Trade Setup for Thursday, January 16, 2025: Indian stock market indexes Sensex and Nifty closed higher for the second consecutive session. The Nifty index closed above 23200 amid cautious optimism. Market sentiments were optimistic ahead of the US CPI inflation data, which was due later in the day. The data will play a crucial role in the Fed’s future monetary policy decisions.
Sensex and Nifty Today
The BSE Sensex gained 224.45 points or 0.29% to 76724.08, while the Nifty index rose 37.15 points or 0.16% to 23213.20 level. The broader markets outperformed the equity benchmarks as the Nifty midcap index was up by 0.41% and the Nifty smallcap index ended higher by 056%.
The volatility remains in the markets as investors were concerned regarding the US Fed’s interest rate cuts in 2025, the forthcoming Union Budget, and the US trade policies. The Nifty 50 stocks like Trent, NTPC, L&T, and Reliance were major gainers.
The market breadth was almost neutral today. On the NSE, 1187 shares advanced while 1193 shares declined at the close. FIIs continued to sell, they have offloaded shares worth Rs 4533.49 Cr shares while DII purchased shares worth Rs 3682.54 Cr. The NSE’s volatility index “India VIX” slipped 1.37% to 15.26.
Global Stock Markets Today
On the global front, the US stock market indexes Dow Jones Industrial Average( DJIA), Nasdaq, and S&P 500 trading higher by almost 2% as the US consumer price inflation came at 3.2% below the estimation of 3.5%, on a core basis, i.e excluding food and energy. On an annual basis, the headline inflation rose 2.9% in December, from a year ago period.
The market sentiments are also optimistic due to strong big bank earnings. JPMorgan Chase posted record profits, while Citigroup and Goldman Sachs beat market expectations as the earning season kicked off in the US.
Earlier, the European stock market indexes CAC, DAX, and FTSE gained more than 1% as the official data showed the UK’s inflation fell to 2.5% in December 2024. The data was better than expected, as analysts expected the CPI data to remain unchanged at 2.6% in November 2024. Investors’ sentiments turned further positive after the US inflation data came better than expected.
The Asian stock market indexes closed mixed today, likely to follow the positive cues from the US and European markets tomorrow. The Gift Nifty is trading above 23380 levels, up 118 points at 10 PM IST.
Trade Setup for Thursday, January 16, 2025
Though the Nifty index is looking cautious at the current level, the support for the Nifty index is placed at 23000 for the next session. The domestic market indices are likely to follow the optimistic global cues tomorrow. Indian markets are expected to open a gap-up tomorrow and continue to trade in the positive territory for the third trading session.
Conclusion
Indian markets are likely to start on a positive note on Thursday, January 16, 2025, supported by strong global cues and optimism over economic data. With Nifty holding above 23,200 and support at 23,000, traders should stay cautious amid ongoing volatility and global uncertainties. Keep an eye on key trends and developments for informed decisions.
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Editor’s Desk