Having surged for six straight weeks now, domestic benchmark indices Sensex and Nifty sit near their highest levels ever. S&P BSE Sensex closed last week at 46,099 while the Nifty 50 was at 13,513. On Monday morning, global cues were positive with Asian peers trading with gains. Shanghai Composite was trading in the green along with Hang Seng. TOPIX zoomed over 1% on Monday morning while KOSAQ was trading flat with a negative bias. With vaccine rollout beginning in various countries across the world, including England and the United States, investors might be gauging the positive developments and extending bullish bets.
Global watch: Stock markets in the United States closed mixed on Friday with Dow Jones gaining while S&P500 and NASDAQ slipped. South Korean markets were trading with marginal losses on Monday morning while Japanese, Chinese, and other major Asian markets gained. SGX Nifty was trading 45 points higher.
FII and DII data: Foreign Institutional Investors (FII) do not seem to be slowing down their net buying of domestic securities. On Friday, FIIs bought Rs 4,195 crore worth of domestic stocks. This month has already seen buying worth Rs 23,817 crore. Domestic Institutional Investors (DII) on the other hand have been net sellers and continued that trend on Friday, selling Rs 2,359 crore worth of domestic securities.
Deals: On Friday Serum Institute of India sold 4.38 lakh shares of Panacea Biotech at Rs 248.2 per share. Adani Logistics Limited sold over 30 lakh shares of Snowman Logistics at Rs 64.92 per share. Multiples Private Equity Fund sold over 10 lakh shares of PVR while Ishana Capital Master Fund bought shares of the company.
Call and Put option data: For the December series, maximum Call Open Interest (OI) is placed at 13,000 strike with 23.93 lakh contracts, followed by 13,500 strike with 21.37 lakh contacts. Put OI is most at 13,000 strike with 38 lakah contracts. The 13,200 strike has 23.94 lakh contracts.
Support and resistance: On the charts, Nifty could find support at 13,200, according to Dharmesh Shah, Head – Technical, ICICI direct, as it is confluence of 50% retracement of current up move (12730- 13579), placed at 13,155, and last week’s low is placed at 13,242. The 50-stock index might remain range bound this week. “The present consolidation movement could eventually result in an upside continuation by next week. A sustainable upmove above 13600 levels is expected to pull Nifty towards 13900 levels in the near term,” said Nagaraj Shetti, Technical & Derivatives Analyst, HDFC Securities while finding support for Nifty at 13,400.