Gap-Down Opening Did Not Sustain, Nifty Ended On A Flat Note

NIFTY:

The NIFTY opened at 18402.15 with a gap down of 94 points. Prices continued moving lower after the opening but soon found support and bounced up. Prices have recorded its intraday low at 18345.70 and then started moving higher. Soon the index recovered from all the losses but did not go further above and started a consolidation process. The index recorded its intraday high at 18521.55 saw a minor dip and then a gain surge towards the end to finally close at 18497.15 without any change. All the sectoral indices have closed high except IT and PHARMA which ended with minor losses. OIL GAS outperformed today by ending over 1% higher followed by REALTY. The short-term trend is sideways now which was up before. A sharp dip today found support before reaching the 18300 level. For the time being, we should avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 43455.85 with a gap down of 172 points. The index moved further on the downside but soon bounced up after recording its intraday low at 43378.80. Prices have seen a sharp upside move, filled the gap, and then went into a consolidation process. The index spent the rest of the day by moving sideways, recorded its intraday high at 43767.05, and finally closed at 43675.10 with a gain of 48 points. PSU BANKS have outperformed today and closed with a gain of 1.40%. PVT BANKS have also moved up today but ended with a gain of just 0.29%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. It was a trend day today 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 very narrow today. The short-term trend is still up as the index is trading near its swing highs. We should look for buying only as far as prices are trading above the support levels on an intraday basis only. For carry-forward trades, we should wait for a fresh pattern to emerge.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended marginally lower in the volatile session on December 12.At Close, the Sensex was down 51.10 points or 0.08% at 62,130.57, and the Nifty was up 0.60 points at 18,497.20. About 1787 shares have advanced, 1688 shares declined, and 194 shares are unchanged.

• Shares of wastewater treatment company VA Tech Wabag hit a 52-week high on December 12, after the company announced that its European subsidiary has bagged a repeat order contract worth Rs 260 crores (EUR 30 Million) from Purolite S.R.L to upgrade its Industrial Wastewater Treatment Plant (WWTP) in Romania.

• The initial public offering of Sula Vineyards, the leading wine producer in India, has garnered bids for 30.33 lakh equity shares against IPO size of 1.88 crore shares, getting subscribed 16 percent on December 12, the first day of bidding.

• Tanla will buyback 14,16,666 equity shares at an offer price of Rs 1,200 per equity share, which represents 1.04% of the total equity shares in the existing total paid-up equity share capital of the company as of March 31, 2022

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

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