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Market Update

• The stock market kicked off the new year 2025 on a positive note, with the benchmark indices, Sensex and Nifty, posting strong gains of about half a percent each. This rally was driven by gains in select heavyweights such as Maruti, HDFC Bank, Asian Paints, Larsen and Toubro (L&T), and Mahindra & Mahindra (M&M). Positive auto sales numbers from M&M and Maruti, along with hopes for a favorable Union Budget, boosted market sentiment. Additionally, with many global markets closed for the New Year holiday, traders engaged in bargain hunting of large-cap stocks.

• The Nifty rose by 98 points, or 0.4%, to close at 23,743, while the Sensex soared 368 points, or 0.4%, to end at 78,507. Both mid-cap and small-cap stocks joined the rally, gaining up to 1%. Fertilizer and hotel stocks also saw significant gains. The Nifty Auto Index climbed 1% following strong December sales figures from Maruti and M&M, with both companies rising 3% and 2.5%, respectively.

• Fertilizer stocks gained after the government extended a one-time special package of up to Rs 3,850 crore to ensure the continued supply of Di-ammonium Phosphate (DAP) at Rs 1,350 per 50 kg bag. Stocks like RCF, GSFC, FACT, Zuari Agro, Mangalore Chemicals, and Paradeep Phosphates saw gains ranging from 2-6%.

• Hotel stocks also saw fresh buying, driven by increased demand during the festival and wedding seasons, with Chalet, Lemon Tree, EIH, and Taj GVK gaining between 3-12%.

Technical Outlook:

• Nifty opened flattish and after the initial drop to 23550 levels, it witnessed a pullback move of 260 points. The index has been consolidating within a band from the last seven trading sessions. It formed a bullish candle on daily frame and negated its lower highs formation of the last two sessions. Now it has to hold above 23650 zones for an upside move towards 23900 then 24000 zones while supports are placed at 23650 then 23550 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.42% at 23907 levels. Positive setup seen in IRB, Laurus Labs, Maruti, Aurobindo Pharma, Kotak Bank, Jubilant Food works, Voltas, CDSL, United Spirits, Muthoot Finance and M&M while weakness in Crompton , Prestige Estate, Cholamandalam Finance, Hindalco, Cyient, Max Financial, Tata Chemicals, Cummins India, Tata Elxsi, and Baja Auto.

• On option front, Maximum Call OI is at 24300 then 24100 strike while Maximum Put OI is at 23000 then 23200 strike. Call writing is seen at 24100 then 23750 strike while Put writing is seen at 23700 then 23600 strike. Option data suggests a broader trading range in between 23200 to 24300 zones while an immediate range between 23500 to 24000 levels.

• December auto sales – M&M automobile sales at 69768 unit (up 16% YoY) and tractor sales at 22019 unit (up 22% YoY). Bajaj Auto December sales flat (YoY) at 323125 unit, Escorts sales at 5472 units. Hyundai Motor sales at 55078 (down 2.4% YoY), Steel Strips Wheels sales up 10%. SML Isuzu sales at 626 uint (down 34% YoY)

• Coal India December Production - December provisional coal production up 0.7% At 72.4 MT Vs 71.9 MT (YoY) December provisional coal offtake up 2.4% At 68.6 MT Vs 67 MT (YoY)

• Power Mech Projects – Company has received an order worth Rs 294 crore from Adani Power Ltd. for overhauling services for Unit 3 and 4 of the Korba Phase-II project

• SJVN - company signed a memorandum of understanding with the Bihar Government to develop 1,000 megawatt pump storage worth Rs5663cr

• The India Cements: The company approved the appointment of Suresh Vasant Patil, as chief executive officer and Krishnagopal Ladsaria, as chief financial officer.

• Jupiter Wagons: The company increased stake in its arm Jupiter Electric Mobility to 75% from 60%.

• Vishnu Prakash R Punglia: The company received a contract from Hissar Builders for fabrication of FOB Steel Girder in Chakradharpur Division. The order has a total value of Rs 7.3 crore.

• Indo Tech Transformers: The company currently possesses installed capacity of 9,500 MVA with a utilization rate of 80–90%. The company enhanced its capacity by adding 6,500 MVA, bringing the total capacity to 16,000 MVA. This expansion is expected to be completed by March 2027.

• PNC Infratech: The company receives in-principle approval from NHAI for transfer of 100% stake held by PNC Infra Holdings in its arm to Highways Infrastructure Trust. Prataap Snacks: The CCI has approved the proposed acquisition of 72.8% stake in Prataap Snacks by Authum Investment

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