31st 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 31st, 2025.

Key Points

1. Market News

• GIFT Nifty trading higher, indicating a positive market start.
• Indian equities gained for 3 consecutive days, led by BEL & Power Grid Corporation.
• Asian markets mixed due to pressure from tech stocks.
• US futures surged post strong earnings from Apple Inc..
• Tesla’s upbeat comments balanced Microsoft’s weak forecast.
• US Treasury Yield Update:
  • 10-Year Yield: 4.53% (+36 basis points)
  • 2-Year Yield: 4.21% (+24 basis points)
• US Dollar strengthened against Yen & Euro amid trade policy concerns.
• Asian currencies weakened, with South Korean Won seeing the biggest losses.
• Oil prices up, WTI trading above USD 73 per barrel.
• Gold hit record highs due to Trump’s tariff threats on Mexico & Canada.
• Indian Rupee fell by 7 paise, closing at 86.63 against USD

2. Technical Analysis

• • Nifty-50

    • Formed a bullish candle, indicating strength before the Union Budget.
    • Momentum indicators bullish, but RSI at 45.9 and MACD below zero.
    • Hourly charts show bullish momentum.

    Key Support Levels:

    • 23,307 | 23,350 | 23,420

    Key Resistance Levels:

    • 23,167 | 23,124 | 23,054

    Nifty Bank

    • Bullish for 3rd straight session, closing above short-term moving averages.
    • If it crosses 49,650, a lower high-lower low pattern will be negated.
    • Weekly charts show strong bullish candle with a 2% rally.

    Key Support Levels:

    • 49,407 | 49,500 | 49,651

    Key Resistance Levels:

    • 49,106 | 49,013 | 48,862

3. Key Stocks to Watch

Key Bullish Stocks

• Biocon: Acquired 1.5% stake in Biocon Biologics for ₹555 Cr (now holds 90.2%).
• JSW Steel: Completed 100% acquisition of ThyssenKrupp Electrical Steel India for ₹4,158.6 Cr.
• Torrent Power: Commissioned 300 MW capacity.
• Greenlam Industries: Bonus issue of 1 share per held share.
• Western Carriers: Secured ₹170 Cr order from Hindustan Zinc.
• Ircon International: Won ₹631.2 Cr project; Ircon’s share ₹164 Cr.
• Affle: Granted advertisement fraud detection patent.
• Epack Durable: Received ₹78 Lakh incentive under Phase I of Modified Special Incentive Package Scheme.
• Paradeep Phosphates: Signed ₹4,000 Cr MoU with Odisha Govt.
• JK Cement: Won 250 million tonnes limestone tender.
• Pricol: Invested ₹120 Cr in Pricol Precision Products.
• Wipro: Signed 5-year IT transformation contract with Etihad Airways.
• Dr. Agarwal’s Health Care IPO: Subscribed 42% on Day 2.

Key Bearish Stocks

• ICICI Lombard: Received ₹62 Cr GST demand order.
• JK Cement: Accident at Panna site – 4 fatalities, 14 injured.
• Ansal Properties: CFO Prashant Kumar resigned.
• Jupiter Wagons: Atyant Capital India Fund 1_FDI sold 0.94% stake worth ₹146.24 Cr.
• Prestige Estates: Reported 7.9% YoY revenue drop to ₹1,654 Cr and 84.8% net profit decline.

Earnings Reports Today

• Bandhan Bank, IndusInd Bank, LIC Housing Finance, Marico, Nestlé India, ONGC, Sun Pharma, and more.

4. Sector-Wise Analysis

Top 5 Performing NSE Sectors (Last Week)

• NIFTY REALTY (+4.48%)
• NIFTY FINANCIAL SERVICES (+2.13%)
• NIFTY PRIVATE BANK (+1.23%)
• NIFTY AUTO (+0.99%)
• NIFTY INDIA CONSUMPTION (+0.91%)

Volume Shockers (Stocks with 1.5x More Volume Than Weekly Average)

• IRFC (CMP: 148)
• GAIL (CMP: 167)
• AMBUJA CEMENTS (CMP: 509)
• GODREJCP (CMP: 1118)
• ABB (CMP: 5719)

5. Long & Short Build-Up Stocks

Long Build-Up Stocks

• VOLTAS (+25.80% OI Change)
• BAJAJFINSV (+22.30%)
• PERSISTENT (+17.30%)
• ADANIPORTS (+17.20%)
• JIOFIN (+16.50%)

Short Build-Up Stocks

• IRFC (+14.90% OI Change)
• SRF (+12.00%)
• MAXHEALTH (+11.50%)
• DABUR (+10.90%)
• JSWENERGY (+10.40%)

6. FIIs & DIIs Activity

• FIIs were net sellers: ₹-4,582.95 Cr (30th Jan 2025).
• DIIs were net buyers: ₹2,165.89 Cr (30th Jan 2025).

Put-Call Ratio (PCR)

• PCR above 1 → Bearish sentiment.
• PCR below 1 → Bullish sentiment.

7. Breakout Pulse Stocks

• DABUR: ₹533 (+3.01%)
• UPL: ₹566 (+2.50%)
• MGL: ₹1303 (+2.86%)
• BDL: ₹1267 (+3.08%)
• NAVINFLUOR: ₹3908 (+4.49%)

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.