Opening Bell - 14 / 01 / 25

Stock Market Updates

Opening Bell - Morning Commentary

Pullback rally on cards – Immediate resistance at 23340

American Stocks ended mixed - with the S&P 500 shaking off earlier losses to post its biggest intraday comeback in four months. The technology-heavy Nasdaq lagged the broader S&P 500 and Dow Jones.

Oil futures settled Monday at their highest in about five months, buoyed by expectations that the latest U.S. sanctions on Russian oil will lead to tighter global supplies of the commodity.

Market attention now turns to Wednesday's December Consumer Price Index (CPI) report, where analysts anticipate an uptick in headline inflation, partially attributed to elevated energy costs. This potential resurgence in inflation represents a significant concern for equity markets, particularly as the Federal Reserve has already scaled back its projected interest rate cuts in response to higher-than-expected inflation forecasts.

The fixed income market continues to face pressure, with the U.S. 10-year Treasury yield reaching 4.79%, marking its highest level since October 2023.

In Indian markets, HCL Technologies reported Q3FY25 results aligned with market expectations. The company upgraded its revenue growth guidance to 4.5-5% from the previous 3.5-5% year-over-year in constant currency terms, while maintaining its EBIT margin guidance at 18-19% for FY25E.

The Indian rupee experienced its most severe decline in nearly two years, deprecating 62 paise to an all-time low of 86.59 against the U.S. dollar, pressured by a strengthening dollar index and rising crude oil prices.

The Nifty extended its losing streak to a fourth consecutive session on January 13, declining 345 points (1.47%) to close at 23,085, influenced by weak global market sentiment.

Derivatives market cues suggest a potential short-term recovery in the Nifty, with call option implied volatility surpassing that of puts for the first time during this correction. The index faces immediate resistance at 23,340.

HSL Prime Research