News Shots 

PVR raised ticket prices in Telangana. Mainstream seats will cost up to 250 excluding GST, from Rs 150 earlier. Recliner seats will cost up to Rs 300 excluding GST, from Rs 250 earlier. PVR operates 62 screens across 11 properties in the state.

Varun Beverages incorporated a new company named ‘Varun Beverages RDC SAS’ in the Democratic Republic of Congo to carry on the business of manufacturing, selling, trading and distribution of carbonated and non-carbonated beverages.

SpiceJet cargo unit SpiceXpress signed an MoU with Pifore to develop electric cargo planes.

Reliance Industries board will meet on 1st January to consider issuance of senior unsecured US$ denominated fixed-rate notes.

Sharika Enterprises won Rs 1.74 crore order for Smart City Project from Power Grid Corp.

What to expect? 

Yesterday, NIFTY opened flat at 17,222.  The first candle was rather volatile. The bulls tried to take NIFTY above 17,300 but the index started its journey downwards from 17,285. After taking support at 17,200, NIFTY again moved up but took resistance at 17,250. NIFTY closed the day at 17,213, down 20 points or 0.11%.

BANK NIFTY opened the day with a gap-up at 35,177 and moved up after a short-lived drop. 35,350 acted as a good resistance and the index moved down to take support at 35,100. BANK NIFTY consolidated in a tight range but fell in the last 30 minutes and the index closed at 35,045, down 138 points or 0.39%.

NIFTY PHARMA (+1.71% ) moved up whereas NIFTY METAL (-1.05%) fell.

The US markets closed in the green except NASDAQ that closed flat in the red. It was just another consolidation day after touching the peak. The European markets closed in the red except FTSE. The UK index had been underperforming for a few days and it regained strength yesterday, closing in the green.

The Asian markets are trading in the green. Japan’s NIKKEI that had slipped early in the morning is recovering well now. The U.S. Futures and the European Futures are flat with a positive bias.

SGX NIFTY is trading at 17,240  indicating a flat to gap-up opening in NIFTY. 

Major supports for NIFTY are at 17,200, 17,150, 17,100, 17,000 and 16,900. We can expect resistances at 17,250, 17,325, 17,400 and 17,500.

BANK NIFTY has supports at 35,000, 34,800, 34,600, 34,400, 34,200 and 34,000. Resistances are at 35,200, 35,300, 35,500, 35,700 and 36,000.

NIFTY has the largest call OI build-up at 17,500 followed by 17,300 and the largest put OI build-up at 17,000 followed by 17,100. 

BANK NIFTY has the highest call OI build-up at 35,500 and the highest put OI build-up is at 35,000.

INDIA VIX is at 16.24.

Foreign Institutional Investors net sold shares worth Rs 975 crores. Domestic Institutional Investors net bought shares worth Rs 1007 crores. 

The global cues are mixed as the US markets have a positive bias whereas the German index slipped 0.7%  from the all-time high yesterday. The Asian markets regained strength in the day after a weak opening. There is less volume in the global markets as well as our market. It is the last trading session of the year for many markets.

NIFTY found it hard to cross 17,250 yesterday. Profit booking kicked in as and when it crossed the level. Even if NIFTY breaks the level, there are multiple resistances at 17,285, 17,300 and 17,325, the last one being a major resistance. However, we cannot rule out the chance for a good up-move as NIFTY is in an upward channel if you look at the charts of the last ten days. 

At the same time, NIFTY is moving in a downward channel if you look at a longer time frame. If NIFTY breaks 17,150, there is a chance to fill the gap up to 17,100. Still, support will be offered by 17,000 if not 17,100. 

BANK NIFTY saw selling towards the end after it was trading in a tight range. The Open Interest data also has strangled the index in a narrow range. You can expect extreme volatility here as it is monthly expiry. Crossing 35,000 on the downside and 35,500 on the upside can give major moves due to the short covering of OI positions. If the breakout is on the upside, then it can be a good one as the index has been facing resistance near 35,500 for a long time.

Though the FIIs had turned net buyers on Tuesday, they pressed the sell button again yesterday, clarifying their stand. DIIs have done enough to support the market but since the fight is between two equally strong entities, it has turned quite indecisive and the result is extreme volatility taking retailers into trouble.

Let us keep an eye on Reliance that recovered well in the second half yesterday. I will watch the levels mentioned above and adjust the positions accordingly. This is the last expiry of the year. Wish you a happy end to the year!

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