Nifty And Nifty Bank Fell Down Sharply Following The Weak Global Markets

NIFTY:

The NIFTY opened at 17755.35 with a gap down of 71 points. The index recorded its intraday high at 17772.50 in its initial trades and went into a consolidation process. Prices have broken on the downside and saw a sharp intraday decline. The index again formed a trading range that broke on the downside and prices have gone below 17600. The index recorded its intraday low at 17529.45 and spent the last one and a half hours moving sideways. Prices have finally closed at 17554.30 with a loss of 272.40 points or 1.53% down. All the sectoral indices have seen a downward move today and ended lower. METAL led the bears today as it ended with a loss of 2.64% followed by BANK FINANCIAL and OIL GAS. Support is now visible around 17500 while resistance is visible around 17800. The index has been falling for the past five days and saw a down move of almost 600 points. After such a sharp move prices tend to move sideways, narrow, and choppy. We should now wait for a brief consolidation or a correction. As of now, we should avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 40494.15 with a gap down of 202 points. Prices have continued moving lower from the openingticks and recorded its intraday high at 40529.25 in its initial trades. The index drifted downwards sharply and recorded its intraday low at 39899. Prices have mostly consolidated in the second half and ended at 39968.70 with a loss of 728 points. PSU and PVT BANK both indices have performed almost the same today, saw a sharp intraday decline, and ended lower by 1.91% & 1.68% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by ICICI BANK. The short-term trend is down and today’s decline brought the index below the 40000 marks. Support is now visible around 39500 while resistance is visible around 41000. Prices have been falling from its swing highs recorded nearby 42000 and moved down almost 2000 points in just 5 trading days. After such a sharp move price tends to move choppy and narrow. We should now 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: FOMC Meeting Minutes on 23rd February, 2023 USD: GDP (QoQ) (Q4) on 23rd February, 2023

NEWS UPDATES

• Indian equity benchmarks declined sharply in trade following the weakness in global markets on Wednesday. The headline indices fell the most in two weeks with the S&P BSE Sensex closed down 928 points or 1.53% at 59,744.98 while the NSE Nifty 50 was 272 point or 1.53% lower at 17,554.30. Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Grasim Industries Ltd., Bajaj Finance Ltd., JSW Steel Ltd., Bajaj Finserv Ltd., Mahindra and Mahindra Ltd., Reliance Industries Ltd., Wipro Ltd. and HDFC Bank Ltd. were the top losers amongst the NSE Nifty 50 constituents. On the other hand, ITC Ltd. and Bajaj Auto Ltd. were the top gainers.

• Adani Ports and Special Economic Zone has repaid Rs 1,500 crore loan and will repay another Rs 1,000 crore in commercial papers due in March. The Adani Group firm paid Rs 1,000 crore to SBI Mutual Fund and Rs 500 crore to Aditya Birla Sun Life Mutual Fund on commercial papers that matured on Monday, as scheduled. “This part prepayment is from the existing cash balance and funds generated from the business operations,” a company spokesperson said.

• The National Stock Exchange has extended trading hours of interest rate derivatives till 5 p.m. The change will be effective from Feb. 23, according to a circular issued by the NSE.

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

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