January 30th 2024 Stock Market analysis

Sensex plummets 802 points, Nifty dips below 21,550 as markets in Red Zone

Amidst selling pressure in heavyweight stocks and sectors such as capital goods, power, and FMCG, the Indian equity benchmark retraced some of its prior session gains, closing lower in a volatile trading session on January 30. Investors exercised caution as they braced for the upcoming FOMC meeting, interim budget, and escalating tensions in the Middle East.

The blue-chip NSE Nifty 50 index experienced a 0.99% decline, closing at 21,522.10 points, while the S&P BSE Sensex dropped by 1.11% to settle at 71,139.90 points.

In today's NSE trading session, Tata Motors led the gainers with a 2.84% increase, trading at 864.9, followed by BPCL at 502.7 with a 2.04% profit, and Eichermot at 3707.75, up by 1.05%. On the downside, Bajfinance experienced the most significant decline, losing 5.10% to trade at 6825, trailed by Ultracemco at 9955.05 with a 3.10% loss, and Titan at 3749, down by 3.04%. ONGC emerged as the most actively traded stock by volume, with a trading volume of 5,14,91,099 shares.

‍Technical Outlook on 31st Jan

Nifty is likely to find immediate support levels near 21,368 followed by 21,214, with resistances anticipated at 21,677 and 21,831. Presently, Nifty shows a negative bias in its outlook.

For Bank Nifty, immediate support is projected around 45,131, then 44,895, while resistances are seen at 45,603 and 45,839. Bank Nifty is currently expected to trade in a mixed fashion.

Derivative Outlook on 31st 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 16.25 vs 15.68 (DoD) basis which shows increase in volatility.

The overall sentiment indicates a negative momentum for tomorrow's market trade.

‍Tata Motors Hits Record High, Surges 5% and Overtakes Maruti Suzuki in Market Capitalization Race

Tata Motors' shares surged by 5% to achieve an all-time high just ahead of its Q3FY24 results announcement, buoyed by robust Jaguar Land Rover (JLR) volumes and a strategic decision to increase prices for its passenger vehicles. With its market capitalization reaching Rs 3.159 lakh crore, surpassing that of Maruti Suzuki, the stock soared to Rs 885.95 on January 30, 2024. The upcoming announcement of Q3 results on February 2 adds anticipation to the company's performance. This surge is fueled by multiple factors, including the recent announcement of a 0.7% price hike for its passenger vehicles starting February 1, 2024, which encompasses electric vehicles as well. Moreover, Tata Motors' Jaguar Land Rover division witnessed a remarkable 27% YoY increase, selling 1.01 lakh wholesale units in Q3, marking the highest figure in the last 11 quarters.

Brokerages such as Morgan Stanley and Motilal Oswal have bestowed positive ratings upon the stock, highlighting the robust sales mix characterized by Range Rover, Ranger Rover Sport, and Defender, which collectively contribute to 62 percent of the wholesale volume.

‍