Trade Setup: Top 15 things to know before market opens on January 19, 2022

On Tuesday, Indian equity benchmarks failed to hold an intra-day rebound and finished near the day’s low, reflecting significant losses in basic materials, real estate, and telecom sectors amid widespread selling pressure in global markets.

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The Nifty50 has formed a bearish engulfing pattern as well as a bearish harmonic pattern on the daily chart, according to Rupak De, a Senior Technical Analyst at LKP Securities.

“Momentum oscillator RSI has entered a bearish crossover. Resistance is visible at 18,350-18,400 on the higher end, and support at 18,000-17,850 on the lower end,” he said.

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Indian Indices

Sensex fell 554.05 points or 0.90% to 60,754.86 and Nifty was down by 195.05 points or 1.07% to 18,113.05 in the previous session. Sensex touched high and low of 61,475.15 and 60,662.57, respectively and there were 7 stocks advancing against 23 stocks declining on the index while  Nifty traded in a range of 18,350.95 and 18,085.90 and there were 6 stocks advancing against 43 stocks declining on the index. 

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Broader Indices

The broader indices ended in red with the BSE Midcap index falling 2.20%, while the Small cap index was down by 1.92%. The lone gaining sectoral index on the BSE was Bankex up by 0.16%, while Basic Materials down by 2.76%, Realty down by 2.62%, Telecom down by 2.61%, Auto down by 2.29% and Metal down by 2.26% were the top losing indices on BSE.

Support and Resistance levels

Key support levels for the Nifty are placed at 18,015.7, followed by 17,918.3. If the index moves up, the key resistance levels to watch out for are 18,280.7 and 18,448.3, according to pivot charts.

Also Read| Sensex fell over 200 points while Nifty around 18,000 in early trade

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 30-points loss. The Nifty futures were trading at 18,146.00 on the Singaporean Exchange around 06:45 hours IST.

Asian Markets

Asian markets finished mixed. The Shanghai Composite gained 0.80%, while the Hang Seng led the Nikkei 225 lower. They fell 0.51% and 0.27% respectively.

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US Markets

The S&P 500 fell 85.74 points, or 1.8%, to 4,577.11.

The Dow Jones Industrial Average fell 543.34 points, or 1.5%, to 35,368.47.

The Nasdaq fell 386.86 points, or 2.6%, to 14,506.90.

The Russell 2000 index of smaller companies fell 66.23 points, or 3.1%, to 2,096.23.

European Markets

European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX was down 1.01% while France’s CAC 40 was off 0.94% and London’s FTSE 100 was lower by 0.63%.

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Citi announces a Rs 1,200 crore ADS Block deal with Vedanta

Citi Bank on January 18 launched the Vedanta ADS Block deal worth Rs 1,200 crore. The deal offers a discount of up to 4% on Wednesday’s closing price, reported CNBC Awaaz. According to the deal, nearly 3.8 crore shares of Vedanta are on offer. These are ADS shares tendered in delisting and now to be sold by Citi Custodian Pool. Vedanta Limited’s share price dropped by Rs 3.35 or 1.03% and closed at Rs 322.35 on Wednesday.

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Network18 reported Q3 results with net profit up 54% at Rs 307 crore

Network18 Media & Investments Ltd. on January 18, posted a robust 54% jump in its consolidated net profit on a sequential basis to Rs 307 crore for the quarter ended December 2021. Discounting for a tax credit of Rs 7.3 crore in the previous quarter, the growth in profit would have been 60%. On a yearly basis, the net profit is down 8% from Rs 333 crore as there was a tax reversal of Rs 99.4 crore in the same quarter of last year. Excluding the tax credit, the net profit would have witnessed a year-on-year (YOY) increase of 31%. The consolidated operating revenue was up 19% quarter-on-quarter (QoQ) at Rs 1,657 crore.

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AGS Transact Technologies IPO opens today

AGS Transact Technologies Ltd’s Rs 680 crore initial public offering is slated to kick off for subscription from January 19. The issue is entirely offered for sale where promoters exit partially. The price band for the issue was at Rs 166-175 apiece. The firm has garnered mixed reviews from brokerages, with two of them suggesting investors avoid the issue which will close on 21 January. Brokerages have red-flagged higher valuations amid tepid earnings. The firm reported flat revenue over the last three years with mostly on the declining side. In FY21 its revenue fell to Rs 1797 crore from Rs 1833 crore in FY20. On the other hand, its profit and margin trend is declining too. Its profit fell from Rs 83 crore in FY20 to Rs 54.70 crore in FY21. As of August 2021, it reported a loss of Rs 18.11 crore while its revenue stood at Rs 753.4 crore. As of August 2021, its net debt was at Rs 880.97 crore against Rs 897.26 crore as of FY21.

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Reliance Retail acquires a 54% stake in Addverb Tech for $132 million

Reliance Retail has acquired a 54 per cent stake in domestic robotics company Addverb for USD 132 million (about Rs 983 crore), a senior official of the robotic firm said Tuesday. Addverb Technologies co-founder and CEO Sangeet Kumar told PTI that the company will continue to operate independently and will use the funds received from Reliance to expand business overseas as well as set up one of the biggest robotic manufacturing facilities in Noida. The company already has a manufacturing plant in Noida where it produces around 10,000 robots per annum.

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Bajaj Finance reports strong Q3 results, net profit rises 85% to Rs 2,125 cr

Bajaj Finance on January 18 reported an 84.4% year-on-year growth in net profit at Rs. 1,933.9 crore for the quarter ended December, which was higher than analysts’ estimate. The financial company’s net interest income in the quarter jumped 40% on-year to Rs. 5,553 crore with assets under management (AUM) rising 21% on-year to Rs. 1.3 lakh crore. Analysts had expected the company to report 57.5% on-year growth in net profit at Rs. 1,804.8 crore and 17.3% rise in NII at Rs. 5,038.7 crore. The boost to Bajaj Finance’s bottom line in the quarter came from a decline in loan-loss provision to Rs. 995 crore from Rs. 1,245 crore in the year-ago quarter. The biggest drop was witnessed in loan-loss provisions for stage 3 and write-offs in the quarter, which nosedived 78% on-year to Rs. 816 crore, the company said.

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Bulk Deal data

Bytes and Pixels Finsoft LLP, Hardik M Shah, and Lincoln P Coelho each bought 20,000, 1,00,000 and 40,000 equity shares in Timescan Logistics Ind at the same price of Rs 104.55 per share on the NSE.

ASL ENTERPRISES LIMITED sold 5,60,000 equity shares in ASL Industries Limited at Rs 36.25 per share on the NSE.

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OLGA TRADING PRIVATE LIMITED bought 5,36,000 equity shares in  ASL Industries Limited at Rs 36.25 per share on the NSE, the bulk deals data showed.

ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED sold 45,00,000 shares in Inventure Gro & Sec Ltd at Rs 6.29 per share on the NSE.

RAJESH MIRCHUMAL SADHWANI sold 7,19,836 equity shares in Pritika Auto Indus Ltd at Rs 20.55 per share on NSE.

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Jitendra Raichand Mehta bought 19,200 equity shares at Rs 99.94 per share in Giriraj Civil Developers and Aryaman Capital Markets Limited sold 25,200 equity shares at Rs 99.71 per share on the NSE, the bulk deals data mentioned.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 1254.95 crore, while domestic institutional investors (DIIs) offloaded shares worth a net Rs 220.2 crore in the Indian equity market on January 18, as per provisional data available on the NSE.

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NSE F&O Ban

BHEL, Escorts, Granules India, Indiabulls Housing Finance, Vodafone Idea, and SAIL are under the F&O ban for January 19. 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.