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Market Update

* The equity benchmark Nifty fell by 0.5% after a three-day rally, largely due to sharp declines in IT major Infosys and private banking leader Axis Bank, following disappointing quarterly earnings. The Nifty IT Index dropped 2.7%, while the Nifty Private Bank Index plummeted over 2%. However, the market found support from strong quarterly results announced by Reliance Industries, which helped recover some losses. Nifty closed 108 points lower at 23,203, after hitting an intra-day low of 23,100. Nifty Metal, Realty, FMCG, and Oil & Gas stocks were among the key gainers, with increases of 1-2%. The Nifty 500 stocks advance-decline ratio was 1.2:1, indicating a shift towards mid-cap and small-cap stocks.

* On the global front, investors are concerned about the potential economic changes under Donald Trump's second presidential term. His protectionist stance and focus on US interests could pose challenges for trade-dependent Asian countries like China, Japan, South Korea, and Vietnam.

* Metal stocks rallied strongly after China's better-than-expected Q4 GDP and December IIP data improved sentiment about global demand. Copper prices on the LME surged to a two-month high. The Nifty Metal Index rose 1.5%, with Hindustan Copper climbing 7% to Rs247. National Aluminum, Hindalco, Tata Steel, and NMDC saw gains ranging from 1.5% to 3.5%.

Technical Outlook:

* Nifty index opened on a negative note and faced selling pressure in the initial hour of the session pushing the index down toward the 23100 zone. However, buying was seen at lower levels as the index inched higher slowly for the rest of the day. Despite the intraday recovery, momentum was lacking on upper side as nifty struggled to cross the 23333 zone. It formed a doji sort of candle on weekly frame which indicates tug of war between bulls and bears. Further, it has formed bearish candle on daily chart with long lower shadow. Now till it holds below 23333 zones, weakness could continue towards 23000 then 22900 zones while hurdles are placed at 23333 then 23500 zones.

Derivative Outlook:

* Nifty future closed negative with loss of 0.50 % at 23261 levels. Positive setup seen in Manappuram, HAL, BSE, LTTS, ICICIGI, Idea, Inuds Tower, Reliance, and SRF while weakness in Infy, Axis Bank, M&M, Bata, OFSS, HCL Tech, Kalyan Jewellers, KPIT Tech, ShriramFin and Supreme Industries.

* On option front, Maximum Call OI is at 24000 then 24500 strike while Maximum Put OI is at 22000 then 22700 strike. Call writing is seen at 24000 then 23600 strike while Put writing is seen at 22700 then 23200 strike. Option data suggests a broader trading range in between 22700 to 23700 zones while an immediate range between 23000 to 23500 levels.

* BPCL ties Rs31,802 cr funds for Bina refinery expansion – Company said it has achieved financial closure for its Bina refinery expansion cum petrochemical project with the signing of a loan agreement of Rs 31,802 crore

* C.E. Info Systems – Company partnering with Qualcomm to support the ‘Make in India’ initiative for the automotive sector.

* AB Realestate - World Bank Group member International Finance Corporation (IFC) has proposed an investment of nearly $100 million in Mumbai-based Aditya Birla Housing Finance.

* Havells Expects Higher Expenses Due To Product Expansion – Company expects higher expenses on account of product expansion, the company said during the con call on Friday. The company added that the margins are to be in the range of 12%-14%. The company added that the volume growth in cables and wires was flat.

* Shoppers Stop - Shoppers Stop said that it was at the end of its store closure cycle that had been initiated over the last few months to improve profitability. In an earnings call, MD & CEO Kavindra Mishra said the retailer was looking to add up to 15 stores in FY26.

* Puravankara - Compny is set to launch a new phase of its residential project, Provident Ecopolitan, in Bengaluru, India over the weekend. The new phase includes 581 units across two towers.

* Suzuki Motorcycle India launches electric scooter e-Access, 2 other models - Two-wheeler maker Suzuki Motorcycle India Pvt Ltd launched its first electric scooter, e-Access, as well as two other models at Bharat Mobility Expo 2025.

* Torrent Power –Company plans to set up a thermal power plant in Madhya Pradesh with an investment of Rs 18,000 crore. Torrent Power’s vice president Naveen Kumar Singh said, “The investment policy of Madhya Pradesh is completely favourable for industries. Investment proposals are being approved here within the stipulated time frame. There are good facilities for electricity, water, and infrastructure.”

Global Market Update

* European Market - European stocks gained, with miners boosted by a report of M&A talks between two of the sector’s biggest names. UK, Germany and France Index gained 0.5% each.

* Asian Market - Asian stocks fell, on track for their first loss in four days, as Japanese shares declined ahead of the Bank of Japan meeting next week. Both Hong Kong and China gained 0.3% each.

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