Jan 10th 2024 Share Market Analysis Report

Late Surge Lifts Market with Heavyweights Leading Gains

The equity benchmarks staged a notable recovery in the final hour of trade on January 10, concluding the session higher and extending their winning streak for the third consecutive day, driven by gains in heavyweight stocks.

Commencing the day on a subdued note due to weak global cues, the market traded sideways with a negative bias as investors exercised caution in anticipation of the earnings season and the release of inflation data. Nonetheless, a surge in buying during the final hour propelled the market to close near the day's high.

In the January 9th market session, the Sensex closed on a positive note at 71,657.71 points, reflecting a 0.38% increase, while the NSE also concluded in the green at 21,618.70 points, marking a 0.34% rise. Noteworthy gainers on the NSE included Adanient, recording a 3.09% increase at 3107.8, CIPLA with a 3.05% high at 1328.7, and Reliance, trading at 2655 with a 2.89% gain.

Conversely, NSE witnessed some losers with Divislab closing at 3904.95 and a -2.00% decline, NTPC at 313.4 with a -1.99% decrease, and BPCL traded at 451.1 with a -1.92% dip. In terms of active trading by value, Reliance took the lead with a significant transaction volume of 1,45,267.

In the sector wise performance, healthcare, information technology, and metal sectors showed positive momentum, each witnessing a 0.4 percent increase. In contrast, the oil & gas index experienced a decline, with a 0.5 percent decrease.

Technical Outlook on 11th Jan

Nifty has witnessed a consolidation trade in the first half session but short covering happened in the second half session. Tomorrow, Nifty may expect an immediate support near 21522 then 21426 and resistances are 21715 then 21763. Now the nifty is looking at profit booking from higher levels.

Bank Nifty may expect an immediate support near 47154 then 46958 and resistances are  47567 then 47670. Now the bank nifty is looking at profit booking from higher levels.

Derivative Outlook on 11th Jan

PCR Analysis

Nifty PCR-OI has increased with nifty has positive close which shows PUT WRITING.

Open Interest Analysis: Nifty future JAN contract OI has decreased with positive close which shows Short Covering.

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 positive bias.

India VIX Analysis: India VIX has closed at 12.92 vs 13.26 (DoD) basis which shows decrease in volatility.

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Cochin shipyard shares reached 8% high 

On Wednesday, shares of the PSU defence stock, Cochin Shipyard, surged by up to 8%, reaching the day's high at Rs 722.90. This substantial rally comes as the stock started trading ex-split, experiencing a nearly threefold increase in the last year.

As part of the scheme, Cochin Shipyard executed a stock split, dividing one share into two. Today marked the record date for assessing shareholder eligibility for the sub-division, where each existing fully paid-up share with a face value of Rs 10 was split into two shares with a face value of Rs 5 each.

Closing 3% higher on Tuesday, the stock demonstrated positive momentum. In the preceding month, Cochin Shipyard announced the signing of a contract with the Ministry of Defence on December 19, valued at Rs 488.25 crore. This contract encompasses the repair and maintenance of equipment and systems aboard naval vessels.

Renowned as a leading shipyard in India for both commercial and defense shipbuilding and repairs, Cochin Shipyard has a nationwide presence, aiming to expand its footprint and foster a broader ecosystem for shipbuilding and repairs across the country.

Antique Stock Broking noted, "With an order backlog of Rs 214 billion, Cochin is poised for an execution schedule yielding over Rs 40 billion in revenue until FY26E. The key factors influencing execution success include ASW Corvette orders, sustainable ship repairs, and a gradual ramp-up in NGMV orders. Backed by a robust order backlog, Cochin is well-positioned to fulfil its execution commitments."