Stock Market News: GIFT Nifty Indicates a Positive Start; L&T, Reliance Industries in Focus

Stock Market News Today: The Indian stock market ended in the red on January 3, 2024. After recording record highs, the equities are in a consolidation phase. At close, Sensex fell 535.88 points or 0.75 percent at 71,356.60. Nifty declined 139.60 points or 0.64 percent at 21,526.20.

Around 1917 shares advanced and 1390 shares declined while 79 stocks remained unchanged.

Among the sectors, buying was seen in PSU Bank, Pharma, and the Realty space as the stock market ended in the red. On the other hand, selling was witnessed in IT and Metal space which shed over 1 percent each.

Technical Analysis:

On the technical front, Nifty formed a long bullish candlestick pattern on the daily charts continuing a downtrend for the second straight session. A lower top formation coupled with a negative candle on the daily charts is bearish for the index.

On the oscillator front, the Index is exhibiting of presence of negative divergence in the daily RSI which also calls for a cautious approach in the market. Hence it seems that the Index in all likelihood can enter into a consolidation phase amidst the broader range of 21550-21850. On the way down, the Nifty has now reached the 38.2 percent Fibonacci retracement level (21,507). It is likely to act as a make-or-break level for the Nifty as the stock market is likely to open in the green.

Going forward, the zone of 21550-21500 will act as immediate support for the stock market today, any sustainable move below the level of 21500 will lead to profit booking in the index.

On the flip side, 21830-21860 will act as crucial resistance for the stock market today. Any sustainable move above the level of 21860 will lead to an extension of the upside rally up to the level of 22050. This will be followed by 22200 in the short term.

GIFT Nifty

GIFT Nifty indicates a positive opening for the stock market today with a gain of 55 points.

US Markets

US stock indexes ended the second session of the year down again in extended profit-taking on Wednesday. Minutes from the Federal Reserve’s December meeting failed to shake off the funk hanging over markets.

The S&P 500 lost 38.02 points, or 0.8%, to end at 4,704.81 points. The Nasdaq Composite lost 173.73 points, or 1.18%, to 14,592.21. The Dow Jones Industrial Average fell 284.85 points, or 0.76%, to 37,430.19.

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

Asian Markets

Asia-Pacific markets fell Thursday, led by Japan as the country resumed trading after an extended New Year’s holiday. The benchmark Nikkei 225 tumbled 2.26% at open, while the Topix also slid 1.25%. South Korea’s Kospi was down 0.64%.

Fed minutes cite lower inflation risks, concern about ‘overly restrictive’ policy

Federal Reserve officials in December launched an expansive debate about a coming turn in US monetary policy. According to a Reuters report, the minutes of the December 12-13 meeting voiced fresh concerns about how long the economy could hold up under current high-interest rates and initiated discussions about when to halt the rundown of its balance sheet.

Fed Chair Jerome Powell had laid out the broad contours of the meeting at a press conference held at its conclusion. He noted that the central bank was likely done raising interest rates and expected to begin reducing borrowing costs by the end of 2024.

“Participants pointed to the decline in inflation seen during 2023, noting the recent shift down in six-month inflation readings in particular,” the minutes said.

Stocks in the news

• Reliance Industries: Subsidiary Reliance Jio, with a 39.3 percent market share in the wireless subscriber base, added 31.59 lakh users in October 2023 as against 34.75 lakh users added a month back.
• Jio Financial: Jio Financial and BlackRock Financial Management have filed papers with the capital market regulator, the Securities and Exchange Board of India (SEBI), to launch mutual fund businesses in India. The in-principle approval is under consideration with SEBI, as the companies, as joint ventures, filed their applications on October 19 and showed the updated list of mutual fund applications as of December 31.
• Vedanta: More than 97 percent of bondholders of Vedanta Resources (VRL) approved the restructuring of $3.2 billion worth of bonds due to mature in the next three years. With this, Vedanta has secured the required approval from at least two-thirds of the bondholders to proceed with the restructuring plan.
• Larsen & Toubro: The company has completed the sale of its entire stake in L&T Infrastructure Engineering to STUP Consultants consequent to the completion of customary conditions precedent, as agreed under the Share Purchase Agreement. Consequently, L&T Infrastructure Engineering has ceased to be a subsidiary of the company.
• NHPC: The firm has signed a MoU with Gujarat Power Corporation (GPCL) for a proposed investment of Rs 4,000 crore in the Kuppa Pumped Storage Project (750 MW), Chhota Udaipur, Gujarat. The proposed year for the commencement of the investment is 2024–25.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 666.34 crore. Domestic institutional investors (DIIs) offloaded Rs 862.98 crore worth of stocks on January 3.

Bulk Deals

1. Wardinmobi: Indian Co-Operative Credit Society Limited sold 4,67,000 shares at Rs 55.99
2. Nibe: Aegis Investment Fund, PCC-Niveza bought 1,40,000 shares at Rs 675. On the other hand, Societe Generale sold 65,878 shares at Rs 675.17
3. SPL: Chanakya Opportunities Fund I sold 1,15,200 shares at Rs 101.41
4. Cupid Limited: Minerva Ventures Fund bought 75,000 shares at Rs 1193.15
5. Goyal Salt Limited: Meru Investment Fund PCC-Cell 1 sold 90,000 shares at Rs 158.01

Stock under F&O ban on NSE

The NSE has added National Aluminium Company to its F&O ban list for January 4.

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.