Jan 16th 2024 Stock Market Analysis Report

Market Rally Ends: Sensex Drops 199 Points, Nifty Hovers Around 22,050 After 5-Day Winning Streak

The Indian equity markets concluded January 16 on a negative note, breaking a five-day winning streak as the Nifty dipped below 22,050 due to profit booking in Information Technology, pharma, realty, and power stocks. The Sensex closed down 199.17 points or 0.27 percent at 73,128.77, while the Nifty was down 65.20 points or 0.30 percent at 22,032.30. Despite opening negatively amid weak Asian markets, the indices experienced fluctuations between gains and losses in the first half. However, sustained selling in the latter half pulled the Nifty below 22,000. Nevertheless, it managed to close just above 22,000, supported by gains in metal and oil & gas stocks.

NSE BPCL surged by +2.73% to trade at 472.5, Tata Steel recorded a gain of +1.74% and traded at 137.25, and Titan saw a rise of +1.60%, trading at 3818.9. On the flip side, the top losers in the Nifty were Divi's Lab, trading at 3827 and experiencing a loss of -2.11%, HCL Tech at 1555 with a decline of -2.09%, and NTPC losing -1.81% and trading at 311.55. Tata Steel emerged as the most traded stock by volume, reaching a substantial 5,63,59,755 transactions.

Technical outlook on January 17th 2024

Nifty has settled at 22032 ranges and it is showing a mild profit booking may be expected until nifty breaks 22125 levels. For Intraday Nifty may expect an immediate support near 21955 then 21878 and resistances are 22109 then 22186. Now the nifty is looking at a profit booking.

Bank Nifty may expect an immediate support near 47975 then 47825 and resistances are  48276 then 48426. Now the bank nifty is looking at a profit booking.

Derivative Outlook on January 17th 2024

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative close which shows CALL WRITING.

Open Interest Analysis: Nifty future JAN contract OI has decreased with negative close which shows Long Unwinding.

Cost of Carry Analysis: Nifty JAN month contract has ended in low compare with FEB contract and low range compare with previous session which indicates a profit booking.

India VIX Analysis: India VIX has closed at 13.54 vs 13.79 (DoD) basis which shows decrease in volatility.

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ITI Records 18% Surge, Achieves new high with 245% Yearly Growth ‍‍

In the afternoon of January 16, ITI shares witnessed an 18% surge, reaching a new 52-week high of Rs 374.80. The trading volume soared to two crore shares on both BSE and NSE, significantly surpassing the one-week and one-month daily average of 30 lakh and 39 lakh, respectively.

Over the past year, the stock has seen an impressive surge of more than 245%, with a significant portion of these gains occurring in the last six months. Despite volatility earlier in the month, the stock has been on an upward trajectory since January 12, recovering from previous losses.

As of 2 pm, ITI was trading 16% higher at Rs 368.20 on the National Stock Exchange (NSE).

The stock began its upward trajectory in September, propelled by the announcement from the state-owned firm regarding the development of laptops and micro PCs under the brand name Smaash, indicating its entry into the Indian laptop manufacturing sector.

In response to a significant surge in share volumes in December, the company issued a statement on December 21, affirming, "We wish to confirm that as of today, there are no matters/events pending for disclosure to the stock exchanges that may have a bearing on the price/volume behavior in the company's scrip." The statement clarified that fluctuations in share volume and price were market-driven, and the company disclaimed responsibility for changes in stock market conditions.

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