NIFTY OUTLOOK & TRADING TIPS FOR 13 JAN 2025

 Indian Stock Market Report – January 10

Key Indices Performance

• Sensex: Closed at 77,378.91, down 241.30 points or 0.31%.

• Nifty 50: Closed at 23,431.50, down 95 points or 0.40%.

Intraday Highlights

• Sensex:

  • Opened: 77,682.59 (Previous close: 77,620.21).

  • Intraday low: 77,099.55 (-0.70%).

  • Final close: 77,378.91 (-241 points).

• Nifty 50:

  • Opened: 23,551.90 (Previous close: 23,526.50).

  • Intraday low: 23,344.35 (-0.80%).

  • Final close: 23,431.50 (-95 points).

Broader Market Performance

• BSE Midcap Index: Down 2.13%.

• BSE Smallcap Index: Down 2.40%.

Market Trends

1. Sectoral Indices:

   • Gains:

     • Nifty IT: Up 3.44%, buoyed by strong Q3 results from TCS.

   • Losses:

     • Nifty Media: Down 3.59%.

     • Realty: Down 2.77%.

     • PSU Bank: Down 2.72%.

     • Healthcare and Pharma: Down 2.21% and 2.13%, respectively.

     • Consumer Durables, Private Bank, Metal: Lost 1.6%-2.0%.

2. Investor Sentiment:

   • Cautious ahead of December quarter earnings.

   • Continued foreign portfolio investor (FPI) outflows.

3. Market Cap:

   • Decline of nearly ₹12 lakh crore over three sessions.

   • BSE-listed firms' total market cap fell below ₹430 lakh crore (from ₹442 lakh crore on January 7).

Key Factors Impacting the Market

1. Global Cues:

   • Rising US dollar and bond yields.

   • US treasury yields at eight-month highs.

   • Strong US macroeconomic data and reduced prospects of significant US Federal Reserve rate cuts.

2. Domestic Concerns:

   • Indian rupee depreciation against the US dollar.

   • Weakness in Asian markets.

   • Economic growth slowdown: GDP projected at 6.4% for FY24-25 (four-year low).

3. Sectoral Performance:

   • IT: Resilient due to strong Q3 results from TCS.

   • Banking: May face pressure despite anticipated good results due to FPI selling.

4. FPI Activity:

   • Net outflows exceeding ₹19,000 crore till January 9.

Technical Analysis

• Nifty 50:

  • Formed a bearish candle on daily charts, indicating further weakness.

  • Resistance Levels: 24,000-24,150.

  • Support Levels: 23,250 and below.

  • RSI trending lower, indicating weakening momentum.

• Sensex:

  • Resistance: 78,000.

  • Support: 77,200-77,300.

Outlook

1. Short-Term:

   • Market expected to remain volatile with stock-specific actions driven by Q3 earnings.

   • Traders should remain cautious and focus on selective opportunities.

2. Medium-Term:

   • Concerns over high valuations and slowing growth may weigh on the market.

   • Potential headwinds from global and domestic economic uncertainties.

Conclusion

The Indian equity market remains under pressure due to weak global cues, foreign capital outflows, and domestic growth concerns. While the IT sector provides some resilience, broader market trends signal caution for investors in the near term.