Domestic equity benchmarks Nifty 50 and BSE Sensex rose around 20 per cent in 2023, their second-best year since 2017, and were among the top-performing stock indexes globally. The broader small- and mid-caps gained about 55.62 per cent and 46.57 per cent in 2023, far outperforming the blue-chip indexes despite valuation concerns.
The bull run was supported by sustained domestic mutual fund inflows, foreign capital inflows, better-than-expected economic growth, and robust corporate earnings. D-Street investors added a significant ₹81.90 lakh crore to their wealth in 2023 powered by a stellar rally in stocks.
On the last trading session of 2023, the Nifty 50 settled at 21,731.40 and Sensex closed at 72,240.26, snapping their five-day winning streak, on profit-booking in select heavyweights even as the mid and smallcap indices ended with healthy gains. After a five-day winning run, selling pressure emerged in energy, banking and IT counters on Friday, which dragged indices lower, said traders.
In its derivatives, monthly rollover report, domestic brokerage firm Religare Broking revealed Nifty closed at around 21,780 after Volume weighted average price (VWAP) based buying activity was witnessed in the second half of the day.
In its report, Religare highlighted that at 95 per cent, cement and chemicals are the sectors where the highest rollovers were witnessed in the December series. Whereas at 89 per cent, finance is the sector where the lowest rollover was witnessed.
Nifty, Bank Nifty derivates summary
Nifty futures has rolled at around 80 per cent compared to 73 per cent which is higher with respect to the previous series. The open interest for the new contract is also higher by around 29 lakhs with respect to to the last month contract implying fresh long positions. Bank Nifty futures rolled at 81 per cent compared to 80 per cent, in-line with the previous month.
Bank Nifty futures have seen lesser open interest of around 4 lakh with respect to the last month which might be because of the short covering rally seen in the index during the December expiry. Bank Nifty had marginally outperformed the Nifty in December, and the brokerage believes that this might not continue in January.
Which stocks to invest in January series as per Religare Broking?
Apollo Tyres, IEX, Exide Industries, and Crompton Greaves are the top picks for the January series, according to Religare Broking.
Apollo Tyres (CMP: 446):
The stock has risen by around three per cent expiry to expiry while adding a significant 40 per cent open interest which is rolled at a good 88 per cent. ‘’With good cash delivery, we expect the stock to continue higher towards the 480 levels,” said Religare Broking.
Crompton Greaves (CMP: 299):
‘’We expect the stock to do well this series due to its exceptional rolls at 99 per cent and the stock adding additional 38 per cent open interest with around five per cent rise in price. Look to Buy towards the 290 levels for a target of around 330,” said the brokerage.
Exide Industries (CMP: 307):
The stock has witnessed strong support near the 290 levels and managed to rise by eight per cent with a rise in open interest rolled at a healthy 91 per cent. ‘’Holding 290 levels, we believe the stock to poised to continue trading with a positive bias,” said Religare Broking.
IEX (CMP: 167):
Moving out from its multi-month range with higher derivative activity (open interest +28 per cent) and a rise of 12 per cent in price since the last month with rolls at 95 per cent….
Read More: Nifty January series outlook: 4 stocks where investors can park their money; do