Reliance Industries Q3 PAT rises 7% YoY to Rs 18,540 crore, revenue up 7% – beats streets estimates- Daily Market Update 17th Jan 2025

Nifty Overview & Outlook

The Indian benchmark index, Nifty, started Thursday’s session with a gap-up, buoyed by strong gains in US major indices. The US markets ended on a positive note on Wednesday, supported by lower-than-expected core inflation data, which raised expectations of potential monetary easing by the Federal Reserve. Additionally, the shutdown of Hindenburg, a short-seller of the Adani Group, lifted market sentiment, particularly benefiting related stocks. However, cautiousness ahead of the upcoming Q3 earnings reports from key companies like RIL, INFY, and Axis Bank kept the investors on edge. As a result, Nifty gradually reversed after its gap-up opening, eventually filling the gap. It closed the session marginally higher by 0.4%, while Nifty Bank significantly outperformed, closing 1.1% higher, largely driven by gains in PSU Banks.

In the broader market, both the Midcap and Smallcap indices outperformed Nifty, gaining 0.62% and 1.67%, respectively. Sector-wise, the Nifty PSU Banking index was the top performer, rising by 2.55%, followed by Nifty Metal with a 1.7% gain. On the downside, Nifty FMCG was the biggest loser, falling 0.6%, with Nifty IT not far behind, declining 0.5%. The market breadth was significantly positive, with 373 advances and 126 declines on the NSE 500.

From a technical standpoint, we had previously identified 23325 as resistance, which corresponds to the 23.6% retracement of the prior downward rally from 24226 to 23047. Nifty opened with a gap-up but reversed course, filling the gap and closing below the resistance level. This suggests that Nifty has consolidated for the third consecutive session after reaching its low of 23047. Therefore, we maintain our view that 23500 will be the key resistance once Nifty surpasses 23325. On the downside, after a slight rise on Thursday, we revise our support levels to 23220, followed by 23040.

Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Midcap Nifty futures added 1 to 2% of open interest each as long buildup whereas Finnifty futures shed 4.5% of open interest as short covering

All the sectoral indices, barring FMCG and Media, settled on a positive note. Amongst them, Cement, Oil & Gas, Power and Telecom stocks witnessed maximum addition of long positions along with some short covering was seen among Banking and Capital Good stocks.

On option front, Nifty will start the new weekly contract of January series with maximum position at 24500 CE while the maximum put position is at 22000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4342 Cr in the cash segment, sold index futures worth Rs 881 Cr also sold stocks worth Rs 4632 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2929 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23450-23520; Supports 23350-23280

Banknifty – Resistances 49700-50000; Supports 49300-49000

Finnifty – Resistances 23120- 23200; Supports 22970-22900

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

Important Results Today : ICICIGI,  INDHOTEL, JIOFIN, RALLIS, SBILIFE, WIPRO.

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