Nifty may head to 18300-18400 soon; 5 things to know before today’s opening bell

Nifty managed to close above the 17950 resistance band on Monday, which opens the opportunity for the index to scale higher.

Stock market today
On Wall Street, Dow Jones and S&P 500 closed with losses on Monday while the technology-heavy NASDAQ index ended with marginal gains (Image: REUTERS)

Domestic equity markets continued their upward march on Monday as investors shrugged away the fear of the Omicron covid-19 variant and saw positives in the limited lockdowns imposed across the country. S&P BSE settled at 60,395 on Monday, gaining 651 points or 1.09% while the 50-stock NSE Nifty zoomed 190 points or 1.07% to breach 18,000 on closing. Dalal Street is also looking past the revised GDP estimates put up by the NSO, which are lower than earlier expected. During the early hours of Tuesday, SGX Nifty was down in red hinting at a weak start to the day’s trade. Global cues were largely negative.

Global cues: On Wall Street, Dow Jones and S&P 500 closed with losses on Monday while the technology-heavy NASDAQ index ended with marginal gains. Among Asian markets, the trend was negative on Tuesday morning with Nikkei 225, TOPIX, KOSPI, KOSDAQ, Hang Seng, and Shanghai Composite all sitting in red.

Technical take: With domestic markets soaring higher on Monday, the Nifty formed a long bull candle, according to Nagaraj Shetti, Technical Research  Analyst, HDFC Securities. “Technically, this pattern indicates a sharp upside bounce in the market after a small dip. The smaller degree of higher highs and higher lows continued on the daily chart and Thursday’s swing low of 17655 could now be considered as a new higher low of the sequence,” he added.

Levels to watch out for: Nifty managed to close above the 17950 resistance band on Monday, which opens the opportunity for the index to scale higher. “The overall mood of the market seems jubilant and hence intra day corrections can be looked at buying opportunities,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. He added that the index may head to 18300-18400 now if it holds above 17700 on a closing basis.

Call and Put OI: For the January 2022 expiry, maximum Call OI is placed at 18000 strike, followed by 18500 strike. Heavy call writing was seen at 18400 strike. Meanwhile, Put OI is the most at 17000 strike, followed by 17500.

Results today: Hathway Bhawani Cabletel & Datacom, Delta Corp, Integra Garments And Textiles, JTL Infra, Delta Corp, Atharv Enterprises, Danube Industries, Earum Pharmaceuticals, Ganesh Housing Corporation, Gayatri Tissue & Papers, Katare Spinning Mills, Madhusudan Industries, National Standard (India), NR International, Radhe Developers, and Sanathnagar Enterprises are some of the companies that will announce their quarterly results today.

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