Nifty, Bank Nifty Indices Have Seen Sharp Intraday Fall For Yet Another Session

NIFTY:

The NIFTY opened at 18288.80 with a gap up of 89 points. The index could not sustain at the higher levels and started drifting downwards after the opening tick. Prices recorded its intraday high at 18318.75 in its initial trades, saw a sharp intraday decline, and went below 18100 to record its intraday low at 18068.60. The index then started a consolidation process. An attempt to recover the losses failed quickly and the consolidation continued till the end. The index closed at 18127.35 near its day lows with a loss of 71.75 points or 0.39% down. All the sectoral indices have closed with a loss today except IT which ended without any changes. AUTO, METAL, and REALTY have led the bears today and ended with a loss of more than 1%. Volatility is high now as the INDIA VIX remains above level 15. This is still a normal level but the index reached here after recording a swing low below the 12 levels. We are expecting a consolidation process here within the 18000-18500 range. It is very early to say this as prices have not confirmed the support level yet. So we should wait for confirmation first. As of now, we should step aside and avoid trading the index.

BANK NIFTY:

the BANK NIFTY opened at 42864 with a gap up of 206 points. Prices did not sustain at the higher level and started drifting downwards from the opening tick after recording its intraday high at 42933.50. A sharp decline brought prices to its intraday low at 42231.35 and then the index started a consolidation process. Prices finally closed at 42357.90 with a loss of 301 points. PSU and PVT BANKS both performed almost the same today, saw a sharp intraday decline, and closed with a loss of 1.23% &0.84% respectively. Within the index, in terms of points, KOTAK BANK contributed the highest on the upside while AXIS BANK contributed the lowest. The short-term trend is down as we have seen a breakdown from a trading range. The last couple of days were wide and volatile so its is possible that the next few days may be choppy and narrow. Our recommendation, “step aside and avoid trading the index” continues. We should wait for the volatility to subsidize first and then we will plan our trade.

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UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Federal Fiscal Deficit (Nov) on 30th December, 2022 INR: Infrastructure Output (YoY) (Nov) on 30th December, 2022	USD: Core PCE Price Index (MoM) (Nov) on 23rd  December, 2022 USD: New Home Sales (Nov) on 23rd  December, 2022

NEWS UPDATES

• Sensex closed 241.02 points lower at 60,826. Nifty ended 71.80 points lower at 18,127.30. About 754 shares advanced, 2699 shares declined, and 86 shares were unchanged.All sectors ended the day in red, barring Nifty IT index which ended flat.

• The initial public offering (IPO) of Elin Electronics was fully subscribed by the afternoon of December 22, the final day of bidding. The offer has been subscribed 2.94 times, with bids coming for 4.17 crore shares against an IPO size of 1.42 crore shares, data available with exchanges.

• Amid climate concerns, coal is again living up to its reputation of ‘black gold’ as the global demand for the fossil fuel is set to hit a record high with a bulk of it coming from India.The International Energy Agency (IEA), in its latest report, has forecast the global coal demand to grow by 1.2 percent in 2022 and surpass 8 billion tonne for the first time.

• Reliance Industries opened higher on December 22 after the company announced the acquisition of 100 percent equity stake in Metro Cash and Carry India Pvt Ltd (Metro India) for a cash consideration of Rs 2,850 crore.

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

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