Friday’s Financial Forecast: A Day Trader’s Guide to Stock Market Moves on 5th January
Written by Sanjay Kumar
After a recent bout of weakness, the Indian stock market demonstrated resilience and staged a sustainable upside bounce on Thursday (January 4). The Nifty 50 index gained 141 points to close at 21,658, while the BSE Sensex surged 490 points, closing at 71,847.
The Nifty Bank index also finished 490 points higher at 48,195. The broader market outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 1%. All sectors ended in the green, with Realty, PSU Bank, and Financials emerging as top gainers.
Expert Insights:
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, stated, “After two days of decline, Nifty regained strength and closed with gains of 141 points at 21,659 levels. The broader market outperformed, with Realty, PSU Bank, and Financials being top gainers.”
Technical Outlook:
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, expressed optimism, saying, “The short-term trend of the Nifty 50 index seems to have reversed on the upside. Nifty sustaining above 21,550 to 21,600 levels could open the next upside towards 21,850 to 21,900 levels and higher.”
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, shared positive sentiments for Bank Nifty, stating, “The Bank Nifty witnessed a robust comeback, decisively surpassing the hurdle at 48,000 on a closing basis. This breakthrough confirms the resumption of the uptrend, indicating a potential move towards the target of 50,000.”
Options Data Analysis:
Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities, provided insights into Nifty Call Put Option data, noting significant open interest at various strike prices.
- Nifty Call: Major open interest at 21700 and 22000 strikes.
- Nifty Put: Major open interest at 21600 and 21500 strikes.
Barve also analyzed Bank Nifty Call Put Option data, emphasizing open interest levels at different strike prices.
- Bank Nifty Call: Major open interest at 48300 and 48500 strikes.
- Bank Nifty Put: Major open interest at 48000 and 47500 strikes.
FII DII Activity:
In the cash segment, Foreign Institutional Investors (FIIs) were net buyers, purchasing shares worth ₹1,513.41 crore. Domestic Institutional Investors (DIIs) turned net sellers in the cash market, selling Indian shares worth ₹1,387.36 crore.
F&O Ban List:
Eleven stocks, including Balrampur Chini, Chambal Fertilizers, Delta Corp, Escorts, GNFC, Hindustan Copper, IEX, India Cements, NALCO, SAIL, and ZEEL, have been put under the F&O ban list.
Day Trading Stocks Recommendations:
Sumeet Bagadia’s Picks:
- UBL: Buy at ₹1894, target ₹1940, stop loss ₹1842.
- India Cements: Buy at ₹273, target ₹290, stop loss ₹264.
Ganesh Dongre’s Picks:
- BEL: Buy at ₹187, target ₹195, stop loss ₹180.
- Adani Enterprises: Buy at ₹2995, target ₹3100, stop loss ₹2950.
Mitesh Karwa’s Pick:
- Greenpanel Industries: Buy at ₹438 to ₹440, target ₹480, stop loss ₹415.
Disclaimer: These recommendations are based on expert opinions and market conditions. Traders and investors are advised to conduct their research and risk analysis before making any investment decisions.
