Mazagon Dock Shipbuilders and ThyssenKrupp invited for Rs 70,000 cr submarine deal negotiations – Daily Market Update 24th Jan 2025

Nifty Overview & Outlook

The Indian benchmark index, Nifty, saw a second consecutive day of positive movement following a sharp decline on January 21. Nifty opened on a positive note, driven by a strong close in US markets after Donald Trump announced a $100 billion investment in AI initiatives. Additionally, Asian markets started off strong after the Chinese government pledged support for the markets. Nifty remained relatively steady after a surge in the first half amid lack of triggers in the latter half of the session. Nifty ended with a marginal gain of 0.2% while Nifty Bank underperformed, registering a 0.3% loss. The IT index, boosted by Trump’s announcement, helped prevent the benchmark index from falling further.

In the broader market, both the Midcap and Smallcap indices significantly outperformed the Nifty, rising by 1.6% and 1.2%, respectively. On the sector front, the Nifty IT index led with a 1.8% gain, while the Nifty Private Banking index saw the largest decline, dropping 0.4%. The market breadth was notably positive, with 330 advances and 165 declines on the NSE 500.

From a technical perspective, the broader outlook suggests continued consolidation at lower levels. Nifty is currently supported by a downward-sloping trendline near the 23000 mark. However, fresh buying may only be seen if the index breaks above the 23350-23390 range. We hold the next resistance at 23500. On the downside, the we maintain our support in the 23000-22980 range for now.

Derivatives Overview & Outlook

Yesterday, Banknifty and Finnifty futures added around 2% of open interest each as short buildup whereas short covering was seen in Midcapnifty futures with decrease in open interest by 3.3%.

All F&O sectors, barring Banking, settled on a positive note. Amongst them, Cement, Pharma, Power and Technology stocks witnessed maximum addition of long positions while Capital Goods, Chemical and Textile stocks were up on short covering.

On option front, Nifty will start the last weekly contract of January series with a maximum position at 24000 CE while the maximum put position is at 22000 PE followed by 23000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 5463 Cr in the cash segment, bought index futures worth Rs 718 Cr also bought stocks futures worth Rs 2122 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3713 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23320-23400; Supports 23100-22980

Banknifty – Resistances 49100-49400; Supports 48500-48200

Finnifty – Resistances 22850- 23000; Supports 22600-22500

F&O Security in Ban Today: ABFRL, BANDHANBNK, CANFINHOME, DIXON, INDIAMART,  LTF, MGL, PNB & MANAPPURAM.

Important Results Today : AUBANK, BANKINDIA,DLF, GRANULES, HINDPETRO, INDIGO, JSWSTEEL, LAURUSLABS, SHRIRAMFIN, TORNTPHARM.

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