Top Stock Market News: GIFT Nifty Indicates a Negative Start; Vedanta, Ramkrishna Forgings in Focus

The Indian stock market ended flat amid volatility on January 9, 2024. At the close, Sensex added 31 points at the 71386 mark. Nifty gained 31 points and ended the session at the 21544 level. Around 1459 shares advanced and 1,085 declined while 111 remained unchanged.

Among the sectors, except bank and FMCG, all other indices ended in the green in a volatile stock market.

Technical Analysis:

On the technical front, Nifty formed yet another bearish candlestick pattern, indicating of a possible bearish momentum hereon. The daily Relative Strength Index (RSI) is currently trading below its 9-day average and is in a declining mode. This negative divergence on the daily RSI signals diminishing upside momentum, adding a note
of caution to the existing trend.

On the way down, the Nifty has now reached the 38.2 percent Fibonacci retracement level (21,507), coinciding with the upward rising trendline adjoining the lows of
Nov’23 & Dec’23 which is likely to act as a make-or-break level for the Nifty.

Going forward, the zone of 21550-21500 will act as immediate support for the index, any sustainable move below the level of 21500 will lead to profit booking in the index. While, on the flip side, 21830-21860 will act as crucial resistance for the index. Any sustainable move above the level of 21860 will lead to an extension of the upside rally
up to the level of 22050, followed by 22200 in the short term.

GIFT Nifty

The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 32 points.

US Markets

The S&P 500 and Dow lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields. Investors assessed the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week.

The Dow Jones Industrial Average fell 157.85 points, or 0.42%, to 37,525.16. The S&P 500 lost 7.04 points, or 0.15 %, at 4,756.50. The Nasdaq Composite gained 13.94 points, or 0.09 %, at 14,857.71.

Also read: Lupin, Oracle Financial Services Top 2 Stocks Which Can Fetch up to 13% Return

Asian Markets

Japanese stocks hit a near 34-year high on Wednesday. Other Asian equities meandered close to one-month lows and bond markets traded cautiously ahead of US inflation data due this week. Japan’s Nikkei which had its best year for a decade in 2023 climbed 1% in early trade to break above 34,000 for the first time since 1990. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5% to its lowest since mid-December.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 990.90 crore. Domestic institutional investors (DIIs) purchased Rs 104.23 crore worth of stocks on January 9, provisional data from the NSE showed.

Stocks in the news

• Lupin: The company announced the launch of Bromfenac Ophthalmic Solution (0.07 percent in the US after receiving approval from the US FDA. The solution is used for postoperative inflammation and reduction of ocular pain in patients who have undergone cataract surgery.
• Mahindra & Mahindra: The automaker expanded its collaboration with Mobileye to develop advanced driving technology. The companies will work to develop a fully autonomous driving system.
• Ramkrishna Forgings: The firm will be replacing Tata Coffee in the BSE 500, BSE 250 Smallcap, and BSE 400 MidSmallcap indices, with effect from January 15
• Vedanta: Moody’s has downgraded Vedanta Resources’ corporate family rating to Caa3 from Caa2 and rating on unsecured bonds to Ca from Caa3. Outlook has been maintained as negative.

Bulk Deals

• Zee Entertainment Enterprises: Societe Generale sold 78,36,744 shares at Rs 259.1
• Tamilnadu Telecomm Ltd: State Bank Of India sold 4,27,289 shares at Rs 10.85

Stock under F&O ban on NSE

The NSE has retained Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers & Chemicals, Delta Corp, Escorts Kubota, GNFC (Gujarat Narmada Valley Fertilisers & Chemicals), Hindustan Copper, Indian Energy Exchange, India Cements, National Aluminium Company, Piramal Enterprises, and SAIL to its F&O ban list for January 10

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.