Nifty
Nifty Predictions on Q3 results, global markets movements, domestic macroeconomic data, crude oil and rupee will likely to influence the market direction.
Benchmark indexes Sensex and Nifty closed down on January 16, ending five days of gain, as speculators hurried to book gains across shares. While experts feel that the general market direction is bullish, geopolitical developments and below-expectation Q3 results might prompt falls.
The Sensex finished 199.17 points or 0.27 percent down at 73,129, and the Nifty lost 66.00 points or 0.30 percent to 22,031. About 1,090 shares gained, 2,197 decreased, and 49 shares stayed unchanged.
The broad market demonstrated profit booking following a robust performance by the IT sector amid poor global signals. BSE midcap and smallcap indexes lost 0.31 percent and 0.43 percent, respectively.
Sectorally, Nifty IT and pharma led the losses, plunging more than a percent. Except for Nifty PSU bank, FMCG and metal, all other sectoral indexes ended in the negative.
“Investors are contemplating whether the current euphoria in markets has gone farfetched, especially with elevated domestic valuations in mid & small caps,” said Vinod Nair, Head of Research, Geojit Financial Services.
“FII flows are mixed due to a lack of fresh triggers. Oil prices maintained stable despite unabated global worries. The recent IIP growth suggests near-term softening,” he noted.
The Nifty is currently up three times from the Covid low of 7,511 in March 2020. “This is a sign of a robust bull market and it has a long way to go. But the gain from now on will not be smooth and abrupt corrections are inevitable given valuations are high,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The Israel-Gaza war and skirmishes in the Red Sea region may pass without damaging the markets yet if these conflicts escalate, then the market may have a reason to worry, he added. Largecaps like banking and IT and RIL are expected to stay resilient even in a downturn, he added.
“As a measure of abundant caution investors may consider booking some profits and moving the money to fixed income, where the returns are attractive,” Vijayakumar said.
The earning season may impact the market trend. Trends in the global markets, local and global macroeconomic data, crude oil prices and the movement of the currency would also affect on mood, Arvinder Singh Nanda, senior vice president, Master Capital Services, said.
For Nifty, the immediate resistance is around 22,050 and support at 21,500 and 21,400, Nada added.
For Bank Nifty 48,000 is a key obstacle, underlined by strong Call writing. A decisive breakout above the may unleash a rapid short-covering surge. Immediate support is at 47,200-47000, a break of which will probably prompt severe selling pressure, perhaps leading to a fall, he added.
| FII Bought | 1,085.72 Cr |
| DII sold | 820.69 Cr |
Indian Market Stocks
| Sensex | -199.17 | -0.27% | 73,128.77 |
| Nifty 50 | -65.15 | –0.29% | 22,032.30 |
| Bank Nifty | -33.20 | -0.07% | 48,125.10 |
Market Movers
| BPCL | 12.90 2.80% | Divis Labs | -95.10 -2.43% |
| Tata Steel | 2.35 1.74% | HCL Tech | -32.75 -2.06% |
| Titan Company | 61.45 1.63% | Wipro | -9.60 -1.94% |
| ITC | 4.70 1.01% | NTPC | -5.80 -1.83% |
| Maruti Suzuki | 96.65 0.96% | SBI Life Insura | -21.25 -1.49 |
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For Nifty, the immediate resistance is around 22,050 and support at 21,500 and 21,400, Nada added.
For Bank Nifty 48,000 is a key obstacle, underlined by strong Call writing. A decisive breakout above the may unleash a rapid short-covering surge. Immediate support is at 47,200-47000, a break of which will probably prompt severe selling pressure, perhaps leading to a fall, he added.