20th January 2025 Pre-Market Analysis

Introduction

This report provides an overview of the recent market performance, key economic indicators, and notable stocks in both bullish and bearish situations as of January 20th, 2025.

Key Points

1. Market News

• GIFT Nifty suggests a positive start; benchmark indices declined for the second consecutive week.
• U.S. stocks rallied on Friday amidst optimism over economic policies under the incoming U.S. administration.
• Gold prices dipped; oil prices rebounded due to supply concerns.
• The Indian Rupee weakened by six paise, closing at 86.61/USD.

2. Technical Analysis

• • Nifty-50:
    • Bearish candlestick; below key moving averages.
    • Key Support Levels: 23,272, 23,317, 23,390.
    • Key Resistance Levels: 23,125, 23,080, 23,007.
  • Nifty Bank:
    • Bullish candlestick; below 50-week EMA.
    • Key Support Levels: 48,914, 49,088, 49,370.
    • Key Resistance Levels: 48,351, 48,177, 47,895.

3. Key Stocks to Watch

Key Bullish Stocks

• Kotak Mahindra Bank, Dixon Technologies, GMR Airports, Hitachi Energy, Zydus Lifesciences, etc.

Key Bearish Stocks

• SRF, Spandana Sphoorty, IndusInd Bank, Route Mobile, Camlin Fine Sciences, etc.

4. Sectoral and Volume Highlights

• Top Performing NSE Sector Indices (Weekly):
  • Nifty High Beta 50, Nifty CPSE, Nifty PSU Bank, Nifty Metal, Nifty PSE.
• Volume Shockers:
  • Varun Beverages, Macrotech Developers, Havells, HAL, Godrej Consumer Products.

5. Long&Short Build Stocks

• • • Long Build-Up Stocks:
      • Supreme Industries, Policybazaar, Tech Mahindra, Max Healthcare, Varun Beverages.
    • Short Build-Up Stocks:
      • LTTS, Lodha, Dixon, HUDCO, Adani Energy Solutions.

6. Other Highlights

• FIIs/DII Activity:
  • FIIs were net sellers (-₹3,318.06 Cr).
  • DIIs were net buyers (+₹2,572.88 Cr).
• Put-Call Ratio Analysis:
  • PCR > 1 indicates bearish sentiment; < 1 suggests bullish sentiment.
• Breakout Pulse Stocks:
  • FACT, GUJGASLTD, PRAJIND, MGL, CLEAN.

Conclusion

The market is set for a cautious start with mixed signals from international markets and local economic indicators. Investors should continue to monitor key stocks and market indices for potential movements in both bullish and bearish directions, keeping an eye on upcoming economic data and geopolitical events.