Traders Guide: 10 things to know before market opens on Monday, January 30 – stocks in news, Q3 results and more

Traders Guide, NSE Nifty50, BSE Sensex: The Indian markets on Friday finally ended a month-long consolidation phase with a breakdown and lost over 1.5 per cent. BSE companies lost 11 lakh crore in market capitalization in the last two trading sessions.

Participants were in a cautious mood from the beginning and a sharp sell-off in the banking, IT and energy majors further soured the sentiment as the day progressed.

Consequently, Nifty slipped below the major support zone of long-term moving average i.e. 200 EMA at 17550 intraday and finally settled at 17,604.35 levels. The broader indices too witnessed a severe fall and shed in the range of 1-1.5 per cent.

Here is a list of things to watch out for on 30 January 2022

What Should Investors Do On Monday?

The carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries.

We are now eyeing the 17,250-17,400 zone as the next support while any rebound toward the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend.

-Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Technical Outlook

Technically, Nifty has broken down its one-month range of 18200–17800, which is not a good sign; however, 17425 is an immediate support while the 200-DMA of 17300 is a critical support that bulls will try to protect. On the upside, 18000 will act as a critical barrier, and 18200 is a major hurdle.

Nifty Bank has fallen below its 100-DMA decisively, but 40,000 is an immediate psychological support level, while the rising 200-DMA around 39,000 will be the next critical support level. On the upside, the 41500–41725 area will be a critical resistance zone, while 42750 is the next hurdle.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Also Read: Market Next Week: Union Budget, US Fed policy decision, Q3 earnings, Jan auto sales among other top cues for Street

Key support & resistance levels for Nifty50:

The Nifty50 closed 1.6 per cent lower at 17,604.35. Key Pivot points (Fibonacci) support for the index is placed at 17511.46, 17419.14, and 17269.7, while resistance is placed at 17810.34, 17902.66, and 18052.1.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 3.1 per cent lower at 40,345.30. Key Pivot points (Fibonacci) support for the index is placed at 40152.54, 39853.03, and 39368.23, while resistance is placed at 41122.13, 41421.63, and 41906.43.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Image Source - Stockedge

Q3 Earnings

Bajaj Finance on Friday booked the highest-ever quarterly consolidated net profit of Rs 2,973 crore for the December quarter, logging in an on-year 40 per cent growth.

Vedanta reported a 40.8 per cent drop in consolidated net profit at Rs 2,464 crore in the quarter ended December 31, 2022 on the back of higher input cost and windfall tax.

Patanjali Foods posted a 15 per cent YoY growth in its net profit to Rs 269.18 crore for the December quarter on better sales.

Aditya Birla Sun Life AMC on Friday reported an 11 per cent YoY decline in profit after tax (PAT) to Rs 166.3 crore for three months ended December 2022.

Anupam Rasayan India posted a 43.61 per cent YoY jump in its consolidated net profit to Rs 54.43 crore in the third quarter of the current fiscal.

DCB Bank reported a 52 per cent YoY jump in its profit to Rs 114 crore for the December 2022 quarter, mainly due to a decline in bad loans.

NTPC reported a nearly 5 per cent YoY rise in its consolidated net profit to Rs 4,854.36 crore for the December quarter, mainly due to higher revenue.

Stocks in News

NMDC: The government has received multiple preliminary bids for the privatisation of NMDC Steel Ltd (NSL), DIPAM Secretary Tuhin Kanta Pandey said on Friday.

Dr Reddy's Laboratories launched Difluprednate Ophthalmic Emulsion, used in the treatment of pain and swelling in the eyes caused by infection or allergy after eye surgery, in the American market.

Tata Motors will increase prices of its internal combustion engine-powered passenger vehicle range by 1.2 per cent on a weighted average basis from February 1.

Glenmark Pharma: US health regulator has provided an exception, enabling it to supply Atovaquone oral suspension to the US market from its Baddi facility, which has been under an import alert.

Adani Group ruled out any changes in price or the dates of the Rs 20,000 crore follow-on share sale at the conglomerate's flagship firm.

MSCI seeks feedback on Adani Group and associated securities & is aware of the reports recently published regarding the group

Hinduja Global Solutions board approves share buyback worth upto Rs 1,020 cr, fixes buyback price at Rs 1,700/share

Vodafone Idea board to consider Preferential Issue of OCDs to tower company, ATC.

Vedanta board approves plans to source 91 MW hybrid renewable power & 600 MW solar power.

FII Activity on Friday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 5977.86 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 4252.33 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Tapi Fruit Processing Ltd: Lakhani Jignesh Jasmatbhai (HUF) sold 48,000 equity shares in the company at the weighted average price Rs 99.6 per share on the NSE, the bulk deals data showed.

Abans Holdings Limited: Vishal Rajnikant Bhansali (HUF) sold 2,89,059 equity shares in the company at the weighted average price Rs 270.6 per share on the NSE, the bulk deals data showed.

Accuracy Shipping Limited: Pluris Fund Limited bought 2,00,000 equity shares in the company at the weighted average price Rs 186 per share on the NSE, the bulk deals data showed.

Sah Polymers Limited: Mahalaxmi Brokrage India Private Limited bought 1,50,000 equity shares in the company at the weighted average price Rs 88 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Ambuja Cement is placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs