SGX Nifty up, Nifty technical view, Bank Nifty on charts, stocks under F&O ban; things to watch out on Monday

Domestic equity market benchmarks BSE Sensex and Nifty 50 were staring at a positive start on Monday, as suggested by trends on SGX Nifty in early trade. Nifty futures were trading 78 points or 0.44 per cent higher at 17,935 on Singaporean Exchange. In the previous session, S&P BSE Sensex added 142 points or 0.24% to close at 59,744 while the NSE Nifty 50 index closed 66 points or 0.38% higher at 17,812. A host of factors were likely to sway market this week such as macreconomic data announcements, quarterly earnings from IT majors, including Infosys and TCS, and other global cues. Analysts believe earnings will dictate the market trend and participants are hopeful of an encouraging start by the IT heavyweights. Though the markets are currently overlooking the rise in COVID cases, the extension of strict restrictions imposed by several states might dent the sentiment. “On the index front, Nifty would find support around 17,400-17,600 levels and 18,000-18,200 zone would act as a hurdle. Amid all, we reiterate our positive yet cautious view and suggest focusing more on risk management as volatility is likely to remain high,” Ajit Mishra, VP Research. Religare Broking, said.

Call, Put open interest: Maximum Call open interest of contracts was seen at 18,000 strike, followed by 17,500 strike. Call writing was seen at 18,300 strike, and Call unwinding was seen at 18,000 strike. While maximum Put open interest was seen at 17,000 strike, followed by 17,500 strike. Put writing was seen at 17,800 strike, and Put unwinding was seen at 17,700 strike.

Nifty technical view: The underlying short term trend of Nifty remains positive with high volatility, said an analyst. “The uptrend strength remains intact and we are unlikely to see any sharp trended decline from here. Any weakness from here could be a buying opportunity around the crucial support of 17600 levels and we expect further upside from the lower levels. Immediate resistance is placed at 17900,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

Bank Nifty on charts: The texture of the market is volatile and will remain so in the near future. However the market’s trajectory remained sideways to positive, said a chartist. “On technical front, Index is trading above its 5-day exponential moving average on the daily chart which is around 36885. This will act as strong support followed by 36650 whereas resistance level would be at 38000-38300 levels. For intraday traders 37500-37530 would be the key support level, trading above the same, the index can move up to 37900-38150 levels. If Index trades below the said levels it may slide down towards 37330-37150 levels,” Aprajita Saxena, Research Analyst at Trustline Securities, told Financial Express Online.

Global market watch: Asian stock markets were trading cautiously Monday as investors braced for bond-market volatility and assessed the economic hit from the rapidly spreading Covid omicron variant. South Korea’s Kospi index fell 1.02% while the Kosdaq was down 1.28%. Japan’s markets were closed for a public holiday. Wall Street’s main indexes were mixed in choppy trading on Friday. The Dow Jones Industrial Average was up 75.05 points, or 0.21%, the S&P 500 was down 9.13 points, or 0.19%, and the Nasdaq Composite was down 104.61 points, or 0.69%.

TCS share buyback: Tata Consultancy Services (TCS) on Friday said its board will consider a buyback proposal on January 12. The company’s board is scheduled to meet on January 12 to approve and take on record the financial results for the October-December quarter.

FII, DII data: On Friday, foreign institutional investors (FIIs) lapped up shares worth Rs 496.27 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 115.66 crore on a net basis in the Indian stock market.

Stocks under F&O ban on NSE: Two stocks – Delta Corp and RBL Bank – were under the F&O ban for January 10. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period.