Nifty And Nifty Bank Both Indices Have Seen A Relief Rally Today

NIFTY:

The NIFTY opened at 17574.65 with a gap up of just 20 points. The index initially moved lower from its opening tick, filled the gap, and went below 17500. Prices have found intraday support and bounced up sharply after recording its intraday low at 17455.40. The index then faces resistance around 17600 and formed a consolidation. Prices have remained sideways afterward and recorded its intraday high at 17620.05. The index finally closed at 17511.25 with a loss of 43.05 points or 0.25% down. MEDIA and REALTY underperformed today and ended with a loss of over 1% followed by PHARMA, METAL and FMCG outperformed today and ended with a gain. BANK, AUTO, and IT ended on a flat note. The short-term trend is down. The index has been falling for the last five trading days and today saw a relief rally which was expected and we almost mentioned it in our letter. We should now wait for a brief consolidation or a relief rally. As of now, we should avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 39983.70 with a gap up of just 15 points. Prices have started drifting downwards from the opening tick and recorded its intraday low at 39600.25. The index bounced up and then moved higher. Prices have moved very volatile afterward, recorded its intraday high at 40147.80, and finally closed at 40076.05 with a gain of 108 points. PSU BANK outperformed today, saw an upside move, and closed higher by 0.53%. PVT BANK moved sideways today and ended almost unchanged. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while HDFC BANK contributed the least. The short-term trend is down. As mentioned before, “support is now visible around 39500 while resistance is visible around 41000.” We should wait for a brief consolidation or a relief rally.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Deposit Growth on 24th February, 2023 INR: GDP Quarterly (YoY) (Q3) on 28th February, 2023	USD: New Home Sales (Jan) on 24th February, 2023 USD: Pending Home Sales (MoM) (Jan) on 24th February, 2023

NEWS UPDATES

• Indian equity benchmarks struggled amid volatility through Thursday and ended the day marginally lower. The indices declined for the fifth consecutive day mirroring the losing streak last seen in the final week of September. The Nifty closed at its lowest in nearly five months since Oct. 18, 2022, whereas the Sensex was down the most in three weeks since Feb. 1, 2023. The S&P BSE Sensex closed 139 points down, or 0.14%, at 59,605.80, while the NSE Nifty 50 index was 43 points lower, or 0.25%, at 17,511.25.

• Both the US Federal Reserve and the Reserve Bank of India have indicated rate hikes are not over yet. The markets’ optimistic bets on potential rate cuts in late 2023 have been crushed. The minutes of the Federal Reserve’s latest meeting show that the US central bank is far from convinced about cooling inflation. In short, rate hikes may be smaller, but they won’t stop.

• The Indian economy is on track to achieve the 7% growth in FY23, the Finance Ministry said in its January economic review, citing the performance of high-frequency indicators in December and January.

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

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