Market Outlook: January 31’ 2025

Market Outlook: January 31’ 2025

US equities ended higher despite mixed corporate earnings and slightly weaker-than-expected GDP data. European markets advanced as the ECB cut interest rates for the fifth time since June, citing easing inflation and sluggish eurozone growth. Asian markets opened on a mixed note, while GIFT Nifty indicates a flat start.


Domestically, Nifty’s Jan-Feb rollover stood at 81%, surpassing the three-month average of 76%. Nifty witnessed intraday volatility but closed higher for the third straight session, forming higher highs and higher lows ahead of the Union Budget. We maintain a cautious approach. Today, market participants will focus on the Economic Survey discussion at 11 AM. Markets will remain open on Budget Day (tomorrow).


Actionable:


Buy: BEL, SRF, IRFC


Global Markets


DOW: +168

GIFT NIFTY: +10 (Prev. Close: 23,425)

NIFTY 50: 23,249

SENSEX: 76,759


Institutional Flows


FII: -₹4,583 Cr

DII: +₹2,165 Cr


Market Breadth (BSE)


Advances: 2,138 | Declines: 1,812


Currency


Dollar: ₹86.62

Dollar Index: 108.13


Commodities


Gold: $2,797 per ounce

Crude Oil: $76.25 per barrel


Bonds


10-Year US Bond Yield: 4.53%

10-Year Indian Bond Yield: 6.74%


Derivatives


PCR: 0.75

VIX: 17.39


Earnings Today


Oil & Natural Gas Corp, IndusInd Bank, Sun Pharma, Nestle India, PNB, Bandhan Bank, UPL, Vedanta, Aster DM Healthcare, Cholamandalam Investment, City Union Bank, Equitas Small Finance Bank, Five-Star Business Finance, Flair Writing Industries, Godrej Agrovet, Inox Wind, IRB Infra, Jubilant Pharmova, Jyothy Labs, Karnataka Bank, LIC Housing Finance, Marico, Pfizer, Poonawalla Fincorp, Vishal Mega Mart.


Earnings Review


Above Estimates: Bharat Electronics, Bharti Airtel (Africa), Shree Cement, Adani Ports, Max Healthcare, Waaree Energies, Navin Fluorine, Kalyan Jewellers, Coromandel International, Strides Pharma, PB Fintech, Deep Industries, Moschip, UFO Moviez.


In-Line Estimates: Dabur India, Phoenix Mills, Dr Lal PathLabs, Bank of Baroda, Astral, Ajanta Pharma, Concor, Dodla Dairy, Pokarna, Aavas Financiers.


Below Estimates: L&T, GAIL, Jindal Steel & Power, Tata Consumer, Prestige Estates, Praj Industries, Adani Enterprises, Aditya Vision, Raymond Lifestyle, Welspun Living, Heidelberg Cement, Voltamp.


Market Updates

Wipro: Selected by Etihad Airways to modernize its technology infrastructure, including migration of legacy systems and operational efficiency improvements.

PNB Gilts: Indian government bonds will be included in the Bloomberg Emerging Market (EM) Index from Jan 31, 2025, boosting foreign inflows. FAR bonds will also be added to Bloomberg’s Emerging Market Local Currency Government Index.

F&O Updates: NSE adds six new stocks to the F&O segment (Castrol India, Gland Pharma, NBCC, Phoenix Mills, Solar Industries, Torrent Power) effective Jan 31, 2025. Sixteen stocks will exit the segment on Feb 28, 2025.

Securities in Ban: None.


Derivative Outlook

Max Call OI: 25,000, followed by 24,000.

Max Put OI: 23,000, followed by 22,500.

Expected Trading Range: 22,900 – 23,700.

Immediate Range: 23,000 – 23,500.


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