BOTH INDICES MOVED VERY NARROWLY, A CONSOLIDATION PROCESS CONTINUED

NIFTY:

The NIFTY opened at 19374.85 with a gap up of 68 points. The index could not move further up and started drifting downwards after recording its intraday high at 19377.90 in its initial trades. Prices have seen a sharp decline and then started a process of consolidation. That consolidation lasted almost till the end except the last 30 minutes of trading. Prices have recorded its intraday low at 19309.10 and saw some recovery towards the end. The index finally closed at 19342.65 with a gain of 36.60 points or 0.19% up. REALTY and METAL outperformed and ended with a gain of over 1% followed by AUTO and MEDIA. PHARMA and FMCG underperformed and closed with minor losses. The short-term trend is sideways. The extremes are 19250 on the downside and 19500 on the upside. We have already seen two failed attempts of a breakout from this range. Since the range is very narrow, we are expecting a breakout very soon one way or the other.

BANK NIFTY:

the BANK NIFTY opened at 44655.75 with a gap up of 148 points. The index initially could not move further up and saw a sharp decline after recording its intraday high at 44673 in its initial trades. Prices filled the gap and then went into a process of consolidation which lasted till the end. The index recorded its intraday low at 44429.80 and finally closed at 44511.65 with a gain of just 4 points. PSU BANK has underperformed today, saw a mild down move, and closed with a loss of 0.49%. PVT BANK have also moved down and closed with a loss of just 0.08% Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AXIS BANK contributed the lowest. The short-term trend is sideways. A very strong support zone is visible around 43500-44000. Resistance is visible around the 44500-45000 zone.

TECHNICAL PICKS

DERIVATIVE PICKS

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Upcoming Economic Data

News Updates

• India’s benchmark stock indices traded with slim gains as HDFC Bank led, whereas RIL dragged through Tuesday. Sensex was trading above 65,000 mark and Nifty was beyond 19,300 level. Realty and metal sectors led, whereas PSU banks and fast moving consumer goods were under pressure. The S&P BSE Sensex closed up 79 points, or 0.12%, at 65,075.82, while the NSE Nifty 50 was 37 points, or 0.19%, higher at 19,342.65.

• SoftBank Group’s affiliate SVF Growth Singapore will sell 1.17% stake in Zomato Ltd. for at least Rs 940 crore. SVF Growth Singapore will sell 10 crore shares at a floor price of Rs 94 apiece, representing a 0.7% discount on Tuesday’s closing price, according to the terms of the deal seen by BQ Prime.

• Maruti Suzuki India expects to invest around Rs 45,000 crore to double its production capacity to 40 lakh units annually in the next eight years, company Chairman RC Bhargava said on Tuesday. The company will also take up suggestions by shareholders for a stock split to its board for consideration, he said while speaking at the annual general meeting of the carmaker.

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

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