that traders should tread cautiously from hereon
Rollover stood at 75.94 percent, which is in-line with its quarterly average of 75.59 percent. The overall data indicate that the longs are still in the system and some more steam left on the upside.
The charts clearly suggest that the short-term trend is still up but an intraday correction can't be ruled out if the index trades below 13,935.
Biocon, IndusInd Bank and HUL among the stocks that experts are betting on for short term
The level of 13,500 will now act as a support level for Nifty as per options data for the monthly series. A strong technical set-up might lead Nifty to its all-time high levels.
For Jan expiry, options data suggests a range of 12,200 to 12,500 on the upside while on the downside 12,000 to 11,800 levels.
We believe that the Nifty50 is in a process of forming a base near 12,000 and the Call positions have been shifted higher to 12,500, says Dharmesh Shah of ICICI Direct.com
Rollover data clearly indicates that the banking index is very light on positions and fresh build-up in coming days will decide the further trend in the banking index.
Market expert Anand Tandon says the fall will give many buying opportunities. He, however, adds that the question now is if the fall becomes steeper how many will be able to hold their nerves and continue buying.
Dilip Bhat of Prabhudas Lilladher says the possibility of excise duty concession being withdrawn from the auto sector is a known factor and it is unlikely to impact the market much. There may be a small dent in profitability, but on a broader basis investors should continue to buy stocks such as Tata Motors, Maruti, Bajaj Auto and Hero Motocorp.
Shares of DLF was the top gainer on Nifty, up 3.46 percent followed by Jindal Steel, Tech Mahindra, HCL Technologies, HDFC, Sesa Sterlite and TCS with 1-2 percent gains.
The Nifty is starting the January series with more than 20.8 million shares along with the highest ever seen roll spread of 103 points. Higher Nifty premium does not bode well for upside momentum. Hence, future premium is likely to come down to normal levels in the next couple of sessions, says ICICIdirect.com
In an interview to CNBC-TV18, Siddarth Bhamre of Angel Broking shares his outlook on how the expiry may pan out and cues for the January series.
According to Ambareesh Baliga, market is bullish and the interest is now shifting to the midcaps and the smallcaps. In the last few days, the index is where it has been for a while whereas the midcap and the smallcap stocks shooting up and that will be seen in January series as well.
Hemant Thukral of Aditya Birla Money is bullish on the January series as well and recommends buying the index on dips.
Amit Gupta of ICICI Direct expects Nifty to test 6,150 in the January series. The Nifty moved up by 41.25 points to 5,992 levels in morning trade today.
In an interview to CNBC-TV18, Anil Manghnani, Modern Shares & Stock Brokers shared his observations on the market. “If you look at the last four months only, it has been one month up and then one month flat, so we have already had the November up and December flat. So if all goes well then January should actually go up,†he said
Hemant Thukral of Aditya Birla Money does not expect a big rally today. “Since majority of the rollovers are in place and the short covering has already been taken place, I do not expect big rally today.
CNBC-TV18's managing editor Udayan Mukherjee says the Nifty managed to keep its head above 5,150 for almost all of the trading session.
Indian markets are not showing any kind of resilience. As they tank further there is panic and growing concern that selling pressure may continue even till the end of budget.