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All eyes are on the budget! Is the Nifty ready to make its move?

Good Morning everyone, as discussed in our weekly meeting yesterday, the Nifty has taken support at 16800 and bounced back. However, will it be able to cross its major resistance at 18350. We can expect positive movement only once, Nifty is able to breach 18350 with power.

With the budget to be announced tomorrow, let us wait to get some clear direction from Nifty.

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Global Markets:

The S&P 500 added 2.4% on Friday notching its best day so far in 2022 after another zigzag session, ending a tumultuous week marked by mixed corporate earnings, geopolitical turmoil, and an increasingly aggressive Federal Reserve.

Goldman Sachs is forecasting that the US Federal Reserve will raise interest rates five times in 2022, versus four previously, with a hike expected in March, according to a note from its economists late on Friday.

Economists have scrambled to update rate hike expectations since the Fed on Wednesday said it was likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what Fed Chairman Jerome Powell pledged will be a sustained battle to tame inflation.

Asian share markets made a cautious start to a week that is likely to see a rise in UK interest rates and mixed reports on US jobs and manufacturing while surging oil prices added to worries over inflation. Japan's Nikkei dipped 0.3 percent as data on industrial output and retail sales undershot forecasts. S&P 500 futures and Nasdaq futures both eased 0.3 percent, undoing some of Friday's bounce.

Oil prices were near seven-year peaks having climbed for six weeks straight as geopolitical tensions exacerbated concerns over the tight energy supply. Brent rose 94 cents to $90.97 a barrel, while U.S. crude added 89 cents to $87.71 per barrel.

The global cryptocurrency market capitalization rose 1.55 percent over the last 24 hours to $1.73 trillion while the trading volume over the same period skyrocketed by 1,06,435.67 percent to $79.22 trillion.

Indian Market:

Trends on the SGX Nifty indicate a gap-up opening in the Nifty today.

Finance Minister Nirmala Sitharaman will present Economic Survey for 2021-22 in the Parliament on Monday, the first day of the Budget session. The Economic Survey for 2021-22 is expected to have only one volume due to the absence of a full-time chief economic advisor (CEA).

Foreign portfolio investors (FPIs) pulled out a whopping Rs 28,243 crore from Indian equities in January as US Fed signaled an interest rate hike. As per the depositories data, FPIs took out Rs 28,243 crore from equities between January 3-28.

During the same period, they pumped Rs 2,210 crore into the debt segment and Rs 1,696 crore into hybrid instruments. The total net outflow stood at Rs 24,337 crore. The total net outflow stood at Rs 24,337 crore.

Gold demand in India overcame pandemic woes to stage a remarkable recovery, surging 79 percent in 2021 on the back of pent-up purchases in the last quarter of the year. Demand for the precious metal climbed to 797.3 tonnes last year from 446.4 tonnes in 2020, the World Gold Council said in a report on January 28.

Results Today

More than 100 companies will release their quarterly earnings on January 31 including Tata Motors, BPCL, HPCL, Indian Oil Corporation, UPL, Sun Pharmaceutical Industries, DLF, Aarti Drugs, ADF Foods, Ajanta Pharma, LT Foods, Dwarikesh Sugar Industries, Edelweiss Financial Services, Exide Industries, GIC Housing Finance, Housing Development & Infrastructure, Hester Biosciences, Infibeam Avenues, Jindal Saw, KEC International, KPIT Technologies, Krsnaa Diagnostics, Navin Fluorine International, Satin Creditcare Network, Shipping Corporation of India, Suven Life Sciences, UCO Bank, Venus Remedies, and Voltamp Transformers.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 5,045.34 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,358.67 crore in the Indian equity market on January 28

Stock Specific News:

Paytm | The shares of Paytm’s parent company One97 Communications recovered on Friday after a series of losses since the start of 2022. Paytm shares gained 3.4 percent to rise to an intraday high of Rs 923.90 on BSE after the stock struggled to stay at the Rs 900-mark on Thursday.

RBL Bank | Shares of the bank were in focus on Friday, a day after the private sector lender reported a strong set of earnings for the December quarter. The stock of RBL Bank gave up initial gains soon after a positive start. On BSE, RBL shares fell as much as 3.7 percent to Rs 147.6, having risen as much as 2.7 percent to Rs 157.4 earlier on Friday.

Maruti Suzuki | Share of the automaker slipped more than 3 percent in trade on Friday after the company reported a 48 percent fall in its standalone profit for the quarter-ended December 2021.

Bharti Airtel | The share price ended over 1 percent higher after the company announced a strategic partnership with technology giant Google. Bharti Airtel will issue 71.2 million shares of the company to Google on a preferential basis at Rs. 734 apiece, a premium of 4 percent to the closing price on January 27.

SpiceJet | The share jumped over 5 percent after the Supreme Court granted three weeks' time to SpiceJet to resolve its financial dispute with Swiss firm Credit Suisse AG, and stayed the operation of the Madras High Court verdict that permitted a winding-up petition and directed that the official liquidator take over the assets of the low-cost airline.

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