What do the charts suggest for Dalal Street now?
He believes one can expect further upside in the short term.
“The negative sequence of lower tops and bottoms on the daily chart is now placed at the edge, which could mean that the bearish setup is likely to be negated… Any dips from here could unfold a bullish setup like higher highs and lows,” Shetti added.
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More upside possible?
Any upmove with a major contribution from the financial basket is healthy and gives confidence the market will continue to rise from the current crucial juncture, said Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One. He believes levels of 17,750-17,900 are now key to watch out for in the Nifty.
“Since we are continuously moving upwards from 16,800, we may see some profit booking in between; but traders need not worry as long as we are convincingly above 17,150. Before this, immediate supports are placed at 17,500-17,400 levels,” Chavan said. He advises traders to focus on individual themes in the market now.
Here are key things to know about the market before the January 4 session:
SGX Nifty
At 7:46 am on Tuesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — were down five points at 17,692.5, suggesting a flat start ahead on Dalal Street.
Global markets
Asian shares flat despite record high on Wall Street
Equities across other Asian markets were steady on Tuesday with MSCI’s broadest index of Asia Pacific shares outside Japan flat at the last count. Japan’s Nikkei 225 was up 1.4 percent and Singapore’s Straits Times 0.7 percent, but South Korea’s KOSPI down half a percent and China’s Shanghai Composite down 0.6 percent. Hong Kong’s Hang Seng was flat.
S&P 500 futures were flat in Asia. On Monday, the three main Wall Street indices notched record closing highs. The S&P 500 and the Dow Jones rose 0.6-0.7 percent and the tech stocks-heavy Nasdaq Composite surged 1.2 percent.
What to expect on Dalal Street
The uptrend is expected to continue in both Nifty and Bank Nifty, and traders may use intraday declines for buying opportunities, said Ruchit Jain, Lead Research at 5paisa.com.
“The near-term level to watch out for the Nifty will be the 61.8 percent retracement of the recent correction, which is around 17,766. One the other hand, 17,500-17,450 will now be the immediate support range,” he said.
It is time to be more selective now. That is the message from Gaurav Dua, Head-Capital Market Strategy at Sharekhan by BNP Paribas. He remains positive on equities in the New Year.
“2022 could be a year of underperforming sectors like public sector banks, mortgage companies, and auto and auto ancillaries to play catch up as smart money shifts to stocks with relatively more attractive valuations,” he said.
Key levels to watch out for
Nifty50: Immediate support for the index is expected at 17,400 and immediate support at 18,000, according to Mohit Nigam, Head-PMS at Hem Securities.
Bank Nifty: For the banking index, Nigam sees immediate support at 36,000 and immediate resistance at 37,000.
FII/DII activity
Foreign institutional investors (FIIs) net purchased Indian equities worth Rs 902.6 crore on Monday. Net buys by domestic institutional investors stood at Rs 803.1 crore, according to provisional exchange data.
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000, with 1.1 lakh contracts, and the next highest at 17,900 with almost 67,000 contracts, according to exchange data. The maximum put open interest is at the 17,500 mark, with nearly 92,000 contracts.
This suggests immediate resistance at 17,900 followed by a major hurdle at 18,000, and support at 17,500.
Long build-up
Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| HINDCOPPER | 15,05,000 | 129.7 | 3.39% | 104.57% |
| NBCC | 34,80,000 | 46.95 | 1.40% | 97.93% |
| GNFC | 4,36,800 | 447.5 | 0.89% | 95.54% |
| BALRAMCHIN | 5,32,800 | 375.8 | 1.72% | 81.38% |
| ABCAPITAL | 47,78,400 | 130.3 | 4.45% | 52.85% |
Long unwinding
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| AUROPHARMA | 1,51,10,250 | 733.5 | -0.66% | -0.89% |
| SRF | 30,40,875 | 2,428.70 | -0.21% | -0.78% |
| ESCORTS | 50,55,050 | 1,911.05 | -0.43% | -0.47% |
| BALKRISIND | 13,98,200 | 2,325 | -0.22% | -0.07% |
(Decrease in open interest as well as price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| AUBANK | 36,41,500 | 1,081.50 | 4.02% | -3.95% |
| IDFCFIRSTB | 14,63,31,300 | 49.75 | 2.26% | -3.37% |
| TORNTPOWER | 30,66,000 | 554.6 | 0.56% | -1.91% |
| NMDC | 7,77,40,100 | 136 | 1.45% | -1.37% |
| CUB | 95,84,600 | 139.35 | 2.84% | -1.14% |
Short build-up
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| RAIN | 10,90,000 | 237.75 | -1.45% | 43.12% |
| BATAINDIA | 12,66,650 | 1,869.30 | -0.65% | 17.67% |
| TATACOMM | 7,49,200 | 1,450 | -1.53% | 14.31% |
| PERSISTENT | 4,09,650 | 4,887.90 | -0.63% | 9.52% |
| COROMANDEL | 9,33,125 | 759.4 | -0.07% | 9.38% |
(Increase in open interest and decrease in price)
52-week highs
In the BSE 500 pack, Infosys, Sun Pharma, IDFC, Rajesh Exports, Minda Corp, Persistent, Suzlon, KIMS, KPIT Tech, Birlasoft, eClerx, KPR Mill, Fortis Healthcare and Narayana Hrudayalaya were among the 24 stocks that hit 52-week highs.
52-week lows
Only one stock in the broadest index on the bourse hit a 52 -week low: MAS Financial Services.
Volatility gauge
NSE’s India VIX index — which gauges the expectation of volatility in the market — rose 1.4 percent to 16.5 on Monday, having jumped as much as 3.6 percent during the session.
