Can Nifty holdup to these levels after the rally?

Good Morning Everyone, We have been seeing a big rally in the Nifty since last week, and Nifty closed 1% up yesterday at 17805 yesterday. 17800 to 17900 has been a major resistance zone to Nifty and will have to stay strongly above that to continue the up move, which can happen only with strong buying sentiment, which is not visible as US markets consolidated yesterday and every investor will be in a mood to book some profits off the palate.

On the lower side, 17600 and 17400 will be the support to Nifty if a profit booking is seen.

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On the daily timeframe, Nifty has formed a bullish candle which confirms the market sentiment of buy on the dip.

The Smallcap was up 0.21 % led by WELSPUNDIND up 7.3%, WOCKPHARMA up 6.03%, MAHABANK up 4.9% while the top losers were GRANULES down 3%, ANURAS down 2.43%, ZENSARTECH down 2.12%.

The Midcap was up 0.41%, led by LTTS up 4%, AUBANK up 3%, TORNTPOWER up 2.72%. The top losers were AARTIIND down 2.39%, IDEA down 2.25%, MANAPPURAM down 1.64%.

The Nifty 50 was up 1.02% led by NTPC up 5.16%, ONGC up 3.67%, SBIN up 2.75%. The top losers were TATAMOTORS down 1.66%, COALINDIA down 1.48%, TATACONSUM down 1.2%.

Major power to Nifty came in from the Banking sector led by AUBANK & SBIN.

Global Markets:

Wall Street closed mixed Tuesday, with tech stocks pulling S&P 500 lower amid rising US bond yields, but Dow Jones marking another record high. S&P fell 0.1 percent. The Dow Jones rose 0.6 percent, and the tech-heavy Nasdaq declined over 1 percent.

Record numbers of US workers leaving their jobs and a slowdown in hiring at front-line businesses may show that the latest COVID-19 wave is denting the labour supply, possibly pushing the Federal Reserve further towards concluding that employment is nearing its practical limits.

US new vehicle sales rebounded slightly last year from 2020’s dismal numbers, but forecasters expect them to be more than two million below the years before the coronavirus pandemic. Analysts and industry executives expect chip supplies to slowly improve this year, with more available in the second half.

Asian shares were trading lower this morning, despite Dow Jones’s overnight rally. MSCI's broadest index of Asia-Pacific shares outside Japan is down over 0.7 percent. Shares in Japan were flat. Chinese blue chips are down 0.3 percent. Hong Kong’s HSI is down nearly half a percent. South Korea’s Kospi declined over 1 percent. Elsewhere in Australia, stocks declined over 0.2 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat to a negative start to the Nifty this morning.

The RBI Tuesday said state-owned SBI, along with the private-sector lenders ICICI and HDFC Bank continues to be Domestic Systemically Important Banks (D-SIBs) or institutions that are 'too big to fail'.

India exported goods worth USD 37.29 billion in December 2021—the highest-ever in a month. The imported goods also touched a fresh historical high as they rose 38 percent to USD 59.27 billion. With this, the trade deficit has increased to USD 22 billion from USD 22.9 billion in November.

The Indian pharma industry is estimated to grow at 9-11 percent in 2021-22 and in the next few quarters, it will be driven by domestic and emerging markets, according to ratings agency ICRA. In a sample of 21 Indian pharmaceutical companies, ICRA said revenue growth was moderate at 6.4 percent in the second quarter of FY22, down from 16 percent in the first quarter of 2021-22.

The normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy, ICRA said in a statement. “Revenue growth for ICRA sample set is estimated at 9-11 percent in FY2022 and in FY2023, supported by gradual recovery post the impact of COVID-19,” ICRA Assistant Vice-President and Sector Head Mythri Macherla said.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,273.86 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 532.97 crore in the Indian equity market on January 4.

Stock Specific News:

Bharti Airtel | The Board of Directors of Bharti Airtel is of the view that the existing corporate structure of the company is optimal for leveraging emerging opportunities and unlocking value while continuing to scale up Bharti Airtel’s digital businesses. Therefore, the telco has withdrawn its new corporate restructuring plan.

GAIL India | The company has acquired a 26 percent equity stake in ONGC Tripura Power Company.

Bandhan Bank | The lender's total deposits were up 3 percent QoQ while advances rose 9 percent sequentially.

Future Retail | Delhi High Court dismissed a petition filed by Future seeking termination of arbitration proceedings in Singapore.

Bharat Forge | Bharat Forge-backed Tork Motors to launch 1st electric vehicle by January end.

Bajaj Finance | The company's deposits rose 4.5 percent QoQ and new loans rose 17.5 QoQ.

AU Small Finance Bank | The bank's deposits were up 13 percent sequentially and disbursements jumped 58 percent QoQ.

Dr Reddy's Laboratories | The company will launch COVID-drug Molnupiravir under Molflu.

Thermax | The company has concluded an order of Rs 545.6 crore from an Indian power public sector company to set up flue gas desulphurisation systems for their two units of 500 MW capacity each in Uttar Pradesh.

Affle India | Hong Kong-based Value Partners High-Dividend Stocks Fund acquired 1,05,739 equity shares in the company at Rs 1,194.25 per share. However, Malabar India Fund Limited FDI was the seller on the BSE, data showed.

BPCL | The privatisation of state-run Bharat Petroleum Corporation Ltd may be pushed to the next fiscal as the sale process has not progressed at the desired pace, reports said.

Hatsun Agro Product | Hong Kong-based Value Partners High-Dividend Stocks Fund bought 1,12,685 equity shares in the company at Rs 1,262.15 per share; however, Malabar India Fund Limited (a hedge fund run by New York-based Sumeet Nagar) was the seller on the BSE, data showed.