Stock Market News: GIFT Nifty Indicates a Cautious Start for Indian Indices; HDFC Bank, Asian Paints in Focus

The Indian stock market ended the session on January 16, 2024, in the red amid volatility. At close, Sensex shed 199 points at 73,128 while Nifty was down 65 points and closed at the 22,032 mark. This came amid profit booking in the stock market.

Among the sectors, metal and oil & gas indices they have gained almost 1 percent. On the other hand, power, realty, healthcare, and Information Technology sectors shed 0.5-1.5 percent.

Around 837 stocks advanced and 1703 declined while 87 remained unchanged.

Technical Analysis:

On the technical front, Nifty formed a Tweezer Top kind of candlestick pattern on the daily time frame which is a bearish pattern. Hence, one can expect consolidation and normal profit booking to continue in the index. However medium-term outlook is still on the positive side, where 21,970 will be a key level for the Nifty, below which the selling pressure is likely to accelerate and take the index down to 21,900 – 21,875. On the upside, the Index to scale levels of 22300 needs a decisive close above the 22150 mark.

On the way down, the level of 21100-21300 is very crucial as it happens to be the 23.6 percent Fibonacci retracement level, coinciding with the upward rising trendline adjoining the lows of November 2023 and December 2023.

Going ahead, as per the pattern, the upside target is placed at the 22300-22400 level.

GIFT Nifty

GIFT Nifty indicates a negative start for Indian indices with a loss of 14 points.

US Markets

US stocks retreated on Tuesday while the dollar gathered strength amid warnings that markets might have gotten ahead of themselves concerning the timing and extent of central bank policy cuts, according to a Reuters report.

The Dow Jones Industrial Average fell 231.86 points, or 0.62%, to 37,361.12. The S&P 500 lost 17.85 points, or 0.37%, to 4,765.98. The Nasdaq Composite dropped 28.41 points, or 0.19%, to 14,944.35.

Asian Markets

Asian stocks stumbled and the dollar was near a one-month high on Wednesday as hawkish rhetoric from central bankers beat back bets of early interest rate cuts, while geopolitical worries kept risk sentiment in check, according to a Reuters report.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.31%, touching a fresh one-month low. Japan’s Nikkei shrugged off the broader malaise and was perched at a new 34-year peak.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 656.57 crore. Domestic institutional investors (DIIs) sold Rs 369.29 crore stocks on January 16.

Also read: Union Bank, GSPL Top 2 Stocks Which Can Give Up To 14% Return

Stocks in the news

• HDFC Bank:  The private sector lender experienced a 2.5 percent sequential growth in net profit, reaching Rs 16,372.54 crore for the quarter ending December FY24, with higher bad loan provisions partially impacting the results. Net interest income during the quarter increased by 4 percent QoQ to Rs 28,471 crore.
• Piramal Pharma: The firm’s Piramal Critical Care (PCC) division has announced the launch of a new 10mg/10mL (1 mg/mL) concentration of Zinc Sulfate for Injection USP in the US.
• PNC Infratech: The company has received a letter of award for a project worth Rs 1,174 crore from MP Road Development Corporation. The company under this project will construct the Western Bhopal Bypass as a 4-lane road with paved shoulders along with a service road in Madhya Pradesh in Hybrid Annuity Mode (HAM).
• Rail Vikas Nigam: The firm has formed a joint venture with Jakson Green Private Limited to explore opportunities in solar power projects in India and abroad.
• Godrej Properties: The real estate firm has acquired an additional approximately one acre of land parcel in Yeshwanthpur, Bengaluru. The land has a developable potential of approximately 1.40 lakh square feet of saleable area through an outright purchase for the development of premium residential apartments.

Results today:

Asian Paints, LTIMindtree, ICICI Prudential Life Insurance Company, Happiest Minds Technologies, Alok Industries, Oracle Financial Services Software, Hindustan Media Ventures, IIFL Finance, Speciality Restaurants, Som Distilleries & Breweries, Steel Strips Wheels.

Bulk Deals

• Indigo Paints Limited: Smallcap World Fund Inc sold 7,05,389 shares at Rs 1475.32
• DB Realty Limited: Pinnacle Investments sold 21,43,904 shares at Rs 233.65
• Indigo Paints Limited: Morgan Stanley Asia Singapore PTE bought 2,75,000 shares at Rs 1475

Stock under F&O ban on NSE

The NSE added Aditya Birla Fashion & Retail, Ashok Leyland, and National Aluminium Company to the said list.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.