Market trend: Despite mixed global cues, Indian indices opened with gains on January 16 and Nifty is trading around 25700. At present, Sensex is up by 154.42 points or 0.19 percent at 83,537.13 and Nifty is up by 20.65 points or 0.08 percent at 25,686.25. About 1403 shares have gained momentum. 1070 shares have declined and 259 shares appear unchanged. Infosys, Tech Mahindra, Shriram Finance, M&M, Grasim Industries are the top gainers on Nifty. Whereas, Cipla, HDFC Life, ONGC, Apollo Hospitals and Bharti Airtel are the top losers of Nifty.
What should be the earning strategy in the market?
Talking about what should be the earning strategy in the market today, CNBC-Awaaz’s Virendra Kumar said that the first resistance for Nifty is at 25777-25813 and the big resistance is at 25859-25876/25946(50/20DEMA). For this, the first base is at 25581-25612 and the bigger base is at 25447/25491-25537. On Wednesday it was clearly said that trade is a bit difficult, but there is a sell-off structure in the upswing. Heavy selling of cash by FIIs has been seen. Sold in the index but there is slight short selling, but shorts have increased to 1.99 Lk. Nifty’s LOW in 3 days in the last 4 sessions has been 100DEMA, as well as the zone of 25600 Put writers. Infosys has increased revenue guidance. Its ADR is rising. 38381-38500 will be important for Nifty IT.
Option setup has highest OI at 25800-26000. Puts are short, but there is a put at 25600-500. Today is an important day, in this uncertainty it is difficult to advise to chase gap up, trade level based. If 38381/500 is crossed/stays above Resistance-1, there will be a change in macro, due to which short covering is possible. Bullishness will increase beyond Resistance-1 (Call Writer Zone) and then test 25876-25946 (50/20DEMA). Only Resistance-1 will trigger short curving, the chart will be stable above 25876/946 in the medium term. If resistance-1 is not crossed then short strategy will work in bounce, aiming for base-1.
strategy on bank nifty
The first registration for Bank Nifty is at 59818-59915/60087 and the next registration is at 60221-60389. For this, the first base is at 59277-59409 and the bigger base is at 58932 (50DEMA)-59121. On Wednesday it was clearly said that the price will be around 59500, but it would be right to buy on Base-1 during the fall. PSU banks are doing well, but FIIs are continuously making big sales in big private banks. Put/Call accumulation at 59500, 60000 are the highest call writers. As long as we are in these zones, avoid chasing the gapup, focus on DIP while keeping Base-1 in mind. Buy the dips as long as Base-1 remains below and exit all long positions at Resistance-1 above. The zone of 60087 will be decisive, it will decide whether Bank Nifty will go up or not. This week the results of two important banks will come, focus on HDFC Bank and ICICI Bank.
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