A GAP-UP OPENING DID NOT SUSTAIN

NIFTY:

The NIFTY opened at 18118.45 with a gap up of 91 points. The index initially the NIFTY opened at 18183.95 with a gap up of 65 points. The index initially went down then turned up but soon found resistance and again turned down. Prices have recorded its intraday high at 18201.25 and then started drifting downwards. The decline found support below 18100 and then started a consolidation process. The index recorded its intraday low at 18078.65, saw some recovery in the late hour of trading, and finally dosed at 18118.30 same as yesterday’s closing without any change. The AUTO sector outperformed today and ended with a gain of over 1% followed by IT, FMCG, and MEDIA. REALTY, PHARMA, and METAL underperformed today and ended with a loss. The short-term trend remained sideways. We have been tracking a wide trading range with support around 17800 and resistance around 18250. Prices have been closing within this range for almost a month. Moreover, for the past five trading days, the index is moving very narrowly inside just 200 points of the range. Boundaries are 18000 and 18200. This narrow movement suggests a sharp move is about to come. A breakout from these 200 points of the range may decide the next directional move. Till then step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 42994.45 with a big gap up of 377 points. The index initially moved higher but soon found resistance and turned down after recording its intraday high at 43078.90. Prices have seen a sharp intraday decline, filled the gap, and moved further on the downside to recording its intraday low at 42615.65. The index finally closed at 42715 with a loss of 40 points. PSU BANK underperformed today, saw a sharp intraday decline, and closed lower by 1.36%. PVT BANK also moved down and ended with a loss of 0.18%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AXIS BANK contributed the lowest. It was a trend day today but on the downside where prices have recorded its intraday high near the opening tick and intraday low near its closing tick. Prices have seen a sharp decline throughout the day. Yesterday, the index has seen a breakout from the 41700-42700 trading range and we have suggested waiting for a confirmation today. That did not come as the index ended lower around 42700. The short-term trend is again sideways. For the time being, we should step aside and avoid trading the index. Wait for a decisive breakout and then plan a trade accordingly.

TECHNICAL PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended on flat note in the volatile session on January 24. At Close, the Sensex was up 37.08 points or 0.06% at 60,978.75, and the Nifty was down 0.20 points or 0.00% at 18,118.30. About 1485 shares have advanced, 1930 shares declined, and 132 shares are unchanged.

• Maruti Suzuki on January 24 reported 129.55 per cent jump in consolidated net profit for quarter ended December 2022 at Rs 2,391.5 crore. The profit was Rs 1,041.8 crore in the same quarter last year.

• HDFC Asset Management Company reported standalone profit at Rs 369.4 crore for the October-December period of FY23, registering 2.7 percent growth over a year-ago quarter, largely driven by increase in other income.The standalone profit for quarter ended December FY22 was at Rs 359.75 crore..

• Vistara, the Tata Sons-Singapore Airlines joint venture that is slated to be merged with Air India by March 2024, declared its best-ever performance in the third quarter of FY23. The airline also crossed the $1 billion revenue mark in FY23, with 67 days left in this financial year.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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