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US markets rise, but does Nifty have enough power to go higher?

Good Morning Everyone, Nifty continued its bull run yesterday and closed higher by 0.29% at 18055. Majorly led by the IT sector due to positive sentiments on the quarterly results of TCS, Infy, and Wipro due today.

FIIs continue to be net buyers yesterday, but the volume is still low in buying. We need to keep a watch on that.

Meanwhile, US markets rallied yesterday after Powell testified that inflation will be kept in control keeping the economy in mind, which was positive for the market.

As for today 18100 - 18200 will act as a resistance for the Nifty, while support is seen at 17800-17950.

Tomorrow being the weekly expiry, we can continue to see some volatile movements in the market. Stock-specific movement can be seen too.

On the daily time frame, Nifty has formed a small indecisive candle with a positive bias.

The Small-cap Index was down 0.25%. The top gainers were PVR up 3.13%, AVANTIFEED up 3.01%, GRANULES up 2.98%. The top losers were RADICO down 3.54%, WELSPUN down 2.58%, IBULHSGFIN down 2.3%.

The Mid-cap index was up 0.11%, led by AUBANK up 5.4%, TRENT up 4.38%, COFORGE up 3.29%. The top losers were IDEA down 20%, RAMCOCEM down 2.28%, BHEL down1.52%.

The Nifty 50 index was up 0.29%, led by HCLTECH up 4.49%, ADANIPORTS up 3.53%, HDFC up 1.8%. The top losers were JSWSTEEL down 3.41%, TATASTEEL down 2.92% BPCL down 1.65%.

Global Markets:

Stocks closed higher on Wall Street Tuesday as investors’ anxiety over Fed’s hawkish tilt seemed to calm down. After 5 sessions of losses, S&P 500 rose 1 percent. The Dow Jones surged 0.5 percent, and the tech-heavy Nasdaq rallied 1.5 percent.

Fed Chair Jerome Powell acknowledged on Tuesday that high inflation has emerged as a serious threat to the Federal Reserve's goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed to stem the surging prices.

If we have to raise interest rates more over time, we will, Powell said during a hearing of the Senate Banking Committee, which is considering his nomination for a second four-year term. Fed officials have forecast three increases in their benchmark short-term rate this year, though some economists say they envision four rate hikes in 2022.

Asian shares were trading higher this morning as comments from Fed Chief appeared to reassure investors. MSCI's broadest index of Asia-Pacific shares ex-Japan jumped 1 percent. Shares in Japan rallied 1.5 percent. Chinese blue chips surged 0.3 percent. Hong Kong’s HSI jumped over 1.5 percent. South Korea’s Kospi rallied over 1.25 percent. Elsewhere in Australia, stocks jumped over 0.5 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat to a positive start to the Nifty today. However, as discussed 18000 as a support should be taken to move further upwards, else we might continue to see some profit booking.

The Indian economy is expected to grow at 8.3 percent this fiscal and at 8.7 percent in 2022-23, the World Bank said in its 'Global Economic Prospects report released on January 11.

The 8.3 percent GDP growth prediction for FY22 is the same as what was stated by the World Bank in its last projection released in October 2021. According to the Global Economic Prospects report, the growth rate of the Indian economy in the current and next fiscal will be stronger as compared to its immediate neighbors.

Results Today:

Infosys, Tata Consultancy Services, Wipro, Indbank Merchant Banking Services, Ind Bank Housing, KD Leisures, Kome-On Communication, NB Footwear, Pradhin, Roselabs Finance, Tinna Rubber and Infrastructure, and Virinchi will release quarterly earnings on January 12.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 111.91 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 378.74 crore in the Indian equity market on January 11

Stock Specific News:

Infosys, Tata Consultancy Services, Wipro | These companies are slated to report their quarterly earnings today.

DLF | The company clocked sales worth Rs 1,500 crore for its initial offering in ONE Midtown, a newly launched luxury residential project in New Delhi.

Tata Teleservices Maharashtra | The company will convert interest on AGR, spectrum dues into equity. After conversion, Government will hold a 9.5 percent stake in the company.

UltraTech Cement | The company announced the commissioning of Line II of the Bara Grinding Unit in Uttar Pradesh, having a cement capacity of 2 mtpa (million tonnes per annum). The Line I was earlier commissioned in January 2020 and is already operating at a capacity utilisation in excess of 80 percent.

Delta Corp | The company reported a higher consolidated profit at Rs 70.38 crore in Q3FY22 against Rs 1.28 crore in Q3FY21, while revenue jumped to Rs 247.22 crore from Rs 120.82 crore YoY.

RITES | The company has signed an agreement with SMEC Group to cooperate and explore infrastructure projects.

Federal Bank | The board of directors of Fedbank Financial Services, a subsidiary of Federal Bank, has approved initiating the process of an initial public offering by way of fresh issue and offer for sale.

Vikas Lifecare | The company has posted consolidated profit at Rs 2.82 crore in Q3FY22 against Rs 0.06 crore in Q3FY21. Its revenue rose to Rs 106.74 crore from Rs 9.43 crore YoY.

PI Industries | Life Insurance Corporation of India acquired 72,000 equity shares in the company through open market transactions on January 10. Post this, LIC's shareholding rose to 5.03 percent from 4.98 percent earlier.

Indian Railway Finance Corporation | The company has appointed Joint Lead Managers and Joint Bookrunners for its $700 crore global medium-term note program. The proceeds of the Notes will be allocated to eligible green assets under the issuer's Green Financing Framework.

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