NIFTY BANKNIFTY OUTLOOK & TRADING TIPS FOR F&O 13 JAN 2023

FIIs continue to sell Indian equities in search of cheaper investment opportunities. Uncertainty over upcoming domestic and US inflation figures kept the domestic market unstable, although western peers remained optimistic. Benchmark indices ended lower in the volatile Jan 12 session. Markets traded volatile and closed marginally lower on the weekly expiration day. After the flat start, the tone was negative for most of the session, but the rebound in the final hours cut losses. The Sensex fell 147 points to 59958 and the Nifty fell 37 points, to 17858. The majority of sector indices traded parallel to the benchmark and ended lower, with pressure from big energy and banking groups weighing on sentiment. The markets will react to the IT majors viz. Infosys and HCL Technologies numbers in early trading on Friday. Additionally, the reaction of global markets to US inflation will also be on the radar. The domestic market remained volatile as investors anxiously awaited gains from other IT majors after a cautious warning from TCS.

On the benchmark front, we believe the prevailing battle around 17850  in Nifty is about to end. In the meantime, the focus should be on sector/stock specific opportunities while keeping an eye on position size. World stocks held on to modest gains on Thursday as they were cautiously optimistic that US inflation data due tonight will confirm inflation is slowing and pressure on the Federal Reserve to continue sharply raising interest rates is easing. , but later recovered well. The past two days have witnessed rallies from daily lows, although selling pressures are building at higher levels. Nifty could continue higher once it surpasses 18000. The Bank Nifty Index experienced a volatile trading session on the weekly expiry day and this trend is likely to continue in the near term. To gain control, the bulls need to clear the immediate hurdle of 42700 where fresh calls are visible. The bears are riding the upper hand and if the index breaks through 41700, the downside will accelerate.

Resistance: 18200, 18300, 18400           

Support: 18100, 18000, 17900