| Company | Value | Change | %Change |
|---|
Nifty slipped below 23,600 during today’s session. The index breached key support levels at the 20-DMA and 50-DMA in today’s trade. The index shed 388 points, extending its two-day drop to over 550 points. Today’s decline marked the steepest one-day fall since October 3, 2024, in percentage terms.
The combined market capitalisation of all BSE-listed stocks declined by ₹10 lakh crore in today’s trade. Most banks ended with losses following quarterly updates, with Union Bank falling nearly 8%.
A stronger dollar and ongoing FPI selling have made the market decline worse. The strength of the US dollar and rising bond yields created a challenging environment for emerging markets.
Shares of ITC Ltd. dropped 8% on Monday after the cigarette-to-FMCG major spun-off its hotel business into a separate entity, which will be listed at the bourses in the coming session. In Monday’s special pre-open session, shares of ITC closed at ₹445.35 apiece, indicating a 2.25% decline from its previous close. The special pre-open trading session was conducted between 9.00 am to 9.45 am on Monday and normal trading in ITC shares resumed from 10 am in the session.
Siddhartha Khemka of Motilal Oswal expects markets to remain volatile until concerns relating to the new virus ease out. “We could see stock/sector specific action on the back of pre-quarterly business updates and the start of the Q3 result season.”
CA Jashan Arora, Director at Master Trust Group believes market volatility will stay high in the near future due to company earnings, the impending budget, and international trade policy.
Foreign institutional investors (FIIs) were net sellers at ₹2,575.06 crore on Monday, while the domestic institutional investors (DIIs) were net buyers at ₹5,749.65 crore.
What do the Nifty 50 charts indicate?
According to Nagaraj Shetti of HDFC Securities, the short-term trend of the Nifty is weak and one may expect some more weakness in the coming sessions. The next lower supports are seen in the vicinity of 23,460 and 23,260 levels. Any upside bounce could find hurdle around 23,800.
Om Mehra of SAMCO Securities said the Nifty slipped below all major moving averages, highlighting the bearish momentum. “If the previous support at 23,460 is breached going ahead, the index could witness a sharp correction toward the 23,300-23,200 zone. The short-term pullback appears increasingly risky unless Nifty decisively closes above 24,000.”
HDFC Securities’ Vinay Rajani said that by falling over 675 points from the recent swing high of 24226, the Nifty has negated the bullish developments on the short-term charts. Trend has turned bearish, where immediate supports for the Nifty are seen at 23460 and 23263. Resistances for the Nifty are seen at 23800 and 24090.
What do the Nifty Bank charts indicate?
The Nifty Bank concluded the session at 49,922, registering a sharp decline of 2.09% and formed a prominent bearish candle on the daily chart. The index continues to exhibit a sequence of lower highs and lower lows, highlighting the bearish sentiment in the near term.
Mehra said that a critical juncture looms for the Nifty Bank as the robust support at 49,530, which has withstood selling pressure for the past six months, now appears increasingly fragile. A decisive breach of this level could accelerate the downward trajectory.
“The index has slipped below all major moving averages. The daily RSI remains subdued below the 40 mark, hinting at declining momentum and the absence of any immediate reversal cues. Short-term pullback trades are attached with higher risk, as the prevailing trend lacks conviction. A decisive close above 51,000 is essential to restore confidence and signal the potential for a sustainable recovery,” the analyst added.
What Are The F&O Cues Indicating?
Nifty 50’s January futures shed 1.3% or 1.7 lakh shares in Open Interest on Monday. They are now trading at a premium of 105 points from 87.65 points earlier. On the other hand, Nifty Bank’s January futures added 2.7% or 64,905 contracts in Open Interest on Monday. Nifty 50’s Put-Call Ratio is now at 0.72 from 0.86 earlier.
Hindustan Copper has entered the F&O ban, joining Manappuram and RBL Bank who remain part of the list.
Nifty 50 on the Call side for January 9 expiry:
On the Call side, the Nifty 50 strikes between 23,800 and 24,200 have seen Open Interest addition for this Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 24,000 | 38.2 Lakh Added | 57.45 |
| 24,200 | 27.5 Lakh Added | 26.55 |
| 23,800 | 24.2 Lakh Added | 114.7 |
| 23,900 | 23.8 Lakh Added | 82.2 |
Nifty 50 on the Put side for January 9 expiry:
On the Put side, the Nifty 50 strikes between 23,700 and 24,000 have seen Open Interest shedding, while the 23,300 strike saw addition in Open Interest.
| Strike | OI Change | Premium |
| 23,700 | 38.5 Lakh Shed | 233.9 |
| 24,000 | 28.1 Lakh Shed | 435 |
| 23,900 | 19.7 Lakh Shed | 360.75 |
| 23,300 | 15.4 Lakh Added | 79.3 |
Fresh long positions were seen in these stocks on Monday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Dr. Lal | 1.92% | 58.78% |
| Metropolis | 2.17% | 19.32% |
| Infosys | 0.21% | 2.46% |
| Nykaa | 3.15% | 1.79% |
| Apollo Hospitals | 1.91% | 1.18% |
Fresh short positions were seen in these stocks on Monday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Union Bank | -8.56% | 47.68% |
| IRB Infra | -5.54% | 15.30% |
| SJVN | -7.09% | 14.60% |
| KEI Industries | -2.67% | 14.29% |
| JSW Energy | -4.81% | 12.74% |
Here are the stocks to watch ahead of Tuesday’s trading session:
– Coal India signs non-binding MoU with IREL (India) to collaborate for Mining, Extraction and Refining.
– Bharti Airtel signs share purchase agreement with iBus Network and Infra for transfer of the company’s 50% stake in Firefly Networks.
– Bandhan Bank: Manoj Kumar Mauni resigns as Chief Technology Officer of the bank, w.e.f., January 6, 2025.
– Power Grid declared successful bidder for 2 projects to establish interstate transmission system under build, own operate & transfer (BOOT) Basis.
