Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty continued to inch towards the 78.6% retracement of the October – December decline, which is near 18140. However, as the index is approaching the key Fibonacci level, the angle of ascent is decreasing. The near term momentum is weakening, which is evident from the hourly momentum indicator that is showing negative divergence near the overbought zone & is preparing for a downward cycle.
On the downside, lower end of a rising channel on the hourly chart now stands near 18000. If the Nifty breaches this support then it can slide down to test the key hourly moving averages & the hourly lower Bollinger Band. So keep an eye on this crucial support of 18000. From trading perspective, traders are recommended to avoid aggressive long positions at this level & can consider taking the profit off the table.
Ajit Mishra, VP - Research, Religare Broking:
Markets ended marginally higher in a volatile session, tracking mixed cues. Initially, weak global cues were weighing on the sentiments however resilience in the IT majors not only capped the downside but also helped the index to inch higher. As the day progressed, index majors from other sectors also contributed to the move. Eventually, the Nifty index ended higher by 0.2% at 18,043 levels. Amongst the sectors, Power, IT and Realty ended with gains whereas Metal and Telecom ended with losses. Amid all, the broader indices ended flat, taking a breather after the recent surge.
We’re in the fourth week of rebound and now all eyes are on the earnings of three IT majors i.e. Infosys, TCS and Wipro for cues. We reiterate our positive yet cautious view on markets and suggest focusing more on sector/stock selection.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Bulls continued the positive momentum for the third day in a row as overnight gains in the US market and absence of any major negative news helped investors remain invested in selective sectoral stocks.
The Nifty is consistently forming higher bottom and higher top formation which suggests further uptrend. For the trend following traders, 16980 would be the trend decider level and above the same, the uptrend is likely to continue till 18100-18150.
On the flip side, a fall below 16980 could see the index retest 17900-17875 levels.
Palak Kothari, Research Associate at Choice Broking:
After a flat opening, index made an intraday low at 17964.40 levels and managed to close the session above 18000 marks at 18055.75 level with a gain of 52.45 points.
On the technical front, the index has been trading with higher high & higher low formation for the last three days and sustained above the falling trendline which suggests an upside rally in the counter. Moreover, the index has been trading above 21&50-DMA as well as a momentum indicator MACD & STOCHASTIC are trading with a positive crossover on the daily time-frame which suggests strength in the counter.
At present, the index has support at 17700 levels while resistance comes at 18100 levels, crossing above the same can show 18200-18300 levels. Bank Nifty has support at 37800 levels while resistance at 38800 levels.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The index has once again given a strong close. We should look forward to higher targets for the Nifty - 18400-18500 is a possibility.
A strong support lies at 17700 and as long as that holds, any corrective wave can be looked at strategically to accumulate long positions.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure.
Global market was on the edge as Fed meeting minutes hinted at rate hikes, elevated US inflation and the awaited release of US CPI inflation data. Domestic inflation levels are also likely to be significant due to unfavourable base effect though food prices have declined during December.
Market Close:
Indian benchmark indices ended higher in the volatile session on January 11 led by the IT, power, realty stocks.
At close, the Sensex was up 221.26 points or 0.37% at 60616.89, and the Nifty was up 52.50 points or 0.29% at 18055.80. About 1757 shares have advanced, 1481 shares declined, and 55 shares are unchanged.
HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra were among the top Nifty gainers. Losers were JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India.
Among sectors, metal index fell over 2 percent, while buying was seen in the IT, power, oil & gas and realty stocks. The BSE midcap and smallcap indices ended flat.
Yash Gupta, Equity Research Analyst, Angel One:
Long wait of Delhivery IPO over, company to come up with the IPO by the end of the month. Company has received the approval for IPO from SEBI. The total issue size of the IPO will be RS 7,460 crores, which comprises fresh issue of Rs 5000 crores and offer for sale of Rs 2,450 crores.
Delhivery Limited is one of the fastest growing fully integrated logistics companies, having a nationwide network with access to 17000 pin codes and having 21 automated sort centers.
Delhivery Limited is a well placed company for growing ecommerce demand in India, company has more than 21000 customers which includes e-commerce, Direct to home companies etc. On the financial front, the company has reported good growth in revenue but still not able to report a positive bottom line, company has reported revenue of Rs 3,838 crores and loss of Rs 4,155 crores in FY2021. This will be the first IPO of CY2022.
Adani Power appoints Shersingh B. Khyalia as chief executive officer
The board of directors of Adani Power, at its meeting held on January 11, 2022, has considered and approved the appointment of Mr. Shersingh B. Khyalia as a Chief Executive Officer of the company with effect from January 11, 2022.
Adani Power was quoting at Rs 106.80, down Rs 2.05, or 1.88 percent on the BSE.
Morgan Stanley view on DLF:
Research firm Morgan Stanley has kept overweight call on DLF with a target at Rs 470 per share.
The company has launched its luxury housing project ‘one midtown’ in West Delhi. The project is a 50:50 joint development with sovereign fund, GIC.
It estimate Rs 4,200-4,500 crore revenue potential from West Delhi project, however channel checks suggest that the customer response has been good.
DLF was quoting at Rs 408.75, up Rs 0.95, or 0.23 percent on the BSE.
Imagicaaworld Entertainment shuts Theme and Water Park
We wish to inform that as per latest State Government orders on account of COVID - Third Wave, Imagicaa Theme Park and Water Parkwill remain temporarily non-operational w.e.f January 10, 2022 till the Company receives appropriate orders to re-open, said Imagicaaworld Entertainment in the release.
Imagicaaworld Entertainment was quoting at Rs 10.81, down Rs 0.41, or 3.65 percent.
Market at 3 PM
Benchmark indices were trading higher amid volatility in the final hour of trading.
The Sensex was up 193.30 points or 0.32% at 60588.93, and the Nifty was up 44.00 points or 0.24% at 18047.30. About 1764 shares have advanced, 1468 shares declined, and 55 shares are unchanged.
BSE Power index added nearly 1 percent supported by Adani Green, ABB, Torrent Power
Multiplex shares rise on hope of COVID cases falling in Mumbai
: Shares of PVR and Inox Leisure, the biggest operators of movie theatres in Mumbai, rose nearly 4 percent and 2 percent, respectively, after a member of the Maharashtra COVID-19 taskforce said that the surge in daily cases in the city was likely flattening.
Mumbai reported 13,648 cases on Monday, a sharp drop from the near 20,000 cases on Friday. The city is expected to report a further decline in daily COVID-19 cases today suggesting that the Omicron variant-led surge may be
peaking. Analysts suggested that the peaking of cases in Mumbai is a good development for theatre-owners as it could result in easing of restrictions that the city had placed recently to contain the virus.
Mahesh Kumar, EVP & Head Capital & Commodities Market at Abans Group
: Crude Oil WTI After a two-day drop to $77.83 yesterday, are now hovering at $78.93. Oil prices are trading at a significant discount to their recent high of $85.4 set in October 2021 and a significant premium to their recent low of $62.43 set earlier this month. Oil prices will be underpinned by OPEC's tight supply.
Crude oil prices will be influenced by the US Federal Reserve chairman's comments on a possible interest rate hike and the weekly inventory report due out on Wednesday. Meanwhile, OPEC's output plans are supporting prices.
European Markets Updates
Taneja Aerospace recovers 6% as Porinju Veliyath buys stake
Shares of Taneja Aerospace which were down more than 3 percent at Rs. 137.45 on the BSE recovered more than 6 percent to hit a high of Rs. 147.05 after its shareholding data showed that ace investor Poirnju Veliyath bought 1.09 percent stake in the company in the December quarter.
The company’s September quarter sharehairindiaolding had no mention of Porinju Veliyath, known for his high-risk bets in the smallcap space. Taneja Aerospace is an emerging general aircraft manufacturer in the country based out of Pune. The company has a high MC Essentials score of 75 percent
Market update at 2 PM: Sensex is up 161.12 points or 0.27% at 60556.75, and the Nifty added 38.40 points or 0.21% at 18041.70.
Paytm stock hits fresh record low, experts advise caution:
One 97 Communications, the operator of digital payments platform Paytm, fell more than 2 percent to hit a fresh record low on January 11, despite more than four times jump in loan disbursals in December 2021 quarter.
“Number of loans disbursed through its platform increased by 401 percent YoY to 4.4 million loans in Q3 FY2022 and the value of loans disbursed during the quarter was Rs 2,180 crore (run-rate of $1.2 billion), an increase of 365 percent YoY,” says Paytm which has seen stellar growth in each of the lending products, i.e. Paytm Postpaid (Buy-Now-Pay-Later), Personal Loans and Merchant Loans.
Shriram Transport raises USD 475 million through social bonds
Shriram Transport Finance Company (STFC) a part of the Shriram Group, has successfully raised USD 475 million Fixed Rate Senior Secured 144A /Reg S Bond (available ECB limit for FY 22) for a 3.5-year tenor at an interest rate of 4.15%.
This marks the 7th successful USD bond issuance by the Company since the relaxation in the ECB guidelines. The proceeds from the STFC social bond would be used for employment generation, including through micro, small, and medium-sized enterprise (MSME) financing.
Shriram Transport Finance Corporation was quoting at Rs 1,224.70, up Rs 1.95, or 0.16 percent.
Sresta Natural Bioproducts files IPO papers
Private equity company Peepul Capital and venture capital firm VenturEast backed organic food products company Sresta Natural Bioproducts has filed preliminary papers with the capital markets regulator Sebi to raise funds via initial public offering in coming period.
The maiden public issue comprises a fresh issuance of shares worth Rs 50 crore, and an offer for sale of 70.3 lakh equity shares by investors including Peepul Capital Fund III LLC and Bio Fund.
Santosh Meena, Head of Research, Swastika Investmart:
There is no such direct impact on Bharti Airtel and Reliance Jio of government's major stake in VodaIdea while both are in a strong position to outperform from here.
There is one silver lining in this event is that government may be more focused on reforms for this sector as they have become major shareholders in Vodaidea.
JPMorgan on L&T
JPMorgan has maintained overweight rating on Larsen & Toubro with a target at Rs 2,300 per share.
It estimate 12.8%/14.1% YoY core/consolidated revenue growth, however medium-term catalysts underpinned by government capex & international order pick-up
Larsen & Toubro was quoting at Rs 1,965.75, up Rs 12.60, or 0.65 percent on the BSE.
Market at 1 PM
Benchmark indices extended the gains with Nifty above 18000 led by power, realty and IT stocks
The Sensex was up 225.35 points or 0.37% at 60620.98, and the Nifty was up 60 points or 0.33% at 18063.30. About 1975 shares have advanced, 1215 shares declined, and 63 shares are unchanged.
Marksans Pharma receives final USFDA nod for Cetirizine Hydrochloride Tablets
Marksans Pharma has received final approval from US Food & Drugs Administration for its Abbreviated New Drug Application (ANDA) for over the counter (OTC) Cetirizine Hydrochloride Tablets 5 mg and 10mg. The product will be marketed under store brand labels and is comparable to the brand Zyrtec.
Marksans Pharma was quoting at Rs 63.80, up Rs 2.15, or 3.49 percent on the BSE.
Nifty IT index rose 0.5 percent supported by the HCL Technologies, Coforge, L&T Infotech
YES Securities envisages Nifty to hit 21,000 by 2022
YES Securities envisages Nifty to hit 21,000 by 2022 and 32,000 in 2025. With abundant liquidity to keep equities in the reckoning and growing institutional participation in the Indian markets, India is expected to continue gaining share in the emerging markets basket.
Household consumption will increase in the next four years to 46% with household savings at 19% of GDP increasing quantum of disposable income to be spent on consumption.
Market at 12 PM
Benchmark indices were trading higher with Nifty above 18000 amid buying seen in the IT, realty and pharma names.
The Sensex was up 173.45 points or 0.29% at 60569.08, and the Nifty was up 40.20 points or 0.22% at 18043.50. About 1939 shares have advanced, 1221 shares declined, and 64 shares are unchanged.
JSW Steel reports 28% YoY growth in combined crude steel output
JSW Steel today reported a 28 percent year-on-year growth in its combined crude steel output for the quarter ended December at 5.35 million tonnes.
Sequentially, the combined output rose six percent, the company said in a press release.
On a standalone basis, the company recorded production of 4.41 million tonnes, registering a sequential and year-on-year growth of eight percent each.
JSW Steel was quoting at Rs 657.05, down Rs 14.70, or 2.19 percent on the BSE.
Aurobindo Pharma arm expands marketing and distribution agreement with Orion Corporation
Aurobindo Pharma announced that its subsidiary CuraTeQ Biologics Pvt Ltd. has expanded the scope of its marketing and distribution
agreement with Orion Corporation (Orion) to commercialize its biosimilars pipeline to include the Baltic states in Europe.
Earlier in 2020, CuraTeQ and Orion had entered into a licensing agreement, granting marketing and distribution rights for CuraTeQ’s biosimilar products under development in the Nordic states, Austria, Hungary and Slovenia
Aurobindo Pharma was quoting at Rs 720.65, down Rs 17.30, or 2.34 percent on the BSE.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC:
Mutual Fund SIP contribution in the month of December 2021 touched another all-time high of Rs 11,305 crore. This is the 9th consecutive month of a new all-time high for monthly SIP contributions. Amongst active equity funds, Multi Cap Funds category saw the highest Gross Inflow of ~11000 crore followed by Sectoral/Thematic Funds category.
On the back of the 3 NFO’s the Multi Cap Fund category Average Asset Under Management jumped 16% to Rs 38,068 crore. Sectoral/Thematic funds continue to attract investor interest on the back of recent performance however that would not be the correct way for investors to increase allocations. Balanced Advantage/Dynamic Asset Allocation funds continue to attract investor interest (Gross inflow Rs. 6,221 crore) given concerns over the high trailing 12 month valuations.
BSE Realty index rose 1 percent led by the Indiabulls Real Estate, Macrotech Developers, Brigade Enterprises
Emkay Global Financial Services on KEC International
KEC International has recorded order inflows of ~Rs 130 billion YTD, with L1 orders of over Rs 60 billion. This is the highest-ever inflow till mid-Jan in any fiscal - 9MFY19 saw inflows of Rs 115 billion with L1 orders of ~Rs 40 billion. Till H1FY22, Railways/T&D at 33%/28% were the major contributors to the overall inflows. We have increased our annual inflow forecast to ~Rs 180 billion.
We cut our FY22E Sales/EBITDA/PAT by 2%/5%/7% to factor in some execution delays due to the construction ban in Delhi and floods in Chennai during Q3FY22. KEC has projects in both the cities. Our FY23E/FY24E EPS now stands at Rs 28.8/Rs 37.7, higher/lower by 5%/2%. We maintain buy rating on the stock, with a target of Rs 530 (Dec'22E), based on 15x one-year forward PE, which is the average 10-year multiple.
L&T Infotech partners with Securonix & Snowflake for cybersecurity offerings
Larsen & Toubro Infotech has partnered with Securonix, a leader in next-gen Security Information and Event Management (SIEM) company, and Snowflake, a leader in secure cloud workload to strengthen its cybersecurity offerings. The partnership will power LTI’s Active eXtended Detection & Response platform (Active XDR) for early detection of internal and external threats, contextualizing and combating threats with advanced intelligence-led hunting operations, and automating incident response time. LTI Active XDR uses a secluded data lake to secure billions of sensitive alerts and records, the company said in an exchange filing. The stock was trading at Rs 7,136.80, up Rs 24.10, or 0.34 percent. It has touched an intraday high of Rs 7,231.80 and an intraday low of Rs 7,061.40.
Market update at 11 AM: Sensex is up 98.91 points or 0.16% at 60494.54, and the Nifty added 22.80 points or 0.13% at 18026.10.
Amit Pabari, MD at CR Forex Advisors:
The Indian Rupee’s resilience that was driven by the huge corporate inflows and the weaker dollar index is up for a challenge by rising US bond yields, inflation data and Powell’s testimony.
The Fed Chair is likely to commit to managing inflation with its monetary policy arrangements and the tone could push the dollar index higher above 96.90. Consecutively, the Rupee along with other EM FX could come under pressure. Today, the USDINR pair is expected to trade in the range of 73.85-74.35.
L&T dispatches 2 Ethylene Oxide Reactors from Hazira:
The Heavy Engineering arm of Larsen & Toubro dispatched two large Ethylene Oxide Reactors, weighing 1,200 Tons each from Hazira, Gujarat to a large petrochemical complex overseas, company said in the release.
This was a repeat order after four identical Reactors were supplied by L&T to the same client in 2020 amidst Covid-19 pandemic during the first wave. The Reactors were manufactured at L&T’s state-of-the-art Heavy Engineering Complex located at Hazira near Surat, it added.
Larsen & Toubro was quoting at Rs 1,942.55, down Rs 10.60, or 0.54 percent.
Manisathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:h H
The index has opened on a nervous note but continues to hold fort above 18000. Considering that we closed above 17950, the Nifty is in positive terrain and intraday dips can be utilized to accumulate long positions for higher targets.
The markets should be looking forward to 18400-18500 with a support level at 17400-17500.
Rupee Opens:
Indian rupee opened 9 paise higher at 73.94 per dollar on Tuesday against previous close of 74.03.
The US dollar rose 0.27% yesterday as recent job data was seen solid enough to keep the Federal Reserve tightening path intact. The market expects the US Federal Reserve to be more aggressive in tightening monetary policy to tame stubbornly high inflation, said ICICI Direct.
Rupee future maturing on January 27 appreciated by 0.38% on a rise in risk appetite in domestic markets. However, further gain was prevented on elevated crude oil prices and strong dollar, it added.
Market at 10 AM
Benchmark indices were trading flat in the volatile session with Nifty below 18000.
The Sensex was down 54.34 points or 0.09% at 60341.29, and the Nifty was down 18.80 points or 0.10% at 17984.50. About 1724 shares have advanced, 1294 shares declined, and 81 shares are unchanged.
BSE Metal index fell 2 percent dragged by the SAIL, Tata Steel, JSW Steel
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Contrary to expectations of modest returns in 2022 the year has started with 4% appreciation in Nifty so far in January. The surge is led by the justifiable uptrend in Bank Nifty which is up by 8% till 10th Jan. Good Q3 results expected from financials, particularly leading banks, IT, metals, telecom and oil and gas are driving the current momentum in stocks.
However, an area of serious concern is the unbridled speculation in low-grade stocks, the cats and dogs. "Flying cats and dogs" is an indication of imminent correction. Chasing cats and dogs has always ended in grief. Therefore, investors have to be careful and stick to quality.
Nasdaq which was 3% lower in early trade yesterday, ending in positive territory, is an indication of highly volatile days ahead.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens:
Indian indices opened flat with positive bias on January 11 amid mixed global cues.
At 09:17 IST, the Sensex was up 150.95 points or 0.25% at 60546.58, and the Nifty was up 45.50 points or 0.25% at 18048.80. About 1799 shares have advanced, 515 shares declined, and 85 shares are unchanged.
IndusInd Bank, HDFC, Tata Consumer Products, Hindalco Industries and Britannia Industries were among major gainers on the Nifty, while losers were Tata Steel, JSW Steel, Coal India, Bajaj Finance and Nestle India.
ICICI Direct
Indian markets are likely to open on a weak note on the back of mixed global cues as investors are concerned about a tightening US monetary policy to address accelerating inflation and spread of omicron virus across the globe.
US markets ended lower amid concerns about economic impact of Omicron variant.
Market at pre-open
: Benchmark indices are trading flat in the pre-opening session.
At 09:03 IST, the Sensex was down 91.84 points or 0.15% at 60303.79, and the Nifty was down 31 points or 0.17% at 17972.30.
Mohit Nigam, Head - PMS, Hem Securities:
Benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty. Both European and US markets closed in red. Asian markets are also trading in red.
Benchmark indices may face some resistance around 18150 and 18200 and can witness a minor corrective fall. Yesterday’s AMFI Data showed Domestic mutual fund’s contribution to Total Institutional equity Portfolio has risen to 17% showing increased engrossment of Indian households for Indian equity markets.
On the technical front, the key resistance levels for Nifty50 are 18050 followed by 18100 and on the downside 17910 followed by 17830 can act as strong support. Key resistance and support levels for Bank Nifty are 38520 and 38050 respectively.
Follow our LIVE blog for the latest updates on the new Omicron variant of COVID-19 and its impact
Gold muted ahead of key US inflation data
Gold prices were flat on Tuesday, as markets anticipated quicker rate hikes based on key December U.S. inflation data due later this week, while stronger bond yields continued to cap gains.
Spot gold was little changed at $1,803.29 per ounce by 0017 GMT. U.S. gold futures were up 0.2% to $1,802.20.
