Stock Market on Friday, 20 January 2023: 10 triggers that could impact movement in Nifty, Sensex

Stock Market on Friday, 19 January 2023: Indian stock markets will resume trading on Friday amid a host of local and global factors. On Thursday, frontline indices S&P BSE Sensex and NSE Nifty50 ended in the red, breaking their two-day winning streak. Sensex fell to 60,858.43, down 187.31 or 0.31 per cent on the weekly expiry day while the broader market Nifty50 settled at 18,084.15, lower by 81 points or 0.45 per cent. Banking gauge Bank Nifty finished at 42,293.95, down by 164.05 points or 0.39 per cent.

We have collated 10 factors that could impact movement when equity markets resume trading tomorrow. Take a Look!

1) US Markets: Wall Street’s weakness continued on Thursday. All three benchmark indices were trading in the red. Dow 30 was trading at 33,102.20, down by nearly 200 points or 0.58 per cent while S&P 500 was trading at 3,904.19, down 24.67 or 0.63 per cent. Nasdaq Composite was trading at 10,874.30, down 82.67 points or 0.75 per cent. Dow futures were trading at 33,147.90, down 149.10 points or 0.45 per cent.       

 Source: NSE       

Singapore-based SGX Nifty, an early indicator of movement in Nifty was trading at 18,131.5, up 18 points or 0.10 per cent.

When Indian markets open tomorrow, they will take cues from global markets.

2) Rupee Vs Dollar: The rupee settled 7 paise lower at 81.37 (provisional) against the US dollar on Thursday, weighed down by a muted trend in domestic equities and foreign fund outflows. At the interbank foreign exchange market, the rupee opened at 81.45 against the greenback, and finally settled at 81.37, down 7 paise over its previous close. During the session, the rupee also touched an intraday high of 81.27 against the American currency. In the previous session on Wednesday, the rupee had settled at 81.30 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.21 per cent lower at 102.14. PTI

"In the near-term, trend for USDINR remains bearish and breaching 81.20 pave way for 80.60 while on the higher side 81.70, the 100-day simple moving average will act as resistance," Dilip Parmar, Research Analyst, HDFC Securities said. Meanwhile, Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP sees USD moving in a range of 80.80 to 82.00 tomorrow.

3) Q3 Results 2023: Several listed companies announced their quarterly results on Thursday. Among them were Hindustan Unilever (HUL), Asian Paints, AU Small Finance Bank, Hindustan Zinc, Polycab, PVR and Havells India. Several companies will announce their quarterly results on Friday. In the Nifty50 Pack HDFC Life, JSW Steel and Reliance Industries will declare the December quarter results. Others include Aether Industries, Atul Auto, Bandhan Bank, Coforge, Shakti Pumps, RBL Bank, Nelco and Petronet LNG.  

4) Stocks in News: Certain companies are expected to see action based on news related developments - Sun Pharmaceutical’s acquisition of Concert Pharmaceuticals, Bata India’s new CFO Anil Somany, TVS Motor’s board meeting on 24 January to consider interim dividend. Rice stocks could be in action as food regulator FSSAI notifies standards for basmati rice. 

5) Anil Singhvi Strategy on Nifty, Bank Nifty: Zee Business Managing Editor said that local triggers remain favourable for Indian markets. Support in Nifty50 is seen at 17,950-18,050 while the resistance is seen at 18,150-18,250. As for Bank Nifty, support is seen between 42,000 and 42,100 while resistance is seen at 42,450-42,550.

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6) Stocks in Ban: Securities in Ban for trade on 20 January, 2023: Delta Corp, GNFC, L&T Finance Holdings and Mannapuram.

7) FII / DII Action: Foreign institutional investors were net buyers of Indian equities and bought shares worth Rs 400 crore while domestic institutional investors were net sellers at Rs 129 crore.

8) Bulk Deals: Nearly two dozen companies witnessed bulk deal action on the NSE. Sula Vineyard, Kohinoor Foods, Kshitij Polyline, Atul Auto and Bright Solar are some of the companies who saw bulk deal transactions.

9) Commodities Live: MCX February Gold futures were trading at Rs 56,509 per 10 gram, up by Rs 223 or 0.40 per cent. Meanwhile, March Silver futures were trading at Rs 68,173 per kg, down by Rs 54 or 0.08 per cent.

Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said that Gold futures could test Rs 57,000. By Diwali 2023 gold futures could test levels between Rs 58,000 and 60000. Sentiments are positive and physical buying will support the gold prices as demand is back to pre-covid levels, Gupta said.

10) Crude Oil: Global oil benchmark Brent crude futures declined 0.94 per cent to USD 84.18 per barrel. PTI. On MCX, February futures were trading at Rs 6,577, up by Rs 27 or 0.41 per cent.

Source: MCX

Expert’s View: “The Nifty has given a bullish breakout recently from a base triangle pattern formation. On January 19, it witnessed a brief consolidation, which has resulted in an Inside bar pattern on the daily chart. The overall structure shows that this is only a pause & is expected to be followed by the next leg on the upside. From a short term perspective, any dip towards 18050-18000 can be taken as a fresh buying opportunity. Over the next few sessions, the Nifty is expected to surpass the key hurdle zone of 18260-18300 & head towards 18500” -- Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)