Markets Bounce Back In Style 0 1234

Top Focus: Funds Flow

• FIIs were net sellers in 2018 after a period of six years.
• FPIs may continue with a cautious stance until there are concrete signs of economic recovery and certainty over the formation of a stable government.
• Mutual funds have added a staggering Rs 1.24 lakh crore to their asset base in 2018
• The pace of growth, however, declined for the asset size in 2018 as compared to the previous year. The industry saw a surge of 32 per cent in the AUM or an addition of over Rs 5.4 lakh crore in 2017.

Events:

• The US December jobs report.
• Fed Chair Powell interview with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association held on Friday.

Positive Points:

• Positive sentiment in global peers ahead of trade talks between the US and China next week.

Negative Points:

• No significant activity in cash market so far by both Foreign and Domestic Institutions.

Outlook:

• Markets bounce back in style
• India VIX fell by 3.74 percent at 16.16 levels. VIX needs to hold below 16 zones to again get a bounce back move in the market.
• India, investors turned cautious ahead of corporate earnings season beginning this week, with TCS and Infosys reporting December quarter results in the first round.
• Nifty has been moving in a range bound zone between 10950 and 10550 levels forming a significant barrier and a breach on either side would bring a fresh movement to decide the new trend.
• Bank Nifty is indicating a strong trend as it is trading above all the moving averages – 50-DMA, 100-DMA and 200-DMA.
• Nifty likely to face resistance at 10920 and support at 10780.

Nifty50 Chart Analysis:  Hammer candle

• Nifty formed Hammer candle on the daily charts.
• Trend reversal patterns.
• The bears have lost control.

FII & DII Net Purchase / Sales

• FII: -158 CR
• DII: +241 CR

Options Data Tracking

Max Pain

• Nifty max pain level currently at 10800
• Bank Nifty max pain level currently at 27000

Put Call Ratio

• Nifty PCR at 1.09
• Nifty Bank PCR at 1.31.

Max O.I Strikes

• Nifty: 10500 PE and 11000 CE
• Bank Nifty: 27000 PE and 27500 CE

FnO Stocks under Ban

• ADANIPOWER
• Jet

FnO Earnings to Watch

• Nill

Disclaimer: The views expressed by investment expert on https://www.rollnreel.com are his own and data available from nseindia.com. Rollnreel.com advises users to check with certified experts before taking any investment decisions.