Nifty Is Trading Very Narrow For The Past Three Days; Finding Support Around 17800

NIFTY:

The NIFTY opened at 17867.50 without much of a gap. The index initially moved lower but soon found support around 17800 and started a consolidation process. Prices have seen a breakout from the range in the afternoon after recording its intraday low at 17774.25. The index rallied sharply towards 18000 levels and almost reached there. The NIFTY recorded its intraday high at 17999.35 and saw a minor dip followed by a consolidation till the end. The index finally closed at 17956.60 with a gain of 98.40 points or 0.55% up. METAL outperformed today and ended with a gain of more than 1% followed by BANK, FINANCIAL, and IT. FMCG and PHARMA underperformed today and closed almost on a flat note. we should look for a trading opportunity in the direction of a breakout. Look to buy on a breakout above 18000 or sell short on a breakdown below 17750. In case of a gap beyond these levels, apply the first 15 minutes rules. That means we need to buy above the first 15 minutes high if the index opens above 1800 or sell short below the first 15 minutes low if the index opens below 17750. Keep a stop of 80 points and a target of 240 points from your entry price.

BANK NIFTY:

the BANK NIFTY opened at 42171.25 with a gap up of just 79 points. The index initially went down then started a process of consolidation. Prices have seen a breakout in the afternoon after recording its intraday low at 41885.60 and saw a sharp intraday rally. The index recorded its intraday high at 42453.95 and saw a minor dip but recovered quickly. Prices have finally closed at 42339.25 with a gain of 247 points. PSU and PVT BANK both indices have performed almost the same today saw an intraday rally and closed with a gain of 1.35% &0.74% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while AU BANK contributed the lowest. we should look for a buying opportunity on a breakout above 42500 or a shorting opportunity on a breakdown below 41800. In case of a gap beyond these levels, apply the first 15 minutes rules. It means you need to go long or short above or below the first 15 minutes of high or low. Keep a stop of 240 and a target of 750 points from your entry level.

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DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: WPI Inflation (YoY) (Dec) on 16th  January, 2023 INR: Nikkei S&P Global Manufacturing PMI (Jan) on 1st  February, 2023	USD: Core Retail Sales (MoM) (Dec) on 18th  January, 2023 USD: PPI (MoM) (Dec) on 18th  January, 2023

NEWS UPDATES

• Benchmark indices ended lower in the volatile session on January 13 with around 17950.The Sensex was up 303.15 points or 0.51% at 60,261.18, and the Nifty was up 98.40 points or 0.55% at 17,956.60. About 1944 shares have advanced, 1456 shares declined, and 137 shares are unchanged.

• Foreign investors offloaded around Rs 15,000 crore worth of Indian equities in the first two weeks of January amid risks of Covid in some parts of the world and recession worries in the U.S. Foreign portfolio investors have been adopting a cautious stance towards Indian equity markets for the past few weeks.

• HDFC Bank Ltd. saw its net profit rise 18.5% year-on-year in the quarter ended Dec. 31 on account of higher core income and lower provisions. Net profit for the third quarter stood at Rs 12,259 crore, as compared to Rs 10,342 crore during the same period a year ago. Net interest income, or core income, for India’s largest private sector lender rose 24.6% from a year ago and stood at Rs 22,987 crore.

• Avenue Supermarts Ltd.’s third-quarter revenue rose, but missed estimates, as high inflation continued to hurt demand for discretionary categories. Consolidated revenue for the operator of the DMart chain of hypermarkets rose 25% over the previous year to Rs 11,569 crore in the three months to Dec. 31.

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

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