January 18th 2024 Stock Market Analysis

The Nifty and Sensex continue to decline, with limited upside anticipated due to elevated valuations in the market.

Frontline indices Nifty 50 and Sensex sustained their decline for the third consecutive session on January 18, with both indices registering approximately a 3 percent decrease during this period. The selling pressure in the domestic market was attributed to the surge in US bond yields, sparked by robust economic data in the US, raising concerns about potential delays in rate cuts. Additionally, the continued losses in HDFC Bank shares, declining over 3 percent on the day, acted as a significant drag on both Nifty 50 and Sensex.

HDFC Bank's weaker-than-expected earnings for the December quarter heightened investor apprehensions, fueling concerns that other major banks might also face margin pressures. Given the elevated market valuation, investors sought a trigger to book profits, and HDFC Bank's earnings served as that catalyst, according to experts.

 On January 18, Nifty 50 opened at 21,414.20, hitting an intraday low of 21,285.55 before closing 110 points, or 0.51 percent, lower at 21,462.25. Simultaneously, Sensex opened at 71,018.86, touched an intraday low of 70,665.50, and eventually closed 314 points, or 0.44 percent, lower at 71,186.86.

In the NSE, top gainers included SunPharma, trading at 1337 with a high of +2.93%, TechMahindra at 1358 with a +2.36% increase, and Cipla at 1320 with a +2.01% rise. On the losers side, the Nifty's leading losers were LTIM, experiencing a -10.73% decline and trading at 5602, followed by NTPC at 299.6 with a -3.14% loss, and HDFC Bank at 1490, witnessing a -3.09% decrease. HDFC Bank continues to dominate today's market as the most traded shares both in terms of value and volume.

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Technical Outlook on 19th Jan
Nifty has witnessed a mixed trade and until break 21270 means some kind of recovery may be expected. For Intraday Nifty may expect an immediate support near 21336 then 21210 and resistances are 21589 then 21715. Now the nifty is looking at a recovery from lower levels.

Bank Nifty may expect an immediate support near 45337 then 44961 and resistances are  46089 then 46465. Now the bank nifty is looking at a recovery from lower levels.

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Derivative Outlook on 19th Jan

PCR Analysis: Nifty PCR-OI has increased with nifty has negative close which shows PUT BUYING.

Open Interest Analysis: Nifty future JAN contract OI has increased with negative close which shows Short Buildup.

Cost of Carry Analysis: Nifty JAN month contract has ended in high compare with FEB contract and high range compare with previous session which indicates a recovery rally.

India VIX Analysis: India VIX has closed at 14.07 vs 15.08 (DoD) basis which shows decrease in volatility.

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‍IndusInd bank Q3 result: Asset quality stays healthy, Net profit high 17% to Rs.2301 crore

IndusInd Bank reported a net profit of Rs 2,301 crore for the October-December quarter of the fiscal year 2023-24, reflecting a notable 17.1 percent increase from the year-ago period's Rs 1,963.64 crore. The bank's gross non-performing asset (NPA) decreased to 1.92 percent from the 2.06 percent recorded in the corresponding quarter the previous year, while the net NPA improved to 0.57 percent from 0.662 percent on a year-on-year basis. Following the earnings announcement, IndusInd Bank's shares closed 1.82 percent lower at Rs 1,613.15 apiece on the BSE.

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