Trent Slips on Margin Concerns; Healthcare Index Moves Higher – Paper by Pocketful
Market Recap: 06th January, 2025
📈 Top Gainers & Losers (Nifty 50)
🗞 Stock News Highlights
Oil and Natural Gas Corporation (+1.60%): Stock moved higher after ONGC signed joint ventures with Mitsui OSK Lines to operate VLECs transporting U.S. ethane for OPaL, strengthening long-term feedstock supply.
NBCC (-0.93%): Stock declined despite receiving new orders worth ₹134.05 crore from Maharaja Sriram Chandra Bhanja Deo University and the Odisha School Programme Authority.
IndusInd Bank (+1.59%): Stock rose despite weak Q3 performance, with net advances down 13.1%, deposits falling 3.8%, CASA declining to 30.3%, and loan book shrinking 2.2% sequentially.
Trent (-8.63%): Stock fell despite revenue rising 17% YoY to ₹5,220 crore and healthy profits, as investors worried about slowing same-store sales, declining revenue per store, and aggressive expansion hurting margins.
🏢 Sectoral Performance
Healthcare | Nifty Healthcare (+1.85%): Index moved higher, outperforming the broader market, led by gains in Divi’s Laboratories, Sun Pharmaceutical Industries, and Apollo Hospitals Enterprise, as defensive buying and a stable earnings outlook supported healthcare stocks.
Pharma | Nifty Pharma (+1.69%): Index moved higher, outperforming the broader market, with 17 gainers and 3 draggers, as defensive buying and a stable earnings outlook supported pharma stocks.
Oil & Gas | Nifty Oil & Gas (-1.75%): Index slipped sharply, underperforming the broader market, as selling pressure in RIL, BPCL, and GAIL intensified amid geopolitical risks and weak technical signals.
Infra | Nifty Infra (-1.18%): Index moved lower, underperforming the broader market, with 10 gainers and 20 losers, as profit booking, weak order inflow visibility, and rising input costs weighed on infrastructure stocks.
🔍 Market Insights
Technical Level: Nifty opened with a gap down and saw sharp fluctuations in early trade, tested resistance near 26,270, then reversed lower, forming a lower low and finding intraday support around 26,130.
Advance-Decline Ratio: Market breadth stayed negative with 1,208 advances against 1,943 declines, reflecting broad-based selling pressure.
The Big Picture: Gold prices edged higher toward a one-week high as safe-haven demand rose amid geopolitical tensions involving Nicolas Maduro and growing expectations of Federal Reserve rate cuts after weak U.S. manufacturing data.
FII/DII Activity (Jan 5, 2026): DIIs remained strong net buyers worth ₹1,764 crore, while FIIs turned marginal net sellers at ₹36 crore, reflecting mixed institutional sentiment.
🔮 Watch Out For Tomorrow
Earning Corner: Victory Electric Vehicles and Yajur Fibres SME IPOs are set to open tomorrow, offering investors fresh opportunities in the EV and textile segments.
Macro: Euro Inflation Rate YoY Flash (Dec) & USA JOLTs Job Openings (Nov) are scheduled for release tomorrow, likely influencing global market sentiment.
Index Watch: Nifty opened lower and extended losses toward key daily support, forming a lower low. The near-term direction depends on whether support holds. With overall market conditions balanced and institutional buying supportive, the index may stabilize and turn green this week, though global cues and volatility could limit sharp upside.
5 Day Course
Theme: Risk Management for Active Traders
Day 2 – Position Sizing: Your First Line of Defence
Position sizing controls how much capital you risk per trade, ensuring a single loss never causes major portfolio damage or emotional decision-making.
Example: You have a trading capital of ₹2,00,000. You decide to risk only 1% per trade. That means your maximum loss per trade is ₹2,000. If your stop-loss is 20 points away, you trade only 100 quantities (₹2,000 ÷ 20). Even 5 losses won’t damage your capital badly.
📝 Word Of The Day
Order Book Depth – The volume of buy and sell orders at different price levels, indicating how much liquidity is available in the market.
👀 Stay tuned. Stay diversified.
Until next time,
Team Pocketful.