Markets Update: January 01, 2019 – Today’s action in the Markets

16:00 Hrs Update: Latest after the Closing Bell

Nifty (+48, 10910):

Every New Year begins with optimism and the first trading session at Dalal Street is no exception.

We expect 2019 will be a spectacular year for Dalal Street and the upcoming months could be quite exciting for the bulls bringing more gains.

This bullish thesis is on hopes of U.S-China truce and then expect stocks to run out of gate if the Federal Reserve tones down its hawkish stand. Well, Dalal Street could be a screaming buy if the upcoming 2019 general elections becomes a cakewalk for BJP.

Technically speaking, Dalal Street would be the most preferred investment destination if Nifty continues to trade above the 10,351 mark.

For aggressive traders, Nifty’s level of 10,770-10,780 is likely to act as a strong entry zone for the bulls camp as the index has the 200-day simple moving average placed in this region.

The big question: Which stocks to buy?

Obviously, savvy investors will race to take advantage of the ongoing positive momentum. Our preferred bets on buy side are TATA STEEL, ORIENTAL BANK OF COMMERCE & INDIAN BANK with interweek perspective.

Now before we sign off for the day, let’s look at major instruments.

GLOBAL UPDATE:

DOW Futures (+0.22%, 23320)
NASDAQ Futures (+0.30%, 6353)
DAX (CLOSED, 10559)
FTSE (CLOSED, 6728)

OIL (+0.72, $46.05)
GOLD (+2.30, $1285)
DOLLAR INDEX (-0.10, 96.29)
COPPER (+16, 6009)

How Asia fared today:

HANG SENG (CLOSED, 25845)
NIKKEI (CLOSED, 20015)
SHANGHAI (CLOSED, 2494)

Nifty (+0.49%, 10910)
Bank Nifty (-0.39%, 27055)
SGX NIFTY (+0, 10967)
USD/INR (-0.09, 69.68)

15:00 Hrs Update: Where’s the Clever Money going at 3 pm

Nifty (CMP 10887, UP 23 POINTS):

Nifty jumps above the dotted lines keeping the new year bullish optimism alive.

Probable BTST/STBT trades –

Bullish looking BTST stocks: OBC, PNB, BOB, SBI, ESCORTS, INDIAN BANK, ASIAN PAINTS, PEL

Bearish looking STBT stocks: MARUTI, M&M.

14:00 Hrs Update: After Europe’s Opening Bell

Nifty unable to pick up the baton from a positive overnight Wall Street.

Expect zigzag moves from here on as many traders are out for the holidays, and volumes are expected to be thinner. Most global financial markets are closed on Tuesday, Jan. 1, 2019, for New Year’s Day.

Nifty’s support seen at 10771 mark.

DAX (CLOSED, 10559)
FTSE (CLOSED, 6728)

DOW Futures (+0.22%, 23320)
NASDAQ Futures (+0.30%, 6353)

HANG SENG (CLOSED, 25845)
NIKKEI (CLOSED, 20015)
SHANGHAI (CLOSED, 2494)

Nifty (-0.43%, 10816)
Bank Nifty (-0.39%, 27055)

10:00 Hrs Update: Crucial Levels at 10 am

Nifty’s CMP 10,830 (Down 33 points).

What Technical Tells Us On Nifty:

Nifty’s KEY SUPPORTS: 10841/10775.
Nifty’s KEY HURDLE: 10921/11111.

Nifty’s INTRADAY RANGE: 10,811-10,901.
Nifty’s OUTLOOK FOR THE DAY: Positive bias.

Range bound session quite likely for the day. With medium term perspective, Nifty’s level of 10,770-10,780 is likely to act as a strong entry zone for the bulls camp as the index has the 200-day simple moving average placed in this region.

09:30 Hrs Update: Make Informed Decisions

(Nifty: 10839, Down 24 points): Sluggish action amidst low volumes greets Dalal Street on New Year.

Nifty’s hurdles are at 10921 and then 11001 mark.

Amongst stocks on positive side are: BHARTI AIRTEL (+0.83%, 315) INFRATEL (+0.68%, 260.75) AXIS BANK (+0.42%, 622.50)

On the negative side are IBULLS HSGFIN (-1.13%, 844) TECH MAHINDRA (-0.86%, 717) HINDALCO (-0.77%, 224.40).

09:00 Hrs Update: What Caught our Eye at 9 am

Most Asian markets are closed, hence moves for the day could be volatile and probably be exaggerated as many traders are out for the holidays, and volumes are expected to be thinner. That said, risk appetite on the buy side continues to be the preferred theme at Dalal Street.

Global Update: DOW FUTURES (+0.22%, 23320) NASDAQ FUTURES (+0.30%, 6352) SGX NIFTY (+1, 10923) NIKKEI (CLOSED) HANG SENG (CLOSED) SHANGHAI (CLOSED)

Bulls Vs. Bears: Time to Pick a Side!!

Preferred trade on Nifty (10863): Buy on any weakness between 10801-108115 zone, targeting 10911 zone and then aggressive targets at 11001-11111 zone with stop at 10701.

Preferred trade on Bank Nifty (27160): Buy between 26901-27001 zone, targeting 27401 zone and then aggressive targets at 27900-28001 zone with stop at 26451.

Bullish stocks: TATA STEEL, JSW STEEL, AJANTA PHARMA, CUMMINS INDIA, BATA, BOB, L&T FINANCIAL, JUBILANT FOODS, BAJAJ FINANCE, TITAN, SBI.

• Bearish stocks: INFRATEL, HPCL, BHARTI AIRTEL, BPCL, SUN PHARMA.

08:00 Hrs Update: Calculus Derivatives Corner

• Nifty January Futures ended Monday’s session at a premium of +56 against +50.

• The Put- Call Open Interest Ratio was at 1.26 for Nifty whereas it was 1.22 for Bank Nifty.

• The Put-Call Volume Ratio was at 0.93 for the Nifty and 0.81 for Bank Nifty.

• For Nifty, Maximum Call Open Interest (OI) stands at 11200 Strike Price, followed by 11000 Strike Price for January Series. Call buying was seen at strike prices 10850-11000 for January Series.

• Maximum Put Open Interest (OI) was seen at strike price 10500 followed by 10000 strike price for January series. Put Writing was seen at strike prices 10200-10950 for January Series.

• For Bank Nifty, Maximum Call Open Interest (OI) stands at 27000 Strike Price and Maximum Put Open Interest stands at 27500 Strike Price.

• As per Monday’s Provisional Data available on the NSE, FII’s sold shares worth Rs. 326.87 crores in the Indian Equity Market. DIIs on the other hand bought shares worth Rs. 321.98 crores in the Indian Equity market.

Long Buildup: DHFL, BANKINDIA, JINDALSTL, TATA STEEL, BIOCON.

Short Buildup: IOC, BHARTI AIRTEL, CESC, MARUTI, HEROMOTO.

Short Covering: MOTHERSON SUMI, RELINFRA, TVS MOTOR, JAIN IRRIGATION, IRB.

Long Unwinding: CANFINHOME, CANBK, SUN TV, BEML.

Stocks banned in F&O segment for today: ADANI POWER.

07:00 Hrs Update: Know What Matters at Dalal Street

Markets Update: January 01, 2019 – Today’s action in the Markets

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