Nifty, Banknifty Witness Sharp Decline

NIFTY:

The NIFTY opened at 18614.40 with a gap down of 46 points. Prices have seen a sharp decline, breaking down at 18600. The index moved down throughout the trading session and finally closed at 18414.90. near its day low with a loss of 245 points or 1.32% down. All the sectoral indices have contributed to the downside. The volatility rose today exceptionally. The INDIA VIX is now moving around 13.73. The short-term trend is sideways. Support around 18600 has broken down and now the index is moving near its strong support zone inside 18350 -18200. Previous support at 18600 should now act as resistance.

BANK NIFTY:

The BANK NIFTY opened at 43940 with a gap down of 109 points. The index moved further on the downside after recording its intraday high at 44120.60. A sharp decline brought the index below 44000 and prices have recorded its intraday low at 44120. The index has finally closed at 43498.20 with a loss of 550 points. PVT and PSU BANKS both indices have dragged today, saw a sharp decline, and closed lower by 1.06% & 1.88% respectively. The short-term trend is sideways. After such a sharp move, prices tend to consolidate and move sideways. As of now, we should avoid trading the index and wait for an adequate setup to emerge.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Bank Loan Growth on 16th December, 2022 INR: FX Reserves, USD on 16th December, 2022	USD: Building Permits (Nov) on 20th  December, 2022 USD: GDP (QoQ) (Q3) on 22nd  December, 2022

NEWS UPDATES

• Benchmark indices ended lower on December 15 with Nifty around 18400.At Close, the Sensex was down 878.88 points or 1.40% at 61,799.03, and the Nifty was down 245.40 points or 1.32% at 18,414.90. About 1360 shares have advanced, 2084 shares declined, and 117 shares are unchanged.

• Infosys co-founder NS Raghavan and top private equity firm Carlyle-backed life sciences tech player Indegene has filed papers with market regulator Sebi to raise around Rs 2,750 crore – Rs 3000 crore via an initial public offer (IPO)

• India’s ballooning trade deficit with China is a big worry made worse by the rupee’s relatively strong performance in the region and slowing global demand for local exports, said Madhavi Arora, a lead economist at Emkay Global Financial Services Ltd.

• Gautam Solar Pvt., a solar panel manufacturing firm based in Haridwar, Uttarakhand, plans to increase its manufacturing capacity to 1 GW in FY24 from 400 MW at present as it sees demand rising after the recent boost to domestic manufacturing under the Atmanirbhar Bharat plan of the central government.

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

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