Nifty & Nifty Bank Have Closed Lower Despite Of A Gap Up Opening

NIFTY:

The NIFTY opened at 18033.15 with a gap up of 77 points. Prices did not sustain at the higher levels and started drifting downwards after recording its intraday high at 18049.65. A sharp decline came that took the index below 17900 and then prices have seen a pullback. The index again moved down and recorded its intraday low at 17853.65. Prices have moved sideways for the last one and a half hours of trading and have seen a minor recovery. The index finally dosed at 18894.85 with a loss of 61.75 points or 0.34% down.IT outperformed today and ended with a gain of more than 1% followed by FMCG. MEDIA and METAL underperformed today and ended with a loss of over 1%. The short-term trend is sideways. We have been tracking a wide trading range with support around 17800 and resistance around 18250. It has been almost 18 days since prices ended within these levels. Moreover, within this wide trading range, prices are now developing a narrow trading range with support around 17800 and resistance around 18100. A breakout from this range may decide the next directional move. A gap up opening did not sustain today and the index closed lower around 17900. For the time being, we should step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 42622.50 with a big gap up of 283 points. Initially, the index tried to move higher but failed to do so and started drifting downwards after recording its intraday high at 42715.65. Prices have seen a sharp decline and recorded its intraday low at 42066.45. The index spends its last one and a half hour of trading moving sideways and finally closed at 42161.95 with a loss of 178 points. PSU BANK has outperformed today, saw a sharp upside move, and dosed with a gain of 1.57% PVT BANK has seen an underperformance today and closed with a loss of 0.53%. Within the index, in terms of points, SBIN contributed the highest on the upside while HDFC 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 the closing tick. After a gap-up opening, the index kept on drifting downwards throughout the day. For today, we have suggested trade in the direction of a breakout. Since the index opened above 42500 so we waited for the first 15 minutes of high. Prices never cross that high so the trade did not execute. The short-term trend is sideways. Moreover, a narrow trading range is now visible with support around 41700 and resistance around 42700. We should wait for prices to break this range one way or the other.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Nikkei S&P Global Manufacturing PMI (Jan) on 1st  February, 2023 INR: Union Budget 2023-24 on 1st  February, 2023	USD: Core Retail Sales (MoM) (Dec) on 18th  January, 2023 USD: PPI (MoM) (Dec) on 18th  January, 2023

NEWS UPDATES

• The Indian benchmark indices ended lower after a volatile day of trading on Monday, as traders await quarterly earnings announcements this week. Asian markets were mixed with the Japanese Nikkei ending lower, ahead of the Bank of Japan’s policy announcement later this week. On the other hand, the European stocks opened higher and continued trading amid volatility on Monday. The S&P BSE Sensex ended 168 points, or 0.28%, lower at 60,092.97, while the NSE Nifty 50 closed 62 points, or 0.34%, lower at 17,894.85.

• Varun Beverages shares jumped over 5 percent in the morning session on January 16 after Jefferies retained the ‘buy’ rating on the stock.The global research firm has maintained its ‘buy’ call on the stock with a target of Rs 1,540 per share, an upside of over 28 percent from current market price.

• ndia’s merchandise exports declined by 12.2 percent to $34.48 billion in December 2022, as against $39.27 billion recorded in the same month of the preceding year, as per the government data shared on January 16.This comes after a 0.6 percent rise in exports in November and a 12 percent contraction in October.

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

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