BEARS TIGHTENING THEIR GRIP ON MARKET

NIFTY:

The NIFTY opened at 18319.10 with a gap down of 95 points. The index continued moving downwards but found support around 18270 and bounced up sharply. Prices quickly erased all the losses and went above 18400 but found strong resistance there and turned down. A decline again recorded its intraday low at 18255.15 & finally closed at 18269 near its daily low with a loss of 145 points or 0.79% down. All the sectors underperformed today and ended with a loss. The short-term trend is sideways. We have a support level of around 18000 in the NIFTY index. A close below this level will indicate avoiding buying. A close below this support will suggest us taking short trade in the index. A likely resistance should now emerge around the 18500 mark. We expect consolidation here since the index has seen a sharp upside move in the past few weeks. We should now avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 43261.75 with a gap down of 236 points. In its initial trade, the index recorded its intraday low at 43080 and started moving higher. A sharp rally brought prices above 43400 and then the index turned down towards 43000. Prices have again moved up, going above 43200. The index finally closed at 43219 with a loss of 278 points. PSU BANKS & PVT BANKS both underperformed today and ended with a loss of 2.92% & 0.61% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while PNB contributed the lowest. It was a volatile day today in the index where prices have seen moves in both directions, the index has ended near its daily low. The short-term trend is sideways and prices are now heading towards psychological support at the 43000 mark. Resistance is visible at around 43600. We should now wait for some kind of consolidation for fresh trading opportunities.

TECHNICAL PICKS

DERIVATIVE PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended lower for the second consecutive session on December 16.At Close, the Sensex was down 461.22 points or 0.75% at 61,337.81, and the Nifty was down 145.90 points or 0.79% at 18,269. About 1391 shares have advanced, 2026 shares declined, and 125 shares are unchanged.

• Indraprastha Gas Ltd (IGL) has hiked CNG prices across India, including Delhi-NCR, with effect from December 17.

• Canada Pension Plan Investment Board (CPP Investments) announced on December 17 that it has agreed to sell its 49 percent stake in L&T Infrastructure Development Projects Limited (L&T IDPL).Larsen & Toubro (L&T), which holds the remaining 51 percent stake in L&T IDPL, will also be selling its stake.

• Temasek likely to buy TPG’s nearly 21% stake in Manipal Health

• The deal would value the hospital chain above $4 billion. For TPG, which first acquired a 24.75 percent stake for Rs 900 crore in Manipal Health in 2015, this deal will generate multi-fold returns

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

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