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Sensex, Nifty trade setup: 10 things you should know ahead of Tuesday's session

Sensex, Nifty trade setup: 10 things you should know ahead of Tuesday's session

The 30-share BSE Sensex rose 327 points or 0.54 per cent to close at 61,168 on Monday, while the broader NSE Nifty settled 92 points or 0.51 per cent higher at 18,197.

On the sectoral front, metal stocks stole the limelight today. On the sectoral front, metal stocks stole the limelight today.

Indian equity benchmarks stepped into 2023 on a positive note, led by gains in index heavyweight Reliance Industries (RIL) and private sector lender ICICI Bank. The 30-share BSE Sensex rose 327 points or 0.54 per cent to close at 61,168 on Monday, while the broader NSE Nifty settled 92 points or 0.51 per cent higher at 18,197. On the sectoral front, metal stocks stole the limelight after China announced plans to raise export tariffs on aluminium from January 1 in a bid to improve domestic demand. Analysts said the tariff hike would aid market-share growth for Indian companies. "Metal stocks led the surge following reports of China raising export duties to support their domestic demand, which is positive for India," said Vinod Nair, Head of Research at Geojit Financial Services.

Here are 10 things you should know ahead of Tuesday's session:

Nifty Outlook

"Nifty formed a bullish 'harami' pattern on the daily chart, suggesting a reversal in the price trend. The index has moved back above 50-EMA with the strength indicator RSI in a bullish crossover. The trend to remain positive as long as it sustains above 17,950; resistance on the higher end is visible at 18,400," said Rupak De, Senior Technical Analyst at LKP Securities.

Nifty Bank Outlook

"Nifty Bank index witnessed strong buying from the lower levels and held the crucial support of 43,000. The index immediate upside resistance stands at 43,500 and once breached will see further up move towards 44,000-45,000 levels. The momentum indicators are in the strong buying zone which confirms the strength of the index," said Kunal Shah, Senior Technical Analyst at LKP Securities.

Nifty Call-Put OI

In the options segment, weekly maximum Call open interest (OI) is at 18,300 then 18500 strike while weekly maximum Put OI is at 18,000 then 18,100 strike, said Chandan Taparia of Motilal Oswal Securities. "Call writing is seen at 18,200 then 18,300 strike while Put writing is seen at 18,200 then 18,100 strike. Option data suggests a broader trading range in between 17,800 to 18,500 zones while an immediate trading range in between 18,000 to 18,400 zones," Taparia added.

Bank Nifty Tech Charts

"Bank Nifty opened positive above 43,000 zones and moved in a zig zag manner within a broader range of 420 points. It failed to cross its previous day’s higher zone but managed to hold support near 43,000 zone and closed with gains of around 220 points. It formed a bullish candle and an Inside Bar on daily scale. Now it has to hold above 43,250, for an up move towards 43,500 and 43,750 whereas on the downside, support is placed at 43,000 and 42,750 zones," Taparia said.

Futures Data

"Nifty future closed positive with gains of 0.39 per cent at 18,278 levels. Positive setup in SAIL, PFC, Tata Steel, National Aluminium, IDFC, IDFC First Bank, Ashok Leyland, Persistent, Rec Ltd, Tata Comm, Manappuram, AB Capital, Hindalco, M&M Fin, LIC Housing Finance, NMDC, VEDL, ONGC, Jindal Steel, IOC, IndiGo and Apollo Tyre while weakness in MCX, Lal Path Labs, Page Ind, UBL, Mcdowell, Colgate, Jubilant Food and Cipla," Taparia said.

European Stocks

European stock indices such as the German DAX, France's CAC and Spain's IBEX 35 were last seen trading higher. Further, US stock markets would remain closed later today on account of the New Year's holiday.

Most Active Stocks

Yes Bank, Tata Steel, Suzlon, SAIL, Indian Overseas Bank, HCC, PNB, IDFC First Bank, Vodafone Idea and JP Power were the most active stocks on NSE, in terms of volume.

Oil Prices

Oil prices rose on year-end holiday travel. Brent crude futures hovered around $86 per barrel. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country's import bill.

52-Week High/Low

109 stocks touched their respective 52-week high today on BSE, while 38 hit their one-year lows. BSE 200 stocks such as Canara Bank, Jindal Steel, Power Finance Corporation and REC hit their one-year high levels today, while Aurobindo Pharma and IPCA Laboratories touched their 52-week lows.

Market Breadth

The market breadth stood positive as 2,247 stocks advanced and 1,378 stocks declined.

Also Read | Sensex, Nifty end higher in first session of 2023; Tata Steel, Tata Motors, ICICI Bank top gainers

Published on: Jan 02, 2023, 6:16 PM IST
Posted by: prashun talukdar, Jan 02, 2023, 6:10 PM IST