“Indian Rupee traded on a flat note today. Weak domestic markets and rising crude oil prices put downside pressure on Rupee. FII outflows also weighed on the domestic currency. However, a soft US Dollar today, as traders pared their positions ahead of US Q4-2023 GDP data capped sharp gains. China’s central bank said that it would cut the reserve requirement ratio (RRR) for banks within two weeks and hinted at more support measures to come, which boosted global risk sentiments. The US Dollar gained on Wednesday on upbeat PMI numbers,” said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas.

We expect Rupee to trade with a slight negative bias on weak domestic markets and geopolitical tensions in the Middle East. The Red Sea issue, rising crude oil prices, and selling pressure from foreign investors may also dent the Rupee. Traders may remain cautious ahead of GDP, weekly unemployment claims, durable goods orders and new home sales data from US. Investors may also watch out for ECB monetary policy decisions. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50, said Choudhary.

Shares of Tech Mahindra fell 6.8% to Rs 1,312.05. The stock remained the key loser for most of the trading period.

We expect Havells to post 14% revenue CAGR over FY23-26E while earnings CAGR will be 21% on a low base. We maintain “Reduce” as consumer demand remains soft and competitive intensity is elevated in FMEG, losses in Lloyd will continue for foreseeable future while its share in total sales mix will rise with addition of new products, and stretched valuations.

The company’s margin and EBITDA/ vehicle scaling new highs despite EV ramp-up is testament to its improving underlying ICE business margin. We are monitoring volume recovery in the exports markets, upcoming EV 2W and 3W launch, and probable fundraising for the EV subsidiary and strategic investments.

TVS is a perfect play on: a) consistent domestic 2W market share increase, b) continuous exports growth outperformance and c) structural margin increase potential. Expect a revenue CAGR of 18%, an EBITDA CAGR of 27% and an EPS CAGR of 34%, with margin expansion of 250bps in FY23-26E as demand revives. We largely retain estimates and maintain Accumulate. Our new TP stands at INR 2,100 from INR 2,006 on 26x (unchanged). We ascribe INR 98 to TVS Credit Services. 

Bajaj Auto, NTPC, Coal India, IndusInd Bank, and Adani Ports were the top gainers in the Nifty 50. While Tech Mahindra, Cipla, SBI Lie Insurance, Axis Bank, and LTIMindtree were the primary losers in the Nifty 50.

The NSE Nifty 50 lost 170 points or 0.81% at 21,297.70. While the BSE Sensex was down 620 points or 0.87% at 70,440.48.

Shares of Bajaj Auto rose 4.2% to Rs 7,545. The stock was the top gainer in the Nifty 50.

“USD-INR’s 29th January futures contract exhibited a narrow trading range. According to the daily technical chart, the currency pair is currently trading above its moving average trend-line support at 83.06, with a positive MACD divergence observed. However, the RSI is below the 50 level, indicating a cautious market sentiment. In terms of technical setup, the pair is encountering significant resistance at higher levels. The daily chart highlights a support zone between 83.05 and 82.92, while resistance is evident in the range of 83.30-83.45. The pair has managed to hold its support level at 83.05, suggesting a degree of resilience. Considering the current technical dynamics, it is anticipated that the pair will continue to trade within the range of 82.70-83.50 throughout the week,” said Rahul Kalantri, vice president of commodities at Mehta Equities.

Bajaj Auto, NTPC, Coal India, BPCL, and Hindustan Unilever were the top gainers in the Nifty 50. While Tech Mahindra, Adani Enterprises, Cipla, SBI Life Insurance, and Axis Bank were the key laggards.

Shares of NTPC rose 2.7% to Rs 308.85. The stock was the top gainer in the Nifty 50.

Shares of Tech Mahindra fell 6.2% to Rs 1320.05. The stock was the primary laggard in the Nifty 50.

Bajaj Auto, Adani Ports, Coal India, Bajaj Finance, and Hero MotoCorp were the top gainers in the Nifty 50. While Tech Mahindra, HCL Tech, Tata Steel, Infosys, and LTIMindtree were the key losers.

The NSE Nifty 50 opened 6 points or 0.03% lower at 21,447.95. The BSE Sensex opened 18.03 points or 0.03% lower at 71,042.28.

“Bank Nifty also opened gap down and thereafter consolidated for the day closing marginally in the green. We expect the consolidation to continue going ahead in the range 44500 – 45750. Minor degree pullback towards 45460 – 45810 should be used as a selling opportunity. On the downside we expect the Bank Nifty to drift towards 44500 – 44400 from short-term perspective,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.

Commenting on the Technical outlook of Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, said that on the daily charts they can observe that the Nifty has held on the 40 day average which was placed at 21234. Going ahead they expect Nifty to face resistance in zone 21500 – 21520 where the key hourly moving averages are placed. Traders should look for signs of weakness around the resistance zone before initiating shorts as there is a possibility of a deeper retracement till 21780 – 21800 where the hourly upper Bollinger band is placed. The hourly momentum indicator has triggered a positive crossover which is a buy signal. Thus, price and momentum indicator are providing divergent signals which can lead to high intraday volatility. On the downside 21250 – 21220 shall act as a crucial support zone from short term perspective while 21500 – 21520 is the immediate hurdle zone from short term perspective.

ZEE Entertainment Enterprises Ltd

Foreign institutional investors (FII) offloaded shares worth net Rs 6,934.93 crore. However, domestic institutional investors (DII) bought shares worth net Rs 6,012.67 crore on January 24, 2024, according to the provisional data available on the NSE.

Shares in the Asia-Pacific region were in mixed territory. The Asia Dow is trading up by 0.46%, whereas Japan’s Nikkei 225 is trading in the red, down by 0.31% and Hong Kong’s Hang Seng index is trading lower by 0.16%. The benchmark Chinese index Shanghai Composite is trading higher by 0.48% during the early trade hours.

WTI crude prices are trading at $75.15 up by 0.08%, while Brent crude prices are trading at $80.19 up by 0.19%, on Thursday morning.

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded higher by 0.08% at 103.32.

The S&P 500 surged by 0.08% at 4,868.55 to reach a fresh all-time high after Netflix shares led a rally. The tech-heavy Nasdaq Composite gained 0.36% at 15,481.92. The 30-stock Dow Industrial Average fell 99.06 points, or 0.26%, to 37,806.39.