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Market Update

* The equity market sell-off extended into a third consecutive trading session, driven by ongoing concerns over persistent Foreign Institutional Investor (FII) selling and weak global market conditions, which led to a decline of more than half a percent in major indices. Worries about a slowdown in December quarter earnings also intensified. Mid-cap and small-cap stocks were the biggest losers, with the Nifty Mid-Cap and Small-Cap indices falling over 2% each. Additionally, sectors like pharma, auto, metals, realty, financials, and energy saw declines ranging from 2-3%.

* However, the IT sector was the sole bright spot, with the Nifty IT Index rising 3%, boosted by strong quarterly results from TCS and expectations that a potential Donald Trump administration could spur discretionary spending in North America. The advance-decline ratio for Nifty 500 stocks stood at 1:6, indicating heavy selling pressure on mid- and small-cap stocks. FIIs were net sellers to the tune of Rs 7,000 crore yesterday and nearly Rs 20,000 crore so far this month, within just seven trading sessions. The Sensex dropped 241 points, or 0.3%, to close at 77,378, while the Nifty fell 95 points, or 0.4%, to end at 23,431.

* Globally, both Asian and European markets declined as traders awaited the release of US jobs data, which could influence the Federal Reserve's decisions on interest rates.

Technical Outlook:

* Nifty index opened flattish and bears took control right from the first tick as strong selling pressure was seen from upper levels. The index hit an intraday low of 23444 within the first hour of the session. However, Nifty showed a slow and steady recovery of about 200 points by midday followed by volatile move in later part of the day. Sell on bounce is continued in the index as it erased more than 500 points in this week . It formed a big bearish candle on weekly chart and has been making lower highs from the last six sessions which indicates further weakness in the market. Now till it holds below 23600 zones, weakness could be seen towards 23333 then 23250 zones while hurdles are placed at 23600 then 23800 zones.

• Derivative Outlook:

* Nifty future closed negative with losses of 0.56% at 23515 levels. Positive setup seen in TCS, Wipro, HCLTECH, Persistent, Infosys, Bata India, Marico, SBI Life, Bajaj FinServ and Bharti Airtel while weakness in Tata Elxsi, REC, Hudco, BHEL, CDSL, PEL, IRB Infra, PFC, and GNFC.

* On option front, Maximum Call OI is at 24000 then 24500 strike while Maximum Put OI is at 22500 then 23000 strike. Call writing is seen at 23500 then 24000 strike while Put writing is seen at 23400 then 23000 strike. Option data suggests a broader trading range in between 23000 to 24000 zones while an immediate range between 23300 to 23800 levels.

* Syrma SGS wins deal with Taiwan companies - Taiwan’s Micro-Star International has picked Syrma SGS Technologies to manufacture laptops for Indian market. The company will assemble laptops for MSI at its Chennai facility.

* IDFC FIRST Bank - Company announced its integration with Income Tax Portal to collect Direct Tax on behalf of Central Board of Direct Taxes (CBDT), Government of India.

* Samvardhana Motherson - Auto parts maker Samvardhana Motherson announced steps to secure Prysm Systems’ assets and patented technology through its subsidiary, MSSL Consolidated Inc.

* Aditys Birla Fashion- Company notified the board will consider fundraising plans via share sale on Jan. 15.

* Positive for gamming stocks - The Supreme Court has stayed proceedings related to all show-cause notices (SCNs) issued to gaming companies until the final disposal of the case. The tax department expressed concerns that some SCNs might become time-barred if a stay was not imposed.- Nazara Tech, Delta Corp.

* NTPC Green Energy - NTPC Renewable Energy has added 60 MW to the Bhainsara Solar project (total: 220 MW) and 50 MW to the Shajapur Solar project (total: 100 MW).

* Windlas Biotech- company announced that its new state-of-the-art injectable facility has received Good Manufacturing Practices (GMP) certification. The certification, granted by the Food Safety & Drugs Administration Authority of Uttarakhand, follows an inspection conducted in December 2024.

* Vedanta – Company announced to secure $300mn financing from banks

Global Market Update

* European Market -European stocks dropped as investors await key US jobs data that will inform the Federal Reserve’s interest rate path. UK, France and Germany marginally decline.

* Asian Market - Equities fell in Asia on Friday as traders prepared for the release of US jobs data that could play a key role in the Federal Reserve's decision-making on interest rates, with several officials indicating the cutting has finished for now. Japan, South Korea, Australia and Taiwan Index declined up to 1% each.

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