Traders Guide: 10 things to know before market opens on Wednesday, January 11 – Here's what analysts recommend

Traders Guide, NSE Nifty50, BSE Sensex: The Indian markets plunged lower and lost nearly a percent, in continuation to the prevailing corrective phase. The Nifty50 and BSE Sensex indices inched gradually lower as the session progressed and engulfed the move of the last trading session and ended over 1 per cent lower.

The decline was widespread wherein banking, metal, realty and IT were among the top losers. Besides, the broader indices too witnessed pressure and lost nearly half a percent each.

Here is a list of things to watch out for on 10 January 2022

What Should Investors Do?

Markets are gradually drifting lower amid volatility and indications are pointing towards more pain ahead. Meanwhile, mixed global cues combined with earnings season would keep traders on the edge.

We thus reiterate our view to limit positions and prefer a hedged approach, especially for the overnight trades.

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

Technical Outlook

The Nifty, on Tuesday, witnessed a reversal of sentiments as the index gave up all the gains of the previous trading session ending the day on a negative note down 187 points. On the daily charts, we can observe that the Nifty has witnessed selling pressure from the 18140 – 18180 zone where resistance in the form of the 20 and 40-day moving averages are placed.

On the way down the crucial support, zone is at 17770 – 17800 where the 20-week moving average is placed. Thus, Nifty is witnessing volatile price action between these two parameters.

The daily momentum indicator has triggered a negative crossover however, it has not completed its pullback to the equilibrium line indicating that this consolidation is not complete, and the fall is unlikely to continue on the downside. Until we get a decisive close beyond the extremes of the range 17800 – 18300, the range bound action is likely to continue.

- Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

Key support & resistance levels for Nifty50:

The Nifty50 closed 1 per cent lower at 17,914.15. Key Pivot points (Fibonacci) support for the index is placed at 17862.18, 17798.09, and 17694.33, while resistance is placed at 18069.68, 18133.78, and 18237.53.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 1.33 per cent lower at 42,014.75. Key Pivot points (Fibonacci) support for the index is placed at 41854.67, 41656.8, and 41336.54, while resistance is placed at 42495.2, 42693.06, and 43013.33.

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

Axis Bank enters revised pact with Max Fin Serv for acquiring additional 7 pc stake in Max Life

Tariff hike-led revenue growth, 5G key events for telecom in 2023, decisive year for VIL

Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12

NTPC produces 14.55 MT coal from captive mines in Apr-Dec

Steel prices climb to a three-month high of Rs 56,900 per tonne in Jan: SteelMint

Coal India subsidiary NCL to start M-Sand production

Tata Motors' unit Tata Passenger Electric Mobility completes acquisition of Ford India’s manufacturing plant at Sanand, Gujarat

Defense stocks: Defence Acquisition Council approves Acceptance of Necessity for 3 capital acquisition proposals.

Adani Wilmar Q3 Update: Edible oil volume and revenue growth in high-single digit.

Bank of Baroda to hike lending rates by 20-35 bps across tenures effective January 12.

Ex-Date: Welspun Enterprises- Special Dividend Rs 7.5

FII Activity on Tuesday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 2109.34 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1806.62 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Anlon Technology: Varshaben Bharatbhai Shah bought 90,000 equity shares in the company at the weighted average price Rs 257.96 per share on the NSE, the bulk deals data showed.

Atal Realtech Limited: Kaushik Mahesh Waghela sold 96,000 equity shares in the company at the weighted average price Rs 81.88 per share on the NSE, the bulk deals data showed.

BCL Industries Limited: Rollon Investment Pvt Ltd sold 7,52,030 equity shares in the company at the weighted average price Rs 413.95 per share on the NSE, the bulk deals data showed.

Geekay Wires Limited: Ruchi Kansaria sold 54,909 equity shares in the company at the weighted average price Rs 90.95 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 Wednesday. 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.