India’s GDP is estimated to grow 6.4% in the fiscal 2024-25 – Daily Market Update 8th Jan 2025

Nifty Overview & Outlook

On Tuesday, the Indian benchmark index, Nifty, saw short covering after two consecutive declines. With no significant worries about HMPV and positive global cues, Indian markets opened on a positive note. Stocks that had sharply fallen in the previous session began with gains but lost momentum later in the day due to profit booking, probably ahead of the release of FY2025 GDP numbers. Ultimately, Nifty closed slightly higher with a 0.4% gain, while Bank Nifty outperformed with a 0.6% rise.

In the broader market, the Midcap index marginally outperformed the benchmark, closing 0.6% higher. Meanwhile, the Smallcap index significantly outperformed, surging 1.3%. Sector-wise, Nifty Media emerged as the top gainer, up 1.4%, followed by Nifty Energy and Nifty Metal, each closing more than 1.2% higher. Conversely, Nifty IT was the only sector to close in the red, down by 0.7%. The market breadth was strongly positive, with 380 advances and 118 declines on the NSE 500.

From a technical perspective, we had identified 23560-23460 as the support zone, and Nifty saw a slight bounce on Tuesday. However, it gave up early gains as it approached the 38.2% retracement level of the previous two days’ downward movement. Therefore, it needs to be made sure whether the bounce will continue or if it was merely a breather before further downside. For now, above 23710, our resistance levels are 23810 and 23890. On the downside, the support is maintained at 23550, followed by 23460.

Derivatives Overview & Outlook

Yesterday, Nifty and Midcpnifty futures added around 2% & 3% of open interest respectively as long positions, on the other hand, Banknifty and Finnifty futures rose as open interest shed by 3.8% & 1.6% respectively.

Majority of F&O sectors settled higher. Amongst them, Power, Oil & Gas, Cement and Realty stocks witnessed maximum addition of long positions, whereas some short buildup was seen among Media stocks.

On options front, call writing along with some put writing was seen at multiple strikes and maximum positions are at 24500 CE closely followed by 24000 CE and 23000 PE followed by 23200 PE. The quantum of call positions are significantly higher than that of put positions which is a negative sign and might attract seller at higher levels.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1491 Cr in the cash segment, bought stocks futures worth Rs 2403 Cr and sold index futures worth Rs 35 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1615 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23900-23965; Supports 23690-23580

Banknifty – Resistances 50800-51150; Supports 50150-49900

Finnifty – Resistances 23600- 23720; Supports 23450-23380

F&O Security in Ban Today: BANDHANBNK, HINDCOPPER, MANAPPURAM,  RBLBANK.

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