skip to Main Content

Trade setup for December 30: markets should move sideways; key things to know before opening the bell

SGX Nifty signaled a positive start for Indian stocks as Nifty futures were trading at 26.50 points or 0.15% at 17,240 on the Singapore Stock Exchange at the start of trading.

The bears made a comeback on Dalal Street as Indian stock indexes ended a two-day winning streak to end Wednesday’s choppy session down slightly, before futures and futures expire. ‘December options. The BSE Sensex finished lower 91 points to 57,806.5, while the Nifty50 lost 20 points to 17,213. Gains in pharmaceutical and auto stocks were offset by financial and IT counters. However, the larger markets outperformed the benchmarks with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.13% and 0.59% respectively. Indian stock markets are expected to open in the green amid positive global indices. SGX Nifty signaled a positive start for Indian stocks as Nifty futures were trading at 26.50 points or 0.15% at 17,240 on the Singapore Stock Exchange at the start of trading.

To know before the opening bell of the market

Global markets

US markets closed on a positive note on Wednesday, with the S&P 500 gaining 0.14% to end at 4,793.06 – its 70th closing record of 2021. The Dow Jones Industrial Average also closed on a high, rising 90 , 42 points to 36,488.63 while the Nasdaq Composite trailed, slipping 0.1% to around 15,766.22. Stocks in the Asia-Pacific region were mostly higher today after overnight gains on Wall Street, which led to a record close for the S&P 500 and the Dow Jones Industrial Average. Hong Kong’s Hang Seng Index rose 0.48%. Mainland China stocks were also up, with the Shanghai composite up 0.5% and the Shenzhen component up 0.852%. Japan’s Nikkei 225 fell 0.12% as the Topix index hovered above the flat line. South Korea’s Kospi climbed 0.06%. In Australia, the S & P / ASX 200 fell 0.13% today while the MSCI’s largest Asia-Pacific stock index outside of Japan traded up 0.28%.

Technical view

After posting a sustained rise over the past two sessions, Nifty slipped into minor weakness amid volatility on Wednesday and closed the day 19 points lower. After opening on a negative note, the market recovered early in the session. It then moved into intraday volatility in the middle part and lost some ground towards the end to close near the lows. A small negative candle has formed on the daily chart with an upper shadow. Technically, this pattern indicates a dull type movement to crucial air resistance. This could point to the possibility of a market correction down from the highs, Nagaraj Shetti, technical research analyst, HDFC Securities said of today’s market performance.

The market is currently positioned at the significant trendline resistance around 17,300 levels (descending trendline connecting lower highs). Market showing weak bullish strength to break through the obstacle on Wednesday could indicate chances for further consolidation or minor weakness in the near term. The negative chart pattern of lower highs and lows is intact on the daily chart and the current rise may be in line with the formation of lower highs (lower high needs to be confirmed). Recently, Nifty has shown strength during minor dips and has rebounded strongly from dips. The market appears to have positioned itself at crucial air resistance and lacked the strength to overcome the obstacle. There is a greater possibility of a consolidation or downward correction over the next 1-2 sessions before showing a further upward rebound from the lows again, he added.

Smart support, resistance levels

After a stable open on Tuesday, Nifty traded in the range and managed to close with a moderate loss of 19.65 points at the 17213.60 level. The index found resistance on the downward sloping trendline adjacent to previous highs on the daily chart. The 50-day EMA also acted as a hindrance for the Nifty at 17340. Nifty has strong support at the odd 17050 levels, derived from the ascending trendline, abutting previous lows on the daily chart, said Devarsh Vakil, Deputy Director of Retail Research, HDFC Securities

Smart bank

Nifty Bank closed yesterday’s trading session at 35,045.40 with a loss of 138.40 points. The index has support at 34,500 levels while resistance is placed at 35,500 levels, said Palak Kothari, research associate, Choice Broking.

Call option data

Maximum open call interest is placed at the strike price of 17,500, with 1.8 lakh contracts, followed by 17,300, with 1.6 lakh contracts, according to exchange data. This is followed by a strike of 18,000, which racked up 63.34 lakh contracts. Call writing was seen at 17,300 strikes, which added 30.12 lakh contracts, followed by 17,500 strikes with 19.83 lakh contracts and 17,400 strikes with 17.72 lakh contracts. Strong support placed at 17,000 and immediate resistance at 17,300 followed by a major hurdle at 17,500.

Put option data

Maximum open interest is accrued at the strike price of 17,000, with nearly two lakh contracts, followed by an exercise price of 17,200, 17,100 and 16,700, with contracts of 1.3 lakh each. Put writing was seen at 16,700 strike, which added 32.78 lakh contracts, followed by 17,100 strike with 10.14 lakh contracts and 17,200 strike with 8.36 lakh contracts.

Wholesale offers

Sigachi Industries: Foreign investor 3 Sigma Global Fund has sold nearly half of its stake in Sigachi Industries, offloading 2.46 lakh shares at a price of Rs 403.4 per share on the NSE and 3 lakh shares at the price of Rs 402.01 per share on BSE, wholesale trading data showed.

HP AdhesivesForeign investor Nexus Global Opportunities Fund sold 3,04,923 shares of the company at Rs 369.2 per share on BSE to exit HP Adhesives, data shows. BW Traders bought 1,09,394 HP Adhesives shares at Rs 364.47 per share. Meanwhile, Rajasthan Global Securities sold 2.23 lakh shares at Rs 364.6 per share on the NSE, according to bulk transactions data.

Analyst / investor meeting

GMM Pfaudler: Officials to interact with analysts and investors

Somany Home Innovation: Officials will interact with Edelweiss Financial Services and Nirmal Bang

Balrampur Chini Mills: Company officials will meet HDFC MF

PSP projects: Officials will meet with IDFC AMC

PRV: Officials to meet with investors and analysts

Stocks under F&O ban on NSE

Indiabulls Housing Finance, Vodafone Idea and RBL Bank – are the three stocks subject to the F&O ban for Thursday, December 30. Securities subject to the blackout period in the M&O segment include companies in which the security has exceeded 95% of the market-wide position limit.

FII and DII activity

Foreign Institutional Investors (FII) bought Indian stocks worth Rs 975.23 crore on Wednesday, December 29, while domestic institutional investors bought stocks worth Rs 1,006.93 crore on the Indian stock market on Dec. 29, according to provisional data available on the NSE.

Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.

Back To Top