Sensex and Nifty continued to march higher on Wednesday, marking the fourth consecutive day of gains. S&P BSE Sensex zoomed 533 points or 0.88% to close at 61,150 while the NSE Nifty 50 index added 156 points or 0.87% to end at 18,212. Ahead of the weekly futures and options expiry session, SGX Nifty was up more than 100 points, suggesting a positive start to the day’s trade. Global cues are mixed as Dow Jones, S&P 500, and the NASDAQ closed in green but Asian markets failed to mirror the up-move. Three major IT companies reported their earnings yesterday, which is likely to decide the momentum for the rest of the week.
Global cues: S&P 500 gained 0.28% on Wednesday while NASDAQ added 0.23%, and Dow Jones gained 0.11% eventough inflation in the US reached a 40-year high. Among Asian markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all in the red.
Technical take: Nifty formed a small positive candle on the daily chart with gap up opening on Wednesday, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicate a continuation of sharp upside momentum in the market. Hence, there is a possibility of another gap up in the coming sessions,” he added.
Levels to watch out: The trend continues to remain positive and analysts expect indices to move closer to all-time highs. “The market has successfully closed above 18200 and we should be looking forward to 18400-18500 as the next target zone. If we get intraday slips or corrections, traders can look at these opportunities to buy into the index for higher targets,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. Meanwhile, support for the index is around 18090.
Call and Put OI: For the January series, maximum Call Open Interest is placed at 18500 strike with 17.3 lakh contracts. This is followed by 16.7 lakh contracts at 18000 strike. Put OI was the most at 17500 strike with 28.9 lakh contracts, followed by 1800 strike with 20.4 lakh contracts. “On the options front (January 2022 expiry) In Nifty, out of the money options has seen addition in Call buying and Put writing. Hence, we expect the Nifty to trade with positive bias,” said analysts at IIFL Securities.
Results today: Mindtree, Gautam Gems, GTPL Hathway, Tata Metaliks, Mega Corporation, Aditya Birla Money, Athena Global Technologies, CESC, and Eureka Industries are some of the firms that will announce their quarterly earnings today.