Stock Market News: GIFT Nifty Indicates a Cautious Opening; Tata Consumer, BHEL in Focus

The Indian stock market rallied on January 12, 2024, hitting a fresh record high. At close, Sensex zoomed 847 points at the 72568 mark. Nifty jumped 247 points and ended the session on the 21,894 mark.

Among sectors, except auto and healthcare, all other sectoral indices ended in the green. The IT index rose 5 percent, and realty and oil & gas indices were up 2 percent each.

Around 13636 stocks advanced and 1164 declined while 117 remained unchanged.

Technical Analysis:

On the technical front, the Nifty formed a bullish candlestick pattern on the daily timeframe, even on the weekly chart, the Nifty 50 has formed a reasonable bull candle with a long lower shadow, nullifying the bearish doji pattern implication of the previous week. Nifty has given Flag pattern breakout on a daily scale. This breakout was
accompanied by the formation of a substantial bullish candle, enhancing the significance of the upward movement. As the index is trading at an all-time high level, all the moving averages and momentum indicators collectively indicate a robust and sustained bullish momentum in the index. Daily RSI has found support in the zone of 61-62 and witnessed a smart recovery followed by a bullish crossover thus supporting the bullish structural extension.

On the way down, the level of 21000-21100 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. While, on the downside, the zone of 21650-21600 will act as crucial support for the index.

GIFT Nifty

GIFT Nifty indicates a flat start to Indian indices with a gain of 3 points.

US Markets

US stocks closed barely changed on January 12, after wavering between modest gains and losses, as mixed bank earnings offset cooler-than-expected inflation news that buoyed hopes for interest-rate cuts from the Federal Reserve.

The Dow Jones Industrial Average fell 118.04 points, or 0.31%, to 37,592.98. The S&P 500 gained 3.59 points, or 0.08 %, at 4,783.83. The Nasdaq Composite rose 2.58 points, or 0.02%, to 14,972.76.

Asian Markets

Asian shares got off to a stumbling start on Monday as China’s central bank wrong-footed markets by skipping a rate cut, even as data due this week is expected to show the economic recovery there remains fragile.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2% after losing 0.8% last week. Japan’s Nikkei bucked the chary mood and rose 0.6% to a fresh 34-year peak.

Stocks in the news

• Tata Consumer Products: The company has signed definitive agreements to acquire a 100 percent stake in Capital Foods, the owner of Ching’s Secret and Smith & Jones, in a phased manner. The enterprise value on a ‘no cash/no debt basis’ for 100 percent of Capital Foods is Rs 5,100 crore.
• BHEL: The PSU firm has received a Letter of Award (LOA) for the EPC package for the 3×800 MW NLC Talabira Thermal Power Project (NTTPP) in Jharsuguda, Odisha, from NLC India. The project is worth Rs 15,000 crore.
• Lupin: The pharma company has received approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application for propranolol hydrochloride extended-release capsules to market a generic equivalent of Inderal LA extended-release capsules from ANI Pharmaceuticals, Inc. in the US. The capsules are used to treat hypertension and migraines.
• Adani New Industries: The company a wholly owned subsidiary of Adani Enterprises, has received a Letter of Award (LoA) from the Solar Energy Corporation of India (SECI) for setting up an electrolyser manufacturing capacity of 198.5 MW per annum in India under the Strategic Interventions for Green Hydrogen Transition Scheme (Tranche-I).

Also read: Top 2 Buy Ideas for New Year 2024 Which Can Fetch Up To 15% Return

FII and DII data

Foreign institutional investors (FIIs) offloaded shares worth Rs 340.05 crore. Domestic institutional investors (DIIs) bought Rs 2,911.19 crore stocks on January 12.

Bulk Deals

• Valiant Laboratories Ltd: Leading Light Fund Vcc The Triumph Fund sold 3,26,000 shares at Rs 176.16
• Gillette India: Nippon India Mutual Fund bought 3,30,000 shares at Rs 6755

Stock under F&O ban on NSE

The NSE has added Chambal Fertilisers & Chemicals, and Metropolis Healthcare to the said list.

Oil rises after strikes on Houthis

Oil prices gained on Friday as some oil tankers diverted course from the Red Sea after overnight strikes by the US and Britain on Houthi targets in Yemen, while U.S. Treasury yields eased on news that US producer prices unexpectedly fell in December, according to a Reuters report.

Brent crude futures rose 88 cents, or 1.1%, to settle at $78.29 a barrel. The session high was more than $80, highest this year so far. According to a Reuters report, US West Texas Intermediate crude futures climbed 66 cents, or 0.9%, to settle at $72.68, paring gains after touching a 2024 high of $75.25.

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.