Nifty, Nifty Bank started the week with big loss; The trend is down

NIFTY:

The NIFTY opened at 18339.30 with a gap up of 25 points. The index the NIFTY opened at 21716.70 with a big gap up of 145 points. The index initially moved sideways but soon broke down and saw a sharp intraday decline after recording its intraday high at 21750.25. The gap was filled quickly and prices again started moving sideways. The index again broke lower and moved down sharply but this time with more pace. Prices kept on sliding lower and broke below 21300. Prices further drifted downwards and recorded its intraday low at 21192.60. The index again moved sideways for the last hour of trading and finally closed at 21238.80 with a loss of 333 points or 1.54% down. All the sectoral indices have moved in line with the NIFTY and closed lower except for PHARMA which ended with a gain of 1.66%. MEDIA was the worst hit and ended with a loss of 12.87% followed by REALTY, METAL, and OIL GAS. The short-term trend is down and there is no doubt about it as prices have broken the previous swing low. The long-term trend is down while the long-term momentum has been moving down and almost reached the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 46495.45 with a big gap up of 387 points. The index could not sustain at the higher levels and started drifting downwards from its opening tick after recording its intraday high at 46580.30. Prices filled the gap and fell further to record its intraday low at 44886.10. The index finally closed at 45007.15 with a big loss of 1101 points. PSU BANKS have underperformed today, saw a sharp downside move, and finally ended with a big loss of 4.10%. PVT BANKs have also moved down today, saw a sharp downside move, and ended with a loss of 2.21%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while HDFC BANK contributed the lowest. BANK NIFTY started the week with a big loss despite a big gap-up opening. The volatility is rising. We can see it on the daily chart as the intraday range has been wide for the past few trading sessions. This environment is not well suitable for traders. We are advising traders, to step aside and avoid trading the index.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s benchmark stock indices extended losses, and ended at the lowest level in over a month, tracking a decline in shares of HDFC Bank Ltd., Reliance Industries Ltd., and State Bank of India. The NSE Nifty 50 closed 333 points, or 1.54%, lower at 21,238.80—the lowest level since Dec. 20, 2023. The S&P BSE Sensex ended 1,053.10 points, or 1.47%, down at 70,370.55—the lowest since Dec. 13, 2023.

• Shares of Zee Entertainment Enterprises nosedived 30.50 percent on January, breaking a series of extended lower circuits through the day and hitting its 52-week low of Rs 152.50 on January 23. The sharp fall comes a day after Japan’s Sony Pictures’ Indian arm scrapped its $10-billion merger with the Indian media giant.

• SK Finance Ltd, an IPO-bound NBFC engaged in used and new vehicle financing, has completed a fresh fundraise of Rs 1,328 crore from existing investors, including Norwest Venture Partners, TPG Growth and Baring Private Equity India.

• Amber Group has signed an agreement with South Korea’s Korean Circuit to boost its printed circuit board (PCB) portfolio, the leading player in the electronics manufacturing segment said on January 23.

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

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