Trade Setup: Top 15 things to know before market opens on January 14, 2022

On Thursday, Indian benchmark indices closed a bumpy session higher, extending their winning streak to a fifth consecutive day, supported by advances in Metal, Capital Goods, and Power stocks. Markets gained some traction after a cautious start, as traders found some support from the World Bank’s comment that the Narendra Modi government’s Production-Linked Incentive (PLI) Scheme will likely aid India’s economy to grow at 8.7% in the next financial year 2022-23.

The Nifty50 has formed a small candle on the daily chart with upper and lower shadows, suggesting the formation of a dragonfly Doji pattern at the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. This is a sign of the participants’ confused state of mind, he said.

Indian Indices

Sensex rose 85.26 points or 0.14% to 61,235.30 and Nifty was up by 45.45 points or 0.25% to 18,257.80 in the previous session. Sensex touched high and low of 61,348.57 and 60,949.81, respectively and there were 19 stocks advancing against 11 stocks declining on the index while Nifty traded in a range of 18,272.25 and 18,163.80 and there were 36 stocks advancing against 14 stocks declining on the index.

Broader Indices

The broader indices ended in green with the BSE Midcap index rising 0.38%, while the Small cap index was up by 0.49%. The top gaining sectoral indices on the BSE were Metal up by 3.86%, Capital Goods up by 1.56%, Power up by 1.52%, Basic Materials up by 1.40% and Utilities up by 1.32%, while Realty down by 0.72%, Bankex down by 0.67%, Consumer Disc down by 0.30%, Consumer Durables down by 0.15% and Telecom down by 0.06% were the top losing indices on BSE.

Support and Resistance levels

The key support levels for the Nifty are placed at 18,190.34, followed by 18,122.87. If the index moves up, the key resistance levels to watch out for are 18,298.73 and 18,339.67, according to pivot charts. 

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 65-points loss. The Nifty futures were trading at 18,261.20 on the Singaporean Exchange around 06:50 hours IST.

Asian Markets

Shares were mostly lower in Asia on Thursday. Tokyo’s Nikkei 225 index dropped 1% to 28,489.13, while the Shanghai Composite shed 1% to 3,560.59. In Seoul, the Kospi lost 0.4% to 2,962.09. The Hang Seng in Hong Kong edged 0.1% lower, to 24,379.67 and the S&P/ASX 200 added 0.5% to 7,474.40. India’s Sensex edged 0.1% higher. Taiwan’s benchmark rose 0.3%

US Markets

The S&P 500 fell 67.32 points, or 1.4%, to 4,659.03. The Dow Jones Industrial Average fell 176.70 points, or 0.5%, to 36,113.62. The Nasdaq fell 381.58 points, or 2.5%, to 14,806.81. The Russell 2000 index of smaller companies fell 16.62 points, or 0.8%, to 2,159.44.

European Markets

European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.16% and the DAX rose 0.13%. The CAC 40 lost 0.50%.

RIL signs an agreement with the Gujarat government

Reliance Industries Ltd (RIL) has signed agreements with the Gujarat government making a commitment of an investment of close to Rs 6 lakh crore in the state, the oil-to-telecoms conglomerate said in a statement on January 13. Aimed at making Gujarat ‘net zero’ and carbon-free, RIL proposes to invest Rs 5 lakh crore in the state over the next 10-15 years to set up 100 gigawatts (GW) of renewable energy power projects and develop a green hydrogen eco-system. “RIL will develop an eco-system for assisting small and medium enterprises (SMEs) and encourage entrepreneurs to embrace new technologies and innovations leading to captive use of renewable energy and green hydrogen,” the company said in the statement. In consultation with the Gujarat government, RIL has started the process of scouting land for a 100 GW renewable energy power project in Kutch, Banaskantha and Dholera. The company has requested 4.5 lakh acres of land in Kutch.

India intends to launch the LIC IPO by mid-March, according to a report

Life Insurance Corporation, India’s largest insurer, is likely to file a draft prospectus as early as the end of this month and begin issuing public shares by mid-March, one government and two banking sources with direct knowledge of the matter in New Delhi and Mumbai told Reuters. The listing of LIC is set to be India’s biggest-ever IPO, with the government aiming to raise up to 900 billion rupees ($12.18 billion) from its stake sale. Officials are working on the valuation of the company which manages more than $450 billion of assets, and once that is done they will issue a draft IPO prospectus for investors, a government and two banking sources with direct knowledge of the matter said.

Indian startups raised $42 billion in 2021

Indian startups have raised $42 billion in 2021, up from $11.5 billion in the previous year, a report by Orios Venture Partners said. The report titled ‘The Indian Tech Unicorn Report 2021’ said India saw 46 unicorns (companies with $1 billion valuations) in 2021 alone, more than doubling the total number of unicorns to 90. These include ShareChat, Cred, Meesho, Nazara, Moglix, MPL, Grofers (now Blinkit), upGrad, Mamaearth, GlobalBees, Acko, Spinny and others. India – with 90 unicorns – is the third-largest unicorn hub behind the US (487) and China (301), and ahead of the UK (39). India has the third-largest startup ecosystem in the world with about 60,000 startups.

Sanofi India MD Rajaram Narayanan resigns

Sanofi India on Thursday said its Managing Director Rajaram Narayanan has put in his papers. The company’s board has accepted the resignation of Narayanan, effective from the close of business hours on April 10, 2022, Sanofi India said in a statement. Narayanan has decided to pursue an opportunity outside of Sanofi, it added. His successor will be appointed in due course, the drug firm stated. “Under Rajaram’s leadership Sanofi India has successfully implemented a variety of transformational initiatives to deliver market-beating growth in key therapies and significantly improve its overall financials,” Sanofi India Chairman Aditya Narayan noted.

SEBI is cracking down on stock market manipulators

The Securities and Exchange Board of India (SEBI) has started cracking down on those giving stock tips via apps like Telegram, WhatsApp and other social media handles. The market regulator has formed a special team of officials to tackle the menace of frontrunning in the stock markets after receiving complaints from investors about groups manipulating the stock market through apps like Telegram, WhatsApp and platforms like Reddit, Instagram and Facebook. According to sources, the crackdown on ‘Bull Run 2017’ a secret Telegram channel that gave intra-day stock tips to around 52000 subscribers, mainly retail investors, was only the beginning as scores of other such ‘closed groups’ on social media platforms are under the scanner of market regulator SEBI.

Bulk Deal data

IDBI Trusteeship sold 10 crore shares of GTL Infra on BSE and 25 crore shares on NSE at Rs 2.03 and Rs 2.04 apiece, respectively. It also sold 14 lakh shares of GTL on BSE at Rs 18.52 per share and 36 lakh shares on NSE at Rs 18.51 apiece.

L7 HITECH PRIVATE LIMITED bought 61,054 equity shares in AKG Exim Limited at Rs 55.13 per share on the NSE, the bulk deals data showed. 

ALPHA LEON ENTERPRISES LLP sold 64,000 equity shares in A and M Jumbo Bags Ltd at Rs 7.95 per share.

ADITYA ACHANTA sold 70,000 equity shares in Coastal Corporation Ltd at Rs 330.41 per share on the NSE, the bulk deals data showed. 

HITESH AMRUTLAL PATEL sold 3,95,968 equity shares in Moksh Ornaments Limited at Rs 43.77 per share on the NSE.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 1,390.85 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 1065.32 crore in the Indian equity market on January 13, as per provisional data available on the NSE.

NSE F&O Ban

Indiabulls Housing Finance, Vodafone Idea, and SAIL are under the F&O ban for January 14. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Quarterly Results

Mindtree Consolidated December 2021 Net Sales at Rs 2,750.00 crore, up 35.89% Y-o-Y

GTPL Hathway Consolidated December 2021 Net Sales at Rs 599.13 crore, down 7.42% Y-o-Y

Virinchi Consolidated December 2021 Net Sales at Rs 81.96 crore, down 1.98% Y-o-Y

CESC Consolidated December 2021 Net Sales at Rs 2,826.00 crore, up 11.3% Y-o-Y

Palm Jewels Standalone December 2021 Net Sales at Rs 36.28 crore, up 24.9% Y-o-Y

Excel Realty Standalone December 2021 Net Sales at Rs 1.87 crore, down 5.43% Y-o-Y

Mishtann Foods Standalone December 2021 Net Sales at Rs 147.69 crore, up 24.99% Y-o-Y

HICS Cements Standalone December 2021 Net Sales at Rs 147.69 crore, up 24.99% Y-o-Y

Roto graphics Standalone December 2021 Net Sales at Rs 0.05 crore, up 711.11% Y-o-Y

TCS Consolidated December 2021 Net Sales at Rs 48,885.00 crore, up 16.35% Y-o-Y

Tinna Rubber Consolidated December 2021 Net Sales at Rs 69.19 crore, up 83.29% Y-o-Y

Katare Spinning Standalone December 2021 Net Sales at Rs 0.81 crore, up 208.2% Y-o-Y

Vishvesham Inve Standalone December 2021 Net Sales at Rs 0.02 crore, up 5.7% Y-o-Y

Delta Corp Standalone December 2021 Net Sales at Rs 165.20 crore, up 143.01% Y-o-Y

Danube Ind. Standalone December 2021 Net Sales at Rs 11.21 crore, up 10.03% Y-o-Y

Fraser and Comp Standalone December 2021 Net Sales at Rs 8.78 crore, down 34.99% Y-o-Y

Indbank Merchant Standalone December 2021 Net Sales at Rs 5.46 crore, up 109.7% Y-o-Y

Madhusudan Ind Standalone December 2021 Net Sales at Rs 0.27 crore, up 22.14% Y-o-Y

National Stand Standalone December 2021 Net Sales at Rs 0.03 crore, down 93.26% Y-o-Y

Hathway Bhawani Standalone December 2021 Net Sales at Rs 0.90 crore, down 16.24% Y-o-Y

Vikas Life Standalone December 2021 Net Sales at Rs 106.74 crore, up 1031.99% Y-o-Y

Atharv Ent Standalone December 2021 Net Sales at Rs 0.01 crore, up 311.76% Y-o-Y

paisa Capita Standalone December 2021 Net Sales at Rs 79.99 crore, up 62.08% Y-o-Y

GI Engineering Standalone December 2021 Net Sales at Rs 0.03 crore, up 10.48% Y-o-Y

JTL Infra Standalone December 2021 Net Sales at Rs 232.45 crore, up 130.28% Y-o-Y