On January 11, at midday, the market indexes saw a rise in response to positive global cues; however, the advance was constrained as investors remained cautious in front of the later-that-day release of the US December inflation figures.
When rival Infosys and Tata Consultancy Services (TCS), the largest IT services provider in India, released their December quarter financial results later in the afternoon, information technology equities were in the spotlight.
The Nifty was up 43.70 points, or 0.20 percent, at 21,662.40, and the Sensex was up 135.82 points, or 0.19 percent, at 71,793.53 at midday. Gainers were also helped by the market’s breadth, as two equities increased for every one that declined.
The overall market performed well, with robust purchases in midcaps and smallcaps.
Sectoral patterns
Every industry took part in the upward trend and saw green-market trading. PSU banks, energy, and cars all had gains, ranging from 0.5 to 1.3 percent. Marginal growth were seen by other frontline industries, such as FMCG, medicine, banks, and metals.
The IT industry bounced back from its early lows and is again trading higher.
basic perspective
Thus far this month, there has been no consistency in the behaviour of FII and DII. They are limiting the market in a range by going through alternate cycles of buying and selling.”
Services.
“For the market to move outside of this range or break out of it, triggers are needed.
A potentially negative catalyst might be a somewhat hawkish remark from the Fed delaying the rate reductions, which the market anticipates will start in March. The US CPI inflation statistics will provide hints for the Fed’s choice.
Additionally, the Q3 results season would give clues about the Nifty earnings for FY24. “Good results will be reported by the financials, capital goods, telecom, autos, and hotels. Results from IT will be mediocre, and FMCG will be uneventful.
technical perspective
Technically speaking, the 21,500 zone has shown its strength by enabling the Nifty to recover. Sameet Chavan, a technical analyst at Angel One, stated that the dent in the consolidation zone should not be completely discounted and that a cautious attitude should be kept.
According to Chavan, the 21,500 zone would be the main support, and the continuous consolidation might be upset by a decisive close over the mark.
“Meanwhile, technical indicators are slightly in line with a bearish view; hence, it is advisable to stay light on positions.