Nifty faces resistance at 23,300, with reversal confirmation above 23,360, while strong support lies at 23,000. According to analysts, a breach below 23,130 may trigger selling. Positive domestic cues support sentiment, but weak global trends keep the outlook cautious, as per analysts.

“However, to validate the reversal, a firm close above 23,360 is required. Immediate resistance is at 23,300, while the psychological level of 23,000 will act as strong support,” said Aditya Gaggar, Director of Progressive Shares.

“For day traders, 23,260/76,800 would act as a key level to watch. If the market moves above that, it could bounce back to 23,400-23,425/77,500-77,600,” according to Shrikant Chouhan, head of equity research at Kotak Securities.

“On the other hand, if it falls below 23,130/76,300, selling pressure is likely to accelerate. Below that level, the market could slip to 23,000-22,950/75,900-75,800,” he said.

“Positive domestic factors included a decline in retail inflation to a 4-month low of 5.2%, IIP growth improving in November 2024 to 5.17% and the RBI Governor’s indication of a more flexible rupee policy, contributing to improved market sentiment,” according to Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd.

“While there is a short-term relief in the market, overall weak global cues, a fall in the rupee, low earnings growth and FII outflows continue to weigh on sentiment, keeping the overall outlook cautious,” Khemka said.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the eighth straight session on Tuesday and domestic institutional investors have been buyers for 20 consecutive sessions.

FPIs sold stocks worth Rs 8,132.3 crore and domestic institutional investors bought stocks worth Rs 7,901.1 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty January futures were up by 0.51% to 23,280.00 at a premium of 103.95 points, with the open interest down by 0.82%.

The open interest distribution for the Nifty 50 Jan. 16 expiry series indicated most activity at 24,000 call strikes, with the 23,000 put strikes having maximum open interest.

Market Recap

The NSE Nifty 50 and BSE Sensex snapped a four-day declining streak on Tuesday, tracking a rise in HDFC Bank Ltd. and ICICI Bank Ltd. The benchmark also posted their best session in over a week.

The Nifty 50 ended 121.65 points or 0.53%, higher at 23,207.60, and the Sensex ended 169.62 points or 0.22%, higher at 76,499.63.

During the session, the Nifty 50 rose 0.78% to the day’s high of 23,264.95. The Sensex rose 0.66% to 76,835.61.

Major Stocks In News

  • IRFC: The company emerged as the lowest bidder for financing Rs 3,167 crore for the development of a coal block in Jharkhand.

  • Federal Bank: The bank received an order from the Office of the Principal Commissioner, Central Board of Indirect Taxes and Customs, Kochi, levying a penalty of Rs. 10,46,59,172/- (IGST penalty). The bank will be filing an appeal against the said order.

  • Sula Vineyards: The company records the highest-ever own brands & wine tourism revenues in Q3FY25. Q3FY25 business updates reveal net revenue down 0.7% YoY at Rs 217 crore, own brands growth up 1% year-on-year at Rs 195 crore, and wine tourism up 11.5% year-on-year at Rs 16.4 crore.

  • Escorts Kubota: Delhi High Court dismisses appeal filed by the Income Tax Department against the company for assessment year 1986-87. The tax implication is reduced by a sum of Rs 0.84 crore.

  • GMR Airports: Vistra ITCL (India) Ltd., in its capacity as debenture trustee and security trustee, released 6.4% of its stake in GMR Airports.

Money Market

The Indian rupee ended at a record closing low again on Tuesday as it weakened by seven paise to close at 86.65 against the US dollar.

At market open, the rupee strengthened slightly against the greenback at 86.52 as both the US dollar index and oil prices eased during the Asian trading session. During the day, the domestic currency weakened to reach an intraday record low of 86.70, according to Bloomberg data.

The currency has depreciated by 73 paise over the last two days. On Monday, it closed at 86.58.

Global Cues 

Stocks in the Asia-Pacific region advanced on Wednesday following a mixed Wall Street session as traders awaited further cues from the upcoming key inflation data.

Australia’s S&P/ASX 200 opened higher with the benchmark index advancing by 0.30%, or 25 points, to 8,255 as of 6:26 a.m. Japan’s Nikkei was up 76 points, or 0.20% at 38,508.

Future contracts in Mainland China pointed to gains on Wednesday. The benchmark CSI 300 closed higher for two consecutive sessions on reports that the Donald Trump administration is considering gradual tariff hikes.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.62% down at 109.27. The fall in the dollar — the first time in six sessions — comes after data showed that US wholesale inflation unexpectedly eased.

Meanwhile, benchmark indices in China and India have seen their worst start for the year since 2016. On Wednesday, traders will closely watch Bank Indonesia’s policy decision. Bloomberg expect the central bank to keep its key rate at 6%.  

All eyes are now on Wednesday’s CPI report, which will provide cues from the US Federal Reserve in its rate cut trajectory for its upcoming meets. The consumer price index excluding food and energy is expected to rise 0.2% in December, after four straight months of 0.3% increases, according to Bloomberg estimates.

The S&P 500 and the Dow Jones Industrial Average rose 0.11% and 0.52%, respectively. The tech-heavy Nasdaq Composite fell 0.23%. Stocks in US is expected to move 1% in either direction on Jan. 15, based on the cost of at-the-money puts and calls, according to Bloomberg News.

Bitcoin and other cryptocurrencies have seen a volatile start to the year. The digital asset, which reached a record high of $108,316 last month, traded at about $94,800 on Tuesday.

Crude oil prices gained after dropping by the most in over than a month. The Brent crude was trading 1.35% lower at $79.92 a barrel as of 6:40 a.m. IST, and the West Texas Intermediate was up 0.58% at $77.95. 

. Read more on Markets by NDTV Profit.”If the market moves above that, it could bounce back to 23,400-23,425/77,500-77,600,” according to Shrikant Chouhan, head equity research, Kotak Securities.  Read MoreMarkets, Business 

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