Narrow Trading Continued In Nifty And Nifty Bank

NIFTY:

The NIFTY opened at 18163.20 with a gap down of 34 points. The index moved further on the downside but soon found support and turned up after recording its intraday low at 18149.80. Prices have seen a sharp intraday rally and went above 18200. However, the index started drifting downwards and came close to its early morning lows. Prices again support there and bounced up. The index recorded its intraday high at 18251.95 and consolidated in the last hour of trading. Prices have finally closed at 18232.55 near its day’s highs with a gain of 35.10 points or 0.19% up. BANK, FINANCIAL, IT, and PHARMA outperformed today and ended with a gain of over half a percent. AUTO, FMCG, MEDIA, and METAL underperformed today and ended with a loss. We have taken a trade on the long side yesterday around 18150 and for today, we have suggested staying long with a stop at 18080 and a target at 18400. Prices moved in our favor and did not touch either levels. The is still intact. On the daily timeframe chart, the NIFTY is moving range bound for the past six trading days. Moreover, the index recorded a pattern of NR7 today indicating a sharp movement is about to come. The short-term trend is still sideways but the bias is bullish. We should now raise our stop loss and target. Stay long with a stop at 18150 and a target at 18550.

BANK NIFTY:

The BANK NIFTY opened at 43151.45 with a gap down of 83 points. The index recorded its intraday low at 43148.45 in its initial trades and bounced up sharply. Prices have rallied and then saw a dip which found support and prices again rose to record its intraday high at 43482.80. The index consolidated in the last hour of trading and finally dosed at 43448.35 with a gain of 214 points. PSU and PVT BANKS both indices have performed almost the same today, saw a modest intraday rally, and closed higher by 0.72% &0.63% respectively Within the index, in terms of points, ICICI BANK contributed the highest on the upside while SBIN contributed the lowest. We have taken a trade on the long side yesterday around 42150 and for today, we have suggested staying with a stop at 42900 and a target at 43950. Prices moved in our fav or but did not hit either level. The trade remained intact so far. The short-term trend is now up as we have suggested a close above 43300 may change it to be on the upside. Moreover, the index traded very narrow today and recorded a pattern of NR7 suggesting a sharp move is about to come. Also a pattern of Bullish Head & Shoulder is clearly visible on the daily timeframe chart that suggests higher levels may be ahead. We should now raise our stop and target both. Stay long

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Nikkei Services PMI (Dec) on 4th  January, 2023 INR: CPI (YoY) (Dec) on 12th  January, 2023	USD: JOLTs Job Openings (Nov) on 4th  January, 2023 USD: ISM Manufacturing PMI (Dec) on 4th  January, 2023

NEWS UPDATES

• Benchmark indices ended on positive note in the volatile session on January 3. At Close, the Sensex was up 126.41 points or 0.21% at 61,294.20, and the Nifty was up 35 points or 0.19% at 18,232.50. About 1998 shares have advanced, 1423 shares declined, and 130 shares are unchanged.

• The IPO of the Rajasthan-based maker of polypropylene and high-density polyethylene FIBCs, or flexible intermediate bulk containers Sah Polymers, was fully subscribed on the second day. It was subscribed at 86% on the first day.

• Piramal Enterprises subsidiary PCHFL acquires 100% stake in PRL Agastya. The subsidiary Piramal Capital & Housing Finance (PCHFL) acquired 100% stake in PRL Agastya for Rs 90 crore. Post-acquisition, PRL Agastya will be a wholly-owned subsidiary of PCHFL.

• State Bank of India (SBI), the country’s largest lender by assets, said on January 3 that the executive committee of its Central Board has approved a plan to raise funds through the issue of infrastructure bonds worth up to Rs 10,000 crore during the financial year 2023.

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

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