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SENSEX: 48347.59 -530.95

NIFTY: 14238.90 -133.00

Market Outlook

Ventura Securities,

12.00 AM Dec 28th 2020

Support comes in at the 13598, 13400, 13145, 12950, 12770, 12600, 12431, 12292, 12100, 11959, 11856, 11753, 11605, 11495, 11340, 11235, 11143, 11078, 10979, 10878, 10783, 10665, 10550, 10490, 10380, 10250, 10129, 10025, 9925, 9830, 9700, 9533, 9450, 9367, 9218, 9119, 9030, 8988, 8893, 8810, 8731, 8620, 8531, 8448, 8369, 8290, 8150, 8055, 7979, 7924 while resistance comes in at 13778.

The Nifty has more or less moved on expected lines, broke support levels, Vix shot up and by the end of the truncated week, is (Nifty) back on an even keel as if the decline never happened. The picture remains similar as the market still remains overbought and the Vix is below 20 again; so 13598, 13400 need to hold and the Vix needs to remain below 20 for the current ongoing positives to continue. Maximum call open interest comes in at 14000 followed by 14500 while maximum put open interest comes in at 13000 followed by 13500 indicating a higher and a well defined range (not very surprising considering the fact that we are in fifth week of the current series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some notable reduction in open interest during the week to end at 01.03 cr (rounded off) and has seen a decrease of nearly 03.09% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some major open interest being reduced (it stands at 13.91 lakh - rounded off) compared to the last week; has actually seen some significant decrease in open interest (05.87%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a mixed bias) above the 19.50 level (in terms of closing) except that it ended at 19.97 (higher from an intra week low of 15.64) which has resulted in a mixed market. The Nifty collapsed on the first trading session of the week and spent the rest of the week restoring status quo while the outlook remains slightly grey; it would need to close and sustain above 13778 to appreciate further while support comes in at 13600, 13400, 13145. As expected IT and Pharma continue to shine and are expected to do so while a stock specific approach is suggested as the Nifty still seems overbought. Support comes in at the 13598, 13400, 13145, 12950, 12770, 12600, 12431, 12292, 12100, 11959, 11856, 11753, 11605, 11495, 11340, 11235, 11143, 11078, 10979, 10878, 10783, 10665, 10550, 10490, 10380, 10250, 10129, 10025, 9925, 9830, 9700, 9533, 9450, 9367, 9218, 9119, 9030, 8988, 8893, 8810, 8731, 8620, 8531, 8448, 8369, 8290, 8150, 8055, 7979, 7924 while resistance comes in at 13778.

Market Action

INDIAN INDICES

S&P BSE Auto23512.11-193.09
S&P BSE BANKEX35370.57-9.02
NIFTY BANK31198.4031.15
S&P BSE Capital Goods19965.34-133.62
S&P BSE Consumer Durables30803.34-174.40
S&P BSE FMCG12570.64-97.95
S&P BSE Healthcare21532.11198.02
S&P BSE IT26066.49-346.01
S&P BSE Metals11567.2121.61
S&P BSE Oil and Gas14199.24-313.00
S&P BSE PSU5821.91-78.53
S&P BSE TECk11970.25-132.24
S&P BSE Smallcap18210.80-211.25
S&P BSE Midcap18547.34-214.53
Nifty MID100 Free21455.20-203.80

GLOBAL INDICES

EXCLUSIVE LIVE CHAT!

How are the markets looking?

Hemen Kapadia, Technical Analyst

Day - 19th Jan. 2021
Time - 13.00hrs

View last chat transcript