Newsletter: 24th January 2025

Mankind Pharma Faces Pressure

Aaj Ka Bazaar

Wall Street indices gained on Wednesday, driven by optimism surrounding President Donald Trump’s private-sector investment plan for AI infrastructure, which bolstered technology stocks. The S&P 500 rose by 0.61%, the Dow Jones Industrial Average climbed 0.30%, and the tech-heavy Nasdaq Composite climbed 1.28%. In the Asia-Pacific markets, stocks opened on a mixed note as investors reacted to varying regional economic data. Indian benchmark indices are expected to open slightly lower, as suggested by the GIFT Nifty trading marginally in the red, reflecting mixed global cues. On the stock-specific front, Bharat Petroleum Corporation Ltd. (BPCL) announced that its board has approved the submission of a development plan for the Nunukan block’s oil and gas reserves to the Indonesian regulator, with an estimated investment of $121 million. Additionally, BPCL’s board approved the formation of a joint venture with Praj Industries Ltd. to set up Compressed Bio Gas (CBG) plants across India.

Markets Around Us

BSE Sensex –76,318.43 (-0.11%)

Nifty 50 – 23,112.85 (-0.18%)

Bank Nifty – 48,568.45 (-0.32%)

Dow Jones – 44,1584.78 (0.01%)

Nasdaq – 20,015.54 (0.61%)

FTSE – 8,545.13 (-0.04%)

Nikkei 225 – 39,907.32 (0.65%)

Hang Seng – 19,821.26 (0.21%)

Sector: Pharmaceuticals

Mankind Pharma Falls 6% on Q3

Shares of Mankind Pharma dropped nearly 6% after the company reported a 16% year-on-year decline in net profit for the October-December quarter, falling to ₹385 crore due to higher expenses. The $1.6 billion acquisition of Bharat Serums and Vaccines (BSV), which began in October, also impacted profits. However, revenue rose 24% to ₹3,230 crore, supported by an increased market share in the domestic market from the BSV acquisition and leadership in gynae therapy. Despite the profit drop, the company’s EBITDA margin improved by 240 basis points to 25.8%, driven by a better product mix. Rising costs, including a significant jump in finance expenses and higher employee-related costs, weighed on the overall performance. At 9:51 am, the stock was trading at ₹2,515.25 on the NSE. Indian pharma companies, including Mankind Pharma, continue to grow due to strong domestic demand and new launches in specialty and chronic illness segments.

Why it Matters:

Mankind Pharma’s profit decline and rising expenses highlight the challenges of integrating large acquisitions like BSV while managing costs. Despite this, the revenue growth and improved EBITDA margin signal strong domestic demand and leadership in key segments. Traders should watch how the company balances growth and profitability in upcoming quarters.

 NIFTY 50 GAINERS

WIPRO – 314.45 (1.73%)

ULTRACEMCO – 10865.85 (1.61%)

TECHM – 1699.90 (0.95%)

 

NIFTY 50 LOSERS

HINDUNILVR – 2267.50 (-3.22%)

NESTLEIND – 2170.00 (-1.71%)

LT– 3483.60 (-0.98%)

Sector: Telecom

Indus Tower Gains on Strong Q3

Indus Towers’ stock after the company reported strong Q3 results, with net profit jumping 159.9% year-on-year to ₹4,003 crore, driven by overdue payments from Vodafone Idea and significant tower additions. Revenue increased 4.8% to ₹7,547 crore compared to the same quarter last year. The company’s average sharing factor per tower stood at 1.65, with net lean colocation additions reaching 132 during the quarter. Indus secured a dominant share of Vodafone Idea’s rollouts, indicating strong tenancy growth. Citi Research maintained a ‘buy’ rating with a target price of ₹485, expecting a 32% upside from the current price of ₹370, citing robust free cash flow and potential dividend payouts in the coming quarters. This performance reflects the company’s strong execution capabilities and strategic positioning in the telecom infrastructure space, making it a key stock to watch for both traders and investors.

Why it Matters:

Persistent Systems’ strong Q3 results highlight its solid growth trajectory, improved margins, and robust deal pipeline exceeding $1 billion. Despite mixed brokerage views, its ability to secure large deals and expand into new verticals showcases long-term potential. The stock’s surge indicates market confidence, making it a key player to watch in the IT sector.

Desh Duniya Bazaar

Around the World

Asian stocks mostly rose on Friday, following record highs on Wall Street and optimism over more economic support from China. Japan’s Nikkei 225 and TOPIX gained slightly despite the Bank of Japan hiking interest rates by 25 basis points, signaling more hikes ahead amid rising inflation and slower growth forecasts. Chinese markets also rose, supported by government policies encouraging investment in local equities, while Hong Kong’s Hang Seng rallied 1.7% on chipmaking stock gains. South Korea’s KOSPI gained 0.8% due to optimism over a U.S. artificial intelligence project. Australia’s ASX 200 added 0.5%, while Singapore’s market dipped after the central bank loosened monetary policy. Meanwhile, India’s Nifty 50 futures indicated a flat open near seven-month lows. Investors are also focused on next week’s U.S. Federal Reserve meeting, where rates are expected to remain unchanged. Chinese markets prepare for the Lunar New Year, with key PMI data due Monday.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,600

Nifty 50 – 23,102 (Pivot)

Support – 23,034, 22,913, 22,846

Resistance – 23,222, 23,290, 23,411

Bank Nifty – 48,526 (Pivot)

Support – 48,271, 47,819, 47,564

Resistance – 48,879, 49,234, 49,687

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 23rd January 2025

Polycab Bounces Back Strong

Aaj Ka Bazaar

Wall Street indices gained on Wednesday, driven by optimism surrounding President Donald Trump’s private-sector investment plan for AI infrastructure, which bolstered technology stocks. The S&P 500 rose by 0.61%, the Dow Jones Industrial Average climbed 0.30%, and the tech-heavy Nasdaq Composite climbed 1.28%. In the Asia-Pacific markets, stocks opened on a mixed note as investors reacted to varying regional economic data. Indian benchmark indices are expected to open slightly lower, as suggested by the GIFT Nifty trading marginally in the red, reflecting mixed global cues. On the stock-specific front, Bharat Petroleum Corporation Ltd. (BPCL) announced that its board has approved the submission of a development plan for the Nunukan block’s oil and gas reserves to the Indonesian regulator, with an estimated investment of $121 million. Additionally, BPCL’s board approved the formation of a joint venture with Praj Industries Ltd. to set up Compressed Bio Gas (CBG) plants across India.

Markets Around Us

BSE Sensex –76,318.43 (-0.11%)

Nifty 50 – 23,112.85 (-0.18%)

Bank Nifty – 48,568.45 (-0.32%)

Dow Jones – 44,1584.78 (0.01%)

Nasdaq – 20,015.54 (0.61%)

FTSE – 8,545.13 (-0.04%)

Nikkei 225 – 39,907.32 (0.65%)

Hang Seng – 19,821.26 (0.21%)

Sector: Cables-Electricals

Polycab Gains 3% After Strong Q3

Polycab India’s shares rose over 3% to ₹6,380 in early trade on January 23, bouncing back after a two-day losing streak, driven by its Q3 results. The company reported an 11% increase in net profit to ₹457.57 crore and a 20% rise in revenue to ₹5,226 crore compared to the same period last year, marking its highest-ever Q3 revenue. Despite slightly missing revenue estimates, its EBITDA exceeded expectations, supported by better margins in the wires and cables segment and reduced losses in the FMEG business. Brokerages like UBS, Citi, Jefferies, and Macquarie remain bullish on the stock, with price targets ranging from ₹7,537 to ₹9,220, citing its strong medium-term growth potential in capex and housing. Polycab has already exceeded its FY26 revenue goal and projects a steady revenue and profit growth trajectory. Shares are still down 15% year-to-date but show promising recovery signs.

Why it Matters:

Polycab India’s strong Q3 results and improved margins signal robust business performance, making it a promising stock for traders and investors. Major brokerages remain bullish with high target prices, indicating significant growth potential. Its success in exceeding revenue targets ahead of schedule highlights its leadership in the wires and cables market, despite near-term challenges.

 NIFTY 50 GAINERS

WIPRO – 314.45 (1.73%)

ULTRACEMCO – 10865.85 (1.61%)

TECHM – 1699.90 (0.95%)

 

NIFTY 50 LOSERS

HINDUNILVR – 2267.50 (-3.22%)

NESTLEIND – 2170.00 (-1.71%)

LT– 3483.60 (-0.98%)

Sector: Computers-software & Consulting

Persistent Jumps 7% Amid Mixed Review

Persistent Systems surged over 7%  after the company reported strong Q3 results, with a 15% sequential and 30% year-on-year rise in net profit to ₹372.99 crore. Revenue grew 6% QoQ and 23% YoY to ₹3,062.3 crore. The IT firm impressed with improved margins and a robust order pipeline exceeding $1 billion, backed by large deals in the energy sector. However, brokerages offered mixed views. Nuvama and Motilal Oswal are bullish, citing strong growth potential despite high valuations, with targets of ₹7,000 and above. Meanwhile, Nomura and HSBC took a cautious approach, highlighting valuation concerns but acknowledging steady deal wins. Citi remained bearish, raising its target to ₹5,000 but maintaining a sell rating due to stretched valuations. Despite the mixed outlook, Persistent’s strong execution and growth in non-healthcare verticals stand out, making it a stock to watch.

Why it Matters:

Persistent Systems’ strong Q3 results highlight its solid growth trajectory, improved margins, and robust deal pipeline exceeding $1 billion. Despite mixed brokerage views, its ability to secure large deals and expand into new verticals showcases long-term potential. The stock’s surge indicates market confidence, making it a key player to watch in the IT sector.

Desh Duniya Bazaar

Around the World

Most Asian markets rose on Thursday, led by gains in Japan and China. Japanese stocks, up 0.5%, gained ahead of an expected Bank of Japan rate hike, which is largely priced in, while inflation and PMI data are due Friday. Chinese markets rebounded, with the Shanghai Composite rising 0.7%, boosted by Beijing’s plans to direct state insurers to invest in local stocks, signaling more government support amid trade tariff challenges. South Korea’s KOSPI fell 0.9% on weak GDP data and profit-taking in tech stocks like SK Hynix, despite its record profits. Broader Asian markets saw mixed performance, with Australia’s ASX 200 falling 0.6% and Singapore’s Straits Times index gaining 0.6%. Wall Street futures cooled in Asian trade after a rally on Wednesday fueled by AI investment announcements and strong earnings, with the S&P 500 briefly hitting record highs.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,600

Nifty 50 – 23,102 (Pivot)

Support – 23,034, 22,913, 22,846

Resistance – 23,222, 23,290, 23,411

Bank Nifty – 48,526 (Pivot)

Support – 48,271, 47,819, 47,564

Resistance – 48,879, 49,234, 49,687

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 22nd January 2025

Cyient Investors Face Shock

Aaj Ka Bazaar

Wall Street indices were up on Tuesday, with the S&P 500 and the Dow reaching their highest levels in over a month, as investors reacted to Donald Trump’s initial actions as US president. His comments on international trade were perceived to be less aggressive than anticipated. The Dow Jones Industrial Average rose by 1.24%, the S&P 500 gained 0.88%, and the Nasdaq Composite gained 0.64%. In the Asian markets, most stocks advanced as Trump’s emphasis on boosting investment in AI improved the outlook for regional tech firms. After closing at their lowest levels since June, the Indian markets are expected to open on a slightly positive note, tracking global gains, as indicated by GIFT Nifty. On the stock-specific front, Adani Energy Solutions Ltd., India’s largest private transmission and distribution company, secured a Rs. 25,000 crores contract for the Bhadla (Rajasthan) to Fatehpur (Uttar Pradesh) HVDC transmission project. This marks its largest order win to date, boosting its order book to Rs. 54,761 crores and expanding its transmission network to 25,778 km with a transformation capacity of 84,186 MVA.

Markets Around Us

BSE Sensex –76,184.30 (0.46%)

Nifty 50 – 23,089.70 (0.28%)

Bank Nifty – 48,633.60 (0.13%)

Dow Jones – 44,084.07 (0.13%)

Nasdaq – 19,753.89 (0.63%)

FTSE – 8,548.29 (0.32%)

Nikkei 225 – 39,631.50 (1.57%)

Hang Seng – 19,836.29 (-1.36%)

Sector: Industrial Product

Cyient DLM Falls 12% on Q3 Weakness

Cyient DLM shares dropped 12% on January 22 after the company reported a steep decline in net profit and margins for the December quarter. At 9:35 AM, the stock was trading 10% lower at ₹533, extending its 18% loss over the past year, significantly underperforming the Nifty 50’s 3% drop. Consolidated net profit fell 30% sequentially and 40% year-on-year to ₹11 crore, while EBITDA margins dropped to 8.1% from 9.2% a year ago, impacted by higher costs from integrating Altek Electronics, a U.S.-based EMS company. However, revenue from operations grew to ₹444.2 crore in Q3FY25, up 38% year-on-year and 14% from the previous quarter, with EBITDA also rising to ₹35.9 crore. Despite revenue growth, higher expenses and shrinking margins have weighed on the stock, raising concerns among investors.

Why it Matters:

This matters because Cyient DLM’s sharp profit decline and shrinking margins raise concerns about cost management and future profitability, despite revenue growth. The stock’s significant underperformance against the market reflects reduced investor confidence. It highlights the impact of rising expenses from acquisitions on financial performance.

 NIFTY 50 GAINERS

APOLLOHOSP – 6939.90 (2.35%)

ULTRACEMCO – 10869.85 (2.31%)

WIPRO – 304.40 (1.38%)

 

NIFTY 50 LOSERS

ADANIENT – 2422.50 (-0.83%)

ONGC – 267.16 (-0.82%)

TRENT– 6042.00 (-0.79%)

Sector: Internet & Catalogue

Indiamart Slumps 10% on Weak Q3

Indiamart Intermesh shares fell 10% to ₹2,065 on January 21, despite a 47.6% YoY jump in Q3 net profit to ₹121 crore and a 16% rise in revenue to ₹354.3 crore. While EBITDA surged 61.4% to ₹138.3 crore, concerns emerged over a decline in paying subscribers for the first time since COVID and weak standalone collection growth of 8% YoY. Management’s guidance of sub-10% collection growth for future quarters, coupled with high customer churn and low retention, has raised doubts about medium-term growth. Brokerages like Nuvama and Nomura downgraded the stock, citing subdued collection trends and reduced profit estimates for FY25-27 by 4-13%. Nuvama set a target price of ₹1,970, while Nomura lowered it to ₹1,900. The stock has dropped 9% over the past three months, reflecting investor concerns over slow subscriber growth despite temporary boosts in profitability from reduced marketing costs.

Why it Matters:

This matters because Indiamart’s decline in paying subscribers and weak collection growth signal potential long-term challenges for its business model, despite strong profit and revenue numbers. Investor confidence is shaken as brokerages downgrade the stock, citing slow growth, high churn rates, and reduced medium-term profit expectations. These issues could impact its ability to sustain growth and compete effectively in a dynamic market.

Desh Duniya Bazaar

Around the World

Asian stocks rose on Wednesday, led by technology shares, after OpenAI announced a $500 billion partnership with major U.S. firms to build AI infrastructure, boosting demand for AI chips and tech equipment. Japan’s Nikkei 225 jumped 1.5%, while South Korea’s KOSPI and Taiwan’s TSMC gained as optimism around AI lifted chipmakers and tech stocks. However, Chinese markets lagged, with the Shanghai Composite down 0.8%, as U.S. President Trump hinted at imposing 10% tariffs on Chinese imports by February over fentanyl-related issues. This reignited trade war concerns, even as Chinese stimulus measures are expected. Meanwhile, Wall Street’s tech rally, driven by strong Netflix earnings, added positive momentum to most Asian markets, with Australia’s ASX 200 and Indian Nifty 50 futures also showing slight gains. However, Hong Kong’s Hang Seng fell 1.3%, reflecting caution amid ongoing trade uncertainties.

Option Traders Corner

Max Pain

Nifty 50 – 23,300

Bank Nifty – 50,000

Nifty 50 – 23,142 (Pivot)

Support – 22,858, 22,693, 22,409

Resistance – 23,308, 23,592, 23,757

Bank Nifty – 48,848 (Pivot)

Support – 48,153, 47,736, 47,041

Resistance – 49,265, 49,960, 50,340

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 21st January 2025

Eastern Growth for Hatsun Dairy

Aaj Ka Bazaar

The U.S. markets remained closed on Monday for the Martin Luther King Jr. Day holiday. Meanwhile, most Asia-Pacific markets were trading higher as U.S. President Donald Trump refrained from imposing trade tariffs during his inaugural speech and promised a “golden age” for America. However, oil prices declined following Trump’s plans to invoke emergency powers to boost domestic crude production, while holding off on tariffs that could have restricted supplies. Indian markets are expected to open on a subdued note, as indicated by GIFT Nifty.  On the stock-specific front, TCS, India’s largest IT company, has inaugurated a state-of-the-art delivery center in Toulouse, France. This facility aims to support clients in the aerospace, manufacturing, and defense sectors by leveraging advanced technologies such as artificial intelligence, generative AI, machine learning, and data analytics to deliver innovative, tailored solutions.

Markets Around Us

BSE Sensex –77,154.13 (0.10%)

Nifty 50 – 23,396.95 (0.22%)

Bank Nifty – 49,344.90 (-0.01%)

Dow Jones – 43,648.91 (0.37%)

Nasdaq – 19,627.01 (1.49%)

FTSE – 8,531.14 (0.30%)

Nikkei 225 – 38,902.50 (1.16%)

Hang Seng – 19,925.81 (1.72%)

Sector: Dairy Products

Hatsun Expands East with Milk Mantra

Hatsun Agro, a leading private dairy company, is acquiring Milk Mantra Dairy for ₹233 crore to expand its presence in Odisha and Eastern India. This acquisition aligns with Hatsun’s strategy to enter new markets, adding Milk Mantra’s ‘Milky Moo’ brand to its portfolio, which includes Arun, IBACO, Hatsun, and Arokya. Milk Mantra reported a turnaround in FY24, with ₹276 crore in revenue, ₹16.1 crore EBITDA, and ₹9.78 crore net profit, after recovering from a ₹12.3 crore loss in FY23. The deal strengthens Hatsun’s foothold in North Andhra Pradesh and potential markets like West Bengal. This move reflects a growing trend of expansion in India’s dairy industry, as companies like Danone also invest heavily in facilities and training programs to improve milk production and farmer income. For traders, this signals Hatsun’s focus on long-term growth by leveraging complementary businesses and targeting broader market opportunities.

Why it Matters:

This acquisition helps Hatsun Agro expand into the high-potential markets of Odisha and Eastern India, boosting its regional presence. Adding the ‘Milky Moo’ brand enhances Hatsun’s product portfolio, offering growth opportunities in dairy consumption. For traders, it signals Hatsun’s strategic focus on scaling operations and strengthening market position in India’s evolving dairy sector.

 NIFTY 50 GAINERS

APOLLOHOSP – 6939.90 (2.35%)

ULTRACEMCO – 10869.85 (2.31%)

WIPRO – 304.40 (1.38%)

 

NIFTY 50 LOSERS

ADANIENT – 2422.50 (-0.83%)

ONGC – 267.16 (-0.82%)

TRENT– 6042.00 (-0.79%)

Sector: Quick-commerce

Blinkit Expansion Pressures Zomato

Zomato’s Q3 earnings took a hit due to aggressive investments in expanding Blinkit, its quick commerce business, leading to higher costs and squeezing profits. The company’s net profit dropped 57% to ₹59 crore, down from ₹138 crore last year, despite a 22% growth in food delivery revenue and a twofold increase in Blinkit’s revenue. Shares plunged 9% in a single session, reflecting investor concerns over rising losses. However, brokerages like Nomura, Jefferies, and Bernstein remain optimistic about Blinkit’s long-term potential, highlighting strong execution and market positioning. While upfront costs for expanding Blinkit’s dark store network are impacting short-term profitability, analysts believe this will drive higher growth and profits as the new stores mature. Zomato aims to double Blinkit’s store count to 2,000 by December 2025, which could strengthen its position in the competitive quick commerce market, even as it delays profitability in the near term.

Why it Matters:

Zomato’s aggressive Blinkit expansion shows its focus on dominating the growing quick commerce market. While short-term profitability is under pressure, analysts see long-term growth potential as new stores mature. For traders, this signals a balance of near-term risks with promising future returns.

Desh Duniya Bazaar

Around the World

Asian stocks traded mixed as investors reacted to U.S. President Donald Trump’s initial policies, with no tariffs imposed on China, Mexico, or Canada on his first day in office, though he signaled potential future duties, including a 25% tariff on imports from Canada and Mexico. Markets remained volatile as Trump emphasized an “America First” trade policy, raising concerns about global trade disruptions and a potential trade war. Chinese and Hong Kong markets saw slight declines, while Australia’s ASX 200 gained, and South Korea’s KOSPI fell modestly. Japan’s Nikkei was muted ahead of a Bank of Japan meeting, where potential interest rate hikes could pressure markets but signal confidence in domestic economic growth. Amid uncertainty, China may boost economic stimulus to counter any trade war impacts, offering some optimism for regional growth.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,000

Nifty 50 – 23,302 (Pivot)

Support – 23,213, 23,081, 22,922

Resistance – 23,433, 23,522, 23,654

Bank Nifty – 49,228 (Pivot)

Support – 48,806, 48,261, 47,839

Resistance – 49,773, 50,193, 50,740

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Weekly Report: 20th January 2025

Weekly Trend Report

Week Gone By

The equity indices saw significant losses during the week. The BSE Sensex slumped by 759.58 points to 76,619.33, while the Nifty 50 tumbled 228.30 points, reaching 23,203.20. In India, CPI inflation eased to 5.22% in December. India’s industrial growth rose to a six-month high of 5.2%. However, foreign exchange reserves declined by $5.7 billion, and wholesale price inflation increased to 2.37%, driven by a rise in manufactured goods. Globally, China’s exports and imports exceeded expectations in December, while its economy grew 5% in 2024, with industrial production and retail sales showing notable gains. In the US, nonfarm payrolls rose by 256,000 in December, and the unemployment rate fell to 4.1%, despite a slight rise in unemployment claims.

Week Ahead

Next week, investor sentiment will be influenced by a mix of domestic and global factors, including key economic data releases, India’s Composite, Manufacturing, and Services PMI for January will be released on January 24, along with the Union Budget and corporate earnings from major companies. Globally, market attention will be on the inauguration of the 47th US President, Donald Trump, on January 20, along with key data releases from Japan, including the balance of trade and inflation data on January 23 and 24. Additionally, US existing home sales data for December will be released on January 24.

Technical Overview
  • The Nifty50 index began the trading week under continued selling pressure from the previous week, reaching a weekly low of approximately 23047, establishing a crucial pivotal support level.
  • The index fluctuated within a range of 344 points and concluded the week on an uncertain note, raising questions about the persistent selling trend, which can be viewed as a minor positive development.
  • Notably, the week ended with a 5.6% increase in the VIX, reaching levels of 15.7.
  • Despite most broader and sectoral indices remaining in a downtrend, many experienced an improvement in negative momentum, which is a positive sign.
  • From a market breadth perspective, the past week showed signs of improvement amidst ongoing oversold market conditions.
  • Although the percentages of stocks trading above the 10, 20, 50, and 200 DMA levels are below the median, they demonstrated positive trends as the week progressed, indicating a buildup of strength in the intermediate trend following extreme oversold conditions.
  • However, the sustained presence of over 50% of stocks trading below their 200 DMA could invite further selling pressure, warranting a cautious approach.
  • The momentum market breadth started this week with a heavily oversold red day, followed by a technical reversal, although this reversal was not robust enough to suggest a transition from a no-money market to a hard-money market.
  • Technically, the index is currently situated in a no-trade zone, with immediate resistance around 23430-23340 and support near 23060-23000.
  • Movement beyond this boundary could provide a clearer directional bias. The overall swing confidence of the market remains low, indicating that portfolios should refrain from taking any open permissible risks at this time.

To view the detailed report click here to   Download 

Newsletter: 20th January 2025

Dixon Shares in Focus

Aaj Ka Bazaar

Wall Street indices ended in the positive territory, marking their best weekly performance since the U.S. presidential election in November. The S&P 500 rose 1.00%, the Dow Jones Industrial Average rose 0.78%, and the Nasdaq climbed 1.51%. This positive momentum carried into Asia-Pacific markets, which opened higher following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration.  Tracking gains from global markets, Indian benchmark indices are expected to open on a positive note, which is also indicated by GIFT Nifty trading higher.  On the stock-specific front, Gland Pharma received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (US FDA) for its Pashamylaram facility in Hyderabad, signaling the closure of the inspection. The Good Manufacturing Practices (GMP) inspection at this facility was conducted by the US FDA from July 25 to August 2, 2024.

Markets Around Us

BSE Sensex –76,978.53 (0.47%)

Nifty 50 – 23,290.00 (0.38%)

Bank Nifty – 48,834.15 (0.60%)

Dow Jones – 43,487.58 (0.01%)

Nasdaq – 19,627.01 (1.49%)

FTSE – 8,505.22 (1.33%)

Nikkei 225 – 38,890.20 (1.13%)

Hang Seng – 19,996.28 (2.11%)

Sector: Consumer Electronics

Dixon Signs MoU to Acquire Assets

Dixon Technologies’ share price will attract attention on January 20 as the company moves forward with acquiring land and assets from KHY Electronic India. The acquisition will include land, buildings, machinery, and other assets for up to Rs 133 crore, excluding taxes. The deal will be executed through Dixon’s subsidiary, IsmartU India, which has signed a binding Memorandum of Understanding (MoU) with KHY Electronic. In addition, Dixon’s board of directors will meet on January 20 to review and approve the company’s unaudited financial results for the quarter and nine months ending December 31, 2024. Research firm Emkay recently initiated coverage of the stock with a “buy” rating and a target price of Rs 20,000. Dixon’s share price has fluctuated recently, touching a 52-week high of Rs 19,149.80 in December and a low of Rs 5,785 in January, 2024. The stock is currently trading 10% below its 52-week high.

Why it Matters:

The acquisition of assets from KHY Electronic boosts Dixon Technologies’ growth prospects, potentially enhancing its manufacturing capacity. The company’s upcoming financial results and positive coverage from Emkay could influence investor sentiment. With recent price fluctuations, market attention is high on Dixon’s future performance.

 NIFTY 50 GAINERS

BPCL – 274.05 (2.68%)

RELIANCE – 1300.00 (2.65%)

COALAINDIA – 388.40 (2.52%)

 

NIFTY 50 LOSERS

INFY – 1817.50 (-5.73%)

AXISBANK – 992.00 (-4.43%)

SHRIRAMFIN– 526.50 (-3.71%)

Sector: Hotels & Resorts

Indian Hotels Shares Drop Despite Strong Earnings

Shares of The Indian Hotels Company (IHCL) dropped 3% to Rs 789 on January 20 despite reporting strong financial results for the October-December quarter of FY25. The company posted a 29% year-on-year increase in net profit, reaching Rs 582.32 crore, with revenue from operations rising nearly 29% to Rs 2,533.05 crore. IHCL’s earnings per share (EPS) for the quarter was Rs 4.09, and total income climbed 29% to Rs 2,591.73 crore. EBITDA also rose by 27%. Jefferies maintained a “Buy” rating on the stock with a target price of Rs 1,000, citing a positive outlook for demand, supported by large events, weddings, and travel. Despite the share price dip, IHCL’s performance remains strong, with a 76% return over the past year, significantly outperforming the Nifty index. The company also plans to reach 700 hotels by 2030, further indicating long-term growth potential.

Why it Matters:

Despite strong earnings and positive outlook, IHCL’s share price fell 3%, indicating market uncertainty. The company’s robust growth, with a 76% return over the past year, suggests potential for long-term gains. Investors are focused on future demand drivers, including large events and travel.

Desh Duniya Bazaar

Around the World

Most Asian stocks rose on Monday, driven by optimism that U.S. President-elect Donald Trump may soften his stance on China. Japanese and Hong Kong stocks led the gains, with the Nikkei 225 and Hang Seng indexes rising 1.5% and 1.6%, respectively. There was speculation that Trump might not impose harsh tariffs on China, as he did not mention tariffs during a recent rally. However, concerns remain about his plans for trade, with reports suggesting he could still sign executive orders, including higher tariffs. Chinese markets rose as the People’s Bank of China kept interest rates unchanged and continued stimulus measures. Despite this, there are concerns about the potential impact of U.S. tariffs on China’s economy, especially on exports and the property market. Broader Asian markets were mostly higher, though caution remained ahead of Trump’s inauguration and key economic data this week.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,000

Nifty 50 – 23,198 (Pivot)

Support – 23,105, 23,006, 22,913

Resistance – 23,296, 23,390, 23,488

Bank Nifty – 48,632 (Pivot)

Support – 48,217, 47,894, 47,479

Resistance – 48,955, 49,370, 49,93

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 17th January 2025

Indus Towers: Investment Opportunity

Aaj Ka Bazaar

The US market reversed its earlier gains and closed in the red as big tech stocks weighed on the overall performance. Asia-Pacific stocks traded mixed. Global markets opened on a cautious note as investors await key economic data from China, which is December industrial output and retail sales figures, along with fourth-quarter GDP data. Gift Nifty indicates a weak start for the Indian markets which are expected to react to the mixed global cues and Q3 earnings on the last day of the week. On the stock front, BPCL will remain in focus as the company has signed a loan agreement worth Rs 31,802 crore with a consortium of lenders led by the State Bank of India. The funds will be used to finance planned projects at Bina.

Markets Around Us

BSE Sensex –76,594.28 (-0.58%)

Nifty 50 – 23,258.00 (-0.23%)

Bank Nifty – 48,666.00 (-1.24%)

Dow Jones – 43,230.58 (0.18%)

Nasdaq – 19,349.34 (-0.83%)

FTSE – 8,391.90 (1.08%)

Nikkei 225 – 38,359.20 (-0.55%)

Hang Seng – 19,556.91 (0.57%)

Sector: Telecom

Indus Tower: 62% Upside, Outperform List

CLSA, a Hong Kong-based brokerage, has added Indus Towers Ltd. to its ‘high conviction’ list, signaling strong confidence in the stock’s potential. The firm raised its rating on the company, setting a target price of Rs 575 per share, which suggests a 62% upside from its current price of Rs 358.6. This positive outlook comes after the company received Rs 1,900 crore from Vodafone Idea, helping reduce overdue payments by over 70%. CLSA believes this improves the company’s financial position, with a solid outlook for 4G/5G investments. The company is expected to see a 10% growth in EBITDA, strong cash flow, and a 7% free cash flow yield by FY27. Additionally, there is optimism about the return of dividends in FY25, as Vodafone Idea’s financial health improves. Indus Towers’ stock has risen 70% over the past year, significantly outperforming the Nifty 50 index.

Why it Matters:

CLSA’s bullish outlook on Indus Towers signals strong potential for significant stock growth, with a 62% upside. The company’s improved financials, driven by reduced dues from Vodafone Idea, support continued investment and cash flow growth. This adds confidence to Indus Towers’ future profitability and dividend prospects.

 NIFTY 50 GAINERS

BPCL – 273.80 (2.59%)

HINDALCO – 616.20 (2.26%)

REILANCE – 1293.15 (2.11%)

 

NIFTY 50 LOSERS

AXISBANK – 985.05 (-5.10%)

INFY – 1830.25 (-5.09%)

ICICIBANK– 1229.30 (-1.59%)

Sector: IT

Infosys Shares Drop 6% Amid Uncertainty

Infosys shares fell 6% on January 17, following a nearly 6% drop in its American Depository Receipts (ADRs) on the NYSE. While the company’s Q3 results exceeded expectations, it revised its revenue growth forecast for FY25 to 4.5-5%, signaling potential weakness in Q4. Analysts raised concerns about possible seasonal declines, with BoFA Securities predicting a 1% drop in Q4 revenue. The company also faces uncertainty over the impact of wage hikes, which could affect margins in Q4 FY25 and Q1 FY26. Despite these concerns, Infosys reported a 4.6% rise in net profit for Q3, a slight increase in revenue, and strong deal wins, including a $2.5 billion contract. Additionally, there was optimism about increased spending in key sectors like financial services in Europe and retail in the US. Investors remain cautious due to the Q4 forecast and wage hike uncertainty, impacting the stock’s performance.

Why it Matters:

Infosys’ weak Q4 outlook and wage hike uncertainty have caused concerns, leading to a 6% drop in shares. Despite strong Q3 results and deal wins, analysts are cautious about potential seasonal revenue declines. The market is closely watching margin impacts from upcoming wage hikes.

Desh Duniya Bazaar

Around the World

Most Asian stocks rose on Friday, mainly driven by strong economic data from China, including better-than-expected GDP growth and industrial production in the fourth quarter of 2024. China’s stock markets, like the CSI 300 and Shanghai Composite, gained 0.5% and 0.4%, respectively. Retail sales in December also saw a strong increase, helping boost investor sentiment. Other Asian markets, such as the Philippines and Indonesia, followed suit with gains. However, Japanese stocks, including the Nikkei 225, dropped over 1% due to concerns about a possible interest rate hike by the Bank of Japan next week. The upcoming interest rate decision in Japan is closely watched, with some expecting a hike if economic conditions continue to improve. Regional markets were cautious ahead of U.S. President-elect Donald Trump’s inauguration, given his trade tariff threats, which may lead to a trade war with China. India’s Nifty 50 and South Korea’s KOSPI both saw slight declines.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,000

Nifty 50 – 23,325 (Pivot)

Support – 23,258, 23,205, 23,139

Resistance – 23,378, 23,444, 23,497

Bank Nifty – 49,258 (Pivot)

Support – 49,058, 48,838, 48,637

Resistance – 49,478, 49,679, 49,889

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 16th January 2025

CEAT Reports Disappointing Q3

Aaj Ka Bazaar

The US market surged on account of easing inflation, which increased the possibility of a rate cut by the Federal Reserve. Asian markets followed these trends and advanced on Thursday. Gift Nifty, trading higher today indicates a positive start for the Indian benchmark indices, in line with the global trend. However, FII remains a net seller in the Indian market on Wednesday. The key highlight of the day will be the Q3 earnings performance of major players like Infosys, Reliance Industries Limited and Axis Bank.

Markets Around Us

BSE Sensex –77,147.95 (0.55%)

Nifty 50 – 23,340.25 (0.55%)

Bank Nifty – 49,244.75 (1.01%)

Dow Jones – 43,306.30 (0.20%)

Nasdaq – 19,510.62 (2.45%)

FTSE – 8,301.13 (1.20%)

Nikkei 225 – 38,577.17 (0.34%)

Hang Seng – 19,460.21 (0.90%)

Sector: Tyres & Rubber

CEAT Q3 Results Disappoint, Shares Plunge

CEAT’s shares dropped by over 7% on January 16 after the company reported a 46.5% year-on-year decline in net profit for Q3 FY25, falling to Rs 97.1 crore from Rs 181.5 crore in the same quarter last year. Although the company’s revenue grew by 11.4% to Rs 3,299.9 crore, operating profit (EBITDA) dropped by 18.3%, with the margin narrowing from 14.1% to 10.3%. The decline in profit was mainly due to rising raw material costs, although price hikes and cost control efforts helped offset some of the impact. Despite the challenges, the company reported strong growth in the replacement segment and maintained a stable order pipeline. CEAT also plans to invest Rs 400 crore to expand its Butibori plant in Nagpur, which will increase production by 30% by 2027. Shares fell by 6.5% in early trade and have dropped nearly 9% over the past week.

Why it Matters:

CEAT’s profit decline and shrinking margins signal financial stress, impacting investor confidence. Despite revenue growth, rising raw material costs and lower profitability could pressure future performance. The stock’s sharp drop reflects market concern over sustained profitability and growth prospects.

 NIFTY 50 GAINERS

HDFCLIFE – 644.75 (8.51%)

ADANIENT – 2512.35 (5.20%)

SBILIFE – 1526.70 (3.66%)

 

NIFTY 50 LOSERS

HINDUNILVR – 2351.55 (-0.90%)

TATACONSUM – 949.50 (-0.63%)

CIPLA– 1438.10 (-0.63%)

Sector: Life Insurance

HDFC Life Surges 10% on Strong Q3

HDFC Life’s shares surged 10% on January 16 after the company reported better-than-expected Q3 results for the October-December period. Its net profit rose 14% year-on-year to Rs 415 crore, and net premium income grew 10% to Rs 16,771 crore. Key metrics like Annualised Premium Equivalent (APE) and the Value of New Business (VNB) exceeded market expectations, increasing 15.5% and 17.8% respectively. Brokerages remain optimistic, with HSBC and Jefferies both maintaining ‘buy’ ratings and target prices of Rs 750, citing strong margins and new customer acquisition as drivers of future growth. However, CLSA lowered its target price to Rs 690, noting slower growth and uncertainty over regulatory changes. Despite the concerns, HDFC Life’s healthy performance in a challenging environment has led to a strong market reaction, with shares up nearly 10% in early trading.

Why it Matters:

HDFC Life’s strong Q3 results boost investor confidence, driving a 10% share price jump. Key metrics surpassed expectations, signaling healthy growth potential. Brokerages remain bullish, supporting a positive outlook despite regulatory uncertainties.

Desh Duniya Bazaar

Around the World

Asian stocks saw a sharp rise on Thursday, driven by a positive reaction to softer U.S. inflation data. Markets gained after a strong rally in Wall Street, with U.S. futures steady in Asia. The focus now shifts to Japan’s Bank of Japan (BOJ) meeting next week, with possible rate hikes if the economy continues improving. Japan’s Nikkei 225 rose 0.4%, but a stronger yen weighed on the index, as it can hurt exporters’ profits. Australia’s S&P/ASX 200 jumped 1.4%, boosted by strong job market data. In China, markets were more cautious ahead of key economic data, including GDP and industrial production figures, due on Friday. South Korea’s KOSPI gained 1.2%, despite the Bank of Korea deciding to hold interest rates steady at 3.00%, against expectations of a cut due to ongoing political unrest. Overall, the market’s optimism was fueled by hopes of slower inflation and potential rate cuts in major economies.

Option Traders Corner

Max Pain

Nifty 50 – 23,300

Bank Nifty – 50,000

Nifty 50 – 23,217.77 (Pivot)

Support – 23,141, 23,070, 22,994

Resistance – 23,289, 23,364, 23,436 

Bank Nifty – 48,785 (Pivot)

Support – 48,488, 48,224, 47,926

Resistance – 49,049, 49,347, 49,610

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 15th January 2025

Reliance Earnings: Mixed Outlook

Aaj Ka Bazaar

The US markets ended on a mixed note, awaiting inflation data that will clarify the expected path for policy easing that the Federal Reserve will adopt. Asian markets followed this trend and traded on a mixed note. Gift Nifty, trading marginally higher today, indicates a positive start for the Indian benchmark indices. However, the markets will remain under pressure and may follow the global trend due to third-quarter earnings from companies, which will provide a sense of direction for the economy while awaiting the Budget 2025 and the Reserve Bank of India’s policy meeting next month and continued selling by foreign portfolio investors. On the stock front, Indian Railway Finance Corp. will remain focused as the company has been selected as the lowest bidder to finance Rs 3,167 crore for developing a coal block in Jharkhand. This project is being executed by Patratu Vidyut Utpadan Nigam Ltd., a joint venture between NTPC Ltd. and Jharkhand Bijli Vitran Nigam Ltd.

Markets Around Us

BSE Sensex –76,669.58 (0.22%)

Nifty 50 – 23,199.05 (0.01%)

Bank Nifty – 48,775.50 (0.10%)

Dow Jones – 42,566.28 (0.12%)

Nasdaq – 19,022.53 (-0.34%)

FTSE – 8,201.54 (-0.28%)

Nikkei 225 – 38,494.33 (0.05%)

Hang Seng – 19,264.46 (0.23%)

Sector: Refineries

Reliance Q3 FY25 Profit, Margin Growth

Reliance Industries is set to report its Q3 FY25 results on January 16, with analysts expecting a mixed performance. Strong growth is expected in telecom earnings, refining margins, and moderate retail growth. Net profit is forecasted to rise 6% sequentially to Rs 17,482 crore, while EBITDA is anticipated to grow by 5% to Rs 41,125 crore. Key drivers include improved refining margins, higher digital service tariffs, and a stable performance from Jio, which is expected to show a 17% year-on-year rise in EBITDA. Retail growth is expected from increased consumer activity, though there are some challenges in the B2B segment. However, petrochemical margins are expected to remain under pressure. Analysts will focus on refining margins, Jio’s performance, retail recovery, and future plans for reducing debt and capital spending. Investors will also watch for updates on Jio’s potential IPO and overall market outlook.

Why it Matters:

Reliance Industries’ Q3 results are crucial as they highlight performance in key sectors like telecom, refining, and retail. Strong growth in telecom and refining could boost overall profits, while challenges in petrochemicals and retail provide a mixed outlook. Investor focus will be on margin sustainability, debt reduction, and potential Jio IPO developments.

 NIFTY 50 GAINERS

NTPC – 322.05 (3.75%)

MARUTI – 12071.00 (2.81%)

POWERGRID – 295.60 (1.84%)

 

NIFTY 50 LOSERS

BAJAJFINANCE – 7164.40 (-2.33%)

BAJAJFINSV – 1675.20 (-2.24%)

SHRIRAMFIN– 532.80 (-2.08%)

Sector: Financial Institution

IRFC Shares Rise 4% on Bid Win

Indian Railway Finance Corporation Ltd (IRFC) saw its shares rise 4% to Rs 140.5 on January 15 after the company announced it was the lowest bidder for a Rs 3,167 crore financing project for the development of the Banhardih coal block in Jharkhand. The project, led by Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a joint venture between NTPC and Jharkhand Bijli Vitran Nigam, will ensure a steady coal supply for PVUNL’s operations. IRFC will fund the development, which is still subject to due diligence and final approvals. Additionally, IRFC recently signed a Memorandum of Understanding with Railway Energy Management Company Ltd (REMCL) to support renewable energy projects for Indian Railways, aiming to reduce reliance on fossil fuels. Despite a 15% drop in the last month, IRFC’s share price saw a recovery, reflecting positive market sentiment following these developments.

Why it Matters:

IRFC’s 4% share rise reflects its role as the lowest bidder for a major Rs 3,167 crore coal project, signaling strong business growth. The partnership with PVUNL ensures steady revenue from the Banhardih coal block. Additionally, IRFC’s focus on renewable energy projects aligns with Indian Railways’ sustainability goals, boosting investor confidence.

Desh Duniya Bazaar

Around the World

Most Asian stocks saw small gains on Wednesday, following an overnight rise in U.S. markets, but investors remained cautious ahead of key U.S. inflation data. U.S. stock index futures were higher, and market attention was focused on the upcoming Consumer Price Index (CPI) report, which could influence the Federal Reserve’s interest rate decisions for 2025. While Japan’s Nikkei 225 and TOPIX indexes rose, Australia’s S&P/ASX 200 remained mostly unchanged. Chinese and Hong Kong stocks showed mixed results, while other Asian markets like Thailand, Singapore, and Malaysia saw declines. Investors are also awaiting key economic data from China, including full-year GDP figures, industrial production, and retail sales, which are expected on Friday. Meanwhile, South Korea’s KOSPI index rose slightly, with expectations of a rate cut from the Bank of Korea to support the economy. Overall, markets were uncertain, influenced by the Fed’s hawkish stance and political developments in South Korea.

Option Traders Corner

 Max Pain

Nifty 50 – 23,300

Bank Nifty – 50,000

Nifty 50 – 23,191 (Pivot)

Support – 23,118, 23,060, 22,987

Resistance – 23,249, 23,322, 23,380

Bank Nifty – 48,657 (Pivot)

Support – 48,307, 47,885, 47,534

Resistance – 49,079, 49,429, 49,851

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad

Newsletter: 14th January 2025

CEO Succession Plan Worries

Aaj Ka Bazaar

The US market ended on a mixed note, with the Dow posting a gain while the Nasdaq declined, as investors shifted their focus away from tech stocks, which saw the most significant declines during the session. Following this trend, Asia-Pacific markets also traded mixed. GIFT Nifty is trading on a positive note, indicating a positive start for Indian benchmark indices, which is expected to react to retail inflation data that declined to 5.22% in December, owing to a decline in food inflation, boosting the possibility of an interest rate cut. FPIs remained net sellers on Monday. Investors will focus on the release of December WPI data later today. Furthermore, investors will continue to monitor India’s rupee, which weakened to a record low against the US dollar. On the stock front, BEL will remain in focus as the company has received work orders totalling Rs 561 crore, with major orders including communication equipment, electro-optics, upgrades for the satcom network, radar and fire control systems, spares, services, and more.

Markets Around Us

BSE Sensex -76,569.84 (0.32%)

Nifty 50 – 23,156.50 (0.31%)

Bank Nifty – 48,555.65 (1.07%)

Dow Jones – 42,298.12 (0.01%)

Nasdaq – 19,087.82 (-0.39%)

FTSE – 8,224.19 (-0.30%)

Nikkei 225 – 38,371.13 (-2.09%)

Hang Seng – 19,141.13 (1.39%)

Sector: Breweries

Macquarie's underperform Call Hits United Spirits

United Spirits’ shares dropped by more than 4% to Rs 1,411 on January 14 after the company announced a leadership change as part of its CEO succession plan. Macquarie analysts gave the stock an “underperform” rating with a target price of Rs 1,175, suggesting a potential 16% decline. Hina Nagarajan, the current CEO, will step down on March 31, 2025, after four years in the role and will take on a new position within the Diageo Group. Praveen Someshwar, who is currently the CEO of HT Media and has a long career at PepsiCo, will take over as CEO starting April 1, 2025. The smoothness of this leadership transition will be closely watched by investors. Over the past week, United Spirits’ shares have fallen by more than 13%, significantly underperforming the Nifty 50 index, which has only dropped by 2%.

Why it Matters:

The leadership change at United Spirits raises uncertainty about its future, which could negatively affect stock performance. Macquarie’s “underperform” rating with a target price of Rs 1,175 suggests further downside potential. This uncertainty, combined with recent share price declines, signals potential risk for investors.

 NIFTY 50 GAINERS

ADANIENT – 2351.95 (5.70%)

INDUSINDBK – 976.00 (3.64%)

NTPC – 308.75 (3.54%)

 

NIFTY 50 LOSERS

HCLTECH – 1810.80 (-8.98%)

TECHM – 1643.80 (-1.50%)

HINDUNILVR– 2421.60 (-1.20%)

Sector: IT

HCLTech Stock Drops 9% on Weak Guidance

HCLTech’s stock dropped more than 9% on January 14 after the company released its Q3 results. While the company met earnings expectations, a small increase in its revenue growth forecast raised concerns about weaker growth in the coming quarter. HCLTech revised its revenue growth forecast for fiscal year 2025 to 4.5-5%, up from the previous 3.5-5% range, but analysts were disappointed by the forecast’s suggestion of a slower Q4. This was mainly due to a planned reduction in a large telecom deal and delays in some discretionary projects. Despite some positive news, such as higher profit and expanding margins in Q3, the revised guidance pointed to a weaker Q4 exit. Brokerages expressed concern about slower growth in the upcoming quarter, especially since HCLTech had been seeing increased demand in certain areas. As a result, the stock faced a significant decline.

Why it Matters:

HCLTech’s revised growth guidance signals potential weakness in Q4, which disappointed investors. The company’s 9% stock drop reflects concerns about slower growth despite positive Q3 results. This update raises uncertainty for future performance, affecting investor sentiment.

Desh Duniya Bazaar

Around the World

Asian stocks were mixed on Tuesday. Chinese shares surged, with the Shanghai Composite and CSI 300 indices rising on reports that Donald Trump’s economic team is considering a gradual increase in U.S. tariffs. The plan could raise tariffs by 2% to 5% each month, aiming to improve negotiations without causing too much inflation. However, Japanese stocks took a hit, with the Nikkei dropping 1.7% as markets adjusted their expectations for fewer U.S. interest rate cuts in 2025 after stronger-than-expected payroll data. Investors are now focused on upcoming key economic data, including China’s GDP, industrial production, and retail sales figures for December. In South Korea, there is speculation about a possible interest rate cut due to political and economic struggles. Overall, Asian markets are under pressure from the expectation that the U.S. Federal Reserve will be less aggressive with rate cuts this year, which has impacted investor sentiment across the region.

Option Traders Corner

Max Pain

Nifty 50 – 23,350

Bank Nifty – 50,000

 

Nifty 50 – 23,158 (Pivot)

Support – 22,975, 22,864, 22,681

Resistance – 23,268, 23,451, 23,562

 

Bank Nifty – 48,181 (Pivot)

Support – 47,757, 47,473, 47,049

Resistance – 48,465, 48,889, 49,173

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest Brand Ad