Market Insight, 15 January 2025

Wednesday, 15th January 2025

Time : 8:45 AM IST

insights:

Understanding Yesterday’s Market:

1. Nifty Performance:

• Nifty gained 90 points, closing at 23,176.

1. Sectoral Performance:

• All sectors ended in the green except Nifty IT and FMCG, which collectively dragged the index down by nearly 100 points.
• The fall in the IT sector was due to HCL Tech’s Q3 results, which were largely in line with market expectations. However, there was no change in its organic growth guidance.
• Brokerage firm Nuvama downgraded HCL Tech to “hold,” citing high valuations.

1. Broader Markets and Volatility:

• Nifty Smallcap Index and Midcap Index were up by nearly 2%.
• Suggesting some buying interest in midcap and smallcap stocks, following a 7-8% decline over the past two days.
• India VIX fell by 3.3%

1. Global Indicators:

• US 10-year bond yields were at 4.78%, down by 17 basis points.
• The Dollar Index traded flat at 109.2, falling from its recent high of 110.
• Brent Crude Oil declined below $80/bbl as Hamas and Israel tentatively agreed to a cease-fire.

1. US Market and Economic Data:

• US markets closed mixed.
• Traders are awaiting the release of US CPI data later today.

1. FII and DII Activity:

• FIIs net sold ₹8,100 crores, while DIIs net bought ₹7,900 crores in the cash market.
• FIIs covered nearly 40k shorts and added 1Lakh longs in index futures, reducing their net short position to 83% from 85%.

1. Asian Markets:

• Asian markets are trading mixed as traders await key US inflation data.

1. GIFT Nifty:

• GIFT Nifty indicates a slightly positive start.

1. Technical Levels:

• It is crucial for Nifty to cross yesterday’s high of 23,265 today to avoid forming a lower high.