The broader markets were underperforming Nifty.

*Review & Preview @4PM —— Wednesday, January 8th 2025*

NIFTY (-19, 23689)
Sensex (-51, 78149)
Bank Nifty (-367, 49835)

# Nifty opened in red and then plunged deep into red but the positive takeaway was that the perma-bulls regrouped at lower levels as the benchmark ends the day only with minor cut.

# Amongst stocks, DIXON fell 8.4%, PAYTM dropped 8% while ONGC was up 3%, TCS gained 1.7% ahead of its Q3 results to trickle in tomorrow. Reliance too moved up smartly, up 1.75%.

# Long Story short: Caution shall continue to the Gyan Mantra for Nifty Bulls.

# Buzzing stocks:

1) United Breweries shares fall 4% as firm suspends beer supply to Telangana Beverages Corp

2) Dixon tumbles 8% on reports of rising competition in the EMS space, as the Competition Commission of India (CCI) has granted approval for Tata Electronics Pvt. Ltd. (TEPL), a wholly-owned subsidiary of Tata Sons, to acquire a majority stake in Pegatron Technology India Pvt. Ltd. (Pegatron India).

# Sentimental Overview:

# India VIX ends at 14.45, down 1.45%. At last check, USD/INR was at 85.85.

# The broader markets were underperforming Nifty. The S&P BSE Mid-Cap index slipped 1.20% and the S&P BSE Small-Cap index dropped 1.71%.

# The street looks to FOMC minutes to trickle later in the day for fresh impetus.

# The Fed’s hawkish shift continues to be the biggest headwinds.

# Elevated US bond yields favors Nifty bears. The yield on the 10-year U.S. Treasury note has spiked to 4.691%, its highest level since April.

# Our call of the day suggests Nifty will continue to trade with caution as market participants are paring their rate-cut bets ahead of the Federal Open Market Committee’s next policy meeting on January 28-29.

# Meanwhile, the US December jobs report, to be wired this Friday, will be closely watched as is one of the final economic indicators before the next Federal Reserve meeting.

# Meanwhile, the 3-big catalysts:

1) TCS officially sets afire the ceremonial starters pistol for corporate India’s Q3 results on Thursday, January 9th.

2) All bullish eyes will be on Friday’s US NFP.

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

# With intermonth perspective Nifty’s direction will depend on what Trump will do after he takes office as US President on January 20th

# Technical Overview:

# Technically speaking, Nifty continues to trade below its 200 DMA and now it’s also below its 200 EMA.

Technically speaking, 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.

Immediate downside risk on Nifty is placed at its December 31st low at 23460 mark; and then aggressive downside targets are at Nifty’s psychological 23000 mark.

# Confirmation of strength only on any close above Nifty 24227.

# Outperforming Nifty Sectors:
Nifty Oil & Gas (+1.37%)
Nifty IT (+0.52%)
Nifty FMCG (+0.41%)

# Underperforming Nifty Sectors:
Nifty PHARMA (-1%)
Nifty METAL (-0.84%)
Nifty PSU BANKS (-0.79%)

# Bulls of the day:
ONGC (+3.04%)
ITC (+1.94%)
ASIANPAINTS (+1.91%)
DRREDDY (+1.74%)
TCS (+1.66%)

# Bears of the day:
APOLLOHOSP (-4.06%)
TRENT (-2.75%)
ULTRACEMCO (-2.14%)
SHRIRAMFIN (-1.98%)
BAJAJ AUTO (-1.89%)
(Source NSSEINDIA.com)

 

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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.