News Shots 

Power Finance transferred its wholly-owned subsidiaries Karur Transmission and Khavda-Bhuj Transmission to Adani Transmission.

IFCI will consider preferential share issue to government on Jan. 25.

TVS Motor globally announced the launch of its motorcycle TVS Star HLX 150 Disc Variant in Egypt.

Tata Communications reported their Consolidated (QoQ) Revenue at Rs 1,657.7 crore Vs 1,628.17 crore

Bajaj Auto reported their Consolidated (QoQ) Revenues up 3% at Rs 9,021 crore vs Rs 8762 crore

Major Results today: Hindustan Unilever, Asian Paints, Bajaj Finserv.

What to expect? 

NIFTY opened the day flat at 18,120 and continued the bearish trend. Support was taken at 17,885, the high of 7th January, and the index consolidate in the region with some buying towards the end. NIFTY closed the day at 17,938, down 175 points or 0.96%.

BANK NIFTY opened flat 38,104 and was volatile. The index was unable to cross 38,300 and moved below 38,000. Buying toward the end helped BANK NIFTY close the day at 38,041, down 169 points or 0.44%.

NIFTY IT(-2.13%) closed in the red whereas NIFTY AUTO(+0.71%) moved higher.

The US markets opened with a gap-up and fell to close in the red. The European markets opened with a gap-down but there was strength to close in the green.

The Asian markets are mixed with a positive bias. The U.S. Futures and the European futures are trading in the green. 

SGX NIFTY is trading at 17,914 indicating a gap-down opening in NIFTY.

Major supports for NIFTY are at 17,885, 17,820, 17,725 and 17,700. There are resistances at 17,975, 18,000, 18,080, 18,110 and 18,160.

BANK NIFTY has supports at 38,000, 37,750, 37,500 and 37,350. Resistances are at 38,100, 38,300, 38,500, 38,750 and 38,850.

NIFTY has the largest call OI build-up at 18,300 followed by 18,100 and the largest put OI build-up at 17,500 followed by 17,900. There was huge call addition everywhere and unwinding in the put writing.

BANK NIFTY has the highest call OI build-up at 38,500 and the highest put OI build-up at 38,000.

INDIA VIX stays 17.8.

Foreign Institutional Investors net sold shares worth Rs 2,705 crores. Domestic Institutional Investors net sold shares worth Rs 195 crores. 

NASDAQ has corrected nearly 10% from the high and the effect can be seen in IT stocks worldwide. How European Market performs in the first thirty minutes will be crucial today.

It was a textbook downtrend price action in NIFTY yesterday. What else can be expected after a bearish engulfing candle of the size we saw on Tuesday! However, BANK NIFTY was able to close above 38,000.

Though the highest call OI build-up is at 18,300 in NIFTY, there is little difference from the build-up at 18,000 indicating the confidence of the short-sellers. PCR has gone below 0.5.

Watch Reliance that has results announcement tomorrow. Hindustan Unilever and Asian Paints will announce their results and both have considerable weightage in NIFTY.

I will be watching 18,000 on the upside and 17,885 on the downside in NIFTY. With bearish sentiments, 17,800 is a major level to watch. We have been seeing V-shape recovery for a few expiries. Do you think NIFTY has enough strength to beat the negativity and cross 18,000?

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