Stock Markets on Wednesday, 25 January 2023: 10 triggers that could impact Sensex, Nifty on monthly expiry day

Stock Markets on Wednesday, 25 January 2023: Indian frontline indices will resume trading on Wednesday amid a host of local and global triggers. Zee Business has collated a list of 10 factors that are likely to impact movement when domestic equity markets reopen tomorrow. Take a look!

Tuesday Recap: On Tuesday, Indian markets ended flat on what was an uneventful Tuesday. Frontline Indices S&P BSE Sensex closed at 60,978.75, up by 37.08 points or 0.06 per cent while the broader market NSE Nifty50 retreated by nearly 14 points or 0.08 per cent from the Monday closing at 18,104.80. Banking gauge Nifty Bank settled at 42,720.70, down by 100.55 points or 0.23 per cent.

In the 50-stock Nifty50, 21 advanced against 29 declines. The top gainers were Tata Motors, Maruti Suzuki, Bajaj Auto, Britannia Industries and HCL Technologies while the top losers were Axis Bank, Hindalco Industries, Dr Reddy' Laboratories, Power Grid and SBI Life.

10 Triggers:

US Markets: Wall Street was mired by selling pressure as benchmark indices retreated in early trade. Dow 30 was trading at 33,539.50, down by 90.03 points or 0.27 per cent while S&P 500 fell 16 points or 0.41 per cent at 4,003.45. Nasdaq Composite  was trading at 11,326.20, down 38.22 points or 0.34 per cent. When Indian markets open tomorrow, they are expected to take cues from their US peers. Meanwhile Dow futures were trading at 33,539, down by 90.40 points or 0.27 per cent around this time. Singapore-listed SGX Nifty futures, an early indicator of movement in Nifty50 were trading at 18,122, lower by 12.5 points or 0.07 per cent.

 Source: Comex

2) Rupee Vs Dollar: The rupee fell 28 paise to close at 81.70 against the US dollar on Tuesday amid stronger American currency and unabated foreign fund outflow. However, lower crude prices capped the losses in the local unit, forex traders said. At the interbank foreign exchange market, the rupee opened lower at 81.61 to a dollar against the previous close of 81.42. The domestic currency lost ground during the day and hit a low of 81.76 a dollar but moved up to the level of 81.43 before closing at 81.70 a dollar. On Monday, the rupee had declined by 25 paise to close at 81.42 against the US dollar.

Oil companies seem to have again started buying dollars and keeping it well bid as also dollar index which has crossed 102 levels getting supported at 101.50. Brent oil was also below USD 88 to a barrel while Asian currencies  weakened a bit, Anil Kumar Bhansali, Head of Treasury at Finrex  Treasury Advisors LLP said. Rupee looks to trade in a range of 81.40 to 82.10 tomorrow as USD bounces back, Bhansali opines.

3) Q3 Results 2023: In the Nifty50 pack, Maruti Suzuki reported two-fold jump in net profit to Rs 2,351.3 crore for the quarter ended December 2022. Several listed companies declared their quarterly earnings today. Among them were Sona BLW, Gateway Distriparks, PNB Housing, Tata Coffee, Uco Bank, Macrotech Developers and Strides Pharma.

Over 5 dozen companies will announce their October-December quarter results on 25 January. Cipla, Bajaj Auto and Tata Motors are among the Nifty50 companies. Among others, Amara Raja Batteries, Arvind, Bikaji Foods, Blue Dart, Dixon, DLF, Ceat and 20Microns will declare their earnings.

4) Stocks in News: United Spirits company board approves sale of all its equity shares in Sovereign Distilleries; Bharti Aitel announced the launch of its 5G services in Coimbatore, Madurai, Hosur, Trichy. Airtel’s 5G services are already live in Chennai; Zomato 10 minute delivery not shutting down, clarifies company.

5) FII / DII Action: Foreign institutional investors were net sellers of Indian equities at Rs 760 crore while domestic institutional investors were net buyers at Rs 1,144.75 crore.

6) Stocks in Ban: No stocks are in ban for trading on Wednesday.

7) Bulk Deals: Over two dozen companies witnessed bulk deal transaction today. Among them were Kohinoor Foods, Banaras Beeds, Kamdhenu Ispat, Nureca and Orient Press. Investors must keep an eye in this stocks based on the developments.

8) Anil Singhvi Strategy on Nifty, Bank Nifty: Zee Business Managing Editor said that Nifty50 will find support at 18,000-18,025 while resistance at 18,150-18,200. As for Bank Nifty, support is seen at 42,300-42,500 while resistance is seen at 43,000-43,200.

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9) Tomorrow is also a day of monthly expiry as domestic markets will remain closed on Thursday on account of Republic Day.

10) Commodities Markets: MCX February Gold futures were trading at Rs 56,950 per 10 gram, up by Rs 135 or 0.24 per cent while March Silver futures were trading at Rs 68,620 per kg, up by Rs 656 or 0.97 per cent. February Crude Oil futures were trading at Rs 6,561 per bbl, down by Rs 144 or 2.15 per cent.

Source: MCX

Expert's Take: 

"The Nifty had a gap up opening on January 24 & crossed the swing high of 18184 however couldn’t sustain in the higher territory. The hourly upper Bollinger Band has become flat & is keeping pressure on the higher side. As a result, the Nifty stayed back into the brief consolidation mode. It is forming a base near the key hourly & the daily moving averages. On the daily chart, the index is forming higher top higher bottom & is expected to see upward trajectory. 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

(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.)