Lifetime New Highs in Nifty and Bank Nifty; The short term trend is still up

NIFTY:

NIFTY opened at 21365.20 with a gap up of just 16 points. The index initially moved sideways, eventually breaking on the upside after prices recorded its intraday low at 21329.45 in its initial trades. That sideways movement lasted till the end and prices have moved within a narrow range of about 40 points. The NIFTY finally closed at 21441.35 near its intraday high with a gain of 91.95 points or 0.43% up OIL GAS, METAL, and PHARMA outperformed and closed with a gain of over 1% followed by AUTO and FMCG. MEDIA and IT underperformed and ended with a loss. The short-term trend is still sideways despite the NIFTY closing higher for the third consecutive trading day and also moving near its lifetime highs. The markets are going through a process of consolidation. For the trading setup to emerge. time being, we should step aside and avoid trading the index. Wait for an adequate

BANK NIFTY:

BANK NIFTY opened at 47576.40 with a gap up of 118 points. Prices initially moved lower, filled the gap, and then found support. Prices then moved sideways which continued till the end. The index finally closed at 47762.50 with a gain of 304 points. PVT BANKs have outperformed, saw a mild up move, and closed with a gain of 0.40%, PSU BANKs have underperformed, saw a mild down move, and closed with a loss of 0.15%. The intraday range was normal as prices have traveled within a range of 427 points. The short-term trend is sideways. As mentioned in our previous letter, “Support is visible around 47000 while resistance is visible around 48200. On the daily timeframe chart, a trading range is now visible within these support and resistance levels. This range has been continuing for the past 11 trading days. We were expecting this week may be narrow and choppy. The index started the week on the same note. Moreover, a consolidation is going on. As of now, we should step aside and avoid trading the index. Wait for an adequate setup to emerge.

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INR: FX Reserves, USD on 29th December, 2023 INR: RBI Monetary and Credit Information Review on 29th December, 2023	USD: Initial Jobless Claims on 28th December, 2023 USD: Pending Home Sales (MoM) (Nov) on 28th December, 2023

News Updates

• The Indian benchmark indices hit fresh milestones and also ended higher for the fourth straight session on December 27 with Nifty finishing at 21,650 led by positive global cues and buying across the sectors, barring power and oil & gas. At close, the Sensex was up 701.63 points or 0.98 percent at 72,038.43, and the Nifty was up 213.50 points or 1 percent at 21,654.80.

• With tight liquidity conditions weighing on business, the bank credit growth in India is likely to moderate to 12-13 per cent in the next financial year (FY25) from 16.5 per cent year-on-year in early December 2023, according to ICRA.

• UltraTech Cement Ltd.’s market capitalisation crossed the Rs 3 lakh crore mark as its shares hit an all-time high on Wednesday after Nomura Holdings Inc. upgraded its stock to ‘buy’ from ‘neutral’. The brokerage also raised its target price to Rs 11,500, citing higher sales volume growth and better realizations. “We raised FY26 sales volume by 4% on likely better utilisation from core markets. This should lead to better fixed cost absorption, resulting in unitary Ebitda expansion,” it said in a note.

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

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