Sensex, Nifty trade setup: TCS Q3 results, 10 other things to know ahead of Monday’s session

By admin On Jan 6, 2023

Indian equity benchmarks fell sharply on Friday, extending their losing run for the third consecutive session. The domestic equity benchmarks plunged today, dragged by TCS, Infosys, ICICI Bank and HDFC twins (HDFC and HDFC Bank). At closing, the 30-pack Sensex was down 453 points or 0.75 per cent at 59,900. The NSE benchmark was down 133 points or 0.74 per cent to settle at 17,859. On the sectoral front, technology, banks and financials took a sharp beating today. IT stocks traded with deep cuts ahead of corporate earnings next week as the growth is anticipated to be muted, said Vinod Nair, Head of Research at Geojit Financial Services. TCS is scheduled to report results on Monday.

Also Read | Sensex below 60K, Nifty 18K: 5 reasons why market crashed 1,400 points in 3 days

Also, investor risk sentiment took a blow post the release of the FOMC meeting minutes, which indicated further rate hikes in 2023 to tame inflation, Nair added.

Here are 10 things you should know ahead of Monday’s session:

Nifty Outlook

“Bears continue to have the upper hand as Nifty has been posting red candles for the last three days. The index found support around the previous swing low on the daily timeframe. The momentum indicator RSI (14) is in a bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as support for the falling Nifty; a decisive fall below the said level may take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a recovery may come,” said Rupak De, Senior Technical Analyst at LKP Securities.

Nifty Bank Outlook

“Nifty Bank witnessed strong selling pressure at a higher level throughout the week and the index formed a lower low formation on the daily chart. The index’s immediate hurdle on the upside is visible at 42,500 and the next support is at 42,000 which if breached will drag the index towards the 41,500 level which will be the last hope for the bulls,” said Kunal Shah, Senior Technical Analyst at LKP Securities.

Nifty, Nifty Bank Call-Put Open Interest (OI)

“On the call side the highest OI witnessed at 18,000, followed by 18,100 strike. On the put side, the highest OI witnessed at 17,800, followed by 17,700 strike price. Nifty Bank has support at 41,900 levels while resistance is placed at 42,700. We expect the market to be very volatile and recommend trading with a stock specific approach,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.

Nifty Bank Tech Charts

“Nifty Bank formed a Bearish candle on daily scale and has been making lower lows from the last three sessions. It formed a Bearish candle on weekly frame but respected its previous week’s low. Now till it holds below 42,500, weakness may be seen towards 41,750 and 41,500 zones whereas hurdles are placed at 42,500 and 42,750 zones,” said Chandan Taparia of Motilal Oswal Securities.

Futures Data

“Nifty future closed negative with losses of 0.65 per cent at 17,949 levels. Positive setup in GNFC, Astral, MRF, Hindustan Petroleum Corporation, MFSL, Cummins India, M&M, IOC, Balkrishna Industries, Reliance Industries, BPCL, Bajaj Auto, Britannia, HDFC Life and Abbott India and ITC while weakness in Dabur, TCS, Birlasoft, PVR, Cholamandalam Investment and Fin Co, IndusInd Bank, TechM, Trent, Bajaj Finserv, Kotak Mahindra Bank, Coal India and INFY,” Taparia said.

European Stocks

European stock indices such as the German DAX edged lower while Euro Stoxx 50, France’s CAC and Spain’s IBEX 35 traded higher. Further, US stock futures indicated a muted start for Wall Street.

Most Active Stocks

Yes Bank, Suzlon, IDBI Bank, Vodafone Idea, PNB, Tata Steel, Indian Overseas Bank, HCC, South Indian Bank and Zomato were the most active stocks on NSE, in terms of volume.

Oil Prices

Oil prices rose around 1 per cent today, extending gains from the previous trading session. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country’s import bill.

52-Week High/Low

107 stocks touched their respective 52-week high today on BSE, while 31 hit their one-year lows. BSE 500 stocks such as Abbott India, Apollo Tyres and RBL Bank hit their one-year high levels today, while AAVAS Financiers and Biocon and Thyrocare Technologies were among those which touched their 52-week lows.

Also Read | Nifty, Sensex selloff: How to make money in this market

Market Breadth

Out of 3,638 stocks, 2,178 stocks declined while 1,330 stocks advanced. 130 stocks remained unchanged today.