Honasa Consumer, Godrej Industries, and FSN E-commerce rise on Positive Developments

Technical Overview – Nifty 50

The Benchmark Index started the week with a massive selling where prices were continuously trading below 21,550 levels and formed a tall red candle on the daily time frame with a closing near 21,500 levels. The Index has drifted below its 9 EMA and was hovering below the same for the majority of the time.

The tall bearish candle has engulfed its previous two days’ candle which has indicated a strong a selling in the market. The momentum oscillator RSI (14) is reading in a lower low lower high formation and the oscillator is reading near 60 levels with bearish crossover.

The Nifty50 on the daily chart is trading within the rising channel pattern and prices have presently reached near the middle of the pattern and have breached its short-term moving average support. The immediate support for the index is placed near 21,400 and below that near 21,250 levels and resistance is placed near 21,700 levels.

Technical Overview – Bank Nifty

The Bank Nifty Index started the week with a massive selling-off where prices were continuously trading below 47,700 levels and formed a tall red candle on the daily time frame. The Index has drifted below its 9 EMA and was hovering below the same for the majority of the time.

The tall bearish candle has engulfed its previous two days’ candle which has indicated a strong a selling in the banking sector. The momentum oscillator RSI (14) is reading in a lower low lower high formation and the oscillator is reading below 60 levels with a bearish crossover.

The Bank Nifty on the 60 mins chart has witnessed a rising wedge pattern breakdown and the index is trading below the lower range of the pattern. Presently index has closed between the 9 & 21 EMA range and a break on either side will decide the further direction for the Banking Index. The immediate support for the Banking index is placed near 47,000 and below that near 46,600 levels and resistance is placed near 48,000 levels.

Indian markets:

• Domestic benchmark indices, S&P BSE Sensex and NSE Nifty50, initially opened with marginal gains but later slipped into negative territory on January 8.
• Amid weak global cues, both domestic equity benchmarks declined by approximately 1 percent each on January 8.
• Nifty Midcap 100 and Nifty Smallcap 100 indices both dropped by 1 percent, prompting profit-taking in the broader markets.
• India VIX, the fear gauge, rose by 7 percent, reaching around 13.5 levels amidst this profit-booking.
• Sectors such as banks, financial services, and FMCG notably dragged down the market.
• Concerns about the upcoming Q3 earnings season and profit booking contributed to the market’s downward trend.
• Retail investor enthusiasm waned due to a robust US jobs report that caused a rally in 10-year treasury yields, dampening hopes for rate cuts.

Global Markets

• In Asia-Pacific markets, early gains were erased on Monday, particularly in Hong Kong, where stocks led the region in losses, indicating a shift in market sentiment.
• European markets were lower Monday, continuing the negative sentiment seen at the start of trading in 2024. European stocks lower as markets look ahead to U.S. inflation data this week.
• Global investors are focusing on upcoming U.S. inflation data and major bank earnings to gauge the economy’s status and potential Federal Reserve rate adjustments.
• The December consumer price index will be released on Thursday, followed by the producer price index on Friday, offering vital economic indicators.
• U.S. stock futures showed little movement on Sunday night after major indices had a lackluster start to 2024.

Stocks in Spotlight

• Honasa Consumer, the parent company of Mama Earth, saw a 6.35 percent surge in its shares after a block deal, where 32.60 lakh shares valued at Rs 142 crore were traded on the exchanges.
• Godrej Industries‘ stock witnessed a 5.21 percent increase subsequent to the company’s agreement with the Gujarat government to make a non-binding investment of Rs 600 crore.
• FSN E-commerce, the parent company of Nykaa, saw a 2.08 percent increase in its shares following a business update. The update highlighted expectations for the Beauty and Personal Care (BPC) vertical to achieve mid-20s Gross Merchandise Value growth in the October-December quarter, with Net Sales Value predicted to rise by approximately 20 percent year-on-year.

News from the IPO world🌐

• MobiKwik files draft papers for Rs 700 crore IPO
• IPOs to wathcout in 2024: Swiggy, firstcry, Ola Electric, Oyo, Portea Medical.
• Unicommerce eSolutions IPO: E-commerce SaaS-platform files DRHP with Sebi

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