A Sharp Reversal In Nifty, Nifty Bank After Three Days Of Sharp Decline

NIFTY:

the NIFTY opened at 17830.40 with a gap up of just 24 points. The index moved further higher after recording its intraday low at 17774.25 in its initial trades. Prices have kept on moving higher with minor dips and consolidation in between. Those dips and consolidations are used to create fresh long positions and add to the existing ones. The index recorded its intraday high at 18084.10 and finally closed at 18014.60 near its day highs with a gain of 207,80 points or 1.17% up. All the sectoral indices have closed with a gain today except PHARMA which ended with a loss of 0.84% BANK, REALTY, METAL, and MEDIA led the bulls today by closing more than 2% higher. The last three days were a trend day on the downside while today the index recorded a trend day on the upside where prices have recorded its intraday low near the opening tick and intraday high near the closing tick. The intraday range was again wide today wider than the last trading day. In fact, the index recovered almost all the losses that came on the last Friday. Volatility is still high as the INDIA VIX is now moving around level 16. As of now, we should step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 41716.35 with a gap up of just 47 points. Prices continued moving higher after recording its intraday low at 41567.45 in its initial trades. The rally continued for the whole day with minor dips in between and the index recorded its intraday high at 42846.15. Prices have finally dosed at 42647.20 with a gain of 978 points. PSU BANKS have significantly outperformed today and dosed with big gains of 7.2%. PVT BANKS have also seen a sharp intraday decline and closed with a gain of 2.44%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. The intraday range was again wide today as the index moved within a range of 1277 points. The short-term trend is sideways now as the index closed above its first resistance around 42500. For the past four trading days, the index is recording wide-range days which may lead prices to a few choppy and narrow-range days. For the time being. We should avoid trading the index and wait for a consolidation process.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Federal Fiscal Deficit (Nov) on 30th December, 2022 INR: Infrastructure Output (YoY) (Nov) on 30th December, 2022	USD: Pending Home Sales (MoM) (Nov) on 28th  December, 2022 USD: ISM Manufacturing PMI (Dec) on 4th  January, 2023

NEWS UPDATES

• Benchmark indices ended higher with Nifty closing around 18,000 amid buying seen across the sectors, barring pharma.At close, the Sensex was up 721.13 points or 1.20% at 60,566.42, and the Nifty was up 207.80 points or 1.17% at 18,014.60. About 2787 shares have advanced, 733 shares declined, and 129 shares are unchanged.

• Amid uncertainty prevailing over the relaunch of grounded carrier Jet Airways, several of its senior management executives, pilots and cabin crew have departed, sources told CNBC TV-18 on December 26.

• Radiant Cash Management Services Ltd. has launched its initial public offering between Dec. 23 and Dec. 27. The IPO had a slow start and was subscribed 0.04 times, or 4%, on day 1. The bidding was led by retail investors.

• The number of daily air passengers at airports unexpectedly reached all-time highs in December, leading to congestion at major airports, according to Civil Aviation Minister Jyotiradtiya Scindia.

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

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