16th 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 16th, 2025.

Key Points

1. Market News

• GIFT Nifty indicates a strong start.
• NSE Nifty 50 & BSE Sensex gain for a second consecutive session.
• U.S. markets rise due to lower-than-expected core inflation and strong bank earnings.
• U.S. Treasury yields rise (10-year: 4.66%, 2-year: 4.27%).
• Oil prices climb due to global supply risks.
• Gold prices rise amid Fed rate cut expectations.
• Indian rupee strengthens by 28 paise (closing at 86.36 against USD).

2. Technical Analysis

• Nifty-50:
  • Small bearish candle indicates indecision.
  • Momentum indicators suggest bearish bias (RSI: 36, MACD: Below Zero).
  • Key Support Levels: 23,274 | 23,309 | 23,365
  • Key Resistance Levels: 23,162 | 23,127 | 23,070

  Nifty Bank:

  • High Wave candlestick pattern; indecisive.
  • Weak below key moving averages.
  • Key Support Levels: 49,000 | 49,133 | 49,347
  • Key Resistance Levels: 48,572 | 48,439 | 48,225

3. Key Stocks to Watch

Bullish:

• GAIL: Arbitration settled; $285M received.
• Punjab & Sind Bank: Net profit up 146.72% YoY.
• Exide Industries: ₹149.99 crore investment in subsidiary EESL.
• Happiest Minds: GenAI solutions partnership with Coca-Cola Beverages Vietnam.
• RBL Bank: New director appointment pending approval.

Bearish:

• Kalyan Jewellers: Stock fell 7%.
• Laurus Labs: ₹3.86 crore penalty by IT Department.
• One Mobikwik Systems: Large share sales by investors.
• Dhampur Bio Organics: VP resignation.

Additional Insights

• Put-Call Ratio (PCR): Above 1 indicates bearish sentiment. Below 1 suggests bullish sentiment.
• Breakout Pulse Stocks:
  • MINDACORP: +4.85%
  • AVANTIFEED: +3.61%
  • MUTHOOTFIN: +2.62%

4. Sector-Wise Analysis

• • Top 5 Sectors (NSE):
    • Based on weekly performance (all positive).

    Volume Shockers:

    • Top 5 stocks from Nifty Next 50 with previous session volume > 1.5x average weekly volume.
      • NIFTY IT
      • ADANI POWER
      • ADANI GREEN ENERGY
      • MACROTECH DEV
      • ICICI PRUDENTIAL

5. Long&Short Build Stocks

• Long Build-Up Stocks:
  • KALYANKJIL: +14.90% OI Change
  • OFSS: +13.70%
  • MAXHEALTH: +12.70%
  • CGPOWER: +12.30%
  • COLPAL: +12.10%

  Short Build-Up Stocks:

  • COALINDIA: +19.60% OI Change
  • PERSISTENT: +15.30%
  • INDHOTEL: +14.80%
  • APLAPOLLO: +13.90%

6. FII/DII Data

• FIIs: Net sellers ₹-4,533.49 crore.
• DIIs: Net buyers ₹3,682.54 crore.

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.