Sensex, Nifty may make fresh highs on Wednesday; 5 things to know before market opens

Nifty futures were trading 28.50 points or 0.20 per cent up at 14,629 on Singaporean Exchange, indicating a gap-up start for BSE Sensex and Nifty 50 on Wednesday. On the back of bullish sentiment, the market capitalisation of all BSE-listed companies soared to a fresh all-time high of Rs 197.46 lakh crore on Tuesday. Today, October-December quarter earnings, macro data, stock-specific developments, oil prices, rupee movement and other global cues will be keenly watched. Market participants may react to the macro economic data released after market hours on Tuesday. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said that this kind of optimism in the markets has not been seen over the past decade or so. “The contrarian bets from retail participants are not letting the markets fall, which is the practical aspect of the relentless move,” he added.

Call, Put OI: Maximum Call Open Interest (OI) for the January series is placed at 15000 strike with 20.84 lakh contracts. This is followed by 16.34 lakh contracts at 14000 strike.
Put OI is the most at 14000 strike with 29.90 lakh contracts, followed by 22.35 lakh contracts at 13,500 strike.

FII, DII data: On Tuesday, foreign institutional investors (FIIs) bought shares worth Rs 571.47 crore, whereas domestic institutional investors (DIIs) sold shares worth Rs 1,334.5 crore on a net basis in the Indian equity market, according to the data available on the NSE.

Corporate earnings: A total of 10 BSE listed companies such as Infosys, Wipro,5paisa Capital, Amtek Auto, Asian Tea & Exports, CESC, Capital Trade Links, GTPL Hathway, Mideast (India) and Rajoo Engineers are set to announce their October-December quarter earnings later in the day today.

Macro data: Retail inflation fell sharply to 4.59 per cent in December, mainly due to declining food prices. Retail inflation based on the Consumer Price Index (CPI) was 6.93 per cent in November. While India’s factory output, Index of Industrial Production (IIP), witnessed a contraction of (-)1.9 per cent in November.

Global watch: Asian stock markets were seen trading mixed in the early trade on Wednesday. Japan’s Nikkei 225 advanced marginally while the Topix index fell 0.13 per cent. Wall Street stock indices ended barely higher in the overnight trade. The Dow Jones Industrial Average rose 0.19 per cent, the S&P 500 gained 0.04 per cent and the Nasdaq Composite added 0.28 per cent.