January 25th 2024 Stock Market analysis

Nifty and Sensex Experience Decline Amid Heightened Volatility on Expiry Day

Sensex and Nifty surrendered gains from the previous session as banking and IT stocks faced renewed pressure, influenced by Foreign Institutional Investor (FII) selling and diminishing hopes of US rate cuts, dampening overall market sentiment. At the close, Sensex recorded a decline of 359.64 points, or 0.51 percent, settling at 70,700.67, while Nifty closed lower by 101.40 points, or 0.47 percent, at 21,352.60. Despite the overall downturn, the market witnessed mixed activity, with 1,813 shares advancing, 1,423 declining, and 55 remaining unchanged. In contrast, while midcap indices experienced corrections, the Nifty small cap index managed to close 0.5 percent higher compared to the previous day, showcasing some resilience amidst the broader market turbulence.

Among the top gainers in the NSE Nifty today were Bajaj Auto, trading at 7590 with a remarkable 5.23% increase, followed by Adani Ports at 1151 with a 2.71% rise, and NTPC at 314.75 with a 1.91% uptick. Conversely, the top losers included Tech Mahindra, which traded at 1325 with a significant 5.89% loss, Cipla at 1374.8 with a 3.00% decline, and Bharti Airtel at 1159.75 with a 2.54% decrease. Tata Steel emerged as the most active stock by volume, trading at 134.15 with a whopping 6,13,58,568 traded volume.

‍Technical Outlook on 29th January 2024

Nifty is anticipated to find immediate support levels near 21246 and 21150, with resistance expected around 21458 and 21564. The current outlook for Nifty suggests a mixed trading scenario. Similarly, Bank Nifty is likely to encounter immediate support near 44512 and 44146, while facing resistance at 45221 and 45575. The current trend for Bank Nifty also indicates a mixed trading pattern.

Derivative Outlook on 29th Jan

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative close which shows CALL WRITING.

Open Interest Analysis: Nifty future JAN contract OI has decreased with negative close which shows Long Unwinding.

Cost of Carry Analysis: Nifty FEB month contract has ended in low compare with MARCH contract and low range compare with previous session which indicates a negative bias.

India VIX Analysis: India VIX has closed at 13.87 vs 14.38 (DoD) basis which shows decrease in volatility.‍

‍Hindustan Petroleum Corporation Limited Records Remarkable Q3 Profit Surge, Tripling to Rs 529 Crore‍

Hindustan Petroleum Corporation Limited (HPCL), a state-run oil marketing company, reported an impressive 207% standalone profit growth, representing a more than three-fold increase, with profits soaring to Rs 529 crore for the December quarter of fiscal 2023-24 compared to Rs 172 crore in the corresponding period last year.

The company's standalone total income also saw a 2% year-on-year increase to reach Rs 1.18 lakh crore in Q3FY24, up from Rs 1.16 lakh crore in the previous year. Revenue from downstream petroleum activities contributed significantly to the overall income. HPCL's operating margin expanded by 22 basis points (bps) year-on-year, reaching 0.7% in Q3FY24 compared to 0.4% in the same period the previous year.

Additionally, domestic sales witnessed a 3% year-on-year increase, totaling 11.3 million metric tonnes (MMT) in Q3FY24, while exports experienced an 80% year-on-year surge, reaching 0.54 MMT during the quarter. Over the past year, HPCL's stock has shown remarkable growth, surging over 79%, outperforming the benchmark Sensex, which rose by only 17%.

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