Market HIGHLIGHTS: Sensex zooms 834 points, Nifty tops 14,500 on buying across the board; HDFC, RIL rally

The Nifty has closed around its resistance area of 14550-14600. If we manage to get past that level, we should be headed to 14800-14900. The index has made a strong base at the 14200 level which acted as a good support. Keeping a close below this level as a stop, traders can initiate long positions for higher targets.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

There is no single reason that we can attribute to today's rise. However, if we look purely from a technical perspective, the NIFTY saw a technical pullback from near its short-term 20-DMA. From a technical perspective, this session has defined a consolidation range for the nifty with 14650 as the upper limited and 14200 as the lower one. The 14200 level is the low point (14222) of yesterday's trading session. Another reason that we can attribute to this rally is sharp short covering from lower levels. Yesterday had seen some heavy short addition to high  beta stocks that resulted into short covering today. Broadly speaking, 14650-14222 is the range in which NIFTY is likely to stay over the immediate short-term.:Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services

The market witnessed a strong pullback rally after a few sessions of continuous correction while sustaining and closing above 14400 would be a key factor in the market for the rally to continue. The market is aligned to be in a range-bound movement between the levels of 14180-14680. A decisive breakout above the zone of 14680-14700 could lead to an improvement in market breadth, and a rally till the levels of 14850-14870.: Ashis Biswas, head of Technical research at CapitalVia Global Research Limited

Indication about wider support to USA economy by the Janet Yellen (nominee for Treasury Secretary) certainly bodes well for emerging markets including India. We continue to believe that any meaningful correction in Indian equities will be bought out as underlying fundamentals of the market remain intact. Huge fiscal stimulus in the USA, persistent soft monetary policies of global bankers, weak dollar and better than expected earnings growth by corporate should continue to ensure favourable FPIs flow into domestic markets. However, we believe some rotational trading can be on the cards in coming days ahead of Union Budget, where sectors like infrastructure, healthcare, defense, real estate and agro-chemical should outperform. However, a broad-based rally is unlikely to happen as a large number of stocks are already trading ahead of their fundamentals. Investors should focus on only quality stocks with robust earnings visibility and margins of safety.: Binod Modi, Head Strategy at Reliance Securities

With healthy deal pipeline, recovery in travel vertical will support growth ahead. We have factored in USD revenue growth of -1.7/+12.9/+10.7% and EBITDA% at 20.6/20.8/20.7% for FY21/22/23E respectively. EPS CAGR of 13% over FY21-23E, >40% RoIC, >5% FCF yield support valuations (21.0/18.7x FY22/23E).: HDFC Securities

Mindtree management also guided for investment, timely strategy refresh led by  consolidation of service lines, attention towards multi-year engagements and focus on scaling top accounts can aid sales traction. We believe Mindtree has a resilient business structure from a long term perspective and strong execution strategy. We recommend BUY and assign 19x P/E multiple to its FY23E earnings of Rs. 103.6 per share which gives a TP of Rs. 1,920 per share, an upside of 16%.: Axis Securities

BSE Sensex zooms 903 points or 1.86 per cent to 49,467.43, while the broader Nifty 50 index soared 253 points or 1.77 per cent to rule at 14,534.

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Indian Union Budget 2021-22: The expectations, from the Budget 2021, have been increased after the Finance Minister’s quote that this budget shall be ‘unlike anything in the past 100 years’. The lockdown in Q1 of FY21 and prolonged restrictions have pushed India into a technical recession which is evident from its GDP numbers. India’s GDP has fallen for two successive quarters. However, the Q2 earnings and Q3 earnings so far have shown a sign which indicates a recovery sooner than expected.

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The automobile sector has witnessed seen a lot of problems due to reduction in demand, cost increase due to regulatory changes due to emission and safety norms, insurance, premium for five years and road tax registration increase have led to almost 30 to 40% price increase in the various automotive segments. Some of the steps like reduction of the GST tax rates to 18%, introduction of the incentive based vehicle scrappage policy to scrap over 15-year-old commercial vehicles, local sourcing of automobile parts and EV incentives for electric vehicle buyers are some of the triggers for boost in the demand in this sectors: Nilesh Shah, CMD, Atlas Integrated Finance Ltd

Indian Railway Finance Corporation’s initial public offering has been subscribed 89% so far on the second day of the issue, with retail investors and employees, each of the firm having oversubscribed their portion. The already lacklustre grey market premium of IRFC has now faded to just Rs 1.3 per share on Rs 26 upper price band of the issue. This begs the question, are hopes of investors who have been aiming for blockbuster listing day gains completely dashed?

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WhatsApp Payments, which went live in December 2020 for up to 20 million users, has grown by over 2X in UPI transactions volume and value as well from November, according to the latest data released by the National Payments Corporation of India (NPCI). WhatsApp Payments UPI volume was up from 0.31 million transactions (3.1 lakh) worth Rs 13.87 crore in November 2020 to 0.81 million (8.1 lakh) involving Rs 29.72 crore in December.

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New-age brokerage firm Upstox today announced the launch of its Digital Gold investment platform. This enables customers to buy 24-karat Digital Gold of 99.9% purity at live market rates, updated in real-time on the platform. The purchased gold can be converted into physical coins/bars or stored in the vault.

Home First Finance Company is tech-driven housing finance company that targets first time home buyers in low and middle-income groups. Although the companies operations are highly concentrated- in Gujarat and Maharastra, these regions have emnated exceptional growth in housing finance sector. 'Housing for all' and many other initiatives by government have provided a boost to such companies. The real-estate sector is also showing signs of bottoming out. On the valuation front the issue is demanding P/E of 38x on the basis of annualised eps at the upper band. The issue looks moderately priced. We may witness company to perform well on listing owing to the bull phase in market: Abhay Doshi, Founder, UnlistedArena.com – dealing in Pre-IPO & Unlisted Shares

The Honourable Finance Minister will be presenting the Union Budget next month, and the real estate sector has its list ready to boost demand and bring growth back on track. On top of the list, measures like continuing with the current low interest and easy liquidity regime. A low-interest rate is a direct stimulus for investment in real estate. We would like the budget to deliver on measures to boost demand for the industry like enhance the limit of deduction under section 80C of income tax for principal repayment on home loans, a separate exemption for principal repayment on home loans to incentivise investment in real estate.:Krish Raveshia, CEO at Azlo Realty

Indigo Paints’ Rs 1,170.16-crore initial public offer will open for subscription on Wednesday in the price band of Rs 1,488-1,490 apiece. One day before the IPO opening, Indigo Paints shares were trading with a 54.36 per cent premium over the IPO price in the grey market today. The shares of the fifth-largest company in the decorative paint industry were trading at Rs 2,300, up Rs 810 from the issue price. 

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Mukesh Ambani’s Reliance Industries Ltd (RIL) share price has zoomed nearly 5% since yesterday. This jump comes after the stock underperformed and sat out the rally where Sensex and Nifty soared to fresh highs repeatedly since October. RIL stock is down 17% since the middle of September. This dip in the stock price, after months of rallying, could serve as an attractive entry point for investors, according to global brokerage and research firm Goldman Sachs. The brokerage firm has reiterated ‘Buy’ call on Reliance Industries shares, expecting multiple catalysts for the stock price up ahead.

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Domestically, sentiments were boosted on reports by rating agency ICRA stating that the economic activity improved broadly in December signaling a tentative return to pre-Covid levels. So far the country has received inflows of approx. $1.83bn but rupee has not much reacted to that and remained above 73.00 levels. As the global economic outlook remains highly uncertain and with consistent inflows on side while RBI’s activeness to cap gains on the other side will drive the rupee momentum next. Overall, the pair to remain in its comfortable range of 73.00-74.00 levels, therefore one can buy on dips near 73.00-73.20 and sell on upticks above 73.40 levels in the near term.: Amit Pabari, managing director, CR Forex Advisors

IRFC IPO subscribed 76 per cent so far on day two of the bidding process. Employee category was subscribed 15.50 times while retail investors subscribed 1.47 times

The major positive development for markets today is the Treasury Secretary-elect Janet Yellen's comment on the need for 'big stimulus'. Further big stimulus along with the huge liquidity created by the unprecedented monetary stimulus can keep markets buoyant; but there is a risk of bubble valuations with its vulnerability to sharp corrections, even crashes. Meanwhile, midcaps have turned weak and strong large-caps like HDFC bank  & RIL have become strong. High delivery based buying in these stocks indicate their improving prospects.: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Home First Finance Company India Initial public offer (IPO) is set to open for subscription on January 21 with a price band at Rs 517-518 apiece of the face value of Rs 2 each. Mumbai based housing finance company’s issue will close on January 25, 2021. The Rs 1,153.72-crore issue comprises a fresh issue of Rs 265 crore and offer-for-sale (OFS) of Rs 888.72 crore by promoters and existing shareholders.

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Although we have opened with a gap up, I would be wary of going long immediately. The Nifty has a resistance around the 14550-14600 levels. If we can conquer that, we should be headed to 14900. Until then there is every possibility to go down to levels closer to 14100 and then 14000: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

2020 was the year of the healthcare and pharmaceutical sector when it came to stock market investment. Global Brokerage and research firm Credit Suisse, in a recent report, highlighted that the price-performance of healthcare subsectors such as clinical laboratories, managed care, medical devices, and contract research organizations outperformed the S&P 500 index. The brokerage firm said that it selectively views further upside potential for stocks that have demonstrated ability to enhance market positioning throughout the pandemic with strategic innovation and capacity investments. With this, Credit Suisse has upgraded Thermo Fisher to an ‘outperform’ rating.

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COMEX gold trades modestly higher near $1840/oz after a 0.3% decline last week. Gold inched up as the US dollar index eased a bit after recent gains. Also supporting price is rising virus cases, increased US-China tensions, mixed economic data from major economies and prospect of higher US stimulus. However, weighing on price is progress on vaccine front and weaker investor interest. Gold may witness choppy trade as market players assess policy implication under the new Biden administration however the bias may be on the upside amid hopes of continuing stimulus measures.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

All Nifty sectoral indices were trading with gains in Tuesday's upbeat session. Nifty Media and Nifty Realty indices were top sectoral indices, up over 2 per cent.

Except for HDFC Bank, all BSE Sensex constituents were trading in the green led by Bajaj Finance and IndusInd Bank shares. State Bank of India and Maruti Suzuki were among other gainers

BSE Sensex jumped 450 points to reclaim 49,000-mark, while the broader Nifty 50 index crossed 14,400 on Tuesday.

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BSE Sensex extended gains in pre-open, jumped over 300 points to reclaim the crucial 49,000-mark.

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Bajaj Finserv share price zooms 9.45 per cent to Rs 9,144 apiece in pre-open on BSE today.

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BSE Sensex jumped over 100 points to 48,672.20, while the broader Nifty 50 index crossed 14,300 in the pre-opening session on Tuesday.

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YES Bank: The private bank informed in a BSE filing that Yes Bank board will meet on Friday, January 22, 2021, to consider raising of funds by issue of equity shares, depository receipts, convertible bonds, debentures and other various means.
Maruti Suzuki: The car-maker on Monday said that the company is increasing the price for select models owing to increase in various input costs.
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Market would be volatile given the ongoing earning season and the weak global cues. Run-up to the Budget expectations would also add to the volatility. The valuations too are stretched as the Nifty is trading at 22x one-year forward P/E compared to its Long term average of 19x. We would advise investors to take the opportunity to accumulate quality stocks on dips. Traders on the other hand should book profits intermittently and be stock selective: Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

For the January series, maximum Call Open Interest (OI) is still placed at 15,000 strike with 24.93 lakh contracts. This is followed by 19.98 lakh contracts at 14,500 strike. However, massive Call writing was seen at 14,500 and 14,400 and Call unwinding was at levels higher than 15,000. Put OI is the most at 14,000 strike with 31.32 lakh contracts, followed by 13,000 strike with 24.28 lakh contracts

The sharp back to back declines (Friday and Monday) seems to have changed the sentiment of the market. A move below 14125 could confirm the reversal pattern and that is likely to trigger more weakness in the short term. Any attempt of upside bounce towards 14400-14450 could run into resistance in the short term. Confirmation of reversal could open immediate downside target of 13700 for the coming weeks.: Nagaraj Shetti, Technical Research  Analyst, HDFC Securities

After falling for two consecutive trading sessions, domestic equity markets may look to reverse the trend on Tuesday. S&P BSE Sensex currently sits at 48,564 points while the 50-stock NSE Nifty was at 14,281. On Tuesday morning, SGX Nifty was up 89 points, hinting at a positive start for the day’s trade on Dalal Street. Although Wall Street was closed on Monday for trading, cues from Asian peers were mixed. Shanghai Composite was down 0.25% but Hang Seng was up more than 1%. Nikkei 225 and TOPIX too were up with gains, followed by KOSPI and KOSDAQ.

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On Monday, foreign institutional investors (FIIs) lapped up shares worth Rs 650.6 crore, whereas domestic institutional investors (DIIs) offloaded shares worth Rs 42.51 crore on a net basis in the Indian equity market, according to the provisional data available on the NSE.

Asian stock markets were trading mixed in early trade with South Korea’s Kospi rising 1.62 per cent. Japan’s Nikkei 225 jumped 1.41 per cent while the Topix index gained 0.63 per cent. 

Equities declined on Monday for the second straight session, with the Sensex declining 470.4 points (0.96%) to close at 48,564.27. The 50-share Nifty declined by 152.4 points (1.06%) to close at 14,281.3. The broader markets led the decline with the Nifty Midcap 100 falling as much as 2.12%.

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