Traders Guide, NSE Nifty50, BSE Sensex: The Indian markets on Friday finally ended a month-long consolidation phase with a breakdown and lost over 1.5 per cent. BSE companies lost 11 lakh crore in market capitalization in the last two trading sessions.

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Participants were in a cautious mood from the beginning and a sharp sell-off in the banking, IT and energy majors further soured the sentiment as the day progressed.

Consequently, Nifty slipped below the major support zone of long-term moving average i.e. 200 EMA at 17550 intraday and finally settled at 17,604.35 levels. The broader indices too witnessed a severe fall and shed in the range of 1-1.5 per cent.

Here is a list of things to watch out for on 30 January 2022

What Should Investors Do On Monday?

The carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries.

We are now eyeing the 17,250-17,400 zone as the next support while any rebound toward the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend.

-Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Technical Outlook

Technically, Nifty has broken down its one-month range of 18200–17800, which is not a good sign; however, 17425 is an immediate support while the 200-DMA of 17300 is a critical support that bulls will try to protect. On the upside, 18000 will act as a critical barrier, and 18200 is a major hurdle.

Nifty Bank has fallen below its 100-DMA decisively, but 40,000 is an immediate psychological support level, while the rising 200-DMA around 39,000 will be the next critical support level. On the upside, the 41500–41725 area will be a critical resistance zone, while 42750 is the next hurdle.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Also Read: Market Next Week: Union Budget, US Fed policy decision, Q3 earnings, Jan auto sales among other top cues for Street

Key support & resistance levels for Nifty50:

The Nifty50 closed 1.6 per cent lower at 17,604.35. Key Pivot points (Fibonacci) support for the index is placed at 17511.46, 17419.14, and 17269.7, while resistance is placed at 17810.34, 17902.66, and 18052.1.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 3.1 per cent lower at 40,345.30. Key Pivot points (Fibonacci) support for the index is placed at 40152.54, 39853.03, and 39368.23, while resistance is placed at 41122.13, 41421.63, and 41906.43.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Foreign portfolio investors (FPIs) remained net sellers for Rs 5977.86 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 4252.33 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Tapi Fruit Processing Ltd: Lakhani Jignesh Jasmatbhai (HUF) sold 48,000 equity shares in the company at the weighted average price Rs 99.6 per share on the NSE, the bulk deals data showed.

Abans Holdings Limited: Vishal Rajnikant Bhansali (HUF) sold 2,89,059 equity shares in the company at the weighted average price Rs 270.6 per share on the NSE, the bulk deals data showed.

Accuracy Shipping Limited: Pluris Fund Limited bought 2,00,000 equity shares in the company at the weighted average price Rs 186 per share on the NSE, the bulk deals data showed.

Sah Polymers Limited: Mahalaxmi Brokrage India Private Limited bought 1,50,000 equity shares in the company at the weighted average price Rs 88 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Ambuja Cement is placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs