A sharp decline in the Nifty and Nifty Bank, Short term trend is sideways now

NIFTY:

The NIFTY opened at 21545.50 with a gap up of 92 points. The index continued its early morning bullish momentum and started moving higher but soon faced strong resistance just below 21600. Prices have started a consolidation process and eventually broke on the downside in the afternoon after recording its intraday high at 21593. The index then saw a sharp decline and gave up all the gains. The down move continued till the end and the NIFTY recorded its intraday low at 21087.35. The index finally closed at 21150.15 near its day’s low with a loss of 302.95 points or 1.41% down. All the sectoral indices have moved in line with the NIFTY and closed with a loss led by MEDIA which lost over 5%. METAL lost nearly 4% while AUTO and REALTY shed over 2%. Pattern, Set Up, and Signals The NIFTY took a U-Turn today and saw a sharp intraday decline. A gap-up opening did not sustain today. In the first half, prices moved sideways while, in the second half, saw a sharp down move.

BANK NIFTY:

The BANK NIFTY opened at 48085.35 with a big gap up of 237 points. The index initially moved higher but soon found resistance and turned down after recording its intraday high at 48166.15. A sharp decline came that lasted till the end. The index gave up all the gains and fall further to record its intraday low at 47202.65. Prices have finally closed at 47216.50 with a loss of 632 points. PSU BANKs have significantly underperformed, prices have seen a sharp intraday decline, and finally ended with a loss of 4.04%. PVT BANKs have also moved down and ended with a loss of 1.04%. The intraday range was very wide as prices have traveled within a range of almost 1000 points. The short-term trend is sideways now as the index broke down and closed below its short-term support around 47500. A very strong support is visible around 46300 while the lifetime highs recorded around 48200 should now act as a resistance. The index is now going through a process of consolidation or correction. It is normal after a sustained move. We should wait for prices to find support first. Till then avoid trading the.

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Upcoming Economic Data

Domestic                                                                                                                                                  International
INR: Current Account % of GDP (QoQ) (Q3) on 29th December, 2023 INR: Current Account (USD) (Q3) on 29th December, 2023	USD: GDP (QoQ) (Q3) on 21st December, 2023 USD: Philadelphia Fed Manufacturing Index (Dec) on 21st December, 2023

News Updates

• Benchmark indices of India saw a sharp sell-off in the last two hours of the session after they had hit new lifetime highs at open. Today’s fall in the Nifty 50 was the sharpest in the last 10 months. The Sensex fell the most since October 26. With the benchmarks, all sectoral and broader market indices on both the exchanges ended lower. The Nifty 50 ended 302.95 points or 1.41% lower at 21,150.

• India Shelter Finance had a decent market debut, listing at a 25.7 percent premium to the IPO price of Rs 493 on December 20. The stock opened at Rs 620 on the NSE and Rs 612.70 on the BSE. The Rs 1,200 crore public offer consisted of a fresh issue of 1.62 crore shares worth Rs 800 crore and an offer-for-sale of 81.13 lakh shares worth Rs 400 crore. The price band for the issue was fixed at Rs 469-493 per share.

• Private equity firm Blackstone Group exited India’s first real estate investment trust Embassy Office Parks REIT on December 20 in the second-biggest block trade of FY24. Despite the exit of the company’s major sponsor, brokerages stay in upbeat on Embassy REIT due to strong growth prospects, improvement in leasing trends, better occupancy and new developments.

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

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