Market Insight, 06 January 2025

Monday, 6th Jan 2025

Time : 8:00 AM IST

insights :

1. Let’s understand Friday’s market:

• Nifty fell by 184 points, closing at 24,004, a decline of 0.76%.
• Despite Nifty’s fall, the Smallcap and Midcap indices were relatively stable, down only 0.24% and 0.3%, respectively.
• The selling pressure was concentrated in Banks and IT stocks, which dragged Nifty lower.

1. Volumes:

• Trading volumes showed improvement compared to recent times.

1. FII and DII Activity:

• FIIs were net sellers, offloading ₹4,227 crores in the cash market.
• DIIs stepped in as net buyers, purchasing ₹820 crores.
• FIIs are increasing their short positions in index futures. Their current long-to-short ratio stands at 17% longs and 83% shorts.

1. Cues for Today:

• US Markets: Closed in green on Friday.
• Asian Markets: Trading mixed; the Nikkei is down 0.7%, while the Taiwan and Kospi indices are up by over 1% each.

1. Global Indicators:

• The Dollar Index is at 108.88.
• US 10-year bond yields are at 4.63%.
• Both the Dollar Index and bond yields need to cool off or consolidate before consistent FII inflows can be expected.
• Brent crude oil is trading at $76.56 per barrel.

1. GIFT Nifty: Indicating a mild positive start for the day.
2. Key Event:

• HDFC Bank’s Q3 update is expected today. Early indications suggest a weakish performance.

1. Market Range:

• Nifty is likely to trade within the range of 23,900 to 24,300.