India’s benchmark index, NSE Nifty 50, is poised for a potential breakout as it tests the critical resistance zone of 23,850-23,900, aligning with the 200-day moving average. Analysts suggest a move beyond this level could signal further upward momentum, with targets stretching to 24,000.

“The positive divergence in the RSI played well, and for the reversal to gain further strength, the index needs to surpass the resistance zone between 23,850-23,900, where the 200-day moving average lies. On the downside, the support seems to be at the 23,560 levels,” according to Aditya Gaggar, Director of Progressive Shares.

“Technically, after a short-term correction, the index has formed a reversal formation, which is largely positive. For traders, 23,550 would act as a key support zone. Above this level, the market could move up to 23,900–24,000,” said Shrikant Chouhan, head of equity research at Kotak Securities.

“On the other hand, if it falls below 23,550, the uptrend would be vulnerable. Below this point, traders may prefer to exit their long positions,” Chouhan said.

FII/DII Activity

Foreign portfolio investors have been net sellers for the 12th straight session, while the domestic institutional investors have been buyers for the 11th consecutive session on Wednesday.

The FPIs offloaded stocks worth Rs 1,782.7 crore, while the DIIs bought stocks worth approximately Rs 1,690.4 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty January futures were up by 0.42% to 23,907 at a premium of 165 points, with the open interest up by 0.16%.

The open interest distribution for the Nifty 50 Jan. 2 expiry series indicated most activity at 24,500 call strikes, with the 23,000 put strikes having maximum open interest.

Market Recap

Indian benchmark equity indices came out of their two-day decline and closed higher on the first trading day of 2025 as heavyweights led the gains alongside automobile stocks, which reacted to their December sales data.

Nifty ended 0.4% or 98.10 points higher at 23,742.90, and Sensex closed 0.47% or 368.40 points higher at 78,507.41. Intraday, both the indices had gained more than 0.7%.

Major Stocks In News

  • NMDC: The company reported iron ore total sales at 3.91 MT for the month of December down 6.7% year-on-year as compared to 4.19 MT same month last year and iron ore total production was at 4.71 MT up 5.1% year-on-year as compared to 4.48 MT same month last year.

  • Tata Motors: The company reported total commercial vehicles sales down 1% year-on-year at 33,875 units versus 34,180 units, total domestic sales up 1% year-on-year at 76,599 units versus 76,138 units year-on-year and total passenger vehicle sales up 1% year-on-year at 44,289 units versus 43,675 units.

  • CSB Bank: The bank’s gross advances jumped 26% on a yearly basis to Rs 28,914 crore in the October-December quarter and reported a 22.2% growth in deposits at Rs 33,406 crore in the second quarter, as compared to Rs 27,345 crore in the same period last year.

  • Maruti Suzuki: The company reported total production volume up 30.3% year-on-year at 1.57 lakh versus 1.21 Lakh, passenger cars production volume up 21.2% year-on-year at 78,553 units versus 64,802 and total passenger vehicle production volume up 30.2% year-on-year at 1.55 lakh versus 1.2 lakh.

  • NTPC: The company’s third quarter power generation saw a growth of 3.82% compared to the corresponding period in the previous financial year. The company generated 326 billion units of electricity in October-December period.

Global Cues 

Stocks in the Asia-Pacific region kicked off the new year cautiously as analysts warn of global volatility ahead, especially in the first half, as US President-elect Donald Trump takes over the Oval Office this month.

Many Asian markets will open for trading after a holiday on Jan. 1, while those in Japan are closed through Jan. 6. Australia’s S&P ASX 200 was up 12 points, or 0.15%, at 8,171.2, as of 6:27 a.m. Futures contracts pointed to losses in mainland China and gains in Hong Kong.

Sentiments in the Asia region soured after stocks in the US fell for the fourth consecutive day on Tuesday. Analysts expect global markets to continue seeing heightened volatility in the first half of the calendar year 2025.

The US government’s policies during the Trump presidency, trade policy, the Federal Reserve’s rate cut, and the direction of currency and oil prices will be monitored during the year.

During the day, Eurozone manufacturing PMI, US jobless claims, construction spending, and manufacturing PMI will be released, giving a clearer picture of global industrial and labour market conditions.

Stocks in China snapped a three-year losing streak to end 2024 with 14% gains as authorities rushed in to pump liquidity to aid economic recovery in the later part of the year. The country is expected to expand around 5% for the full year of 2024, President Xi Jinping said earlier this week.

South Korean stocks will continue to face pressures as the political turmoil extends into 2025 with the Acting President Choi Sang-mok rejecting an attempt by his advisers to resign en masse.

In 2024, the so-called Magnificent Seven cohort of US tech giants drove an advance of more than 20% in the S&P 500, according to Bloomberg.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was trading above 108. The Bloomberg Dollar Spot Index had its best year in nearly a decade.

Crude oil prices edged higher in the first session of the new year after prices fell for two straight years. The Brent crude was trading 0.88% higher at $74.64 a barrel as of 6:39 a.m. IST, and the West Texas Intermediate was up 0.46% at $72.05.

Money Market

The Indian rupee weakened by four paise against the US dollar on the first trading session of 2025 on Wednesday, reflecting ongoing volatility in the currency market.

The domestic currency closed at 85.65 against the greenback. Earlier in the day, it opened 2 paise weaker at 85.62, according to Bloomberg data.

The rupee’s decline follows a period of fluctuation as it continues to navigate global dollar strength and local demand pressures.

. Read more on Markets by NDTV Profit.”Technically, after a short-term correction, the index has formed a reversal formation, which is largely positive,” said Shrikant Chouhan, head – equity research, Kotak Securities.  Read MoreMarkets, Notifications 

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