| Company | Value | Change | %Change |
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After a strong recovery from lower levels on Wednesday, the Nifty 50 index resumed its weakness today, slipping below 23,550. The index ended near the day’s low at 23,526.50. The Nifty opened on a negative note and weakened further as the session progressed. Intraday upside bounces were met with selling pressure, and the index ultimately closed at the day’s lows.
Most sectors moved in tandem with the benchmark indices, with realty, energy, and IT emerging as the top losers. Broader indices also faced selling pressure, each slipping nearly 1%. The Nifty Midcap index recorded its fourth loss in the last five sessions.
However, whether the Nifty 50 ends the week with gains or losses depends on the way the Street will react to quarterly results from India’s largest IT services company, TCS. The performance from TCS may have a rub-off effect on other IT companies too, five others of which are part of the Nifty 50.
TCS reported its December quarter results that were in-line with street estimates on most fronts. The IT firm reported revenue of ₹63,973 crore, which is a decline of 0.4% in comparison to the September quarter. In US Dollar terms, TCS reported revenue of $7,539 million, which is marginally below the CNBC-TV18 poll of $7,626 million. In constant currency terms, TCS’s growth was flat on a sequential basis. A CNBC-TV18 poll had projected the growth in constant currency terms to be 0.2%.
Besides TCS, stocks like Ireda and Tatat Elxsi will also react to their quarterly results reported after market hours on Thursday. The other IT major, HCLTech will be reporting results after market hours on Monday.
Foreign investors continued to remain net sellers in the cash market on Thursday, while domestic investors were net buyers. For the week, the Nifty has declined over 2%.
What do the Nifty 50 charts indicate?
Nagaraj Shetti of HDFC Securities said that the Nifty 50 is currently placed at the downside breakout of the support of around 23,500 levels (previous swing lows). A decisive slide below the said support could open the next downside of around 23,260 and lower in the short term. Immediate resistance is at 23,700.
According to Om Mehra of SAMCO Securities, the index continues to face challenges in staging a recovery this week, as it steadily drifts lower. On the daily chart, the Nifty formed a red candle following a hammer pattern. This diminishes the bullish implications of the hammer formation. The daily RSI remains subdued, holding below the critical 40 level, while the hourly chart reflects a skewed negative bias.
LKP Securities’ Vatsal Bhuva said the Nifty index closed slightly above its critical support at 23,500 on Thursday, forming a bearish candlestick below the 200-day EMA, signaling caution. A follow-up breach below 23,500 would validate a sell-on-rise strategy, with further downside expected.
Conversely, holding this support may lead to consolidation. For the short term, 23,500 acts as a key support, while resistance is placed at 23,800, capping any upside.
What do the Nifty Bank charts indicate?
The Nifty Bank index ended the session at 49,503.50, registering a decline of 0.67%.
The index continues to exhibit weakness, having breached both its weekly support and the rising trendline on the weekly chart. However, the formation of consecutive hammer candles on the daily chart and an oversold RSI indicates the possibility of a relief rally in the upcoming sessions. The potential reversal will be invalidated if Nifty Bank slips below the critical support level of 49,000, Mehra said.
What Are The F&O Cues Indicating?
Nifty 50’s January futures added 5.5% or 7.1 lakh shares in Open Interest on Thursday. They are now trading at a premium of 121.6 points from 92.4 points earlier. On the other hand, Nifty Bank’s January futures added 2.9% or 68,700 shares in Open Interest on Thursday. Nifty 50’s Put-Call Ratio is now at 0.92 from 0.83 earlier.
Bandhan Bank, Manappuram, RBL Bank, Hindustan Copper and L&T Finance continue to remain in the F&O ban.
Nifty 50 on the Call side for January 16 expiry:
On the Call side, the Nifty 50 strikes between 23,600 and 24,500 have seen Open Interest addition for next Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 24,500 | 43.2 Lakh Added | 4.5 |
| 23,800 | 24.7 Lakh Added | 89.9 |
| 24,000 | 24.6 Lakh Added | 39.7 |
| 23,600 | 21.7 Lakh Added | 176.65 |
Nifty 50 on the Put side for January 16 expiry:
On the Put side, the Nifty 50 strikes between 22,500 and 23,600 have seen Open Interest addition for next Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 22,500 | 33.1 Lakh Added | 6 |
| 23,000 | 16.6 Lakh Added | 27.9 |
| 23,600 | 16.1 Lakh Added | 182.6 |
| 23,500 | 12.9 Lakh Added | 139.9 |
Here are the stocks to watch out for ahead of Friday’s trading session:
– TCS reported its December quarter results that were in-line with street estimates on most fronts. The IT firm reported revenue of ₹63,973 crore, which is a decline of 0.4% in comparison to the September quarter.
– Ireda: For the December quarter, net profit rose 26.8% year-on-year to ₹425.4 crore as against ₹335.5 crore in the same period a year ago. NII was up 39% at ₹622.3 crore, compared to ₹448.1 crore last year.
– Adani Total Gas: Allocation of APM has has been revised upwards by 20%, w.e.f. January 16, 2025. GAIL is the nodal agency for domestic gas allocation.
– Mahanagar Gas: Domestic gas allocations to company have been revised upwards by 26% w.e.f January 16.
– Mazagon Dock delivers sixth Scorpene class submarine Vaghsheer to Indian Navy.
– Polyplex Corporation to invest ₹558 crore in new BOPET film plant
– Tata Elxsi reported a 13.3% quarter-on-quarter decline in net profit at ₹199 crore for the period ending December 31, 2024, compared to ₹229.4 crore in the September quarter.
