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Updated January 17th, 2024 at 08:56 IST

Nifty poised for lower opening amid weak Asian cues

As of 8:11 am, GIFT Nifty indicated a lower opening, trading at 21,826.50, below the Tuesday close of 22,032.30.

Business Desk
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Stock market news: The Nifty 50 index in India is expected to open lower today, influenced by various factors including HDFC Bank's 6.7 per cent dip post-Q3 results, uncertainties surrounding Federal Reserve rate cuts, and Middle East tensions impacting shipping.

As of 8:11 am, GIFT Nifty indicated a lower opening, trading at 21,826.50, below the Tuesday close of 22,032.30. Asian markets, as reflected by the MSCI Asia ex-Japan index, saw a 1.3 per cent decline following China's economic growth missing expectations in the December quarter. Wall Street also closed lower after a Federal Reserve official expressed caution against hasty rate cuts.

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HDFC Bank, the heaviest-weighted stock in the Nifty 50 index, drew attention after reporting a larger-than-expected profit for Q3, resulting in a 6.71 per cent dip in its American-listed shares overnight.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd said, This Wednesday, HDFC Bank ADR faces a 6.7 per cent dip post-Q3 results, coupled with uncertainties about Federal Reserve rate cuts and Middle East tensions impacting shipping. On a positive note, FIIs were net buyers, and US inflation concerns eased. Nifty may show a negative bias due to mild profit booking.

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He further added, Fitch Ratings is optimistic about India's growth, while technicals suggest Nifty's support at 21,807 and resistance at 22,126. Bank Nifty has interweek support at 47,050.

Providing trade recommendations, Tapse stated, “Preferred trades: Nifty (22,032) - Buy at 21,800-21,825, Stop at 21501, Targets 22,151/22,251. Bank Nifty (48,125) - Buy at 47,250-47,400, Stop at 47,011, Targets 48,301/48,636.”

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Investors are also eagerly awaiting the quarterly results of Nifty 50 companies such as Asian Paints and LTIMindtree scheduled for Wednesday. Foreign institutional investors (FIIs) were net buyers of Indian shares worth Rs 657 crore on Tuesday, while domestic institutional investors sold shares worth Rs 369 crore.

Stocks to Watch

  • L&T Technology Services: The IT company retained its revenue growth forecast for fiscal 2024 after reporting an increase in net profit and revenue in the third quarter.
  • ICICI Securities: The company posted a rise in consolidated net profit in the September quarter.
  • PNC Infratech: The company received a letter of award for a Madhya Pradesh construction project, valued at Rs 1,174 crore.
  • Network18 Media & Investments: The company reported a widening consolidated net loss in the December quarter.
     
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Published January 17th, 2024 at 08:56 IST

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