Sensex, Nifty off day’s low; Axis Bank jumps, Asian Paints tanks

Technical and Derivatives Report: Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel One

We started the week on a flat note yesterday owing to mixed global cues. After some initial trades, the negativity reoccurred across the broader market. In fact, as the day progressed the sell off intensified to breach all intraday support one after another. In the process, the market plunged like a bottomless pit to hasten towards 17000 mark. Due to minor recovery in the end, the Nifty eventually settled above 17100 by shedding nearly 3%.

It was indeed one of the worst sessions in recent months. The way market fell yesterday despite Dow futures was maintaining its positive posture, is clearly an indication that market is sensing something unpleasant which is not known in public domain. Such scenarios are always tricky and turns out awful for markets. In merely 5 sessions, we are back to 17000 from 18300 odd levels. Taking a glance at the daily chart, we can see Nifty reaching its cluster of supports (17000 – 16800). So ideally if things do not worsen on global front, we may see some respite in coming session. However such global developments are beyond anyone’s control. So if any further aberration happens, then one would have to be on the cautious side.

However we still believe that it’s an excellent opportunity for investors to start accumulating some quality propositions. Since the volatility has spiked up, we advise traders to stay light and should avoid carrying aggressive bets overnight. On the higher side, 17300 – 17500 are to be seen as immediate hurdles. If any recovery has to happen, it would only be led by the banking space because it has shown less weakness and is trading at its strong support zone.

Bharti Airtel shares surge after preferential issue announcement

Shares of Bharti Airtel surged over 1.7% in Tuesday’s opening deals to ₹701 apiece on the BSE in an otherwise weak market after the company announced that the board will consider and evaluate the proposal for issuance of equity shares through preferential issue.

Should you buy?

Sensex rebound

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Markets opening view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

In the short term, 16950 is the last resort of support for this market. If that breaks on a closing basis, we might plummet further to 16500-16550. On the upside, the resistance level is at 17400-17500. Traders can utilize upward corrections to sell this market.

Axis Bank up 4%

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Most active stocks on the Nifty

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22 of 30 Sensex stocks in the red

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Nifty below 17,000-mark at open

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Sensex drops 800 pts, Nifty under 17k at open amid weak market cues

Markets in pre-open

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Nifty in pre-open

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Axis Bank Q3 results

Private lender Axis Bank on Monday reported a 224% year-on-year (YoY) rise in standalone net profit at ₹3,614 crore for the December quarter (Q3FY22) compared with a profit of ₹1,116.6 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, Axis Bank’s profit registered a 15% growth. The private sector lender’s net interest income rose 17% over a year ago to ₹8,653 crore. Other income stood at ₹3,840 crore, up 31% YoY. The bank’s retail loans grew 18% YoY and 6% QOQ to ₹3,67,494 crore and accounted for 55% of the net advances. 

Stocks to Watch: Maruti, Axis Bank, Vodafone Idea, IEX, Deepak Nitrite

Here is the list of the top 10 stocks that are likely to be in focus on Tuesday.

Bitcoin rises marginally while ether, dogecoin, Solana, other crypto prices today continue to plunge

Bitcoin gained after tumbling to its lowest level in six months in the previous sessions. The largest cryptocurrency was marginally higher at $36,013 after earlier dropping to $32,951, its lowest price since July 23. That took losses from its all-time high of $69,000 hit in November past 50%. Bitcoin is down over 21% in 2022 (year-to-date) so far.

Check crypto prices here.

Japan’s Nikkei at 5-month low as U.S. rate-hike bets, Ukraine tensions weigh

Japan’s Nikkei index touched a five-month low on Tuesday, weighed down by investor caution over the situation in Ukraine and a potential faster-than-expected U.S. rate hike ahead of the Federal Reserve policy meeting due later in the day.

By 0213 GMT, the Nikkei share average fell 1.9% to 27,061.36, after dropping as much as 2.1% to 27,006.37, its lowest since Aug. 20. The broader Topix lost 2.02% to 1,891.00.

Wall Street bounced back from a steep sell-off to close higher overnight, with bargain hunters pushing the indexes into a positive territory.

Rupee slumps to 3-week low against US dollar on geo-political worries

The rupee on Monday slumped by 17 paise to close at a more than three-week low of 74.60 against the US dollar due to high crude oil prices, forex outflows and heavy losses in domestic equities amid growing geopolitical worries. Forex traders said the strength of the American currency in the overseas market and weak appetite for riskier assets also dragged down the local unit. Moreover, market participants are now eyeing the US Fed’s January 25-26 meeting for further cues.

Nalco continues to be under F&O ban; Vodafone Idea out

PSU metal Nalco and auto stock continue to be among two stocks that have been put under the ban for trade on Tuesday, January 25, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.

On the other hand, Vodafone Idea, Indiabulls Housing Finance, and Bharat Heavy Electricals Limited (BHEL) that were was part of the list in the previous sessions, are out of the list of F&O stock ban for today by the stock exchange.

Day trading guide for Tuesday

4 stocks to buy or sell today — 25th January

Oil Rebounds From Tumble as Traders Focus on Demand Outlook

Oil rose after the biggest one-day drop this year as traders focused on the still-positive demand outlook and appetite for risk rebounded.

West Texas Intermediate climbed toward $84 a barrel after shedding more than 2% on Monday, when U.S. equities swooned then recovered. The volatile trading comes as the Federal Reserve prepares the ground for interest-rate increases, and Russian troops mass on the border with Ukraine. In recent months, oil bears have retreated as speculators turn more bullish amid lower stockpiles.

Crude rallied to a seven-year high last week as worldwide consumption recovered from the impact of the pandemic, eroding inventories. U.S. oilfield services giant Halliburton Co. said it expected the environment to remain supportive as it reported a jump in profit and higher dividend on Monday.

SGX Nifty futures trading 59.50 points (0.35%) lower at 16,997.50 in early deals

U.S. Futures, Stocks Fall After Wall Street Swings

U.S. equity futures and Asian stocks declined Tuesday after breathtaking volatility on Wall Street stoked by concerns over Federal Reserve policy tightening and geopolitical tension.

S&P 500 and Nasdaq 100 contracts retreated about 1%, while an Asia-Pacific share gauge hit the lowest point since November 2020. U.S. stocks erased a 4% drop to close up Monday on high volumes in a wild turnaround from a selloff that rivaled any of the last two years.

Treasuries were mixed, with the benchmark 10-year yield inching lower. Oil stabilized after getting swept up in the bout of risk aversion.

Markets are being rattled by the prospect of a Fed interest-rate hiking cycle and balance-sheet reduction to tackle inflation. Escalating U.S.-Russia tension over Ukraine has also encouraged demand for havens. The dollar held gains.

In Australia, bonds slid after stronger-than-expected inflation data as traders boosted bets on rate increases. Singapore’s dollar strengthened on surprise monetary-policy tightening to damp price pressures.

Global shares are enduring their worst month since the pandemic roiled markets, buffeted by risks from ebbing Fed stimulus as well as an uneven start to the company earnings season. The question now is whether the slide is a buying opportunity or portends wider stress across more asset classes.