16:00 Hrs Update: Latest after the Closing Bell
Nifty (+53, 10855): U.S China trade talk optimism continues to keep bullish sentiments alive and sooth investors nerves.
Dalal Street ended today’s session on a positive note on U.S-China trade talk optimism. However the trading session was marked with volatility. Technically speaking, judging by today’s price action at Dalal Street, the benchmark Nifty needs to close above 10871 mark to fuel further optimism.
The key highlights of today’s trade:
• The benchmark Sensex ended above 36,000 mark.
• NSE Media and NSE IT Index were among top gainers, up 1.2% and 0.7% respectively.
• Prominent gainers were: Bharti Airtel (up 3.39%), Axis Bank (up 3.09%) and Tata Motors (up 2.54%), ITC (up 2.09%), HDFC (up 1.79%) and HDFC Bank (up 0.67%).
• Prominent losers were: Yes Bank (down 3.15%), ONGC (down 1.22%), Hero MotoCorp (down 1.49%), Bajaj Finance (down 0.65%) and HCL Technologies (down 0.65%).
• The market breadth, indicating the overall health of the market was negative.
• The BSE Mid-Cap index fell 0.04%. The BSE Small-Cap index too inched lower, down 0.17%.
• IndusInd Bank ended on a positive note, UP 2.41% after unveiling its Q3. The bank’s net profit rose 2.33% to Rs 958.03 crore on 32.13% increase in total income to Rs 7232.32 crore in Q3 December 2018 over Q3 December 2017. The result was announced during trading hours today on 9th January 2019.
Meanwhile, Oil futures continued to march higher for a eighth straight session, the longest run of gains in roughly 18 months, with prices lifted by global efforts to curb crude output, as well as measured optimism around U.S.-China trade talks.
Now before we sign off for the day, let’s look at major instruments.
DOW Futures (+99, 23842)
NASDAQ Futures (+32, 6589)
DAX (+93, 10897)
FTSE (+57, 6919)
OIL (+1.10, $50.88)
GOLD (-4, $1282)
DOLLAR INDEX (-0.10, 95.80)
COPPER (+55, 5994)
How Asia fared today:
HANG SENG (+587, 26462)
NIKKEI (+223, 20472)
SHANGHAI (+17, 2544)
Nifty (+53, 10855)
Sensex (+232, 36213)
Bank Nifty (+0.74%, 27713)
SGX NIFTY (+0, 10878)
USD/INR (+0.04, 69.68)
15:00 Hrs Update: Where’s the Clever Money Going at 3 PM?
Nifty (CMP 10820, UP 17 POINTS):
A volatile up & down session is being witnessed at Dalal Street despite a stable worldwide stock market.
Aggressive stock specific buying advised only if Nifty moves above 10871.
Probable BTST/STBT trades
Bullish looking BTST stocks: BATA, RELIANCE INDIUSTRIES (ONLY ABOVE 1125), TITAN, UPL.
Bearish looking STBT stocks: LIC HOUSING FINANCE, BPCL
14:00 Hrs Update: Life at Dalal Street after Europe’s Opening Bell
DAX (+35, 10882.40)
FTSE (+16, 6908)
DOW Futures (+80, 23831)
NASDAQ Futures (+20, 6559)
HANG SENG (+579, 26436)
NIKKEI (+95, 20404)
SHANGHAI (+18, 2544)
Nifty (-26, 10775)
Bank Nifty (-021%, 27461)
12:00 Hrs Update: Top Stories at Midday
(Nifty 10831,Up 28 points): Nifty seen drifting after a solid higher open, perhaps bullish bets on wait-and watch mode and looking for confirmation only on Nifty above 10871 mark.
• Amongst sectoral indices, the Nifty IT index was trading over 0.89 per cent higher led by Infosys and Tata Consultancy Services (TCS). Whereas metal index is down 1.38% dragged down by Jindal Steel and NMDC down -4.28% & 3.90% respectively.
• The market breadth, indicating the overall health of the market is positive.
• NSE Advances 26. NSE declines 24.
• The NSE Mid-Cap index is down 0.11% at 4,856. The NSE Small-Cap index is down 0.09% at 6,397.
• In F&O space, Axis Bank ,Wipro & Infosys can be seen leading the pack in green, up 2.01%,1.47 & 1.47% respectively, while on flip side GAIL,HPCL & Tata Steel are down 3.51% , 2.70% & 2.44 respectively.
• Oil prices surge on hopes of successful US-China trade talks to resolve a trade dispute that has triggered a global economic slowdown.
10:30 Hrs Update: Opportunities in Commodities
Crude oil firmly above $50 mark in today’s trade. Copper rebounds as well.
Gold (-2.90, 1283). Positive Bias. Buy on corrective declines.
MCX Gold (0.00%, 31740). Hurdles at 31901. Support seen at 30861.
Silver (-0.043, 15.67). Buy on dips. Eyes 16.05 mark.
MCX Silver (+0.05%, 39355) Supports at 38200 and then at 37400. Hurdles at 40000.
Crude Oil (+0.80, 50.58). Crude oil in positive momentum. Hurdles at 51.50.
MCX Crude Oil (+2.65%, 3566). Hurdles at 3900.
Copper (+0.015, 2.666). U.S- China trade truce key catalyst.
MCX Copper (+0.90%, 417.10). Downside risk at 404. Hurdles at 436.
09:30 Hrs Update: Make Informed Decisions!!
(Nifty: 10853, Up 51 points): Nifty zooms in early action amidst short covering + value buying following positive global cues. Stocks are still not mirroring Nifty’s mojo.
Nifty’s hurdles are now at 10871 and then at 10921 zone.
Amongst stocks on positive side are: INFY (+1.78%, 682) AXS BANK (+1.55%, 661) TATA MOTORS (+1.08%, 182)
On the negative side are INFRATEL (-1.44%, 293.65) BPCL (-0.50%, 350).
09:00 Hrs Update: What Caught our Eye at 9 AM
DOW FUTURES (+111, 23854)
NASDAQ FUTURES (+45, 6602)
SGX NIFTY (+82, 10919)
NIKKEI (+252, 20455)
HANG SENG (+592, 26468)
SHANGHAI (+40, 2566).
Today, IndusInd Bank will set afire the ceremonial starter’s pistol for the third quarter corporate earnings season. The street will spy with one big eye on the net interest margin (NIM) and asset quality on backdrop of IL&FS saga. All anxious eyes will be also on the impact of the slowdown in commercial vehicle sales on the bank’s CV portfolio.
In the near term, the two potentially make-or-break events:
1. Upcoming earning Q3 earning season.
2. Outcome of U.S.-China trade talks.
Bulls Vs. Bears: Time to Pick a Side!!
Preferred trade on Nifty (10802): Buy between 10751-10775 zone, targeting 11000 and then aggressive targets at 11111-11275 zone with stop at 10685.
Preferred trade on Bank Nifty (27510): Buy at CMP, targeting 28001 and then aggressive targets at 28251-28375 zone with stop at 27001.
STOCKS TO WATCH:
Bullish stocks: SBI, CANARA BANK, TITAN, ALLAHABAD BANK, INDIAN BANK, BATA, COLPAL, BANK OF INDIA.
Bearish stocks: MCDOWELL, BOSCH, MOTHERSON SUMI, BPCL, HPCL.
08:00 Hrs Update: Calculus Derivatives Corner
• Nifty January Futures ended Tuesday’s session at a premium of +30 against +32.
• The Put- Call Open Interest Ratio was at 1.16 for Nifty whereas it was 1.32 for Bank Nifty.
• The Put-Call Volume Ratio was at 0.86 for the Nifty and 1.03 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 10500-10800 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 10350-10800 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 Tuesday’s Provisional Data available on the NSE, FII’s sold shares worth Rs. 553.78 crores in the Indian Equity Market. DIIs on the other hand bought shares worth Rs. 698.17 crores in the Indian Equity market.
• Long Buildup: ICICI BANK, ORIENTBANK, UNION BANK, FEDERAL BANK, TATA MOTORS.
• Short Buildup: ASHOK LEYLAND, ZEEL, HAVELLS, M&M, BAJAJ FINANCE.
• Short Covering: NBCC, JINDALSTL, ITC, TATA STEEL, LUPIN.
• Long Unwinding: GAIL, HEXAWARE, MINDTREE, EQUITAS.
• 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!!
DOW (+256, 23787)
NASDAQ (+74, 6897)
SGX NIFTY (+71, 10909)
NIKKEI (+201, 20405)
HANG SENG (+440, 26315)
BOVESPA (+332, 92032)
OIL (+0.59, $50.37)
GOLD (+2, $1287)
SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:
NIFTY’s CRUCIAL LEVELS:
Nifty’s CURRENT MARKET PRICE: 10,802.
Medium Term: 10,551/10,333.
Long Term: 9,951.
Medium Term: 11,001/11,111.
Long Term: 12,001.
Medium Term: 10,501-11,111.
Long Term: 9,951-11,701.
Medium Term: Neutral.
Long Term: Positive.
Our call of the day which suggests investors to continue wearing bullish caps. Nifty should eye 11000 mark.
Our chart of the day suggests establishing long positions in stocks like like SBI, CANARA BANK & INDIAN BANK) with interweek perspective.
IMPORTANT THEMES OF THE DAY:
Dalal Street is likely to deliver another bullish day helped by optimism over the state of U.S.-China trade talks. Trade talks between Beijing and Washington were extended to Wednesday amid reports that recent negotiations were making gradual progress.
U.S. President Donald Trump bullish tweet helps optimism all around after his tweet that talks are “going very well”.
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.
Stay tuned to our Live Trading Calls, Actionable Ideas, Breaking News
To receive alerts; call 9820045901.