Nifty, Nifty Bank take a U-tur

NIFTY:

The NIFTY opened at 21033.95 with a big gap down of 117 points. The index recorded its intraday low at 20976.80 in its early trades and bounced up sharply. A sharp rally came and prices have soon filled the gap to come in positive territory. Prices then started moving range bound which eventually broke higher and prices again moved up. The index found resistance in the second half, recorded its intraday high at 21288.35, and again formed a range. The NIFTY finally closed at 21255.05 near its day’s high with a gain of 104.90 points or 0.50% up. The short-term trend is sideways now. We have been tracking a support level of around 21000. Prices have respected this level and bounced up. Resistance is now visible around 21600. The index has formed a trading range within these two levels. The markets are going through a process of consolidation. For the time being, we should step aside and avoid trading the index. Wait for an adequate trading setup to emerge.

BANK NIFTY:

the BANK NIFTY opened at 47172.45 with a gap down of 44 points. The index initially moved lower but soon found support and turned up after recording its intraday low at 46919.70. A sharp rally came that lasted till the end. Prices have seen a sharp dip in the afternoon that found support quickly and the index rallied with more pace afterward. Prices have recorded its intraday high at 47932.40 towards the end and finally closed at 47852.70 with a gain of 636 points. BANK NIFTY takes a U-Turn after one day of a sharp correction. After early morning weakness, prices inched higher as the day progressed and ended the session near its day’s high. The intraday range was again very wide as prices have traveled within a range of over 1000 points. The short-term trend is sideways. Prices have held 47000 levels and now this is acting as a support. Resistance is visible around 48200 at its lifetime high. On the daily timeframe chart, a trading range is now visible within these support and resistance levels. Since the last two days were very wide, the coming few days may be narrow and choppy. The index is now going through a process of consolidation. As of now, we should step aside and avoid trading the index.

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• Benchmark indices ended in the green in the highly volatile session on December 21. At close, the Sensex was up 358.79 points or 0.51 percent at 70,865.10, and the Nifty was up 104.80 points or 0.50 percent at 21,255. About 2419 shares advanced, 834 shares declined, and 72 shares unchanged.

• The Mumbai police enforced Section 144 of the Criminal Procedure Code (CrPC) from December 20 to January 18. According to reports, the police received inputs from intelligence agencies about potential terror strikes, especially targeting VVIPs.

• A prolonged blockage of the Suez Canal, one of the world’s most vital trade routes, could erode India Inc’s earnings as global freight costs may rise significantly and stoke inflation, analysts said. In a December 19 report, CNBC reported that cargo worth around $35 billion had been diverted, with around 57 cargo ships changing their route as major shipping corporations announced their decision to pause movements through the Suez Canal route after the recent attacks on ships passing through the area by Yemen-based Houthi rebels, backed by Iran.

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

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