Sensex and Nifty start trading currently for the initially time in this vacation-shortened week. S&P BSE Sensex is at 44,149 points though the 50-stock Nifty is at 12,968. Technical analysts anticipate the Nifty 50 to move variety bound in the coming sessions. “The study of long term charts like weekly and monthly time-frames signal crucial overhead resistance for the market around 13100-13150 levels. The lower area of 12850-12750 is going to be an important base for the Nifty and a decisive move below this area could open a sharp downward correction in the market,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Stock markets, this week, will move immediately after digesting the GDP figures that confirm that India is technically in a recession and also await RBI’s Monetary Policy Committee (MPC) which starts tomorrow. Analysts also anticipate the flood of funds that came with heavy FPI shopping for final month to minimize in the coming sessions.
Global cues: On Monday, indices on The Wall Street closed in the red. Dow Jones slipped .91% though S&P 500 dropped .46%. NASDAQ as well closed with a damaging bias. On Tuesday morning Asian peers had been in jubilant mood with Shanghai Composite trading in the green along with Hang Seng. TOPIX and Nikkei 225 had been also surging larger. South Korean markets had been mixed as KOSPI zoomed and KOSDAQ traded with losses.
Support and Resistance levels: On the charts, for the subsequent couple of trading sessions, 12810 really should be the sacrosanct level for the trend following traders, according to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. “If it sustains above the same then uptrend texture is likely to continue up to 13050. And any further upside could lift the index up to 13200 levels. On the flip side, dismissal of 12810 could trigger correction up to 12700-12650 levels,” he added.
Call and Put OI information: For the December series, Call and Put alternative information is at the moment scattered at diverse strikes. Maximum Call Open Interest (OI) is placed at 13,000 strike with 27.12 lakh contracts. Maximum Put OI is at 12,000 strike with 27.79 lakh contracts.
FII and DII activity: Foreign Institutional Investors (FII) pumped in Rs 60,358 crore into domestic equities final month. This was helped by the MSCI rejig, enhancing macroeconomic information, and a developing appetite for riskier assets. However, is will be exciting to see if FIIs continue to push in substantial sums of dollars aggressively, in the coming sessions.
GDP shrinks once more: India’s July-September quarter GDP came in at -7.5%, against most expectations that anticipated a a lot steeper fall. With this the economy has shrunk for two consecutive quarters. While the Agriculture sector remained the vibrant spot, Manufacturing was a further optimistic surprise. From the subsequent quarter the figures are anticipated to increase additional.