Nifty And Nifty Bank Have Seen A Sharp Intraday Decline

NIFTY:

The NIFTY opened at 17772.05 with a gap up of just 18 points. The index recorded its intraday high almost at the opening tick and started drifting downwards. Prices found support in the afternoon and started a consolidation process. That consolidation eventually broke on the downside and the NIFTY again moved down with more pace. The decline continued till the end and the index recorded its intraday low at 17573.60. Prices have finally closed at 17589.60 near its day’s lows with a loss of 164.80 points or 0.93% down. All the sectoral indices have moved down today except METAL which ended with minor gains. The AUTO, FMCG, REALTY and IT led the bears today and ended with a loss of over 1%. We have a wide trading range of 500 points within these two support and resistance levels. Our view is this range should be intact for a couple of weeks. And we may see a consolidation process here. Since the range is wide enough, we should look for a trading opportunity on either side of the market. However, we should keep focusing on trading only on an intraday basis and avoid carry-forward trades.

BANK NIFTY:

The BANK NIFTY opened at 41532.65 with a gap down of 93 points. The index initially moved down and then found support to start a rally. The index recorded its intraday high at 41659 and then started drifting downwards. Prices have seen a sharp intraday decline for the rest of the day, recorded its intraday low at 41208.10 and finally closed at 41227.90 with a loss of 346 points. PSU and PVT BANK both indices have performed almost the same today, saw an intraday decline, and dosed lower by 1.13% &0.80% respectively. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while ICICI BANK contributed the least. The index is holding its resistance around 41800 for the past three trading days and today closed lower after a sharp upside move from its support level around 39800. Prices have been moving within this 2000 point of the trading range for almost one and a half months and our view is this range should continue for next couple of weeks. For the time being, we should avoid taking carry-forward trade and shift our focus to intraday trading only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Manufacturing Output (MoM) (Jan)10th March, 2023 INR: Industrial Production (YoY) (Jan) 10th March, 2023	USD: Non Farm Payrolls (FEB) on 10th March, 2023 USD: Unemployment Rate (FEB) on 10th March, 2023

NEWS UPDATES

• The Indian equity benchmarks snapped a three-day winning streak to end lower on March 9, dragged down by auto, information technology, FMCG, realty and financials. At close, the Sensex was down 541.81 points, or 0.90 percent, at 59,806.28, and the Nifty was down 164.80 points, or 0.93 percent, at 17,589.60.

• Pharmaceutical company SeQuent Scientific on Wednesday announced that it has called off the acquisition bid for Tineta Pharma. The company had announced last November that it had entered into a share purchase agreement to acquire a 100 percent stake in Tineta from its promoters.

• Home First Finance shares fell 9.1 percent after a block deal of 6.87 million shares or 7.8 percent of equity. The fall is the steepest intraday fall since November 2021.

• Indian metal stocks may have underperformed most global peers in 2023, so far, but that may be the very reason to be optimistic. Foreign brokerage Jefferies sees the underperformance as a buying opportunity.

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

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