Traders Guide: Here are the 10 things to know before market opens on Thursday, January 12 – What analysts suggest?

Traders Guide, NSE Nifty50, BSE Sensex: The Indian markets traded volatile in a narrow range and ended almost unchanged, taking a breather after Tuesday’s decline. The benchmarks Nifty and Sensex oscillated in a range till the end and settled at 17895.70 and 60,105.50 levels, respectively.

Meanwhile, most sectoral indices traded in line with the benchmark and closed marginally lower however rebound in banking and metal majors capped the damage.

Here is a list of things to watch out for on 12 January 2022

What Should Investors Do?

Participants are having a tough time dealing with prevailing volatility amid the corrective phase and we do not expect any relief soon, citing the upcoming events & ongoing earnings season. 

We thus reiterate our view to limit positions and prefer hedged trades. Investors, on the other hand, should see this decline as a buying opportunity and gradually accumulate quality stocks on dips.  

-Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Technical Outlook

Nifty opened near its previous day close and traded with a super volatility through the day within the narrow range. If we consider last four trading sessions’ trading set up, we observe a bullish harmonic pattern near 17,800 levels and prices have respected the low of the pattern as for now.

On the 2-hour chart, the triangle pattern is visible in the range of 18,150 – 17,750. We can expect a high level of volatility within this range as India VIX is also reading above 15 levels. Prices are expected to swing both ways unless they witness a break on either side of the triangle pattern.

Currently traders would be advised to wait patiently for the prices to break above 18,150 or below 17,800 levels to initiate next actionable move because presently market is in no trading zone.

- Rohan Patil, Technical Analyst, SAMCO Securities:

Key support & resistance levels for Nifty50:

The Nifty50 closed 0.1 per cent lower at 17,895.70. Key Pivot points (Fibonacci) support for the index is placed at 17840.7, 17804.83, and 17746.77, while resistance is placed at 17956.83, 17992.7, and 18050.77.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 0.5 per cent higher at 42,232.70. Key Pivot points (Fibonacci) support for the index is placed at 41868.24, 41729.23, and 41504.23, while resistance is placed at 42318.23, 42457.24, and 42682.23.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Image Source - Stockedge

Stocks in News

PB Fintech Ltd received in – principle approval for account aggregator from RBI.

HUL Phase I of 51% stake purchase process in Zywie Ventures completed. 

RITES inks pact with IIT-Kanpur to explore opportunities in sustainability sector.

Tata Power Renewables to set up 3 MW solar plant in Maharashtra

Bajaj Allianz, Punjab & Sind Bank enter into corporate agency partnership.

FII Activity on Wednesday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 3208.15 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 2430.62 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Moxsh Overseas Educon Ltd: Nikunj Kaushik Shah bought 12,800 equity shares in the company at the weighted average price Rs 115.75 per share on the NSE, the bulk deals data showed.

Cigniti Technologies Ltd: Mithun Chand Chennamaneni sold 1,79,809 equity shares in the company at the weighted average price Rs 572.68 per share on the NSE, the bulk deals data showed.

Arihant Academy Limited: Mansi Shares & Stock Advisors Pvt Ltd sold 52,800 equity shares in the company at the weighted average price Rs 121.61 per share on the NSE, the bulk deals data showed.

Anlon Technology Sol Ltd: Vishal Bipinkumar Doshi bought 28,800 equity shares in the company at the weighted average price Rs 276.58 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Indiabulls Housing Finance and GNFC are placed under the F&O ban for Thursday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.