Last week – review
Nifty started this week’s trade with a bang as Nifty manage to cross 22100 level and close at 22097 on Monday. Market seen major fall on Wednesday as reaction to HDFCBANK which disappointed market as HDFCBANK ADR was down by more than 15% in two trading session. HDFCBANK seen cut of more than Rs 200 or 12% from 1679 closing ahead of result on 16-Jan-24.
Technical Insight
• Nifty key support and resistance level this week could be 21411 to 21680. Break-out on either direction to provide fresh move in a holiday shorten week.
• Banknifty expected to trade in range of 45295 to 46571. Decisive move can be expected once this level is crossed on either side
Approach on Technical: Indices will be reacting to ICICIBANK ‘s result on Tuesday & holiday shorten week. Banknifty monthly expiry on 24-Jan-24 & Nifty and stocks final F&O expiry on 25-Jan-24.
Indices after last week has seen sharp correction on back of HDFCBANK ‘s result on 16-Jan-24. Nifty @ 21411 & Banknifty @ 45295 to act as important support level and indices to remain in uptrend till these levels are hold.
Fundamental Insight
1) RBI Not Discussing Rate Cuts Yet, Governor Das Says
2) Retail Inflation For Farm Workers Rises To 7.71% In Dec
3) EPFO Adds 13.95 Lakh Net Members During November 2023
4) India’s Fiscal Deficit To Be Budgeted At 5.3% Of GDP In FY25: BofA Securities
Equichain Wealth Advisors: Market View & Strategy
F&O expiry for January series due this week in a holiday shorten week, Indian market will be trading for only 3 days this week as Friday will be holiday for Republic Day and soon after that focus will shift to Vote-On-Account, Mini-budget on 1-Feb-24. ICICIBANK result is in-line with market estimate with NIM at 4.43% Vs 4.53% in previous quarter. ICICBANK result is better than street estimate and no major concern seen as compared to HDFCBANK.
We remain cautious optimistic as we see many stocks are fairly valued and focus will clearly shift to budget due on 1-Feb-24. Market will react positively to successful PRAN PARTHISTHA ceremony of RAM MANDIR as focus will now shift to budget and election.
We would also be focusing on booking part profit and shifting to stocks which are valued attractively. We remain open to review our allocation strategy based on incoming data and we do not rule out profit booking post budget on 1-Feb-24.