Stock Market on Wednesday, 18 January 2023: 10 triggers that could impact movement in Sensex, Nifty

Stock Market on Wednesday, 18 January 2023: Indian stock markets will resume trading on Wednesday amid a host of local and global factors. On Tuesday, frontline indices S&P BSE Sensex and Nifty50 ended in the green. While Sensex ended at 60,655.72, up 562.75 points or 0.94 per cent the broader market Nifty50 settled at 18,053.30, up 158.45 points or 0.89 per cent. Banking gauge Nifty Bank 42,235.05 finished at 67.50 points or 0.16 points.

We have collated 10 factors that are likely to impact movement tomorrow:

1) US Markets: Frontline indices on Wall Street opened mixed on Tuesday after a three-day gap. While Dow 30 retreated at the time of filing of the story and trading at 34,157.80, down 144.83points or 0.42 per cent, S&P 500, was up 13 points or 0.34 per cent at 4,012.57. Nasdaq Composite was trading at 11,133.60, up 54.46 points or 0.49 per cent around this time. Dow futures were trading at 34,148.50, lower by 154.10 points or 0.45 per cent. Investors must watch out for movement in SGX Nifty futures on Wednesday. The Singapore-listed index is an early indicator of movement in Nifty50.

 Source: Comex

2) Rupee Vs Dollar: The rupee settled 19 paise lower at 81.77 (provisional) against the US dollar on Tuesday, tracking a rebound in the greenback overseas and firm crude oil prices. Forex traders said sustained foreign fund outflows further weighed on investor sentiment. At the interbank foreign exchange market, the rupee opened at 81.79 against the greenback, then lost ground and fell to an intra-day low of 81.89. The domestic currency finally settled at 81.77, down 19 paise over its previous close. In the previous session on Monday, the rupee had settled at 81.58 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.19 per cent higher at 102.40. PTI

3) Q3 Results 2023: Many listed companies will be announcing their quarterly earnings on Wednesday. Among them will be mid-tier private lender IndusInd Bank, Rallis India, Persistent Systems, Central Bank of India and others. A few companies announced their earnings on Tuesday. Among them were Bank of India, Angel One, Tata Metaliks, Newgen Software and others. Expect stock specific action in these companies tomorrow.

4) Stocks in Ban: Securities in Ban for trade on 18 January, 2023 were Delta Corp, GNFC, Indiabulls Housing Finance, L&T Finance Holdings and Mannapuram.

5) FII / DII Action: Foreign institutional investors were net buyers of Indian equities worth Rs 211 crore while domestic institutional investors bought shares worth Rs 90 crore.

6) Anil Singhvi Strategy on Nifty, Bank Nifty: The Managing Editor said that FII action on Wednesday will be keenly watched as it will tell if today’s gains were because of buying from foreign investors or were on account of short covering. He said support in Nifty50 is at 17,775-17,850 while resistance is at 18,100-18,250. As for Bank Nifty, support is seen at 41,725-41,875 while resistance is seen at 42,500-42,700.

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7) Bulk Deals: Over two dozen companies witnessed bulk deal actions today. Among them were Sula Vineyards, Orient Press, Speciality Restaurants, Tracxn Technologies.

8) MCX February Gold futures were trading at Rs 56405 per 10 gram, down by Rs 77 or 0.14 per cent while March Silver futures were trading at Rs 69,278 per kg, down by Rs 508 or 0.73 per cent.

 Source: MCX

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10) Global oil benchmark Brent crude futures advanced 0.46 per cent to USD 84.85 per barrel.

Experts' Views:      

"The Nifty witnessed a late surge which helped it to close with gains of 158 points. More importantly it has managed to close above the 20 day moving average (18035) which is a sign of strength. The daily and hourly momentum indicator has a positive crossover which is a buy signal. Thus, all parameters are suggesting towards a sharp up move over the next few trading sessions. In terms of levels 17880 – 17850 shall act as a crucial support zone while 18280 – 18300 shall act as an immediate hurdle zone for the Nifty." -- Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

"Another volatile trading session ends on a positive note. There are some signs that bulls are getting a grip on the market. Nifty has been making higher highs and higher lows for the last four trading sessions, and today it managed to close above the 20-DMA. However, we need a follow through tomorrow, and if Nifty manages to trade above 18088, then we can expect a move towards the 18250–18300 zone. On the downside, 17950 will act as an immediate support level, while 17800 is a sacrosanct support level on a closing basis. 

Banknifty is also consolidating in a band of 42700-41700, and any decisive move from this band will dictate further direction. However, if it slips below the 41700 level, the 100-DMA of 41370 will be the immediate support level. If it crosses the 42700 level, then a short covering move towards 43400 is expected. 

Global cues are also muted for the last few days, but the FIIs' flow will be critical because they have been selling aggressively in the Indian market since the start of 2023. We can expect sector- and stock-specific moves amid the Q3 earnings season and pre budget expectations." -- Santosh Meena, Head of Research, Swastika Investmart Ltd.

(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.)