Stock Market on Thursday, 19 January 2023: 10 factors that could impact movement in Sensex, Nifty

Stock Market on Thursday, 19 January 2023: Indian markets will resume trading on Thursday amid a host of local and global factors. Tomorrow is also a day of weekly expiry which is likely to play on the minds of investors and traders when they decide to make a move.   

Indian frontline indices S&P BSE Sensex and NSE Nifty50 ended near day's highs on Wednesday while recording their second consecutive gains this week. While Sensex closed at 61,045.74, up by 390 points or 0.64 per cent, the broader market Nifty50 settled at 18,163.80, up by 110.50 points or 0.61 per cent. Banking gauge Nifty Bank finished 232 points or 0.55 per cent higher at 42,467.70.

In the 50-stock Nifty50, market breadth was skewed in favour of gainers with 36 gains. The top gainers were Hindalco Industries, Tata Steel, Larsen & Toubro, HDFC Bank and UPL while top losers were Adani Enterprises, Tata Motors, HDFC Life, Ultratech Cement Company and Indusind Bank.

We have collated a list of factors that could impact movement:

1) US Markets: US markets were trading in the green on Wednesday. Dow 30 was trading at 33,944.90, up 34.01 points or 0.10 per cent while S&P 500 was up over 20 points or 0.53 per cent at 4,012.03. Nasdaq Composite was trading at 11,219.20, up 124.12 points or 1.12 per cent.

 Source: NSE

Singapore-based SGX Nifty futures, an early indicator of movement in Nifty50 were trading at 18,253, up 31 points or 0.17 per cent at the time of filing this story. Dow Futures were trading at 33,951.80, up 40.90 points or 0.12 per cent.

2) Rupee Vs Dollar: The rupee pared its initial losses and settled 44 paise higher at 81.25 (provisional) against the US dollar on Wednesday, tracking a weak greenback overseas and a firm trend in domestic equities. However, rising crude oil prices capped the gains in the rupee, traders said. At the interbank foreign exchange market, the local unit opened weak at 81.80, but pared the losses and settled for the day at 81.25 (provisional), registering a rise of 44 paise over its previous close. The dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.45 per cent to 101.93.

On Tuesday, the rupee had closed at 81.69 against the US dollar.

"We expect the USD-INR (Spot) to trade sideways and quote in the range of 81.20 and 81.70," Gaurang Somaiya, Forex & Bullion Analyst at Motilal Oswal Financial Services said. Volatility in rupee remained elevated after the Bank of Japan (BoJ) held rates unchanged, he said.  PTI

3) Q3FY23 Results: Many listed companies announced October-December quarter results on Wednesday. Among them were Indusind Bank, Central Bank of India and Rallis India. Several companies will be announcing their quarterly earnings on Thursday. In the Nifty50 pack, Asian Paints and Hindustan Unilever will declare results. Others include Can Fin Homes, AU Small Finance Bank, Havells, Hindus Zinc, PVR, Polycab and others. One can expect stock specific action in these stocks.

4) Stocks in News: Vedanta’s board has approved acquisition of Meenakshi Energy while Kotak Mahindra Bank’s board will meet on 21 January to consider raising of funds.

5) Stocks in Ban: Securities in Ban for trade on 19 January, 2023 are Delta Corp, GNFC, L&T Finance Holdings, Mannapuram.

6) FII / DII Action: Foreign institutional investors sold Indian equities worth Rs 319 crore while domestic institutional investors were net buyers at Rs 1,225 crore.

7) Bulk Deals: Two and half dozen companies witnessed bulk deal action today. Some of the companies which saw bulk deal transactions include Sula Vineyards, Atul Auto, Kshitij Polyline, Hindustan Constructions, Rama Steel and others.

8) Anil Singhvi Strategy on Nifty, Bank Nifty: Considering a two-day rally, Nifty50 will find support at 18,000-18,050 while resistance is seen at 18,200-18,275. Buying opportunities will open at levels around 18,300. As for Bank Nifty, support is seen at 42,075-42,200 while resistance at 42,625-42,725.

#BazaarAajAurKal में देखिए आज के शेयर बाजार का लेखा-जोखा और कल के बाजार का अनुमान @AnchorDeepak_ | @AnilSinghvi_ https://t.co/1YAeKmp1cK

— Zee Business (@ZeeBusiness) January 18, 2023

9) Commodity Markets: MCX February Gold futures were trading at Rs 5,6369 per 10 gram around this time, up by Rs 17 or 0.03 per cent from the Tuesday closing price. March Silver futures were trading at Rs 69,210, up by Rs 24 or 0.03 per cent. While Dollar Index is hovering around 101 and has fallen from its peak of 115 against a basket of six major currencies, its movement will impact movement in commodities.

Source: NSE

10) Crude Oil: Global oil benchmark Brent crude futures rose 1.38 per cent to USD 87.11 per barrel.

Expert Take:

“The benchmark indices continued positive momentum second day in a row, the nifty ends 112 points higher while the Sensex was up by 390 points. Among Sectors, Metal index bounce back sharply, rallied over 1.75 percent whereas despite strong momentum profit booking continued in PSU Bank index," Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.

"Technically, market continued positive momentum and after a long time  the index succeeds to close above 20 day SMA (Simple Moving Average) which is broadly positive. However, 18250/61300 could act as profit booking zone for the trend following traders. we are of the view that, as long as the index is trading above 18050/60700 or 20 day SMA.  The texture of the chart suggest  positive sentiment is likely to continue in the near future. Above 18050/60700 , the index  could move up to 18250/61300 further upside may also continue which could lift the market till 18300/61500 or 50 day SMA. ON the flip side, below 18050/60700 uptrends would be vulnerable,” Chauhan said.

(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.)