The Good News: Nifty erases some of the losses induced by US President Trump tariff threats.

*Review & Preview @4PM —— Tuesday, January 21st 2025*

NIFTY (+131, 23155)
Sensex (+567, 76405)
Bank Nifty (+154, 48724)

# The Good News: Nifty erases some of the losses induced by US President Trump tariff threats.

# The positive takeaway was that after dipping momentarily below the 23000 mark, the benchmark Nifty rebounds sharply higher.

# The rebound came after HDFC Bank’s Q3 earnings were above street expectations. HDFC Bank posted a 2.2% year-on-year rise in standalone net profit to Rs 16,736 crore.

# Meanwhile, Nifty IT index was star outperformer of the day, up 2.14% on backdrop of the yield on the 10-year U.S. Treasury note declining to 4.564%. Please note, the 10-year Treasury yield has dropped from a recent high of 4.896% on January 13.

# Nifty’s recovery and the risk-on sentiment was also on backdrop of drag in the US Dollar/INR towards 86.28 levels.

# The India VIX, India’s volatility index, too slipped towards 16.77, down 1.7%.

# In the near term, the 3-big catalysts are:

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

2) The Union Budget 2025-26, scheduled for February 1st

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

Long story short: Nifty witnesses a positive session as New Tariffs did not come on Trump’s Day two.

# Buzzing stocks:

1) Hindustan Unilever Q3 results: Net profit surges 19% from a year ago due to a one-time gain of Rs 507 crore. Total income grew a moderate 1.7 percent.

2) HUDCO Q3 net profit jumps 42% YoY to Rs 735 crore, firm declares Rs 2.05 dividend. The Navratna company raised its borrowing plan for the current financial year from Rs 40,000 crore to Rs 55,000 crore. It cited “quantum jump in business” as the reason behind the decision.

3) Tata Communications Q3 results: net profit at ₹236 crore rises 424% year on year

 

# Sentimental Overview:

1) We will spy with one big eye if the big FIIs now look to trim their bearish expectations. (This January so far, they have sold to the tune of Rs. 56,832.90 crores).

2) Going forward, the 3-big catalysts on investors radar:

a) The Federal Open Market Committee’s next policy meeting on January 28-29.
b) The Union Budget on February 1st
c) 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.

# The bearish daily technical setup shall exacerbate more pain only on any close below the psychological 23000.

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

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

# Outperforming Nifty Sectors:
Nifty IT (+2.14%)
NIFY PHARMA (+0.69%)
BANK NIFTY (+0.32%)

# Underperforming Nifty Sectors:
Nifty Reality (-4.56%)
Nifty Media (-1.8%)
Nifty PSE (-1.56%)

# Adv-Dec 26—24
# INDIA VIX 16.77 (-1.70%)
# NIFTY PCR (23rd JAN) 0.81
# NIFTY PCR (30th JAN) 0.88

# Bulls of the day:
WIPRO (+3.87%)
INFY (+3.02%)
TCS (+2.88%)
TECHM (+2.36%)
HDFCBANK (+1.80%)

# Bears of the day:
BEL (-3.01%)
TATAMOTORS (-2.16%)
TRENT (-1.95%)
POWERGRID (-1.31%)
AXISBANK (-1.09%)
(Source NSSEINDIA.com)

 

 

 

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