US core inflation rose less than expected in December- Daily Market Update 16th Jan 2025

Nifty Overview & Outlook

Indecision continued for the second consecutive day in the Indian benchmark index, Nifty, due to the absence of both domestic and global economic triggers. Following the release of weaker-than-expected PPI growth data in the US, investors were hopeful of lower inflation, which could signal a more accommodative stance from the Federal Reserve. Asian markets followed and traded with marginal gains in the morning trade. Consequently, the Indian benchmark index, Nifty, began Wednesday’s session on a positive note. However, the lack of domestic triggers resulted in a sluggish market day. As a result, Nifty closed with a marginal gain of 0.1%, while Bank Nifty ended flat to positive.

In the broader market, the Midcap index outperformed the benchmark, rising by 0.5%, while the Smallcap index showed strength with a 0.9% gain. Sector-wise, Nifty Realty was the top performer, gaining 1.4%, followed by Nifty Infra with a 1% increase. On the downside, Nifty Media was the biggest loser, falling 1.4%, and Nifty Pharma followed with a 1% decline. The market breadth was slightly positive, with 261 advances and 236 declines on the NSE 500.

From a technical perspective, the Nifty’s daily chart shows consolidation at lower levels, indicating a lack of buying or selling interest among investors. Therefore, we maintain our resistance levels at 23325 and 23500, while the support zone is seen between 23040 and 23000.

Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty and Banknifty futures on price as well as on open interest front. Midcapnifty futures added 5.9% of open interest as long buildup whereas short buildup was seen in Finnifty futures with increase in open interest by 6.9%.

Majority of sectoral indices ended on a positive note. Amongst them, Cement, Finance, Realty and Technology stocks witnessed maximum addition of long positions whereas some short buildup was observed among FMCG, Media and Pharma stocks.

On options front, put writing was seen at multiple strikes along with call writing at multiple strikes. Maximum put positions are at 23200 PE and maximum call positions are at 23300 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4533 Cr in the cash segment, bought stocks futures worth Rs 1664 Cr also bought index futures worth Rs 187 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3683 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23350-23420; Supports 23200-23120

Banknifty – Resistances 49400-49800; Supports 48600-48200

Finnifty – Resistances 23000- 23200; Supports 22800-22720

F&O Security in Ban Today: AARTIIND, ABFRL, ANGELONE, BANDHANBNK, HINDCOPPER, LTF, KALYANKJIL, MANAPPURAM & RBLBANK.

Important Results Today : AXISBANK,  BEPL, HAVELLS, INFY, LTIM, MASTEK, RELIANCE.

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