Traders Guide: Here are the 10 things to know before market opens on Monday, January 16 – What do analysts recommend?

Traders Guide, NSE Nifty50, BSE Sensex: The Indian markets traded volatile for yet another session and ended with gains of over half a percent on Friday.  After the muted start, the Nifty and Sensex indices gradually inched higher and settled at 17956.60 and 60,261.18 levels, respectively.

The recovery in banking, IT, auto and metal majors played a crucial role in the rebound while others witnessed a mixed trend. While the broader indices underperformed and closed on a flat note.

Here is a list of things to watch out for on 16 January 2022

What Should Investors Do On Monday?

Markets will react to the HDFC Bank, Wipro and DMart’s result in early trade on Monday. The recent recovery in the global markets has failed to impress the participants so far however the mood might change if they manage to sustain the gains.

To regain some strength, Nifty should decisively cross the 18,100 mark. Meanwhile, participants should restrict positions and prefer a hedged approach.

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

Technical Outlook

Technically, Nifty is respecting a key support level of 17800, but the 20-DMA around 18100 is an immediate and critical hurdle that needs to be crossed for any strength in the market, and the 50-DMA around 18300 will be the next hurdle. However, if Nifty slips below the 17800 level decisively, then we can expect a move towards the 17625 and 17425 levels.

Bank Nifty is respecting its support at 41725, but the cluster of the 20 and 50-DMA around 42700 is a critical hurdle; above this, we can expect a move towards 43400. On the downside, the 100-DMA around 41300 is the next important support level.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Key support & resistance levels for Nifty50:

The Nifty50 closed 0.55 per cent higher at 17,956.60. Key Pivot points (Fibonacci) support for the index is placed at 17824.04, 17770.92, and 17684.93, while resistance is placed at 17996.02, 18049.15, and 18135.13.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 0.7 per cent higher at 42,371.25. Key Pivot points (Fibonacci) support for the index is placed at 42019.81, 41885.69, and 41668.61, while resistance is placed at 42453.99, 42588.11, and 42805.2.

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

Sagar Cements declared a successful resolution applicant for Andhra Cements

Avenue Supermarts Q3 earnings: Net profit up 6.7% at Rs 589.7 cr vs Rs 552.6 cr (YoY) and Revenue up 25.5%  at Rs 11,569.1 cr vs Rs 9,217.8 cr (YoY)

HDFC Bank reports a rise of 18.5% in Q3 net profit at Rs 12,259.5 vs 10,342.2 cr (YoY) and Provisions at Rs 2,806.4 cr vs Rs 3,240.1 cr QoQ and Rs 2,994 cr YoY.

Karnataka Bank appoints Sekhar Rao as Executive Director for 3 years.

L&T Finance Holdings: Concluded divestment of the mutual fund business and received sale consideration of Rs 3,485 crore.

Mohit Talwar retires as the Managing Director of Max Financial Services effective January 14.

Sula Q3 Update: Own brand sales up 13% at Rs 187.2 cr Vs Rs 165.7 cr (YoY) and Wine tourism business up 13% at Rs 23 cr Vs Rs 20.3 cr (YoY).

HG Infra Engineering gets Letter of Acceptance from Delhi Metro for a project estimated to cost Rs 399 cr.

Delhivery completes the acquisition of Algorhythm Tech.

SBI to hike 1-year lending rate by 10 bps to 8.40%, keeps rest unchanged.

M&M: NCLT approves scheme of merger of #Mahindra Electric Mobility with the company.

Whirlpool appoints Narasimhan Eswar as MD from April 4 for 5 years.

Bharat Agri Fert & Realty: Board to consider sub-division of equity share of face value Rs 10/share to Rs 1/share on February 1, 2023.

Dr. Reddy's acquires Trademark rights of Breast cancer drug, PRIMCYV, from Pfizer Products India; acquires rights for using it in the Indian market.

FII Activity on Friday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 2422.39 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1953.4 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Arihant Academy Limited: Meena Singhal bought 32,000 equity shares in the company at the weighted average price Rs 114.89 per share on the NSE, the bulk deals data showed.

Moxsh Overseas Educon Ltd: Abhay Chandrakant Lakhani sold 16,800 equity shares in the company at the weighted average price Rs 124.9 per share on the NSE, the bulk deals data showed.

Tembo Global Ind Ltd: MV Trading Co sold 65,564 equity shares in the company at the weighted average price Rs 135.16 per share on the NSE, the bulk deals data showed.

Hilton Metal Forging: Solenco Services LLP bought 2,00,000 equity shares in the company at the weighted average price Rs 85.78 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 Monday. 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.