A Big Gap-Down Opening Was Sustained

NIFTY:

The NIFTY opened at 17443.80 with a big gap down of 146 points. The index recorded its intraday high at 17451.50 just above the opening tick and started drifting downwards. Prices found intraday support just above 17300 and then saw an upside move. The index then started a consolidation process within a narrow trading range which lasted till the end. The index recorded its intraday low at 17324.35. Prices have finally closed at 17412.90 near its opening tick with a loss of 176.70 points or 1% down. All the sectoral indices have moved down today except FMCG which ended with minor gains. The BANK, FINANCIAL MEDIA, and REALTY led the bears today and ended with a loss of over 1%. After such a volatile move, we expect the index to consolidate and form a brief trading range. We have a wide trading range of 500 points within 17300 support and 17800 resistance. Our view is this range should be intact for a couple of weeks. And we may see a consolidation process here. Since the range is wide enough, we should look for a trading opportunity on either side of the market only on an intraday basis.

BANK NIFTY:

The BANK NIFTY opened at 40805.25 with a big gap down of 422 points. The index continued its bearish movement and fall further after recording its intraday high at 40839 in its initial trades. Prices have found support around 40400 and then started a consolidation process. The index formed a narrow trading range, recorded its intraday low at 40341.70, and finally closed at 40488.75 with a loss of 739 points. PSU and PVT BANK both indices have performed almost the same today, saw an intraday decline, and closed lower by 2.12% & 184% respectively. Within the index, in terms of points, AU BANK contributed the highest on the upside while HDFC BANK contributed the least. As we have mentioned in our previous letter, prices have been moving inside the 39800-41800 trading range for almost one and a half months and our view is this range should continue for the next couple of weeks. For the time being, we should avoid taking carry-forward trade and shift our focus to intraday trading only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: CPI (YoY) (Feb) 13th March, 2023 INR: WPI Inflation (YoY) (Feb) 13th March, 2023	USD: Core CPI (MoM) (Feb) on 14th March, 2023 USD: CPI (YoY) (Feb) on 14th March, 2023

NEWS UPDATES

• Benchmark indices ended lower for the second consecutive session on March 10 with Nifty around 17,400. At Close, the Sensex was down 671.15 points or 1.12% at 59,135.13, and the Nifty was down 176.70 points or 1% at 17,412.90. About 1404 shares advanced, 2021 shares declined, and 102 shares unchanged.

• The Reserve Bank of India on March 10, 2023, said it has cancelled the Certificate of Registration (CoR) of 17 Non-Banking Financial Companies (NBFCs).

• The board of Hindustan Unilever Ltd (HUL) on March 10 approved the appointment of Rohit Jawa, a senior official of the UK-based parent entity Unilever, as its next managing director and chief executive officer.

• Global Surface Ltd’s initial public offering will open on March 13 for subscription and close on March 15. The price band for the IPO has been set at Rs 133-140 a share, and anchor bids will start from March 10.

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

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