Market Update: Sensex and Nifty Set for Marginal Gain on January 9

Today Key Highlights of market:

• GIFT Nifty suggests a positive start with a gain of 125 points.
• On January 8, BSE Sensex dropped 671 points to 71,355, and Nifty 50 fell 198 points to 21,513.
• Formation of a long bearish candlestick pattern on Nifty charts indicates a possible trend reversal.
• Analysts highlight strong overhead resistance around 21,750-21,800 levels.

Technical Analysis:

• Nagaraj Shetti (HDFC Securities) notes the presence of strong resistance and a potential trend reversal.
• Kunal Shah (LKP Securities) sees a change in market sentiment, with support at 21,500 and an immediate hurdle at 21,650.

Volatility and Broader Markets:

• India VIX jumped 7.06% to 13.46, reflecting increased market volatility.
• Nifty Midcap 100 and Smallcap 100 indices faced pressure, falling 1% and 0.6%, respectively.

Pivot Points and Support/Resistance Levels:

• Nifty likely to face immediate resistance at 21,538, followed by 21,758 and 21,861.
• Support levels at 21,486, 21,422, and 21,319.

Global Markets:

• GIFT Nifty indicates a marginally positive start, with futures at 21,701 after reaching 21,812 points.
• US stock futures slightly lower; S&P 500 and Nasdaq rallied over 1% and 2%.
• European markets turned positive, Stoxx 600 up 0.34%; technology and retail stocks led gains.
• Asia-Pacific markets rebounded; Nikkei 225 rose 1.66%, S&P/ASX 200 climbed 1.03%.

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Financial News:

1. Bloomberg Proposal for Indian Bonds:
   • Bloomberg proposes inclusion of Indian government bonds in its indices starting September 2024.
   • Phased inclusion over five months, completed by January 2025.
2. Zee-Sony Merger Uncertainty:
   • Sony may call off the merger pact with Zee Entertainment due to a standoff over leadership.
   • Sony no longer wants Zee’s CEO Punit Goenka amid a regulatory probe.
3. Bajaj Auto Share Buyback:
   • Bajaj Auto board approves Rs 4,000 crore share buyback at Rs 10,000 per share.
   • Buyback via tender route, promoters to participate; subject to shareholder approval.
4. Tata Autocomp Systems IPO Talks:
   • Tata Group initiates talks for the public listing of Tata Autocomp Systems later in 2024.
   • Discussions focus on divesting stakes and quantum of stake to be divested.
5. India’s Weightage in MSCI EM Index:
   • India surpasses Taiwan in MSCI EM index weightage, ranking second after China.
   • Expected to attract more foreign investments in 2024.
6. Impact on India’s Exports:
   • Threats to cargo vessels in the Red Sea may lead to a $30 billion reduction in India’s total exports this fiscal year.

Market Outlook:

• Technical indicators suggest caution, with analysts closely monitoring support levels.
• Global factors, including US inflation data and bank earnings, will influence market trends.
• India’s growing weightage in MSCI EM index reflects its relevance for global funds.

Disclaimer: This market update is for informational purposes only and does not constitute financial advice. Investors should conduct thorough research and seek professional advice before making investment decisions.