Indian stocks as indicated by GIFT Nifty futures opened on a weak note on the first trading day of 2025. Overall, the Sensex traded with gains of 68 points or 0.09 percent at 78,206.9, while the Nifty50 index rose 7.5 points or 0.03 percent at 23,652.3. Th Bank Nifty, however, ended lower by 0.06 percent or 32 points.
Historically, January has shown bullishness in the Indian currency. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The New Year is starting on a positive note for the Indian equity market. The near-term outlook appears to be weak with major construction dominated by weak GDP and income growth.
Headwinds from a strong dollar ($ index is at 108.5%) and high US bond yields will impact the market with more FII sales, at least in the early days of 2025, he added.
For the sector, IT and pharma indices traded with major gains, while auto and steel stocks traded in the red.
Focus stocks
ITC: ITC’s share will get a boost after the company’s Hotels business is demerged into a separate business from today.
Auto stocks: Auto stocks will also be in focus as car companies release their December sales numbers today.
Technology
Akshay Chinchalkar, Head of Research, Axis Securities said, “Nifty’s recovery yesterday was followed by a weak “stabbing” candle, with a long lower shadow. That means bulls are trying to keep their heads above water, but significant resistance lies at the 23774 level. – 23940 and the trend-decider level 24150.”
The support falls between 23440 and 23263, but one needs to remember that the range – measured by the percentage of the stock in the nse200 above the best moving averages (50, 100 and 200) – did not fall to the levels where historical extremes have been reached. . That means the potential for more vulnerabilities exists, he added.
Asian markets
The benchmark MSCI Asia Pacific ex Japan index traded slightly down 0.08 percent at 568.96. The Japanese market is closed for trading this week.