The bears were everywhere at Dalal Street.

*Review & Preview @4PM —— Monday, January 13th 2025*

NIFTY (-346, 23086)
Sensex (-1049, 76330)
Bank Nifty (-693, 48041)

# Dalal Street witnesses a dismal Monday’s trading session where stocks just tumbled and investors scrambled for safety.

# Simply put, it was sea of red amongst sectoral indices as Dalal Street had nothing to offer but blood, toil, tears and sweat.

# Blame some part of pessimism on:

1) The surprisingly strong US jobs report which trickled on Friday. The super-hot December jobs report with the strongest new hiring numbers in nine months is definitely going to make the Federal Reserve more hawkish.

2) Blame the pessimism also to the uncertainty with regards to Fed rate plans.

3) The street is not sure what Trump will do after he takes office as US President on January 20th

4) Haunting investors sentiments were the total FIIs selling which has crossed over 2.10-lakhs crore since September 27, the day Nifty hit an all-time-high at 26277.35.

# Bottom-line: *The nasty script ideally leaves investors to worry a lot as investors fear the brutal sell-off on Dalal Street is likely to get worse.*

# Technically, more tremors could be witnessed at Dalal Street if Nifty slips below its biggest inter-month psychological support at 23000 mark.

# Long story short: The bears were seen everywhere at Dalal Street.

# Buzzing stocks:

1) DMART Bleeds: Avenue Supermarts (DMart) shares tanked as much as 5.74% to hit an intraday low of Rs 3,469 per share after the company’s December quarter (Q3FY25) results missed Street expectations. The 52-week low of DMart share is Rs 3,400.

2) Biocon (+0.94%) shares were in limelight after USFDA clears Malaysia unit.

# Sentimental Overview:

# India VIX ends at 15.99, up 7.17%. At last check, USD/INR was at 86.26.

# The broader markets were mirroring Nifty’s bearish action. The S&P BSE Mid-Cap index tumbled 4.04% and the S&P BSE Small-Cap index dropped 3.92%.

Meanwhile, the 3-big catalysts:

1) Investors remain on high alert ahead of US PPI and CPI inflation reports on Tuesday, January 14th and Wednesday, January 15th.

2) The Federal Open Market Committee’s next policy meeting on January 28-29.

3) Delhi Assembly election voting on Feb 5th, results on Feb 8th

# Technical Overview:

# Technically speaking, Nifty continues to trade way below its 200 DMA and also below its 200 EMA.

# Technically speaking, the bearish daily technical setup shall exacerbate more pain below psychological 23000.

Below Nifty 23000, the next inter-month supports are placed at 21281 mark (June 4th Election day low).

Any near-term rebound could be a Dead Cat Bounce!

Please note, ‘Dead Cat Bounce’ is a temporary price recovery following losses, that is followed by more losses.

# Confirmation of strength only on any close above Nifty 23900.

# Outperforming Nifty Sectors:
NONE

# Underperforming Nifty Sectors:
Nifty REALITY (-6.70%)
Nifty MEDIA (-4.24%)
Nifty PSE (-3.94%)
Nifty METALS (-3.84%)
Nifty Energy (-3.27%)

# Bulls of the day:
TCS (+0.78%)
INDUSINDBNK (+0.58%)
AXISBANK (+0.46%)
HUL (+0.12%)

# Bears of the day:
ADANIENT (-6.21%)
TRENT (-5.40%)
BPCL (-4.39%)
BEL (-4.37%)
POWERGRID (-4.09%) (Source NSSEINDIA.com)

 

Disclaimer: This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Returns mentioned herein are in no way a guarantee or promise of future returns. Stock market investments are subject to market risks.

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