Manish Shah, Independent Technical Analyst
Nifty continues to trade in a horrendously defined range of 18250-17750 for the last 13 days. Nifty has not made any directional measure in the last 13 sessions, one of the slowest periods in months.
The significance of this is that directional moves are absent and the price reverts back to the mean in a matter of days. In such a scenario trader either has the willingness to hold on to a trade for several weeks.
Nifty has major support at 17750 which, if taken out, will take the index lower to 17550-17500. On the upside, major resistance is at 18220-18250. Nifty needs to break above 18250 for the current decline to reverse.
Yesterday’s bullish Harami was not confirmed and sellers turned aggressive today. Nifty, in the last couple of days is not responding to up moves in international markets. It is a matter of time before this happens. Expect Nifty to be volatile in coming days.
Kunal Shah, Senior Technical Analyst at LKP Securities
The Bank Nifty index witnessed selling pressure throughout the trading session and ended near the day's low level ahead of the Fed chairman's speech.
The index faces stiff resistance on the upside at the 43,000 level, where the highest open interest is built up on the call side.
The downside is supported at 42,000, and if it is breached, further selling pressure will be directed toward the 41,500-41,400 zone, which will be the last line of defence for bulls.
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
Markets witnessed fresh drubbing ahead of Federal Reserve chairman Jerome Powell’s speech, and Nifty slipped hard from 18100 levels as investors weighed hawkish comments from two US Federal Reserve policymakers that countered hopes that the US central bank might dial back its aggressive monetary tightening.
Barring Nifty Auto index, all sectoral indices ended in the red with maximum pain seen at Nifty PSU Banks. For Nifty the immediate support is seen at 17771 mark and then major support lies at 17457 mark.
Ajit Mishra, VP - Technical Research, Religare Broking
Markets plunged lower and lost nearly a percent, in continuation to the prevailing corrective phase. After the initial downtick, the Nifty index inched gradually lower as the session progressed and engulfed the move of the last trading session.
The decline was widespread wherein banking, metal, realty and IT were among the top losers. The broader indices too witnessed pressure and lost nearly half a percent each.
Markets are gradually drifting lower amid volatility and indications are pointing towards more pain ahead. Meanwhile, mixed global cues combined with earnings season would keep traders on the edge. We thus reiterate our view to limit positions and prefer a hedged approach, especially for the overnight trades.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty gave up the gains of the previous session on Jan 10 pulled down by weak global cues. After making an intra-day low at 1445 Hrs, Nifty made a feeble recovery and closed 1.03% or 187.1 points lower at 17914.2.
Volumes on the NSE continued to be on the lower side. Broad market indices fell less than the Nifty but the advance decline ratio fell to 0.55:1. IT and Bank stocks gave up part of the recent gains.
Global shares eased on Tuesday as investors took profit on the gains from the past two weeks after comments from two Federal Reserve officials injected a note of caution over the U.S. rate outlook, cracking equities. Optimism over China reopening faded. However, in the morning the MSCI Asia Pacific index hit a high of 162.33 on Tuesday – roughly 21% higher than its 52-week low of 133.93 reached on October 24 entering bull market.
Nifty is not able to build on the gains beyond 18150. A move below 17774 could attract more selling pressure as the monthly low of December will then be breached. On upmoves 18047-18101 could act as a resistance.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Local investors have been following global cues, and weakness in European and US markets triggered a downfall in domestic equities, which saw Nifty end below the crucial 18000-mark.
Trading sentiment has been very weak and most of the sluggish external factors are prompting investors to book profit at regular intervals.
Technically, the Nifty has formed a long bearish candle on daily charts indicating further weakness from the current levels.
For bulls 18,000 would be the key level to watch out for, and above the same the index could retest the level of 18,100-18,150.
On the flip side 17,800 would act as a sacrosanct support zone, below which selling pressure is likely to accelerate and drag down the index up to 17,700-17,675.
Rupee Close:
Indian rupee closed 58 paise higher at 81.78 per dollar against previous close of 82.36.
Market Close
: Benchmark indices ended lower on January 10 with Nifty around 17,900.
At Close, the Sensex was down 631.83 points or 1.04% at 60,115.48, and the Nifty was down 187 points or 1.03% at 17,914.20. About 1376 shares have advanced, 2027 shares declined, and 152 shares are unchanged.
Adani Enterprises, Bharti Airtel, Eicher Motors, Adani Ports and SBI were among the top losers on the Nifty. The gainers were Tata Motors, Hindalco Industries, Apollo Hospitals, Power Grid Corp and Divis Labs.
Among sectors, PSU Bank index down over 2 percent, while Nifty Bank and Infra indices down 1 percent each.
The BSE midcap and smallcap indices fell 0.5 percent each.
CLSA upgrades Tata Motors rating to buy
-Upgrade to buy, target at Rs 512
-JLR reported 6%/15% QoQ/YoY improvement in wholesale volume for Q3
-Chip supply improved & demand remained strong
-Order backlog increased to 2.15 lakh units at the end of quarter
-Expect JLR margin profile to improve led by volume growth
-For CV & PV biz margin to improve on lower commodity costs & price hikes
-Improvement in volume and margin profile to aid free cash generation in FY24
Tata Motors was quoting at Rs 413.00, up Rs 23.60, or 6.06 percent on the BSE.
Nomura maintains 'Buy' rating on Sona BLW Precision Forgings, target Rs 609
-Buy rating, target at Rs 609 per share
-Novelic acquisition, new growth dimension
-Acquisition marks Sona's entry into sensors & software segment
-Novelic's short-wave radar tech is best suited to solve autonomous needs
-Short-wave radar tech is less expensive than LIDAR & more accurate than a camera
-Novelic is ahead of competition
-Stricter Euro NCAP safety requirements can lead to significant growth
Yes Bank Large Trade | 2.33 crore shares (0.1% equity) worth Rs 48.14 crore change hands at an average of Rs 20.7 per share.
Dilip Parmar, Research Analyst, HDFC Securities
The Indian rupee becomes the best performer among the Asian currencies following stop order triggers and inflows from bond selling. The local unit witnessed the biggest single-day gains after November 11 and broke the psychological level of 82 as the traders rush to cover the positions.
Spot USDINR now has the support of 81.70, the 50% Fibonacci retracement adjoining the November 14 low of 80.51 and the January 03 high of 82.94. The near-term view remains bearish for the pair and a level below 81.70 will pave way for 81.45 while on the higher side 82.10 acts as resistance.
CLSA keeps 'Buy' rating on Reliance Industries, target Rs 2,970
-Buy rating, target at Rs 2,970 per share
-Nearing end of consolidation
-Interesting events in H2FY23 may set RIL on its next leap
-These include ramp-up of its FMCG biz, launch of Airfiber for wireless broadband
-New 5G smartphones to monetise pan-india standalone 5G network by 2023 end
-See chances for an IPO of Jio & retail in the next 12-18 months
-Expect a 75% jump in its retail EBITDA over next 2 years
-More visibility on its omni-channel offering are other positives
Reliance Industries was quoting at Rs 2,558.55, down Rs 38, or 1.46 percent on the BSE.
Great Eastern Shipping arm to buy a 2007 built vessel
Greatship (India), a wholly owned subsidiary of The Great Eastern Shipping Company, has signed a contract to buy a 2007 built 80T Anchor Handling Tug cum Supply Vessel (AHTSV).
The vessel is expected to join the company’s fleet during Q4FY2023.
Great Eastern Shipping Company was quoting at Rs 658.45, up Rs 11.05, or 1.71 percent on the BSE.
Market at 3 PM
The Sensex was down 671.03 points or 1.10% at 60076.28, and the Nifty was down 197.50 points or 1.09% at 17903.70. About 1214 shares have advanced, 2031 shares declined, and 132 shares are unchanged.
Lupin receives USFDA approval for Prasugrel tablets, USP
Lupin has received approval from the United States Food and Drug Administration for its Abbreviated New Drug Application (ANDA), Prasugrel Tablets USP, 5 mg and 10 mg, a generic equivalent of Effient Tablets, 5 mg and 10 mg of Cosette Pharmaceuticals, Inc.
The product will be manufactured at Lupin’s facility in Goa, India
Lupin was quoting at Rs 759.95, up Rs 10.75, or 1.43 percent on the BSE.
BSE Midcap index fell 0.7 percent dragged by IDBI Bank, General Insurance Corporation of India, Indian Overseas Bank
Star Health reports a 13% YoY growth in gross direct premium
Star Health & Allied Insurance Company reports a 13% YoY growth in gross direct premium for nine months of FY23 from Rs 7,774 crore to Rs 8,752 crore.
The retail health premium is up 19% on year to Rs 8,045.5 crore; Group Health premium is down 38% on year to Rs 572 crore; and personal accident premium grew 23% on year to Rs 133.5 crore.
Star Health & Allied Insurance Company was quoting at Rs 591.10, up Rs 1.80, or 0.31 percent.
Safari Industries commenced additional commercial production at its factory at Halol
Safari Industries has successfully commenced its additional commercial production/manufacturing of luggage from January 9, 2023 at its factory situated at Halol, Gujarat. With this addition, the effective production capacity of the Company has increased from 2,50,000 pieces per month to 3,00,000 pieces per month.
The total production capacity of the Group viz. Safari Industries (India) Limited along with its subsidiary Safari Manufacturing Limited has reached to 5,25,000 pieces per month.
Morgan Stanley On Tata Motors
-Overweight rating, target at Rs 502 per share
-JLR to generate GBP400 mn + free cash flow in Q3
-High interest rate environment is a risk to global PV demand,
-Given low starting point of JLR vols, depressed EBIT margin maintain positive view
Tata Motors was quoting at Rs 411.45, up Rs 22.05, or 5.66 percent on the BSE.
Poll | December CPI inflation seen little changed at 5.9%, October IIP growth may rebound to 3%
The govt will release both retail inflation data for December and industrial production data for November at 5.30 pm on January 12... Read More
Zydus Lifesciences gets final US FDA nod for Febuxostat tablets used to lower high uric acid in blood
European Markets Updates
European markets open lower, tracking US futures and volatile Asian markets.The pan-European Stoxx 600 index was down 0.7 percentin early trade, with retail stocks shedding 1.3 percent.
Market update at 2 PM
Sensex is down 653.47 points or 1.08% at 60093.84, and the Nifty declined 207.60 points or 1.15% at 17893.60.
Rupee Updates
Indian rupee extended gains and is now trading below 82 level. Domestic currency gained 50 paise at 81.86 per dollar against previous close of 82.36.
Here are the stocks that locked on the lower circuit or have only sellers in the stocks; Click to View More
BSE Smallcap index shed 0.5 percent dragged by T D Power Systems, Tilaknagar Industries, Reliance Communications
Kanoria Chemicals' in-house R&D unit obtained recognition from DSIR
Kanoria Chemicals' in-house R&D unit at Ankleshwar has obtained recognition from The Department of Scientific & Industrial Research (DSIR). The in-house R&D units under recognition of DSIR are to be engaged in innovative research & development activities related to the line of business of the firm.
DSIR in-house R&D recognition benchmarks and acknowledges the company's R&D capabilities on a national level and makes it eligible for the purpose of availing custom duty exemptions for R&D.
AIA Engineering Large Trade | 1.52 lakh shares (0.16% equity) worth Rs 38.41 crore change hands at an average of Rs 2,522.95 per share.
AIA Engineering was quoting at Rs 2,524.10, down Rs 14.80, or 0.58 percent on the BSE.
PSP Projects bags Letter of Award for a project worth Rs 1,344.01 crore
In an exchange filing, PSP Projects said that is in receipt of Letter of Award (LOA) for a Government Project worth Rs 1,344.01 crore(excluding GST) for “Construction of State of the art High Rise Office Building” at Surat, Gujarat for Surat Municipal Corporation.
The total order inflow for the financial year 2022-23 till date amounts to Rs 3,292.59 crore.
IT services sector experiences flat job growth in December: Report
The number of active jobs has decreased by 41 percent year on year. According to Xpheno data, the sector's contribution was less than 30 percent for 21 months.... Read More
Morgan Stanley keeps 'Buy' rating on Bharti Airtel, target Rs 825
-Buy rating, target at Rs 825 per share
-Airtel Africa has announced purchase of 4G & 5G spectrum in Nigeria for USD 316.7 million
-Believe acquisition of 5G spectrum could mean potential upside to annual capex
-Potential upside can been seen assuming Airtel Africa goes ahead with network rollout
Bharti Airtel was quoting at Rs 795.65, down Rs 23.65, or 2.89 percent on the BSE.
Hindware Home Innovation CEO Rakesh Kaul resigns
Rakesh Kaul has tendered his resignation as the Whole-time Director and CEO from the Board of Directors of Hindware Home Innovation.
Hindware Home Innovation was quoting at Rs 449.25, up Rs 8.95, or 2.03 percent.
Market at 1 PM
The Sensex was down 675.97 points or 1.11% at 60071.34, and the Nifty was down 201.50 points or 1.11% at 17899.70. About 1192 shares have advanced, 1992 shares declined, and 131 shares are unchanged.
IRB Infrastructure reports 32% YoY increase in the Toll Collection in Dec 2022
IRB Infrastructure Developers and its Private InvIT Arm reported 32% YoY increase in the Toll Collection in December 2022, across all projects under it.
The toll collection in December 2022 stood at Rs. 388 Crores as against Rs. 294 Crores in December 2021. On a sequential basis, the toll collection is up 6 percent from Rs 366 crore achieved during November 2022.
IRB Infrastructure Developers was quoting at Rs 299.50, down Rs 4.85, or 1.59 percent on the BSE.
Kansai Nerolac Large Trade | 10.05 lakh shares (0.19% equity) worth Rs 41.19 crore change hands at an average of Rs 410 per share.
Kansai Nerolac Paints was quoting at Rs 407.45, up Rs 4.55, or 1.13 percent.
Morgan Stanley keeps 'equal-weight' rating on TCS, target at Rs 3,350
Research house has kept equal-weight on the stock with a target at Rs 3,350 per share.
The revenue was beat but weak book-to-bill ratio. The constructive commentary on North America, balanced by weak outlook for Europe.
There was a miss on margin, but good outlook for Q4.
The research house maintained the FY24/25 EPS estimates and expect near-term sentiment to be positive, reported CNBC-TV18.
Auto Q3 preview: Analysts expect fall in volumes in 2W and PVs, but better margins
Tractors and CVs are expected to see good volumes... Read More
Asia shares dip on hawkish Fed remark
Asian shares fell on Tuesday, commodities shed recent gains from China's reopening, and oil traded lower following hawkish comments from two US Federal Reserve officials overnight, with investors turning cautious ahead of key inflation data.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.17%.
Results Today:
BSE Realty index fell 0.4 percent dragged by Indiabulls Real Estate, Oberoi Realty, Macrotech Developers
Motilal Oswal maintains 'Buy' rating on Tata Motors
-Maintain Buy rating with a Target Price of Rs 520
-All three businesses of Tata Motors are in the recovery mode
- While the India CV business will see a cyclical recovery, the India PV business is in a structural recovery mode
-JLR is also witnessing a cyclical recovery, supported by a favorable product mix. However, supply-side issues will defer the recovery process
-While there will be no near-term catalysts from the JLR business, the India business (~50% of SoTP) will see a continued recovery
Tata Motors was quoting at Rs 416.25, up Rs 26.85, or 6.90 percent.
Nomura keeps 'reduce' rating on TCS, target Rs 2,850
The brokerage house has kept 'reduce' rating on the stock with a target at Rs 2,850 per share after modest revenue beat, but margin was a miss.
Broking firm feels that the near-term visibility remains low. The margin improvement continued, and easing supply side to aid margins.
Nomura believes that the growth to lag Infosys; and no meaningful changes to earnings, reported CNBC-TV18.
Market at 12 PM
Becnhmark indices were trading lower with Nifty below 18000.
The Sensex was down 562.46 points or 0.93% at 60184.85, and the Nifty was down 158.40 points or 0.88% at 17942.80. About 1262 shares have advanced, 1837 shares declined, and 164 shares are unchanged.
Hindustan Copper is under spotlight today. Price and open interest have risen that is bullish. 125 strike has seen heavy call writing, which is big hurdle now for the stock.
Airtel 5G Plus now live in Bhubaneswar, Cuttack and Rourkela
Bharti Airtel today announced the launch of its cutting edge 5G services in Bhubaneswar, Cuttack and Rourkela.
The company has also deployed the ultrafast 5G services at the Kalinga & Birsa Munda stadiums in Bhubaneswar and Rourkela respectively that are hosting the forthcoming Men’s FIH Hockey World Cup.
Bharti Airtel was quoting at Rs 797.20, down Rs 22.10, or 2.70 percent.
Nifty Metal index shed 0.4 percent dragged by Jindal Stainless, APL Apollo Tubes, Adani Enterprises
Ducon Infratechnologies in pact with multiple EPC companies
Ducon Infratechnologies is in pact with multiple EPC companies for Flue Gas Desulfurization (FGD) projects, reported CNBC-TV18.
Ducon Infratechnologies was quoting at Rs 14.30, up Rs 0.36, or 2.58 percent on the BSE.
December Mutual Fund Data (MoM)
-Net Equity Inflow at Rs 7,280.4 crvs Rs 2,224 cr
-Hybrid Fund inflow at Rs 2,255.3 cr vs Rs 6,477.3 cr outflow
-Liquid Fund outflow at Rs 13,852 cr vs Rs 34,276.4 cr inflow
-ETFinflow at Rs 8,788.4 cr vs Rs 1,967.3 cr inflow
-Total Debt Scheme outflow at Rs 21,947 cr vs Rs 3,668.6 cr inflow
-CorporateBond Fund Outflow at Rs 713 cr vs Rs 3,466.4 cr inflow
-Total Assets Under Management at Rs 39.88 lk cr vs Rs 40.37 lk cr
