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Despite some volatility, domestic equities clocked marginal gains in the week ended January 12, and benchmark indices scaled lifetime highs led by index heavyweights. Domestic equity benchmarks Sensex and Nifty 50 ended a two-week long consolidation phase and settled around the week’s high. On a weekly basis, the BSE benchmark jumped 542.3 points or 0.75 per cent, and the Nifty 50 climbed 183.75 points or 0.84 per cent. Nifty 50 is now just 100 points away from crossing another milestone of 22,000. On global front, analysts believe that with higher-than-expected US inflation and positive job data, the euphoria over early rate cuts by the US Fed has moderated, which has diminished global market sentiments. We have been seeing consolidation in the Dow Jones Industrial Average (DJIA), with bias on the positive side. A decisive breakout above 37,800 would prompt the next leg of up move towards 39,000 levels and the support has shifted to the 36,900-37,300 zone.
Indian Market
Indian Market
Brace for a massive short covering rally
Brace for a massive short covering rally
Nifty options data suggest that 21,900 is the crucial area for further march towards 22,000-22,500 levels, while the 21,700-21,800 zone is expected to be the support zone.
Nifty Bank has a important resistance at its 20-DMA of 47,900. Any decisive move above 48,000 is key as it may trigger massive short-covering in the Nifty Bank towards 50,000 levels.
Milind Karmakar's Market Valuation For Long Term Investors
Milind Karmakar's Market Valuation For Long Term Investors
Q3 Earnings, Macro Data
Q3 Earnings, Macro Data
The ongoing Q3FY24 earnings season will be the biggest factor in driving the market movement. Many major companies will be announcing their quarterly numbers including HDFC Bank, Asian Paints, LTI Mindtree, IndusInd Bank, Hindustan Unilever, Paytm, RIL, and UltraTech Cement.
US & Global Market
US & Global Market
Oil prices rise more than 2% post US strike
Oil prices rise more than 2% post US strike
Oil prices rose more than 2% on Friday as the United States and Britain carried out strikes against Houthi military targets in Yemen in retaliation for attacks by the Iran-backed group on shipping in the Red Sea starting from late last year.
Top Goldman Sachs analyst says the world is moving into a new super cycle
Top Goldman Sachs analyst says the world is moving into a new super cycle
Artificial intelligence and decarbonization are two of the key factors that could have a positive impact during this new cycle, said Peter Oppenheimer, head of macro research in Europe at Goldman Sachs.
Taiwan election may aid a global relief rally
Taiwan election may aid a global relief rally
Vice President Lai Ching-te won the presidency on Saturday, the third consecutive term for his ruling Democratic Progressive Party (DPP), but the party lost its parliamentary majority, complicating Lai's spending plans and any intent to take an aggressive stance on China.
Brace for a massive short covering rally in Bank Nifty in January
Brace for a massive short covering rally in Bank Nifty in January
Nifty options data suggest that 21,900 is the crucial area for further march towards 22,000-22,500 levels, while the 21,700-21,800 zone is expected to be the support zone.
Nifty Bank has a important resistance at its 20-DMA of 47,900. Any decisive move above 48,000 is key as it may trigger massive short-covering in the Nifty Bank towards 50,000 levels.
Better than expected results and a possible green shoot helped IT index to log 5.14 per cent, to hit a 21-month high. This short covering rally may continue for some more time and INFY and WIPRO may see further buying.
Meanwhile, PSU power stocks like NTPC, NHPC, Power Grid Corporation and SJVN to light up as the government is set to enlist state-run power sector companies to push households to adopt the rooftop solar program.
5 new IPOs, 5 listings to hit D-Street
5 new IPOs, 5 listings to hit D-Street
In the mainboard segment, Medi Assist Healthcare IPO will open for subscription on January 15 and EPACK Durable IPO will open on January 19. Among listings, shares of Jyoti CNC Automation will debut on stock exchanges BSE, NSE on January 16.
In the SME segment, Maxposure on January 15 while Konstelec Engineers and Addictive Learning Technology Limited IPO will open for bidding on January 19. Among listings, shares of IBL Finance will debut on NSE SME on January 16.
On January 18, shares of New Swan Multitech and Australian Premium Solar (India) will get listed on BSE SME and NSE SME respectively. Also, shares of Shree Marutinandan Tubes will debut on BSE SME on January 19.
What to expect next week
What to expect next week
Investors will eye several stock market triggers in next week including the domestic cues, macroeconomic indicators, primary market action, foreign capital inflow, crude oil prices, and stock-specific action.
The Nifty index exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800. This bullish move positions the index for potential short-term targets of 22,000 and 22,200. Traders are advised to consider buying opportunities on any dips toward the support level.
The 2024 Annual Meeting of the World Economic Forum takes place from 15 - 19 January in Davos, Switzerland.
Key sectors to focus
Key sectors to focus
In a double whammy for the economy, retail inflation soared to a four-month high of 5.69 per cent in December, while industrial production fell to an 8-month low of 2.4 per cent in November. Investor should keep a close watch on rate sensitives and consumer stocks.
On-going middle east tension to aid short term rally in gold and Bitcoin ETF. Investors can take positions in frontline jewelry stocks.
Oil Exploration & Gas stocks may perform well for some more time. Rise in crude and new discoveries will aid support to oil exploration stocks like ONGC and Gail for some more time.
Stocks to track
Stocks to track
Investors should keep their attention on:
Long build up are seen in front line IT and Oil & Gas stocks like ONGC and GAIL.
Short covering in Bank Nifty may push AU Bank, ICICI Bank and CANBANK higher in short term.
IT frontliners like INFY, WIPRO and TCS may see further short covering rally if market stays elevated.
In PSU basket, further rally may continue in financiers like IRFC, REC and PFC. PSU defense names like MAZGAON DOCK or BEL can see some action.
Stock ideas: ONGC, ICICIBK, Bajaj Fin, WIPRO, IRFC, REC, Ceat, Campus, IDFC First
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