Markets Update: January 7, 2019 – Today’s action in the Markets

16:00 Hrs Update: Latest After the Closing Bell

Nifty (+44, 10771.80): U.S China trade talk optimism sooth investor nerves.

Dalal Street ended today’s session on a positive note on U.S-China trade talk optimism. However it couldnt sustain above the psychological 10800 mark. Dow Futures too witnessed some profit booking at the time our markets closed. Crude oil too rebounded by 2.94% at 49.37.

Technically speaking, judging by today’s price action at Dalal Street, the benchmark Nifty needs to close above 10800 mark to fuel further optimism.

The key highlights of today’s trade:

1. The benchmark Nifty took the baton from world wide stock markets as it closed in green.

2. Realty and IT Index were among top gainers.

3. Prominent gainers from Sensex pack were: Axis Bank (up 2.84%), Tata Motors (up 2.64%), Maruti (up 1.76%) and Infosys (up 1.57%).

4. The market breadth, indicating the overall health of the market, was positive.

5. The BSE Mid-Cap index was up only 0.03%. The BSE Small-Cap index too was up only 0.06%.

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

GLOBAL UPDATE:

DOW Futures (+0.03%, 23415)
NASDAQ Futures (-0.09%, 6411.35)
DAX (-75, 10733)
FTSE (-21, 6817)

OIL (+2.98, $49.39)
GOLD (+7, $1293)
DOLLAR INDEX (-0.275, 95.477)
COPPER (+0.003, 2.65)

How Asia fared today:

HANG SENG (+238, 25810)
NIKKEI (+477, 20039)
SHANGHAI (+18, 2533.09)

Nifty (+44, 10772)
Sensex(+155, 35850)
Bank Nifty (+0.49%, 27304.55)
SGX NIFTY (+23, 10802)
USD/INR (+0.59, 69.83)

15:00 Hrs Update: Where is the Clever Money Going?

Nifty (CMP 10777, UP 50).

Minor profit booking seen as markets near closing

Aggressive stock specific buying advised only if Nifty moves above 10801 mark

Probable BTST/STBT trades:

Bullish looking BTST stocks: ICICI Bank, Axis Bank, Maruti.

Bearish looking stocks for STBT: Indiabulls Housing, HEROMOTO, IOC

14:00 Hrs Update: Life at Dalal Street after Europe’s Opening Bell

Dalal Street still in green but slightly below 10800 mark

The benchmark Nifty struggled to stay above the psychological 10800 mark but just couldn’t sustain. Please note that the bulls camp will stay in the game only if Nifty is able to close above the 10800 mark today. Key intraday support now seen at 10750.

DAX (-23, 10784)
FTSE (+7, 6845)

DOW Futures (+0.34%, 23488)
NASDAQ Futures (+0.24%, 6433)

HANG SENG (+238, 25810)
NIKKEI (-36, 20063)
SHANGHAI (+18, 2533)

Nifty (+71, 10799)
Bank Nifty (+225, 27420)

12:00 Hrs Update: Top Stories at Mid Day

(Nifty 10799, Up 68 points): Mid-day trades continue to remain in favour of bulls. Nifty is seen trading in green in the backdrop of positive leads from Asian markets and Friday’s upswing on the Wall Street. Optimism continues to be the buzzword at Dalal Street for now.

• Most of the sectoral indices are trading in the green, with maximum gains seen among Realty, Energy, Infra, as well as Pvt Banks. Nifty energy index was up 1 percent led by Reliance Infra, Power Grid Corp, ONGC, NTPC, GAIL, BPCL and HPCL.

• The market breadth, indicating the overall health of the market is positive.

• NSE Advances 44. NSE declines 6.

• The NSE Mid-Cap index is up 0.11% at 4,852. The NSE Small-Cap index is up 0.47% at 6411.

• In F&O space, Tata Motors and Axis Bank are in green, up 3.66% & 2.75% respectively, while on flip side Zeel & Dr.Reddy are down 0.90% & 0.87% respectively.

10:30 Hrs Update: Opportunities in Commodities Market

Base metals still under some pressure. Precious metals stay in green

Gold (+1.75, 1290.25). Buy on dips.
MCX Gold (+0.08%, 31485). Hurdles at 32300. Support seen at 31350.

Silver (+0.059, 15.845). Nearing 16.05. Buy on dips.
MCX Silver (+0.09%, 39206) Supports at 38700 and then at 38000. Hurdles at 40000.

Crude Oil (+0.18, 48.66). Oil has rebounded well in recent sessions. Next hurdle at 51.
MCX Crude Oil (+1.11%, 3384). Hurdles at 3451.

Copper (-0.008, 2.643). U.S- China trade truce key catalyst.
MCX Copper (-0.45%, 407.80). Support at 398. Hurdles at 422.

10:00 Hrs Update: Crucial Levels at 10

Nifty’s CMP 10,794 (UP 67 points).

What Technicals Tell us for Nifty:

Nifty’s KEY SUPPORTS: 10740/10701.
Nifty’s KEY HURDLE: 10851/10901.

Nifty’s INTRADAY RANGE: 10,760-10,845.
Nifty’s OUTLOOK FOR THE DAY: Positive session likely to hold.

Bulls continue to dominate trading screens. Any dip could be a good buying opportunity.

09:30 Hrs Update: Make Informed Decisions

(Nifty: 10801, Up 74 points): Nifty starts in green amidst positive news from US China trade talks

Nifty’s hurdles are now at 10851 and then at 10901 zone. It’s likely to be a bulls day out.

Amongst stocks on positive side are: VEDL (+1.66%, 196.10) YES BANK (+2.24%, 193.90) TATA STEEL (+1.59%, 495.40)

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

Japan’s Nikkei uplifts global sentiments as it stages a solid rebound.

DOW FUTURES (+0.39%, 23500)
NASDAQ FUTURES (+4.26%, 6738.86)
SGX NIFTY (+102, 10880)
NIKKEI (+494, 20056)
HANG SENG (+192, 25816)
SHANGHAI (+11, 2526).

Today, optimism is back at Dalal Street on back drop of positive global cues. Bullish bets are preferred themes after China’s Commerce Ministry statement that US trade delegation led by Deputy Trade Representative Jeffrey Gerrish will visit China today and Tuesday.

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

Preferred trade Nifty (10727): Buy on dips between 10747-10751 zone, targeting 10865 and then aggressive targets at 10911-10925 zone with stop at 10640.

Preferred trade on Bank Nifty (27195): Buy between 26975-27101, targeting 27600 zone and then aggressive targets at 28001-28151 zone with stop at 26665.

STOCKS TO WATCH:

Bullish stocks: BATA, SBI, UNION BANK OF INDIA.

Bearish stocks: MC DOWELL, MOTHERSON SUMI

08:00 Hrs Update: Calculus Derivatives Corner

• Nifty January Futures ended Friday’s session at a premium of +53 against +46.
• The Put- Call Open Interest Ratio was at 1.09 for Nifty whereas it was 1.31 for Bank Nifty.
• The Put-Call Volume Ratio was at 0.76 for the Nifty and 1.08 for Bank Nifty.
• For Nifty, Maximum Call Open Interest (OI) stands at 11000 Strike Price, followed by 11500 Strike Price for January Series. Short covering was seen at strike prices 10950-11000 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 10300-10700 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 Friday’s Provisional Data available on the NSE, FII’s sold shares worth Rs. 157.72 crores in the Indian Equity Market. DIIs on the other hand bought shares worth Rs. 240.60 crores in the Indian Equity market.
• Long Buildup: PNB, ICICI BANK, SBIN, UNION BANK, CANBK.
• Short Buildup: JAIN IRRIGATION, HINDALCO, M&M, TATA MOTORS, L&TFH.
• Short Covering: NALCO, JINDALSTL, MANAPPURAM, TATA MOTORS, APOLLOTYRE.
• Long Unwinding: TATACOMM, BRITANNIA, EICHER.
• Stocks banned in F&O segment for today: ADANI POWER, JET AIRWAYS.
• New In Ban: NIL.
• Out of Ban: NIL.

07:00 Hrs Update: Know what matters at Dalal street!!

Before we start, first things first: Let’s first look at major instruments.

GLOBAL UPDATE:

DOW (+142, 23549)
NASDAQ (+275, 6739)
SGX NIFTY (+104, 10882)
NIKKEI (+580, 20149)
HANG SENG (+318, 25940)
BOVESPA (+277, 91841)

OIL (+0.63, $48.59)
GOLD (+5, $1290)

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global:Positive.
FII: Negative.
DII: Neutral.
F&O: Negative.
‪Sentiment: Neutral.

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 10,727.

Nifty’s SUPPORT:
Intraday: 10,628/10,571.
Medium Term: 10,501/10,333.
Long Term: 9,951.

Nifty’s RESISTANCE:
Intraday: 10,801/10,951.
Medium Term: 11000/11,111.
Long Term: 12,001.

Nifty’s RANGE:
Intraday: 10,745-10,890.
Medium Term: 10,351-11,001.
Long Term: 9,951-11,701.

Nifty’s OUTLOOK:
Intraday: Buy on dips.
Medium Term: Neutral.
Long Term: Positive.

Our call of the day suggests, amidst a positive global environment, the benchmark Nifty will simply zoom in today’s trading action testing highs above 10800 mark.

Our chart of the day suggests establishing buy positions in stocks like UNION BANK, INDIAN BANK and UPL with interweek perspective.

IMPORTANT THEMES OF THE DAY:

This Monday morning, SGX Nifty is indicating a solid start for our stock markets as Wall street rebounded strongly last Friday.

The big question: Will the benchmark Nifty hold on to its gains today

Honestly speaking, we expect a relief rally for the bulls camp in today’s action but the recent volatile sessions will continue to bolster fear among investors.

Disclaimer: LotusFunds subscribers/clients may have positions in the stocks recommended in this note. Please note that the actual subscribers may receive additional information in real time not available to the viewers of this note.

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