January 29th 2024 Stock Market analysis

Nifty and Sensex Surge During Budget Week

Indian equity indices rebounded strongly from the previous session's losses and kicked off the Budget week on a solid note on January 29, with both the Nifty and Sensex surging nearly 2 percent each.

By close, the Sensex had soared by 1,240.90 points or 1.76 percent to reach 71,941.57, while the Nifty had climbed 385.00 points or 1.80 percent to 21,737.60.

Among the top gainers in the NSE Nifty today were ONGC, trading at 251.9 with a remarkable 7.63% increase, followed by Reliance at 2895.1 with a 6.98% rise, and CoalIndia at 413.8 with a 6.27% uptick. Conversely, the top losers included Cipla, which traded at 1335.4 with a significant 2.50% loss, ITC at 450.9 with a 1.04% decline, and LTIM at 5447.1 with a 0.87% decrease. HDFC Bank emerged as the most active stock by value, trading at 1455.85 with a whopping 4,49,810.48 traded volume.

Buoyed by positive sentiment in Asian markets, the Indian equity indices began the day on a robust footing. As trading progressed, the Sensex and Nifty breached the 72,000 and 21,750 marks, respectively, before settling near their day’s peak levels.

Technical outlook on 30th January 

Nifty is likely to find immediate support levels near 21,654 followed by 21,570, with resistances anticipated at 21,820 and then 21,903. Currently, profit booking is expected at higher levels in the Nifty.

Bank Nifty is expected to encounter immediate support around 45,168, followed by 44,894, while resistances are projected at 45,716 and then 45,853. Presently, Bank Nifty is poised for a mixed trading session.

Derivative Outlook on 30th 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 FEB month contract has ended in low compare with MARCH contract and low range compare with previous session which indicates a profit booking from higher levels.

India VIX Analysis: India VIX has closed at 15.68 vs 13.87 (DoD) basis which shows decrease in volatility.

‍Reliance Industries (RIL) Surges to Record High: Market Cap Soars to Rs 19.2 Lakh Crore

Reliance Industries has clinched the title of the most valued company in the Indian stock market as its market capitalization soared past ₹19 lakh crore. Today, the company's shares reached an all-time high, propelling its market capitalization to this historic milestone for the first time. This month alone, the stock has surged by 8%, following a 9% increase in December and a 4% rise in November of last year. Since 2015, Reliance shares have consistently delivered positive returns, with an overall gain of 11.5% in 2023. Currently, the Relative Strength Index (RSI) for the stock stands at 68, just below the 70 mark. A crossing of this threshold would push the stock into overbought territory.

Reliance's remarkable performance coincides with the company reporting a net profit of ₹17,265 crore for the December quarter. Notably, the Oil & Gas business reported a record quarterly EBITDA, with margins expanding to 86% from 70% in the previous quarter. Emkay Global Financial Services commented, “Reliance reported largely in-line earnings during the third quarter of FY24. O2C and Jio EBITDA both saw a slight miss on our estimate, which was offset by better Upstream (due to lower opex) and in-line Retail."

At present, shares of Reliance Industries are trading 6.80% higher at ₹2,890.10. By 3:30 pm. 

‍