Stock Markets on Tuesday, 24 January: 10 triggers that could impact movement in Sensex, Nifty

Stock Markets on Tuesday, 24 January: Indian stock markets will resume trading on Tuesday amid a host of local and global triggers. Zee Business lists 10 triggers that could impact movement when they reopen tomorrow.   

On Monday, domestic equity markets ended on a positive note to end a two-day losing streak. Frontline indices S&P BSE Sensex ended at 60,941.67, up by 319 points or 0.53 per cent while the broader market NSE Nifty50 advanced by 90.90 points or 0.50 per cent at 18,118.55. The banking gauge Nifty Bank settled at 42,821.25, up by 314.45 or 0.74 per cent.   

In the 50-stock Nifty50, 32 advanced while 18 declined. The top gainers were Sun Pharmaceuticals, Hindustan Unilever, Eicher Motors, UPL and Tech Mahindra while top losers were Ultratech Cement Company, Grasim Industries, NTPC, Tata Steel and JSW Steel.

10 triggers that may impact movement tomorrow:

1) US Markets: Frontline indices were trading in green on Monday around the time of filing of the story. Dow 30 was trading at 33,575.50, up by 200.01 points or 0.60 per cent while S&P 500 advanced by 34.22 points or 0.86 per cent at 4,006.83. Nasdaq Compposite was trading at 11,296.50, higher by 156.08 poinst or 1.40 per cent.

 Source: Comex

Dow futures were trading at 33,444.50, up 69 points or 0.21 per cent around this time.

Meanwhile SGX Nifty, an early indicator of movement in Nifty was trading at 18,154, up 7.5 points or 0.04 per cent. When markets resume trading tomorrow, they will likely be taking cues from global markets. Today’s closing of the US markets and Tuesday movement in SGX Nifty and Dow Futures will remain key triggers for equity markets.

2) Rupee Vs Dollar: Rupee fell 21 paise to close as 81.38 (provisional) against the US dollar on Monday amid rise in crude prices, PTI reported. At the interbank foreign exchange market, the rupee opened stronger at 80.92 to a dollar against the previous close of 81.17. The local unit moved in a range of 81.47 to 80.93 during the day. However, the declines were capped as domestic equity markets traded positive and relative weakness in the Dollar Index. On Friday, the rupee had appreciated by 19 paise to close at 81.17 against the US dollar. The US dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.35 per cent to 101.66 amid concerns over US economic growth.

European Central Bank (ECB) President will speak today, Anil Kumar Bhansali, Head of Treasury at Finrex  Treasury Advisors said adding that the range for tomorrow  is 81.00 to 81.70. “With dollar index still on the lower end, we can expect some sell off on USD-Rupee unless RBI has other idea,” he added.

3) Q3FY22 Results: Expect stock specific action in companies that declared their quarterly earnings on Monday. Among them were, Axis Bank, IDBI Bank, Canara Bank, Triveni Turbine and many others.

Many companies will announce their December quarter results on Tuesday. In the Nifty50 pack, Maruti Suzuki will announce its results. Others in the fray are Colgate Palmolive, HDFC AMC, PNB Housing, Pidilite Industries, PNB Housing, SBI Card, Supreme Industries, Tata Coffee, TVS Motor Company, UCO Bank and several others.

Read More: Q3 Results 2023: Poonawalla Fincorp, HFCL, Karur Vysya Bank others declare December quarter results - HIGHLIGHTS

4) Stocks in NEWS: GAIL Board will meet on 30 January to consider Q3 results; Maruti Suzuki to recall over 11,000 Grand Vitara vehicles manufactured between 8 August and 15 November 2022; Dilip Buildcom gets order worth Rs 19.47 billion after company emerges L1 bidder in a Madhya Pradesh Jal Nigam Maryadit tender.

5) FII / DII Action: Foreign institutional investors were net sellers today and sold equities worth Rs 219.87 crore while domestic institutional investors were net buyers at Rs 434.96 crore.  

6) Stocks in Ban: Securities in ban for trade on 24 January, 2023 are Delta Corp, L&T Finance Holdings and PVR.

7) Bulk Deals: Nearly one and half dozen companies witnessed bulk deal action on Monday. Some of the stocks that reported bulk deal transactions include Bright Solar, Chembond Chemicals, Hariom Pipe, Nureca, Kohinoor Foods and others. Investors must watch out for these stocks.

8) Anil Singhvi Strategy on Nifty and Bank Nifty: Managing Editor Anil Singhvi said that Nifty50 has support at 18,000-18,025 while resistance is seen at 18,175-18,250. As for Bank Nifty, support is seen at 42,500-42,700 while resistance is seen at 43,150-43,250.

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9) Commodity Markets: MCX February Gold futures were trading at Rs 56,538 per 10 gram, down by Rs 120 or 0.21 per cent while March Silver futures were trading at Rs 66,940 per kg, down by Rs 1,607 or 2.34 per cent. February crude oil futures were trading at Rs 6,686 per bbl, up by 66 or 1 per cent.

Source: MCX    

10) Experts View

"Markets maintained the upward momentum through the trading session on positive cues from Asian and European indices. IT stocks emerged as the star performers after getting hammered in recent sessions on worries global IT spending may moderate this year due to likely slowdown in key economies. If the optimism continues, we may see some pre-budget rally in the truncated week. On the technical front, despite the strong momentum it has failed to clear 18180/61200 resistance mark. Currently, the index is trading above 20 day SMA and also holding higher bottom formation on intraday  charts which is largely positive. For the traders now, 18000/60500 would be the trend decider level above which, the index could move up to 18200-18250/61200-61500. On the flip side, below 18000/60500 selling pressure is likely to increase. Below the same, the index could slip till 17950-17900/60200-60000" -- Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd. 

"The Nifty traded in a range bound manner today though the the overall structure shows that the index is preparing to start the next leg on the upside. On the daily chart, it has started forming higher top higher bottom & once the swing high of 18184 is crossed then one can initiate a fresh long position. The daily upper Bollinger Band is set for an expansion, which will create room for the price action on the higher side. In the short term, the Nifty is expected to surpass the key hurdle zone of 18260-18300 & head towards 18500. On the other hand, the level of 18000 will provide cushion on the downside." -- Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said.

"The Broader index started the first day of the week with bullish enthusiasm and traded near 18,100 levels throughout the day. The triangle pattern breakout on 120 mins chart has most likely completed its retest near 18,000 levels and a structure seems positive to make a new swing high in the coming trading sessions. NIFTY on the daily chart is trading inline near the upper band of the Triangle pattern and prices have shown optimism to sustain above its 9 & 21 EMA. Strong support is around 18,000 levels and while these supports are held, we can expect prices to edge higher towards 18,200 levels. A daily close above 18,200 levels will help the index move further towards 18,350 levels." -- Rohan Patil, Technical Analyst, SAMCO Securities.

 (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.)