Cipla Surges, Zee Entertainment Declines, Axis Bank Reports Q3 Performance

Technical Overview – Nifty 50

It was a carnage selling in the Indian Benchmark Index where prices have formed a tall bearish candle that has engulfed its previous four days on the daily time frame. The Index witnessed a gap-up opening of more than 100 points as indicated by global clues and post registering a high at 21,750 levels prices witnessed one-way selling across the counters. 

The Nifty50 on the daily chart has witnessed a rising channel pattern breakdown, and prices have closed below the channel’s lower band. As the day progressed, selling intensified and prices drifted below their 9 & 21 EMA daily.

Not a single green candle on the 60 mins chart indicates selling pressure is on the higher side. The momentum oscillator RSI (14) on the daily chart post forming a bearish divergence reading in a lower high lower low formation.

The Market scenarios have turned into a sell-on-rise mode immediate resistance or trend reversal levels for Nifty are placed at 21,600 levels and more down till expected till 21,000 where 50 EMA is placed.

Technical Overview – Bank Nifty

It was a carnage selling in the Banking Index where prices have formed a tall bearish candle that has engulfed its previous four days on the daily time frame. The Index witnessed a gap-up opening of more than 300 points as indicated by global clues and post registering a high at 46,580 levels prices witnessed one-way selling across the counters. 

The Bank Nifty on the daily chart has witnessed a breakdown of a horizontal trend line support formed near 46,200 levels. The Banking Index post registering its lifetime high levels are trading in a lower low lower high formation on the daily time frame.

As the day progressed, selling intensified and prices drifted below their 9, 21 & 50 EMA daily. The momentum oscillator RSI (14) on the daily chart post forming a bearish divergence reading in a lower high lower low formation.

The Banking Index scenarios have turned into a sell-on-rise mode immediate resistance or trend reversal levels for Bank Nifty are placed at 46,500 levels and more down till expected till 44,000 levels.

Indian markets:

• On January 23, the Nifty 50 and Sensex experienced significant losses due to a widespread sell-off triggered by weak global signals.
• The decline was not only broad but also more pronounced in the midcap and smallcap sectors, resulting in deeper losses in those indices. Broader markets witnessed substantial declines, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices dropping by over 3% each.
• With the exception of Nifty Pharma, all sectoral indices concluded in negative territory. Nifty Media saw a substantial decline of nearly 13%, Nifty Realty fell by 5.31%, Nifty PSU Bank declined by 4.1%, and both Nifty Metal and Nifty Oil & Gas dropped by 3.4% each.

Global Markets

• In Asia-Pacific markets, Hong Kong stocks rebounded Tuesday after two straight days of declines, while Japan’s Nikkei 225 index rose as the Bank of Japan kept its monetary policy unchanged in its first monetary policy meeting of the year.
• U.S. stock futures were little changed Tuesday morning after the Dow Jones Industrial Average surpassed 38,000 for the first time ever.
• European markets turned lower Tuesday, losing an air of positivity seen in the previous trading session.

Stocks in Spotlight

• Cipla stock experienced a 6.97% surge following the announcement of robust Q3 performance. Net profit witnessed a substantial increase of 32.7%, reaching Rs 1049 crore, while revenue also saw a significant rise of 14.2%, reaching Rs 6,544 crore.
• Zee Entertainment recorded a decline of over 30.47% as it triggered a series of lower circuits following the cancellation of its $10-billion merger with Japan’s Sony Pictures’ Indian arm. The Indian media giant also faced downgrades from several brokerages.
• Axis Bank reported a Q3 FY 2023-24 net profit of Rs 6,071 crore, a 4% increase from the same period last year. However, it slightly missed the market estimate of Rs 6,114 crore. The net interest income (NII) was Rs 12,532 crore, almost in line with the expected Rs 12,555 crore.

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