29th 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 29th, 2025.

Key Points

1. Market News

• GIFT Nifty is trading firm, indicating a positive start.
• Indian equity benchmark indices closed higher, ending a two-session decline.
• Bank stocks led the gains.
• Asian shares rose on Wednesday morning, following Wall Street’s tech-led rebound.
• The rebound came after a selloff that shook global markets.
• Market focus shifts to the Federal Reserve’s rate decision and US mega-cap earnings.
• US stocks ended higher on Tuesday, with Nvidia and AI-linked tech shares recovering.
• Investors took advantage of bargains after sharp losses.
• Yield on 10-year Treasuries declined by 22 basis points to 4.52%.
• Bond traders expect a possible rate cut in March.
• The dollar rose marginally against major currencies.
• Asian currencies were mixed against the US dollar.
• Thai Baht & Malaysian Ringgit each up 1% month-on-month.
• WTI oil rose early Wednesday after a 0.8% gain on Tuesday.
• Gold held gains ahead of the Fed’s rate decision.
• The rupee weakened for the second day, dropping 19 paise to 86.53 against USD.

2. Technical Analysis

• • Nifty-50:

    Formed a Doji candlestick with above-average volumes.

    Indicates indecision despite a higher-high, higher-low formation.

    Below key moving averages (10, 20, 50, 100, 200-day EMAs).

    Momentum indicators remain negative, signaling bearish momentum.

    Key Support & Resistance Levels:
    Support: 23,091 | 23,157 | 23,264
    Resistance: 22,877 | 22,811 | 22,704

    Nifty Bank:

    High Call Open Interest (OI) = Resistance.

    High Put Open Interest = Support.

    Increase in Call OI = Bearish sentiment.

    Decrease in Call OI = Bullish sentiment.

    Increase in Put OI = Bullish sentiment.

    Decrease in Put OI = Bearish sentiment.

    Key Support & Resistance Levels:
    Support: 49,159 | 49,348 | 49,652
    Resistance: 48,550 | 48,361 | 48,056

3. Key Stocks to Watch

Key Bullish Stocks

• Apollo Micro Systems: Won ₹7.4 Cr DRDO order.
• Exide Industries: Investing ₹300 Cr in Exide Energy Solutions Ltd.
• One Mobikwik Systems: Launches CBDC E-Rupee with RBI & Yes Bank.
• JSW Steel: Extends Minas de Revuboe acquisition deal due to arbitration.
• Home First Finance: Approves ₹1,250 Cr QIP.
• BPCL: Announces ₹5 interim dividend.

Key Bearish Stocks

• Grasim Industries: Tamil Nadu unit raided over GST discrepancies.
• Onesource Specialty Pharma: FDA issues voluntary-action classification.
• Ratnaveer Precision Engineering: NSE/BSE fined ₹10,000 for non-disclosure.

4. Sector-Wise Analysis

• • Top 5 sector indices in NSE (Last Week’s Performance – Only Positive Sectors)
  • Top 5 Stocks from Nifty Next 50 (Volume 1.5x More than Last Week’s Average)
  • NIL
  • UNION BANK
  • CANARA BANK
  • SAMVARDHANA MOT
  • BHEL
  • REC

5. Long & Short Build-Up Stocks

Long Build-Up Stocks (Open Interest Change %):

• OIL: +43.80%
• SYNGENE: +35.30%
• GUJGASLTD: +32.60%
• TIINDIA: +30.70%
• CGPOWER: +27.30%

Short Build-Up Stocks (Open Interest Change %):

• CROMPTON: +41.30%
• CIPLA: +37.50%
• TVSMOTOR: +36.00%
• JUBLFOOD: +32.30%
• BAJAJFINSV: +31.10%

6. FII & DII Data

• FIIs Net Selling: ₹4,920.69 Cr (28th Jan 2025, Cash Segment).
• DIIs Net Buying: ₹6,814.33 Cr (28th Jan 2025, Cash Segment).

7. Earnings Results Today

Companies Reporting Earnings Today:

• Adani Power
• Ambuja Cements
• Bajaj Finance
• Maruti Suzuki
• Tata Motors
• Many others

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.