Tata Consultancy Services Ltd, Tata Elxsi Ltd, and Indian Renewable Energy Development Agency Ltd are among the top names that will kick-start the earnings season for the third quarter on Jan 9, 2024.
TCS is expected to see improvement in its margins due to the absence of a wage hike. While profit is expected to rise sequentially, revenue may remain flattish, with furloughs weighing in and contribution from the BSNL deal reducing.
IT giant TCS to announce its quarterly numbers today- Daily Market Update 9th Jan 2025
Overview and Outlook
Global Stock Market Today
- US equity markets settled on a flat note.
- European equity markets settled on a flat to negative note.
- Majority of Asian equity markets are trading with negative bias.
- GIFT Nifty is down by 70 points, Nifty futures likely to open around 23700 levels.
Nifty Overview & Outlook
The Indian benchmark Nifty started off Wednesday’s session on a flat to positive note, followed by a sharp decline and an equally sharp recovery, indicating indecision at the lower levels. This could suggest either bottom fishing and the start of accumulation or a cautious wait-and-watch approach ahead of Q3 corporate results and the Union Budget. The Nifty index faced selling pressure due to weakness in major US indices and a weak start for other Asian markets. However, a recovery in Reliance Industries, boosted by bullish recommendations from Jefferies and Bernstein, and a bounce in TCS ahead of its Q3 results, helped cushion the Nifty. Ultimately, the Nifty closed flat to negative, while the Bank Nifty underperformed with a 0.7% loss amid a weak rupee.
In the broader market, the Midcap index saw a significant drop of 1%, and the Smallcap index fell 1.2%, both underperforming the benchmark index. Sector-wise, the Nifty IT and Nifty FMCG indices were the top gainers, up 0.6% and 0.4%, respectively, driven by a stronger dollar. On the other hand, Nifty Pharma saw the steepest decline, shedding 0.9%. The market breadth was strongly negative, with 127 advances and 372 declines on the NSE 500, with only a few heavyweight stocks preventing a more significant drop.
From a technical standpoint, the Nifty is facing challenges at multiple support levels, but the formation of long lower shadows suggests potential for a rebound in the coming sessions. However, overall movements remain indecisive and range-bound. The Nifty has formed a Bullish Hammer on the daily charts, indicating the possibility of a bounce-back in the next session on confirmation of a pattern. Immediate resistance levels are seen at 23775, followed by 23860 and 23950. In case of a correction, we maintain our view that 23550 and 23460 are crucial support levels.
Derivatives Overview & Outlook
Yesterday, short buildup was seen among all major index futures as Nifty, Banknifty, Finnifty and Midcapnifty futures added 3.1%, 4.7%, 4.5% and 3.9% of open interest respectively.
All F&O sectors, barring Oil & Gas and Telecom, ended on a negative note. Amongst them, FMCG, Media, Power, IT and Textile stocks witnessed maximum addition of short positions. Whereas some long unwinding was seen in Pharma and Realty stocks.
On options front, put writing along with call writing was seen at multiple strikes. Maximum put positions are at 23000 PE closely followed by 23500 PE and maximum call positions are at 24000 CE.
Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 3362 Cr in the cash segment, sold stocks futures worth Rs 2419 and sold index future worth Rs 1366 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2716 Cr.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 23900-23965; Supports 23690-23580
Banknifty – Resistances 50600-51000; Supports 49800-49500
Finnifty – Resistances 23500- 23600; Supports 23280-23200
F&O Security in Ban Today: BANDHANBNK, HINDCOPPER, LTF, MANAPPURAM, RBLBANK.
Important Results Today : TCS, TATAELXSI, IREDA
Disclosure
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