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Time for Nifty to take a break after the bull run?

Good Morning Everyone, What an amazing expiry yesterday. The Nifty was volatile the entire day and we at the MPI family made amazing returns from the same. Nifty opened with a gap up but could not sustain the levels and fell initially, but then after a volatile day ended flat at 18257.

US markets fell yesterday after multiple days of rising, hence the Asian markets are also weak. We might see some consolidation in the Nifty today.

18100 can act as support followed by major support at 18000. On the higher side, 18250-18350 will act as a resistance.

FIIs continue to sell in the Indian market, but the DIIs and retailers are driving the market.

On the daily time frame, Nifty still exhibits a bullish trait in the market in spite of the FIIs selling.

Global Markets:

Stocks closed lower on Wall Street Thursday having shed early gains as investors gauged the latest data on inflation and company earnings. S&P 500 declined nearly 1.5 percent. The Dow Jones fell 0.5 percent, and the tech-heavy Nasdaq declined over 2.5 percent.

The number of Americans filing new claims for unemployment benefits increased to an eight-week high in the first week of January amid raging COVID-19 infections but remained at a level consistent with a rapidly tightening labor market.

The weekly jobless claims report from the Labor Department on Thursday also offered more evidence that the jobs market was at or near maximum employment. State unemployment benefits rolls at the start of the year were the smallest since 1973. There are signs the worst of high inflation is likely over, with producer prices posting their smallest gain in 13 months in December.

Asian shares were trading lower Friday following overnight losses on Wall Street. MSCI's broadest index of Asia-Pacific shares ex-Japan declined nearly 1 percent. Shares in Japan are down over 1.5 percent. Chinese blue chips declined over 0.8 percent. Hong Kong’s HSI fell over 0.8 percent. South Korea’s Kospi declined over 1 percent. Elsewhere in Australia, stocks fell over 0.8 percent.

Indian Market:

UN on India's growth: India is expected to grow at 6.5 percent in FY22, a decline from the 8.4 percent GDP estimate in the previous financial year, the UN said Thursday. While the country's economic recovery is on a "solid path" amid rapid vaccination progress, coal shortages and high oil prices could put the brakes on economic activity in the near term.

The government will launch the mega public offer of Life Insurance Corporation (LIC) by March and file draft papers with the market regulator by the end of this month, an official said.

Driven by a surge in inflows into equity-oriented funds, assets under management (AUM) of mutual funds surged to a record high of Rs 37.73 lakh crore in 2021, up 22 percent from that in the previous year, says a report by Crisil. Moreover, the net incremental inflow of Rs 6.70 lakh crore in 2021 is also a record over the previous peak of Rs 4.80 lakh crore in 2017, and Rs 4.5 lakh crore in 2020.

In percentage terms, the AUM rose as much as 22 percent compared to 17 percent in 2020, says the report which attributes the record numbers to the inflows into equity-oriented funds which hogged the lion's share in the year, unlike in the previous year when it saw net outflows. According to the report, while net flows in the past two years — when the markets were on a song after the pandemic induced bloodbath in the first half of 2020–were similar at around Rs 1.81 lakh crore each, the plot lines were starkly different with 2020 seeing sharp inflows into debt-oriented funds, and 2021 seeing equity-oriented funds cornering the bulk of inflows.

The Labor Department said the producer price index for final demand increased 0.2% last month. That was the smallest gain in the PPI since November 2020 and followed a 1.0% jump in November.

The PPI was restrained by a 0.4% drop in goods prices, the first decline since April 2020. That reflected decreases in food and energy prices. Goods prices advanced 1.1% in November. Excluding food and energy, goods prices rose 0.5% after increasing 0.8% in November.

Services prices rose 0.5% after accelerating 0.9% in November. In the 12 months through December, the PPI increased 9.7% after shooting up 9.8% in November.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,390.85 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,065.32 crore in the Indian equity market on January 13.

Results Today:

HCL Technologies, Tinplate Company of India, Ashirwad Capital, Gujarat Hotels, Indokem, Infomedia Press, International Travel House, Onward Technologies, Refnol Resins & Chemicals, Space Incubatrics Technologies, Swasti Vinayaka Art And Heritage Corporation, and Swasti Vinayaka Synthetics will release quarterly earnings on January 14.

Stock Specific News:

HCL Technologies | The technology company will detail its quarterly numbers today. The analysts are expecting a good quarter, a dollar revenue growth of 3.7 percent sequentially, a constant currency revenue growth of 3.7-4 percent. Margins are seen slightly up at 19.5 percent according to CNBC-TV18’s poll and that will drive profits of about Rs 3,400 crore.

Mindtree | The company reported a consolidated net profit of Rs 437.5 crore in the December quarter against Rs 398.9 crore in the September quarter. CNBC-TV18 Poll had estimated a net profit of Rs 430 crore. The company's revenue came in at Rs 2,750 crore, slightly lower than the poll estimate of Rs 2,760 crore.

Vodafone Idea | Vodafone Idea partners with US-based Ciena to revamp its national broadband network for offering 5G services.

Titan Company | Rakesh Radheshyam Jhunjhunwala increased shareholding to 4.02 percent as of December 2021 quarter, up from 3.80 percent as of September 2021 quarter. His wife's stake remained at 1.07 percent as of December 2021 quarter compared to September 2021 quarter.

Tata Motors | Tata Motors Group global wholesales in Q3 FY22, including Jaguar Land Rover, came in at 2,85,445 units, higher by 2 percent, as compared to Q3 FY21.

Tata Metaliks | The company reported lower profit at Rs 35.65 crore in December 2021 quarter against Rs 75.18 crore in December 2020 quarter, and revenue jumped to Rs 689.80 crore from Rs 526.23 crore YoY.

Vikas Lifecare | The company acquired a 75 percent stake in Genesis Gas Solutions.

Datamatics Global Services | The company and BPM Company entered into a long-term strategic partnership with PSI Services.

Plastiblends India | The company reported a higher profit at Rs 12.07 crore in December 2021 quarter against Rs 11.37 crore in December 2020 quarter. Revenue rose to Rs 174.14 crore from Rs 160.04 crore YoY.

Hindustan Aeronautics | ICRA has upgraded the company's long-term rating to AAA from AA+ and the outlook to 'stable' from 'positive'.

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