6th 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 6th, 2025.

Key Points

1. Market News

• GIFT Nifty: Trading higher, suggesting a positive start for the day.
• Nifty 50 & Sensex: Broke a two-day winning streak due to a decline in private banks (ICICI Bank and HDFC Bank).
• US Market: Ended a five-day losing streak; rebound fueled by big tech demand.
• Treasury Yields:
  • US 10-Year yield rose to 4.62% (+53 basis points).
  • US 2-Year yield increased to 4.28% (+24 basis points).
• Crude Oil: West Texas Intermediate reached approximately USD 74 per barrel.
• Gold: Continued decline due to cautious Federal Reserve comments.

2. Technical Analysis

Nifty-50

1. Bearish Belt Hold pattern observed.
2. Weekly candlestick pattern suggests indecision.
3. Support Levels: 24,143 | 24,195 | 24,279.
4. Resistance Levels: 23,975 | 23,923 | 23,839.

Nifty Bank

1. 1. 1. Long bearish candlestick with high volumes.
      2. Weekly decline: -0.63%.
      3. Support Levels: 51,481 | 51,662 | 51,955.
      4. Resistance Levels: 50,895 | 50,714 | 50,421.

3. Stocks with High Open Interest

• Long Build-Up Stocks

  • SUPREMEIND: +21.00% (OI Change).
  • ANGELONE: +15.20%.
  • CAMS: +14.90%.
  • POONAWALLA: +9.30%.
  • SONACOMS: +9.20%.

  Short Build-Up Stocks

  • HUDCO: +13.50%.
  • LODHA: +11.30%.
  • MGL: +11.00%.
  • NAUKRI: +10.70%.
  • MAXHEALTH: +7.80%.

4. Sector-Wise Analysis

• Top Sectors (Weekly Performance):
  • Nifty Auto (+5.87%)
  • Nifty Pharma (+4.41%)
  • Nifty Midsmall Healthcare (+4.20%)
  • Nifty Healthcare Index (+4.19%)
  • Nifty Consumer Durables (+3.37%)
• Volume Shockers (Stocks with significant trading volume increases):
  • CHOLAMANDALAM: CMP 127

5. Key Stocks

• Key Bullish Stocks to Watch

  1. Brigade Enterprises: Developing a 20-acre project in Bengaluru.
  2. Vedanta: 3% YoY increase in aluminum production.
  3. HG Infra Engineering: LoI for a 250 MW/500 MWh battery project.
  4. Tata Elxsi: Collaborating with Qualcomm for virtual models.
  5. NTPC Green Energy: Won a 1,000 MW solar project bid.

Key Bearish Stocks to Watch

1. JSW Energy: Regulatory hurdles for battery storage projects.
2. ICICI Bank: ₹100.76 crore GST penalty.
3. Premier Explosives: Telangana factory fire incident.
4. Andhra Paper: Operations disrupted due to a workers’ strike.
5. Raymond Lifestyle: Resignation of Chief Business Officer.

6. FIIs and DIIs Activity

1. FIIs: Net sellers, with ₹-4,227.25 crore in the cash segment.
2. DIIs: Net buyers, with ₹820.60 crore in the cash segment.

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.