POST-MARKET SUMMARY 16 January 2024

On January 16, the Indian equity markets ended on a negative note, breaking a five-day winning streak, with the Nifty closing below 22,050 due to profit booking in IT, pharma, realty, and power stocks. Amid weak Asian markets, the Indian indices opened negatively and oscillated between gains and losses in the first half. However, extended selling in the second half pushed the Nifty below 22,000. Nevertheless, it managed to close above 22,000, supported by gains in metal and oil & gas stocks. In terms of sectors, metal and oil & gas indices saw gains of nearly 1%, while power, realty, healthcare, and IT experienced declines of 0.5-1.5% each.

NIFTY:  The index opened 17 points lower at 22,080 and made a high of 22,124 before closing at 22,032. Nifty has formed a bearish candlestick with minor upper and lower shadows on the daily chart. Its immediate resistance level is now placed at 22,080 while immediate support is at 21,960. 

BANK NIFTY: The index opened 49 points lower at 48,109 and closed at 48,125. Bank Nifty has formed a Doji candlestick, as the closing was near opening levels, indicating a tug-of-war between bulls and bears. Its immediate resistance level is now placed at 48,300 while support is at 48,000.

Stocks in Spotlight

▪  Capri Global:  Stock jumped 17.8% after the company announced that it received the licence to distribute life, general, and health insurance products.

▪  Usha Martin: Stock gained 2.7% after the company announced that its Thailand-based subsidiary, Usha Siam Steel Industries Public Company Ltd (USSIPCL), has inked an agreement to acquire a 50% stake in Tesac Usha Wire rope Company Ltd.

▪  Angel One: Stock fell 13.6% after the company’s margin slumped to 37.6% in the third quarter, down from 43.3% in the year ago period.

Global News 

▪  The dollar rallied on Tuesday as investors tempered their expectations for a March rate cut from the Federal Reserve, while the pound and yen dropped as inflationary pressures subsided.

▪  Gold prices declined, hurt by a strengthening dollar and Treasury yields, as markets wait to hear remarks from several Federal Reserve officials this week to further gauge the central bank’s monetary policy path.

▪  Oil prices climbed on Tuesday, as investors weighed the impact of tensions in the Middle East. An escalating conflict in the Middle East, and consequently increased volatility in oil futures, focused attention on Tuesday.

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