The benchmark Sensex and Nifty indices are likely to open marginally higher on January 8 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 12 points.
On January 5, the BSE Sensex climbed 179 points to 72,026, while the Nifty 50 was up 52 points at 21,711 and formed Doji candlestick pattern on the daily charts, as the closing was near its opening levels. This indicated indecisiveness among bulls and bears about the future market trend.
"Normally, Doji formations at highs call for caution for longs. But, the formation of this pattern amid range movement indicates that a sharp negative implication can't be expected," Nagaraj Shetti, senior technical research analyst at HDFC Securities, said.
He feels the short-term uptrend status of Nifty remains intact, but the market is likely to find resistance around 21,800-21,850 levels in the coming sessions. "A decisive move only above 21,850-21,900 levels could open the next upside target of 22,200 levels. Any dips from here could find support around 21,500," Shetti said.
The pivot point calculator indicates that the Nifty is likely to see immediate resistance at 21,722 followed by 21,771 and 21,817 levels, while on the lower side, it can take support at 21,651 followed by 21,622 and 21,576 levels.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
The GIFT Nifty indicates a marginally positive start for the broader index with a gain of 12 points. GIFT Nifty futures stood at 21,786 points after making a high of 21,797 points.
Trade setup for Monday: Top 15 things to know before the opening bell
US Markets
US stock futures were little changed Sunday night after the major averages kicked off 2024 with a down week, as traders look ahead to inflation data and big bank earnings in the week ahead.
Dow Jones Industrial Average futures fell by 35 points, or 0.1 percent. S&P 500 and Nasdaq 100 futures climbed 0.14 percent and 0.21 percent. On Sunday, congressional leaders announced a deal establishing a $1.59 trillion in top-line spending, in order to avoid a potential government shutdown.
Boeing shares may trade lower when regular trading opens Monday following a temporary grounding of dozens of Boeing 737 Max 9 aircrafts for inspections, after a section of an Alaska Airlines flight blew out.
Wall Street is coming off its first losing week in 10 as mega-cap tech stocks such as Apple underperformed, and Treasury yields rose. The Dow Jones Industrial Average dropped 1.5 percent for the week, and the S&P 500 slid 0.6 percent. The tech-heavy Nasdaq Composite posted its worst weekly performance since September, falling 3.25 percent. Apple shares slid roughly 6 percent last week. The yield on the 10-year Treasury yield swinging back above 4 percent.
European Markets
European markets closed lower Friday, rounding off a choppy first week of the new year, as investors reacted to euro zone inflation data and December’s US jobs report.
The Stoxx 600 ended 0.3 percent lower as most sectors and major bourses fell into negative territory. Retail stocks fell 1.1 percent to lead losses after data showed German retail sales dropped far more than expected in November. Banking stocks, meanwhile, were higher, up 0.5 percent.
The pan-European index gained 0.7 percent on Thursday, following two negative sessions. Stock markets in the US and Asia-Pacific have had a mostly negative start to 2024, with the major Wall Street averages on course to snap nine-week winning runs.
Euro zone inflation climbed to an annual 2.9 percent in December from 2.4 percent the previous month, initial flash estimates showed on Friday, though came in just below a 3 percent forecast from a Reuters poll of economists. In the US, December’s jobs report showed employers added 216,000 jobs for the month, vastly outstripping a Dow Jones consensus estimate of 170,000 while the unemployment rate was unchanged at 3.7%.
Asian Markets
Asia-Pacific markets kick-started the week with small gains as investors look ahead to key economic data and events in the following days. Australia and Japan will release inflation figures on Tuesday and Thursday, while China will announce its trade balance and inflation numbers for December on Friday.
Bank of Korea will be holding the first central bank meeting of the year among major Asia economies on Thursday, where it is expected to hold interest rates steady at 3.50 percent.
In Australia, the S&P/ASX 200 started inched 0.17 percent higher, while futures for Hong Kong’s Hang Seng index point to a slightly higher open, standing at 16,590 compared with the HSI’s close of 16,535.33.
Japan’s markets are closed for a public holiday, and will return to trade on Tuesday. South Korea’s Kospi opened 0.34 percent higher, while the small-cap Kosdaq inched 0.08 percent lower.
Dalal Street Week Ahead: Q3 earnings, Red Sea crisis, US & India inflation among factors to watch
After a flat close for markets in the week gone by, a slew of important factors including the start of Q3 earnings season, inflation numbers and stock-specific triggers are set to dictate the mood in the new trading week. Amid this, investors will eye Nifty's move towards the 22,000 mark after having hit a new high of 21,834.
For the week ended January 5, the Nifty ended 0.1 percent lower at 21,710 while Sensex ended 0.3 percent lower at 72,026. Within sectors, Nifty Realty (up 7.8 percent) and Nifty Media (up 3.3 percent) were the top gainers while IT (down 1.9 percent) and Metal (down 1.3 percent) were top losers.
The broader market sustained its outperformance for the second straight week. Nifty Midcap 100 gained 2.5 percent while Nifty Smallcap 100 gained 1.9 percent. However, analysts believe that investors must stay cautious ahead of results season and persisting uncertainties in Red Sea.
TN GIM 2024: Tamil Nadu pulls all stops to woo investors ahead of Vibrant Gujarat meet
There was perhaps a brief flutter of apprehension among government officials and organisers of the Tamil Nadu Global Investors Meet (GIM) when grey clouds hung over Chennai on Sunday morning.
Much to their relief, it was over in a drizzle and the summit hall in Nandambakkam, a western neighbourhood of the capital city, was packed with delegates and heads of businesses.
Tamil Nadu CM MK Stalin, traded his signature all-white shirt and veshti for a crisp suit. He touched upon it in his inaugural address – “I normally wear a suit only when I travel overseas. Today I chose to wear it since people from all over the world are in Chennai.”
Four IPOs to hit Dalal Street next week for fund raising, with one listing
After a quiet start to the new year 2024, the activity in the primary market seems to be picking up in the coming week as four companies are going to hit Dalal Street with IPOs. Nearly Rs 1,100 crore of funds will be raised by these companies.
Jyoti CNC Automation IPO
This is the first initial public offering from the mainboard segment in the current calendar year, which will open for subscription during January 9-11, with a price band of Rs 315-331 per share.
The Rs 1,000-crore IPO comprises only a fresh issue by the company and there is no offer-for-sale component. Hence, the company will be utilising the entire issue proceeds for itself.
29,273 bogus firms involved in Rs 44,015 crore tax evasion detected since May 2023
As many as 29,273 bogus firms involved in alleged input tax credit (ITC) evasion of Rs 44,015 crore have been identified since the special hunt against false registrations began in mid-May 2023, the Finance Ministry said on January 7.
“Since the initiation of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs. 44,015 crore have been detected. This has saved Rs 4,646 crore of which Rs 3,802 crore is by blocking of ITC and Rs. 844 crore is by way of recovery. So far, 121 arrests have been made in the cases,” a statement released by the ministry read.
It added that in the quarter ended December 2023, 4,153 fictitious entities were discovered, including alleged ITC evasion of roughly Rs 12,036 crore. The central GST officials identified as many as 2,358 of these fraudulent entities.
“This has protected revenue of Rs 1,317 crore of which Rs 319 crore has been realised and Rs 997 crore has been protected by blocking ITC. A total of 41 persons were arrested in these cases. About 31 of these arrests were by Central GST authorities,” the ministry stated.
TN GIM 2024: Tamil Nadu govt unveils roadmap to achieve $1 trillion economy
The Tamil Nadu government unveiled a blueprint for the state to achieve a $1 trillion economy by 2030 on January 7, during the two-day Global Investors Meet in Chennai. Chief Minister MK Stalin, who released the report, said, "We have set ourselves an ambitious target of becoming a $1 trillion economy by 2030."
The state has outlined seven key principles to realise this goal: investments, human capital, innovation, market efficiency, governance, infrastructure, and holistic inclusive growth.
Demand for AI specialists is predicted to rise by 40 percent over 5 years: IBM's Sriram Raghavan
Sriram Raghavan, Vice President, IBM Research AI, was in India for two separate events in late 2023: the Global Partnership on Artificial Intelligence or GPAI Summit in Delhi from December 12-14, and the CNBC TV18 & Moneycontrol Global AI Conclave 2023 in Bangalore on December 16.
At the Moneycontrol conclave, Raghavan participated in a panel discussion on "How AI can help solve population scale problems in India". Now back in the US, Raghavan spoke about ways to use AI to solve for big problems like climate change and predicting extreme weather events, and creating a talent pipeline for AI jobs of the future.
Oil Prices
Oil prices gained on Friday, as U.S. Secretary of State Antony Blinken prepared to visit the Middle East to try and prevent the Israel-Gaza conflict from widening. Brent crude futures were up $1.42, or 1.83 percent, to $79.01 a barrel, while U.S. West Texas Intermediate crude futures rose $1.78, or 2.47 percent, to $73.97.
Both benchmarks are on track to end the first week of the year higher, having almost recouped their losses from Thursday after hefty U.S. gasoline and distillate stock builds. The price rebound serves as “a reminder of the risk that is rooted in ever-growing tension in the Middle East,” PVM analyst Tamas Varga said in a note.
Israeli forces plan a more targeted approach in the north and further pursuit of Hamas leaders in the south, its defence minister said on Thursday. As the threat of the conflict expanding persists, Blinken was set to travel to the Middle East for a week of diplomacy, the State Department said.
“There is still plenty of tension in the Middle East with Houthi rebels launching a sea drone in the Red Sea, a US airstrike in Baghdad,” ING analysts said in a report on Friday.
Dollar Index
The Dollar index traded 0.06 percent higher in futures at 102.44, whereas the value of one dollar hovered near Rs 83.19.
Gold Prices
Gold held steady on Friday after swinging up and down a percentage point on mixed U.S. economic data, but bullion posted its first weekly decline in four weeks on an overall stronger dollar and higher Treasury yields.
Spot gold rose 0.1 percent to $2,044.21 per ounce after falling and then rising by about 1 percent earlier in the session. Prices shed more than 1 percent for the week. US gold futures settled mostly unchanged at $2,049.80.
Official data showed US employers hired more workers than expected in December, but separate data from the Institute for Supply Management (ISM) indicated that the U.S. services sector slowed considerably last month.
“First, the nonfarm payrolls data came in stronger than expected, due to which we saw some pressure applied to gold ... However, on the heels of that we received some weaker-than-expected ISM data and as a result we’ve seen a turn in trend,” said David Meger, director of metals trading at High Ridge Futures.
Both the US dollar and 10-year Treasury yields hit their highest levels in three weeks, heading for their best weeks since July and October, respectively.
“With the US Federal Reserve pivoting towards rate cuts, we see the guessing game with regards to the number of rate cuts being a major driver of volatility in the months ahead,” Saxo Bank’s head of commodity strategy, Ole Hansen, said in a note.
Stock under F&O ban on NSE
The NSE has added Piramal Enterprises to its F&O ban list for January 8, while retaining Balrampur Chini Mills, Chambal Fertilisers & Chemicals, Delta Corp, Escorts Kubota, GNFC (Gujarat Narmada Valley Fertilisers & Chemicals), Indian Energy Exchange, India Cements, National Aluminium Company, SAIL and Zee Entertainment Enterprises to the said list.
Hindustan Copper was removed from the said list. Securities banned under the F&O segment include several companies where derivative contracts cross 95 percent of the market-wide position limit.
FIIs and DIIs
Foreign institutional investors (FIIs) bought shares worth Rs 1,696.86 crore, while domestic institutional investors (DIIs) sold Rs 3,497.62 crore worth of stocks on January 5, provisional data from the NSE showed.
With inputs from Reuters and other agencies.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
