| Company | Value | Change | %Change |
|---|
Weak global cues and stronger-than-expected US jobs data which dampened hopes of an early rate cut by the Federal Reserve, further pressured domestic equities. Selling was seen in the broader markets, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling over 1.5% each.
The bulls will take heart from the fact that despite adverse global cues, they managed to defend 23,500 on the downside. Although the index is still not out of the woods by any means, the fact that the lower levels were fiercely defended would give the bulls some degree of comfort.
Reliance Industries and IT stocks lend support to the market; Nifty IT recovers 2% from its lows. RIL shares have a potential upside of up to 36% from current levels, according to global brokerage firm Jefferies. The brokerage noted that Reliance underperformed the Nifty 50 index by 15% in 2024 due to concerns about medium-term growth prospects for its retail business and lower earnings growth in the current financial year. Reliance ends near the day’s high, up 2% on positive brokerage notes.
Nifty 50’s options contracts will have their weekly expiry on Thursday. The expiry session will also mark the beginning of the December quarter earnings season for the Nifty 50 companies, with TCS kickstarting proceedings.
While revenue for the IT giant is expected to remain impacted by furloughs, client-specific challenges are likely to normalize in 3Q. Its EBIT margin may improve, driven by talent development, training, and operational efficiency. Rising crude prices led to buying interest in upstream oil and gas companies.
US markets will remain shut on Thursday on account of National Day holiday. Analysts expect Indian markets to remain range-bound with stock and sector specific action on the back of upcoming Q3 results.
FIIs and DIIs
Wednesday’s session saw foreign institutions remain net sellers in the cash market, offloading ₹3,362 crore in equities, while the domestic institutions bought ₹2,716.28 crore in equities today.
What do the Nifty 50 charts indicate?
According to Nagaraj Shetti of HDFC Securities, the short term trend of the Nifty remains weak. But the smart upside recovery from near 23,500 levels is indicating chances of an upside bounce in the coming sessions. A sustainable move above the hurdle of 23,800 levels could confirm upside bounce in the market. Immediate support is placed at 23,496 levels.
LKP Securities’ Vatsal Bhuva said the Nifty index is trading within a range of 23,500 to 24200. “In Wednesday’s session, it formed a hammer candlestick on the daily chart, closing near its 200-day EMA, thereby strengthening the 23,500 support level. A decisive move will require the index to close below 23,500, which could lead to heightened selling pressure, or sustain above 24,000 to pave the way for a potential rally toward 24,500. Monitoring these crucial levels is essential to identify the next trend in the index.”
“While the index remains below all key moving averages, with the gap from the 200 DMA widening further. This underlines the prevailing weakness. The resistance is placed at 23,950, likely capping any short-term pullbacks, the immediate support is placed at 23,460. A breach below this level could accelerate the correction toward 23,300,” said Om Mehra of SAMCO Securities.
What do the Bank Nifty charts indicate?
The Bank Nifty index ended the session at 49,835.05, down 0.73%. The index broke below the 49,964 level, a key support that had remained unbroken since August 14, 2024, further weakening the overall trend.
“If 50,200 is sustained, a relief rally may emerge in the coming session. The support level is positioned at 49,450, which could act as a cushion in case of further declines. Premature attempts to capture bottoms should be avoided until a strong base is firmly established,” Mehra said.
What Are The F&O Cues Indicating?
Nifty 50’s January futures added 2.2% or 2.8 lakh shares in Open Interest on Wednesday. They are now trading at a premium of 92.4 points from 87.15 points earlier. On the other hand, Nifty Bank’s January futures added 2.4% or 55,275 shares in Open Interest on Wednesday. Nifty 50’s Put-Call Ratio is at 0.83 from 0.82 earlier.
L&T Finance has entered the F&O ban.
Bandhan Bank, Manappuram Finance, RBL Bank, Hindustan Copper remain in the ban list.
Nifty 50 on the Call side for January 9 expiry:
On the Call side, the Nifty 50 strikes between 23,600 and 23,900 have seen Open Interest addition for Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 23,700 | 32.6 Lakh Added | 68.05 |
| 23,600 | 23.4 Lakh Added | 126.3 |
| 23,900 | 22.4 Lakh Added | 19.2 |
| 23,800 | 21.6 Lakh Added | 36.55 |
Nifty 50 on the Put side for January 9 expiry:
On the Put side, the Nifty 50 strikes between 23,400 and 23,650 have seen Open Interest addition for this Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 23,400 | 38.7 Lakh Added | 9.6 |
| 23,500 | 35 Lakh Added | 18.35 |
| 23,600 | 26.3 Lakh Added | 36.85 |
| 23,650 | 23.6 Lakh Added | 53.95 |
Fresh long positions were seen in these stocks on Wednesday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| ITC | 2.08% | 29.99% |
| Berger Paints | 2.61% | 8.58% |
| TCS | 1.84% | 7.08% |
| L&T Finance | 3.00% | 5.30% |
| Oil India | 3.67% | 4.33% |
Fresh short positions were seen in these stocks on Wednesday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| United Breweries | -4.80% | 27.57% |
| Paytm | -8.36% | 21.39% |
| Kalyan Jewellers | -2.59% | 19.46% |
| KPIT Tech | -3.41% | 14.29% |
| CG Power | -3.65% | 11.98% |
Unwinding of long positions was seen in these stocks on Wednesday, meaning a decline in both price and Open Interest:
| Stock | Price Change | OI Change |
| Godrej Properties | -3.23% | -7.55% |
| Dr Lal Pathlabs | -3.29% | -6.59% |
| IPCA Labs | -2.54% | -5.33% |
| Bajaj Auto | -1.62% | -3.64% |
| Dixon Tech | -8.28% | -3.09% |
Here are the stocks to watch out for ahead of Thursday’s trading session:
– BHEL commissions two units of 6X170 MW Punatsangchhu-II Hydroelectric Project (PHEP-II) in Bhutan.
– The RBI lifts supervisory restriction on Asirvad MicroFinance and DMI Finance. That puts shares of Manappuram Finance in focus but the stock is in the F&O ban.
– Lupin receives Establishment Inspection Report (EIR) from the US FDA for its Pithampur unit-1 manufacturing facility with f Voluntary Action Indicated (VAI) classification. US FDA conducted inspection from September 16 To September 27, 2024.
– MOIL gets penalty order of ₹16.77 crore for excess production at Tirodi Mine during 1993-94 to 1995-96 and 2006-07 to 2008-09.
– Man Industries: Sanjay Kumar Agrawal resigns as CFO of the company, with effect from January 8.
