NIFTY AND NIFTY BANK RESUMED ITS DOWN MOVE AFTER ONE DAY OF A RELIEF RALLY

NIFTY:

The NIFTY opened at 18121.30 with a gap up of just 20 points. The index could not sustain at the higher levels and started drifting down from the opening tick. Prices have recorded its intraday high at 18127.60 a few ticks above the opening prices and saw a steep fall towards 17800 support. The index recorded its intraday low at 17856. Prices have spent the second half moving sideways and saw some recovery towards the end. The index finally closed at 17914.15 with a loss of 187.05 points or 1.03% down. All the sectoral indices have closed lower today except AUTO which ended with a gain of 0.28%. BANK and FINANCIAL led the bears today and closed with a loss of over 1% followed by MEDIA, IT, and METAL. The short-term trend is sideways. Yesterday, we mentioned a wide trading range inside 17800 support and 18250 resistance. This range remained intact and prices are now trading near the lower end. As far as the index is trading within these levels, we should prefer trading on an intraday basis. Our approach should be to buy on dips and sell on rallies. For carry-forward trades, we need to wait for prices to come near the boundaries of this wide trading range.

BANK NIFTY:

The BANK NIFTY opened at 42642 with a gap up of just 79. The index could not move higher and started drifting downwards after recording its intraday high at 42674.25 just above the opening tick. The decline continued for the whole day and prices recorded its intraday low at 41835.75. The index consolidated in the second half and finally closed at 42053.50 with a loss of 510 points. PSU BANKS have underperformed today, saw a sharp intraday decline, and closed lower with a loss of 2.67%. PVT BANKS have also moved down today and ended with a loss of 1.13%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while HDFC BANK contributed the lowest. Yesterday, we mentioned, “the index is moving inside the support around 41500 and resistance around 43500.”This range remained intact and prices are trading very near to the support levels. Within this range, we should prefer trading on an intraday basis only. The short-term trend is sideways. It is possible that the next few days may be narrow and choppy. As of now, we should avoid trading the index for the next couple of days.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian stock benchmarks ended the day with losses led by declines in telecom, financials, banking and technology stocks. S&P BSE Sensex declined 1% to 60,115.48, while Nifty 50 ended 0.975 down at 17,924.85. Of the 50 Nifty 50 constituents, 17 stocks advanced, while 33 declined.

• Inflows into equity mutual funds rose in December, helped by investments in mid- and small-cap funds. Net investment into equity and equity-linked schemes rose about three times over the previous month to Rs 7,303.4 crore, according to data released by the Association of Mutual Funds in India. This is the 22nd straight month of inflows into such funds.

• Tata Group is close to taking over a major plant in southern India in a deal that would give the country its first homegrown iPhone maker.

• With the opening up of the economy post the Covid pandemic, Knight Frank on Tuesday said housing sales rose 34% to a 9-year high and gross office leasing grew 36% during 2022 across eight major cities.

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

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