Market HIGHLIGHTS: Sensex snaps 5-day losing streak, ends 367 pts up, Nifty tops 17250; Maruti, Axis Bank jump 7.5%

The markets have closed above 16950 which is crucial medium-term support for the Nifty. If we need to bounce or make a V shape recovery, this is the place from where that can happen. The next resistance is at 17400-17500. If we break 16950 on a closing basis, the markets can fall further to 16500-16550. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

BSE Sensex jumped 367 points or 0.64 per cent to end at 57,858, while NSE Nifty 50 index gained 128 points or 0.75 per cent to finish trade at 17278

“Airtel share prices were up more than 4% today considering the telcos plan to raise funds via a preferential share issue. A meeting will be held on Friday, Jan 28 2022, to evaluate the proposal for the issuance of equity shares. Current promoter holdings are as follows Mittal Family -24.13%, Singtel-31.72%, rest by the public. Although, the move is slightly doubtful as earlier there was a rights issue of Rs 21,000 crore and now this. The company aims to get in 5G technologies as auctions will be held this year. The telecom space is very competitive and capital intensive and such steps are required to gain market share.”

~Manoj Dalmia, Founder and Director-Proficient Equities Ltd.

India VIX, the volatility gauge, was down in red on Tuesday. India VIX fell 6% after having soared sharply on Monday.

The government and the central bank have taken numerous steps to boost digital payments, expand the reach in the hinterland of the country. The Union Budget of 2021 earmarked Rs 1500 cr to promote digital modes of payment. Until now, it is the urban population that accounts for the bulk of digital payments. The government should allocate more funds to connect the rural areas of the country to the mainline digital payment modes, help develop the infra for payments in offline mode to tap the 44 cr strong base of feature phone users. Likewise, the budget looks at ways to incentivize digital payments by MSMEs and B2B payment segments. Ramesh Narasimhan, CEO Designate, Worldline India

Govt needs to relax taxation in startup investing if Startup India initiative needs to be a force to reckon amongst the world. Today, the taxation on investing is one of the highest in the world. It attracts 30% taxation on capital gains if liquidated within 2 years and 20% with indexation if liquidated after 2 years. We need to learn from the UK. There needs to be an incentive for everyone to invest in entrepreneurs in India. A new norm similar to 80C is required where a person should not only be able to save tax while investing in unlisted companies but also any capital gain should be tax-free. This would boost the economy as flood gates for investments would open within and outside India to invest in India. This would also solve the problem of double taxation in which Indian taxation department has struggled from last decade with multiple companies. Rajesh Singla, CEO of Planify

Concerns over the US Federal Reserve's plans to raise interest rates, as well as tensions in Ukraine, were weighing on Asian markets. Sentiment was strained as ICRA projected a greater fiscal deficit of Rs 17.9 trillion, owing to two big outlays aimed at boosting family confidence: free food grains under the PMGKAY plan and an increased MGNREGA outlay. Foreign Institutional Investors (FIIs) continued to be net sellers in the stock market on Monday, offloading shares worth Rs 3,751.58 crore, according to exchange data.

The Indian economy has recovered 'handsomely' from the pandemic-induced disruptions, according to former Niti Aayog Vice Chairman Arvind Panagariya, who expressed hope that the recovery will be sustained and the growth rate of 7 to 8% will be restored. Gaurav Garg, Head of Research, Capitalvia Global Research

Maruti Suzuki Q3 consolidated net profit fell 48% at Rs 1,042 crore; total revenue dips marginally to Rs 23,253 crore

Maruti Suzuki India share price hit a fresh 52-week high, surging nearly 5 per cent to Rs 8,439 apiece on BSE post Q3 results

Metal stocks such JSW Steel, Tata Steel, Hindalco Industries, SAIL, Hindustan Copper were trading higher, in the range of 0.3-2.4 per cent

JSW Steel on Friday posted a 69 per cent jump in its consolidated net profit to Rs 4,516 crore for the quarter ended December, mainly on account of higher income. The firm had clocked a net profit of Rs 2,669 crore in the year-ago period. Total income during the October-December quarter of the ongoing fiscal soared to Rs 38,225 crore from Rs 22,006 crore a year ago.

JSW Steel share price gained over 2 per cent to Rs 640.50 apiece on BSE. So far in the day, the stock hit a low of Rs 613.30 apiece

Bharti Airtel share price surged over 4% on Tuesday as the telco considered raising funds via a preferential share issue to investors other than its promoter group. “A meeting of the board of directors of the company is scheduled to be held on Friday, January 28, 2022, to, inter-alia, consider and evaluate the proposal for issuance of equity shares through preferential issue (other than to promoter/promoter group), subject to all such regulatory/statutory approvals as may be required, including the approval of shareholders of the company,” the company said in a regulatory filing.

Majority of industry stakeholders said India will become a key manufacturing hub as it benefits from Narendra Modi government’s popular PLI scheme, as the country walks on the path to attain economic recovery amidst COVID-19 induced uncertainty, according to a survey conducted by KPMG India. As many as 60% of the respondents said they think that the Production Linked Incentive (PLI) scheme will have the desired results of making India a manufacturing hub while 83% of them said the government should expand the scope of this scheme to other sectors.

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Domestic markets continued to be dominated by bears on Tuesday, extending their losses even though Wall Street equity indices staged a smart recovery on Monday. S&P BSE Sensex hit a low of 56,409 soon after opening tanking more than 1,000 points from yesterday’s closing while NSE Nifty 50 tanked to as low at 16,836. Both the headline indices recouped some losses but were still deep in red. As benchmarks indices battled bears stock such as Zomato, Paytm, SBI Cards and Payment Services, and PB Fintech (Policybazaar) were down at their 52-week low values. A total of 213 stocks on BSE hit their 52-week high on Tuesday while 59 were at their fresh lows.

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Traders are expected to contribute far more than Rs. 20k Cr. to the exchequer in FY22. Since they have helped GOI in these challenging times, I sincerely hope that the Government reduces STT, CTT & Stamp Duty rates to encourage them & help increase market participation in the years to come. Further, Commodity Transaction Tax (CTT) has badly impacted commodity trading volumes since it was first introduced and volumes have either saturated or seen multi-year declines across commodities on MCX and NCDEX. If the Government reduces CTT, market participation in the commodities sector too may improve substantially. Tejas Khoday, Co-founder and CEO, FYERS

The formation of lower high-low signifies prolongation of corrective bias. Going ahead, we believe strong support is placed in the vicinity of 16800 which is 80% retracement of past one-month rally (16400-18350). The key point to highlight is that, the index is approaching oversold territory (as daily stochastic oscillator is placed at 12) ahead of key global event of U.S. Fed meet coincided with monthly derivative expiry. Thus, Nifty holding above 16800 amid elevated global volatility in coming sessions would lead to technical pullback towards 17600 mark in the coming week.

~ ICICI Direct

BPCL has emerged as the successful bidder in 6 Geographical Areas (GA) in 19 districts, for setting up City Gas Distribution (CGD) Networks, post evaluation of technical and financial bids, in the recently concluded 11th bidding round of PNGRB. The CGD footprints of BPCL, along with its JYs, will now extend to 48 GAs covering 94 Districts in 18 States, across India. After the announcement of results of bidding, BPCL's committed investment in CGD network, on a standalone basis, would increase to over Rs 22,000 crore for the development of 23 GAs, including Rs 10000 crore for the 6 new GAs.

“The daily price action formed a bear candle with a lower high -low signaling continuation of the corrective consolidation. Buy only once 17600 level crossed,” said Raushan Kumar, Derivative Analyst, IIFL Securities.

The Indian rupee on Monday fell 17 paise to close at an over three-week low of 74.60 against the US dollar on account of elevated crude oil prices, forex outflows and heavy losses in domestic equity markets amid growing geopolitical worries, omicron spread concerns. The American currency in the overseas market and weak risk appetite for other assets also dragged the local unit down as market participants are now wait for the US Fed’s January 25-26 meeting for further cues. At the interbank foreign exchange market, the rupee opened at 74.43 against the greenback and witnessed an intra-day high of 74.42 and a low of 74.69 before settling 0.23% down at 74.60, the lowest closing level since December 27.

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were flat with a positive bias on Tuesday, following global trends. On Multi Commodity Exchange, gold February futures were trading at Rs 48,595 per 10 gram, up Rs 31, as against the previous close of Rs 48,564. Silver March futures were also ruling in the positive territory, up Rs 112 , at Rs 64,067 per kg, as compared to the last close of Rs 63,958 per kg. Globally, yellow metal prices were little changed as investors looked for interest rate hike cues from the U.S. Federal Reserve’s meeting, while safe-haven bullion was buoyed by risk-off trades over concerns of Russia-Ukraine discord.

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Zomato share price extended its correction on Tuesday morning, falling another 5% over and above the 27% correction the stock has seen in recent days. On the opening bell, Zomato share price was down at a new 52-week low of Rs 84.1 per share. Analysts at Kotak Securities have advised investors to buy Zomato stock, taking advantage of the steep correction. “Sharp decline in the stock price of Zomato seems to be tracking the decline in prices of global tech stocks. There is no change in our fundamental view on Zomato and we retain BUY rating,” they said. Kotak Securities has pinned a fair value of Rs 170 apiece on Zomato.

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On Monday, the US markets finished higher, with bargain hunters driving the indices into positive territory at the closing bell. Investors are anxious about the situation in Ukraine, and the outcome of the Fed's scheduled policy review, thus Asian markets were trading in the red on Tuesday. Our research suggests that the levels of 16800-16750 may act as important support levels in the market. If the market sustained above the levels of 16800, We can expect the market to trade in the range of 16800-17300. Gaurav Garg, Head of Research, CapitalVia Global Research

In the short term, 16950 is the last resort of support for this market. If that breaks on a closing basis, we might plummet further to 16500-16550. On the upside, the resistance level is at 17400-17500. Traders can utilize upward corrections to sell this market. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Nifty stares at the prospects of extending downsides. aiming for the recent low of 16410, or even 15900. Reversal prospects rest on the ability to stage a close above 16820 today. Prospects of an intraday bounce back will brighten on push above 17115, but expect 17240-390 to keep a lid.

Anand James – Chief Market Strategist at Geojit Financial Services

Today, the USDINR pair is expected to open near 74.60 and is likely to trade in the range of 74.45 to 74.85 with an upside bias. The most awaited event of the month- Fed policy is kicking off from today and traders could remain ultra-light on their riskier position ahead of the same. The Indian indices will fall further following weaker peer Asian markets. Although US equities bounced back after falling for 4% intraday as investors bought the dips restricting the fall despite the expected Fed tightening in the monetary policy meeting, it will be watchful to see if Asian equities follow the US recovery. The movement in the equities will directly impact the Rupee as FIIs flow has been the key factor for the directional move in January. The RBI as a savior will also likely choose not to intervene, giving the currency some space to depreciate in line with the global assets. Amit Pabari, managing director, CR Forex Advisors

Barring Nifty Metal, Nifty PSU Bank indices, all the sectoral indices were trading in the deep sea of red. Nifty Consumer Durables, Nifty Realty, and Nifty IT were top sectoral losers, down over 1 per cent each.

Axis Bank, Bharti Airtel, Tata Steel, IndusInd Bank, Power Grid Corporation of India were among top BSE Sensex gainers

Asian Paints, Wipro, Kotak Mahindra Bank, HDFC Bank, RIL, Housing Development Finance Corporation, TCS, Infosys were among top Sensex drags

BSE Sensex crashed 1000 points to 56,409.63, while Nifty 50 index gave up 16850 level on global market volatility