Investors are advised to stay long on the index with a trailing stop loss below 10,400, suggest experts.
The Indian markets witnessed a volatile day but bulls managed to regain control over D-Street on Thursday. The index reclaimed its crucial resistance level of 10,500 and closed near its intraday high level and made a bullish candle on the daily candlestick charts.
The Nifty index which bounced back after hitting its 13-days exponential moving average (DEMA) managed to close above its 5-DEMA placed around 10,472.
After three consecutive days of the bearish candle, bulls finally managed to breakout from the narrow trading range. Investors are advised to stay long on the index with a trailing stop loss below 10,400, suggest experts.
The Nifty which opened at 10,469 slipped to an intraday low of 10,441 in the morning trade. However, bulls took charge in the afternoon trade and pushed the index beyond 10,500 to touch its intraday high of 10513. The index finally closed 61 points higher at 10,504.80.
“The bulls will be more confident to conquer the top of 10552 going forward going by the price behaviour seen in the last three days. Few momentum oscillators on lower time frame charts generated buy signals whereas Daily MACD’s behaviour is very interesting as it has turned away from its signal line without generating a sell signal,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Usually, this kind of action on the part of this indicator is considered as very bullish. Hence, as long as Nifty sustains above 10400 levels trade will remain on long side,” he said.
India VIX fell down by 1.51 percent at 13.42. VIX has to hold below 13-12.50 zones to support the overall Bullish bias of the market.
We have collated the top fifteen data points to help you spot profitable trade:
Key Support & Resistance Level for Nifty
The Nifty closed at 10,504.8 on Thursday. According to Pivot charts, the key support level is placed at 10,459.87, followed by 10,414.93. If the index starts to move higher, key resistance levels to watch out are 10,531.37 and 10,557.93.
Nifty Bank
The Nifty Bank closed at 25,462.6. Important Pivot level, which will act as crucial support for the index, is placed at 25,351.84, followed by 25,241.07. On the upside, key resistance levels are 25,531.84, followed by 25,601.07.
Call Options Data
Maximum Call open interest (OI) of 44.01 lakh contracts stands at strike price 11,000, which will act as a crucial resistance level for the index in the January series, followed by 10,700, which now holds 35.7 lakh contracts in open interest, and 10,600, which has accumulated 35.6 lakh contracts in OI.
Call writing was seen at a strike price of 10,400, which saw the addition of 1.79 lakh contracts, followed by 10,800, which saw the addition of 0.81 lakh contracts and 10,900, which saw the addition of 0.74 lakh contracts.
Call unwinding was seen at strike prices of 10,500, which saw 4.22 lakh contracts being shed, followed by 10,600, which shed 2.62 lakh contracts and 10,200, which shed 0.64 lakh contracts.Put Options Data
Maximum put OI of 54.01 lakh contracts was seen at strike price 10,400, which will act as a crucial base for the index in January series; followed by 10,300, which now holds 51.59 lakh contracts and 10,200 which has now accumulated 46.37 lakh contracts in open interest.
Put writing seen at 10,400, which saw the addition of 7.05 lakh contracts, followed by 5.75 lakh contracts at the strike price of 10,200 and 10,500, which saw the addition of 3.58 lakh contracts.
Put unwinding was seen at the strike price of 11,000, which saw shedding of 0.61 lakh contracts.FII & DII Data
Foreign institutional investors (FIIs) bought shares worth Rs 212.05 crore, while domestic institutional investors bought shares worth Rs 325.24 crore in the Indian equity market on Thursday, as per provisional data available on the NSE.
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on the stock.
82 stocks saw long build-up
73 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
39 stocks saw short build-up
An increase in open interest along with a decrease in price mostly indicates short positions being built up.
16 stocks saw long unwinding
Long unwinding happens when there is a decrease in OI as well as in price.
Bulk Deals
Gitanjali Gems Limited: Macquarie Finance (India) Pvt Ltd sold 25,00,000 shares of Gitanjali Gems Limited at Rs 73.50 per share on the NSE.
Mercator: Ivory Consultants sold 20,55,000 shares of Mercator Limited at Rs 41.01 per share on the NSE.
Satin Credit: MV MAURITIUS Ltd sold 4.3 lakh shares at a traded price of Rs427.01
Amulya Leasing: Kotak Mahindra MF bought 2,75,000 shares at a traded price of Rs 655.61
(For more bulk deals click here: https://goo.gl/qrXHCH)
Analyst, Board Meet/Briefings
Astute Investment Management is meeting the management of Advanced Enzymes on January 5, 2018.
Subhkam Ventures has met the management of Union Bank on January 4, 2018.
Stocks in the News
JSW Energy: Incorporates subsidiary from January 1, JSW Solar.
Take Solutions: Incorporation of Subsidiary in Colombia
Varun Beverages: Enters partnership with Pepsico for Tropicana
Bajaj Electricals: CARE Ratings has assigned A one plus rating to commercial paper of Rs 500 crore.
Indian Overseas Bank: The Board of Directors have considered and approved to utilize the balance available in the Share Premium account amounting to Rs. 7650.06 crore to write off the accumulated losses of the Bank aggregating to Rs. 6978.94 crore as at 31.03.2017.
The board is also convening an Extraordinary General Meeting (EGM) of shareholders of the Bank on Tuesday, January 30, 2018 at Chennai for obtaining the approval of the shareholders for the above.
Cipla: The operation and Administrative committee of the company alloted 50,413 equity shares at Rs2 each pursuant to exercise of the stock options by the option gaurantee under Employee Stock Option Scheme.
8 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as Fortis, GMR Infra, HDIL, IFCI, JP Associates, Jindal Steel, Jain Irrigation, and Reliance Power. Reliance Communications is out of that zone.
