7th 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 7th, 2025.

Key Points

1. Market News

• GIFT Nifty suggests a flat start for the day.
• NSE Nifty 50 & BSE Sensex declined for the second consecutive session.
• Market awaits RBI’s Monetary Policy Committee decision.
• Trent Ltd. & Bharti Airtel Ltd. impacted indices significantly.
• Asian markets fell due to concerns over US jobs data.
• US Markets Performance:
  • S&P 500 & Nasdaq closed higher.
  • Dow Jones ended lower.
• US Treasury Yields:
  • 10-year: 4.43%
  • 2-year: 4.21%
• Currency Movements:
  • Dollar index stable
  • Yen appreciated due to Bank of Japan’s statements.
• Oil prices flat, gold prices near record highs.
• Indian Rupee closed at 87.58, down 12 paise against USD

2. Technical Analysis

Nifty 50

• Formed a bearish candlestick pattern.
• Fell below 50-day & 200-day EMAs but held above short-term EMAs.
• Key Support Levels: 23,727 | 23,779 | 23,862
• Key Resistance Levels: 23,561 | 23,510 | 23,427

Bank Nifty

• Outperformed Nifty 50, closing 0.08% higher.
• Formed small bearish candle but held above 50 & 200-day EMAs.
• RSI: 56.85 (upper band)
• MACD: Moving toward zero, indicating positive momentum.
• Key Support Levels: 50,516 | 50,611 | 50,765
• Key Resistance Levels: 50,208 | 50,112 | 49,958

3. Key Bullish Stocks

• Aurobindo Pharma: Acquiring 26% stake in Swarnaaskshu Solar Power.
• Allied Digital: Awarded project to upgrade MSETCL Network.
• ITC: Signed agreement to purchase Ample Foods and Meat & Spice.
• Hero MotoCorp: Investing ₹5.15 Cr in a solar power project.
• Indus Towers: Acquiring telecom towers from Bharti Airtel & Bharti Hexacom for ₹3,309 Cr.
• Dr. Reddy’s Laboratories: Exclusive rights to Daratumumab in US for $131.6M.
• Tata Power: Restored Unit 5 (500 MW) at Trombay Power Station.
• Vakrangee: Partnered with Tata AIG for insurance.
• Biocon: Positive Phase 2 results for Itolizumab (ulcerative colitis).
• Max India: Infused ₹219 Cr into subsidiaries.
• Sun TV: Acquired UK’s Northern Superchargers cricket franchise for £100.5M.
• NTPC Green Energy: JV for renewable energy & hydrogen projects (25 GW).
• KRBL: Launched new India Gate rice sub-brand.

Key Bearish Stocks

• Sobha: Received ₹32.5 Cr tax order + ₹33.05 Cr penalty.
• Religare Enterprises: Care Health Insurance received ₹22.6 Lakh GST demand.
• Akums Drugs:
  • Net profit fell 66% YoY to ₹65.18 Cr.
  • Revenue down 7% YoY to ₹1,010.4 Cr.

4. Sector-Wise Analysis

• Top 5 Gaining Sectors (Last Week’s Performance)
  • NIFTY MIDSMALL HEALTH: +5.96%
  • NIFTY HEALTHCARE INDEX: +4.30%
  • NIFTY SMALLCAP 50: +4.26%
  • NIFTY MICROCAP 250: +4.00%
  • NIFTY PHARMA: +3.99%

Volume Shockers

• ZYDUS LIFESCIENCES: CMP 1008
• DLF: CMP 764
• INFO EDGE: CMP 8051

5. Long Build-Up Stocks

• PHOENIXLTD: +29.10%
• TRENT: +19.80%
• SOLARINDS: +19.30%
• PAGEIND: +16.20%
• SBIN: +12.60%

Short Build-Up Stocks

• DRREDDY: +4.50%

6. FII & DII Activity (6th Feb 2025)

• FIIs: Net Sellers at ₹-3,549.95 Cr.
• DIIs: Net Buyers at ₹2,721.66 Cr.

7. Earnings Reports Today

• Companies Reporting:
  • Mahindra & Mahindra
  • LIC
  • Mazagon Dock Shipbuilders
  • NHPC
  • Oil India
  • Wockhardt
  • 3M India
  • Delhivery
  • Sun TV Network
  • And Many More

8. Breakout Pulse Stocks

• FIVESTAR: +2.60%
• CONCORDBIO: +3.05%

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.