FIRST TRADE Indices open tad higher, Sensex gains 68 points, Nifty tops 23,650 levels

Indian equities as indicated by the GIFT Nifty futures opened on a weak note on the first trading day of 2025.  At the open, Sensex traded with gains of 68 points or 0.09 per cent at 78,206.9, while the Nifty50 index was up 7.5 points or 0.03 per cent at 23,652.3. Th Bank Nifty, however, logged marginal cut of 0.06 per cent or 32 points.

Historically, January has proven to be tepid for Indian equities. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The New Year begins on a sombre note for the Indian equity market. The near-term trend appears weak with the macro construct dominated by weak GDP and earnings growth."

The headwinds from a strong dollar ( $ index is at 108.5%) and high U.S. bond yields will impact the market through more FII selling, at least in the early days of 2025, he added.

Sectorallly, IT and pharma indices traded with most gains, while the auto and metal shares were traded in the red.

Stocks in focus

ITC: ITC share will gain the spotlight after the company's Hotels business demerges into separate entity from today.

Auto stocks: Auto stocks will also be in focus as auto companies release their sales number for December today.

Technicals

Akshay Chinchalkar, Head of Research, Axis Securities said, "The Nifty's recovery yesterday traced a weak-form "piercing line" candle, with a long lower shadow. That means bulls are attempting to hold their heads above the water, but significant resistance lies in the 23774 - 23940 zone and the trend-decider 24150 level."

Support falls between 23440 and 23263, but one needs to remember that breadth - measured by the percentage of stocks in the nse200 above the main moving averages (50, 100 and 200) - hasn't dropped to levels where historically downside extremes have been achieved. That means the potential for more weakness exists, he added.

Asian markets

The key MSCI Asia Pacific ex Japan index traded mildly lower by 0.08 per cent at 568.96. Japan's market is shut for this week trading.