5th 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 5th, 2025.

Key Points

1. Market News

• GIFT Nifty trading higher, indicating a positive start.
• NSE Nifty 50 & BSE Sensex had their best session since Jan 2 due to relief in markets.
• US Tariffs Delayed: Trump extended tariff deadline on Canada & Mexico by one month.
• Asian stocks up as traders watch US-China trade talks & major tech earnings.
• Gold Prices at Record Highs amid trade tensions.
• US Treasury Yields: 10-Year at 4.51%, 2-Year at 4.22%.
• Indian Rupee appreciated by 12 paise, closing at ₹87.08/USD.

2. Technical Analysis

• • Nifty-50

    • Formed a bullish candlestick after a gap-up opening.
    • Holding above 10, 20, 50, & 200-day EMAs.
    • Trading above the upper Bollinger Band, suggesting a potential breakout.
    • Key Support Levels: 23,771 | 23,852 | 23,981
    • Key Resistance Levels: 23,512 | 23,432 | 23,302

    Nifty Bank

    • Formed a bullish candlestick, confirming Tweezer Bottom pattern.
    • Closed above upper Bollinger Band, near 200-day EMA.
    • RSI (55) shows bullish momentum.
    • Key Support Levels: 50,226 | 50,396 | 50,673
    • Key Resistance Levels: 49,672 | 49,502 | 49,225

3. Key Stocks to Watch

Key Bullish Stocks to Watch

• RVNL: ₹404 crore railway order from East Coast Railway.
• Alkem Labs: Launched Kojiglo serum for hyperpigmentation.
• NLC India: Won bid for 720.87 million tonne coal mine in Odisha.
• IEX: Electricity traded volume up 16% YoY.
• India Glycols: Approved a corporate restructuring plan.
• Lupin: US FDA tentative approval for HIC generic drug.
• Global Health: Expanding 110-bed hospital in Ranchi.
• Ujjivan SFB: Applied for a universal banking license.
• Max Financials: ₹1,300 crore fund raise & Axis Max Life listing plan.
• Rashtriya Chemicals: Started production at New AN Melt plant.
• Deep Industries: Acquiring Kandhla Energy.

Key Bearish Stocks to Watch

• Hero MotoCorp: Facing ₹456 crore GST penalty.
• Sun Pharma: ₹160 crore GST penalty.
• IndiaMart: ₹20.38 crore GST demand from Noida Authority.
• Torrent Power: ₹23.11 crore GST demand order.
• Godfrey Phillips: ₹70.33 crore GST demand.
• ICRA: SEBI warning letter for compliance issues.

4. Sector-Wise Analysis & Volume Shockers

Top 5 Sector Indices (Best Weekly Performers)

• NIFTY REALTY (+13.07%)
• NIFTY AUTO (+7.12%)
• NIFTY INDIA CONSUMPTION (+6.40%)
• NIFTY FIN SER 25/50 (+5.66%)
• NIFTY CONSUMER DURABLES (+5.36%)

Top 5 Stocks with High Volume (1.5x last week’s average)

• SAMVARDHANA MOTHERSON
• CHOLAMANDALAM
• ABB
• DIVI’S LABORATORIES
• SIEMENS

5. Long & Short Build-Up Stocks

Long Build-Up Stocks (High Open Interest Change)

• TRENT (+23.90%)
• TATACHEM (+22.70%)
• TORNTPHARM (+19.00%)
• PHOENIXLTD (+11.60%)
• PAGEIND (+10.50%)

Short Build-Up Stocks (High Open Interest Change)

• TORNTPOWER (+52.10%)
• KALYANKJIL (+31.50%)
• SOLARINDS (+30.00%)
• NBCC (+25.10%)
• BERGEPAINT (+24.50%)

6. FII & DII Activity

• FIIs: Net sellers ₹809.23 Cr on Feb 4th.
• DIIs: Net buyers ₹430.70 Cr on Feb 4th.

7. Earnings Results Today

Companies reporting earnings include:

• Abbott India, Arvind Fashions, Avalon Technologies, CCL Products, CMS Info Systems, Cummins India, Eveready, Gujarat Gas, Kansai Nerolac, Page Industries, Reliance Power, Swiggy, Timken India, VRL Logistics, Zydus Lifesciences (and more).

8. Breakout Pulse Stocks

• INDUSINDBK: +3.40%
• KOTAKBANK: +2.33%
• CHOLAFIN: +4.28%
• LAURUSLABS: +4.37%
• M&MFIN: +2.04%

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.