Dear Trader –
From the day’s high,
the Nifty plunged more than 223 points and slipped below 21,562 points. Weak
trends in global markets and caution ahead of the quarterly earnings prompted
investors to book profits.Precisely, the Sensex and Nifty 50 dropped nearly 1%
each and ended at 71355.22 and 21,569, respectively.
Here are some of the
major factors that weighed on sentiment and saw the bears taking over bulls on
Dalal Street : –
Global Markets – The overall sentiment was
hit globally after data in the US showed that non-farm payrolls increased
higher than expected by 216,000 in December.While the US Fed has guided for
three rate cuts in 2024, the strong jobs report diminished prospects of early
cut in interest rates by the US Fed.
Most equities in Asia
finished lower on Monday as investors were cautious ahead of key economic data
points this week, which included inflation and trade data in China.Major equity
indices in China and Hong ended with more than 1% cuts.European markets, too,
started on a weak note, and US index futures point to a negative start on Wall
Street.
Q3 Earnings Season – The December quarter
earnings announcements will kickstart this week with the top 4 Indian IT
companies. Infoys and Tata Consultancy Services will announce their earnings on
Thursday, while HCLTech and Wipro will release their numbers on Friday.
Continued slowdown in
IT spending, extended furloughs, and cost pressures are likely to weigh on the
performance of the companies at large in the December quarter, according to
analysts.
The Street will
eagerly await management commentary on the outlook for tech spending in 2024 and
subsequently earnings view.
Sectoral Performance – A majority of the sectoral
indices were in the red, with public sector stocks, banks, metals, and
fast-moving consumer goods shedding the most. The S&P BSE PSU, Healthcare,
Metal, Bankex, and FMCG indices lost 1-1.6%.
Of the 30 Sensex
stocks, 24 were in the red, and this includes heavyweights Infosys, Reliance
Industries, HDFC Bank, ICICI Bank, TCS, Hindustan Unilever, ITC, and SBI. These
stocks lost 1-2%.
Nifty futures opened at 21789.50 points against the previous close
of 21793.85 and opened at a low of 21562.75 points. Nifty Future closed with an
average movement of 248.15 points and decline of around 01.03 and 21569.95 points…!!
At the start of intra-day trading January gold opened at Rs.62511 fell
from a high of Rs.62511 points to a low of Rs.62110 with a decline of 423 points,a
trend of around Rs.62134 and January Silver opened at Rs.72457, fell from a
high of Rs.72473 points to a low of Rs.72011 with a decline of 522 points, a
trend of around Rs.72065.
Meanwhile, in the near term, investors trade positions will
be more inclined towards the upcoming result season.
Technically,
the important key resistances are placed in October Nifty future are at 21569 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up
move with immediate resistances seen at 21606 – 21707 levels. Immediate support
is placed at 21474 – 21404 levels.
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