3rd February 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 February 3rd, 2025.

Key Points

1. Market News

• GIFT Nifty is trading lower, indicating a weak start.
• NSE Nifty 50 and BSE Sensex ended neutral post-Budget announcements.
• US President Trump imposed tariffs on Canada, Mexico, and China:
  • 25% tariffs on Canada & Mexico.
  • 10% tariffs on China.
  • Led to US stocks closing lower on Friday.
• Asian markets reacted negatively.
• US 2-year Treasury yields rose by nearly 1%.
• USD surged, affecting South Korean Won, Taiwan Dollar, Malaysian Ringgit, Singapore Dollar, and Philippine Peso.
• Oil prices rose, but gold prices fell due to a stronger dollar.
• Indian Rupee closed flat at 86.62 against USD.

2. Technical Analysis

• • Nifty-50

    • Formed a small bearish candlestick with a high wave pattern.
    • RSI: 51.5 (suggesting positive momentum).
    • Key Support Levels: 23,598 | 23,672 | 23,792
    • Key Resistance Levels: 23,358 | 23,284 | 23,164

    Nifty Bank

    • Formed a high wave candlestick pattern (indicating volatility).
    • Trading above 10-day & 20-day EMAs.
    • Key Support Levels: 49,895 | 50,151 | 50,565
    • Key Resistance Levels: 49,066 | 48,811 | 48,397

3. Key Stocks to Watch

Bullish Stocks

• Eicher Motors: Royal Enfield sales +19.6% (91,132 units).
• MOIL: Manganese ore production +160,000 tonnes, sales up 17%.
• Anant Raj: Net profit +55% (₹110.3 Cr), revenue +36.3% (₹534.6 Cr).
• Lupin: USFDA inspection at Somerset facility cleared.
• Happiest Minds: Acquiring Gavs Technologies Middle East ($1.7M, closing by March 15, 2025).
• Vinati Organics: Approved the formation of a US-based subsidiary.
• HM Electro Mech: Nav Capital VCC bought 78,400 shares (₹75/share, ₹58.8 lakh).
• Neogen Chemicals: Q3 net profit +844.3% (₹10.01 Cr), revenue +22.5% (₹201.4 Cr).
• Globus Spirits: Price hike of 4.35% in Rajasthan (effective April 1).
• Hero MotoCorp: January sales +2.13% (442,000 units), exports doubled.

Bearish Stocks

• Aarti Industries: Net profit down 63% YoY (₹46 Cr), revenue up 6.2% (₹1,840 Cr).
• KEI Industries: Received a GST demand of ₹118.07 Cr (considering appeal).
• Quess Corp: Received GST demand of ₹111 Cr (FY20-FY23).
• Gujarat Gas: Director & Chairman Raj Kumar resigned (effective Jan 31).

4. Sector-Wise Analysis & Volume Shockers

Top 5 Performing Sectors in the Last Week

• NIFTY REALTY: +11.59%
• NIFTY INDIA CONSUMPTION: +5.42%
• NIFTY AUTO: +5.12%
• NIFTY FMCG: +4.15%
• NIFTY FINANCIAL SERVICES: +2.92%

Volume Shockers (Top 5 Stocks with 1.5x Volume Increase)

• NYKAA (CMP: 175)
• AVANTIFEED (CMP: 727)
• TATACONSUM (CMP: 1069)
• AARTIIND (CMP: 459)
• BERGEPAINT (CMP: 492)

5. Long & Short Build-Up Stocks

Long Build-Up (Top 5 Stocks with OI Change %)

• SOLARINDS (+48.60%)
• NBCC (+38.10%)
• TORNTPOWER (+28.90%)
• HUDCO (+12.70%)
• POLYCAB (+12.40%)

Short Build-Up (Top 5 Stocks with OI Change %)

• DMART (+23.10%)
• UBL (+21.30%)
• HFCL (+8.50%)
• TVSMOTOR (+8.10%)
• MARUTI (+7.60%)

6. FII & DII Data (1st Feb 2025)

• FIIs: Net sellers with ₹-1,327.09 Cr.
• DIIs: Net buyers with ₹824.38 Cr

7. Put-Call Ratio (PCR)

• PCR > 1: Indicates increased bearish sentiment.
• PCR < 1: Indicates increased bullish sentiment.
• Trend analysis needed for better clarity.

8. Breakout Pulse Stocks

• AVANTIFEED: +2.83%
• MARICO: +3.51%
• TATACONSUM: +4.41%
• AARTIIND: +3.36%
• BERGEPAINT: +4.10%

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.