NIFTY VIEW FOR 6 JAN 2025

 Market Report: January 3, 2025

Indian benchmark indices ended their two-day winning streak and closed lower on January 3. The Nifty settled near the 24,000 mark, and the Sensex posted a decline as broader markets reflected the cautious sentiment.

Market Summary:

• Sensex: Down 720.60 points (-0.90%) to 79,223.11

• Nifty: Down 183.90 points (-0.76%) to 24,004.75

After a flat opening, the Nifty traded within a narrow range, closing near the day’s low of 24,005. The pullback was largely attributed to a pause following the recent three-day rally, with markets shedding over half a percent.

Sectoral Performance:

• Gainers:

  • Energy

  • FMCG

• Losers:

  • IT (-1%)

  • Pharma (-1%)

  • Banks (-1%)

  • Capital Goods (-1%)

The broader indices mirrored the benchmarks, with the BSE Midcap index down 0.33% and the Smallcap index ending flat.

Market Breadth:

• Advances: 2,048 shares

• Declines: 1,778 shares

• Unchanged: 111 shares

Stock Performance:

• Major Losers:

  • Wipro

  • ICICI Bank

  • HDFC Bank

  • Tech Mahindra

  • Adani Ports

• Major Gainers:

  • ONGC

  • Tata Motors

  • SBI Life Insurance

  • Titan Company

  • HUL

Analysis:

The decline in indices is seen as a healthy correction following a brief recovery. The market's inability to sustain momentum highlights ongoing concerns:

• Pessimism due to:

  • Slowing domestic growth

  • Higher valuations

  • Foreign fund outflows

  • Uncertainty over U.S. trade policies under President Trump’s administration

Outlook:

The Nifty faces resistance at 24,250, and further pullbacks may occur unless this level is decisively breached. Investors are advised to remain stock-specific, focusing on outperforming sectors like FMCG, auto, and energy.

Caution remains the watchword as markets navigate global uncertainties and domestic challenges. However, selective opportunities aligned with sectoral trends may offer favorable returns in the near term.