Nifty Closed Below 18600, Index Is Going Through A Process Of Correction

NIFTY:

The NIFTY opened at 18638.85 without any gap. The index initially moved down but soon found support and bounced up. The index rallied and went above 18650. Prices have found strong resistance there and turned down after recording its intraday high at 18668.30. A sharp decline came and then the index started a consolidation process. The index has seen a breakdown and prices fell in the late hour of trading to record its intraday low at 18528.40. Prices have finally closed at 18560.50 with a loss of 82.25 points or 0.44%. ALL the sectoral indices have closed lower today except FMCG which ended with a gain of nearly 1%. MEDIA and REALTY led the bears today and ended with a loss of over 1%. BANK closed almost on a flat note. In case of a gap up above 18730 or a gap down below 18500, wait till 09:30 AM and then look to buy above the first 15 min high. Keep a stop of 80 points and a target of 240 points from your entry price.

BANK NIFTY:

The BANK NIFTY opened at 43157.35 without much of a gap. The index initially moved up and went above 43300. Prices have found resistance there and turned down after recording its intraday high at 43327.35. A sharp dip brought prices to its intraday low at 42948.35 and then started moving higher. The index finally closed at 43108.80 with a loss of just 35 points. PSU BANKS have outperformed today and closed with a gain of 0.26%. PVT BANKS have underperformed today and closed lower by 0.36%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. It was a volatile day today where prices moved in both directions and closed almost on a flat note. The index continued trading narrowly. The short-term trend is still up. Prices have been moving inside a narrow range within the 42740 – 43340 zones. Today was the 10th day when prices closed within this range. It should see a breakout soon one way or the other as the range is very narrow.

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NEWS UPDATES

• Benchmark indices ended lower in the volatile session on December 7 with Nifty around 18550.At Close, the Sensex was down 215.68 points or 0.34% at 62,410.68, and the Nifty was down 82.30 points or 0.44% at 18,560.50. About 1464 shares have advanced, 1928 shares declined, and 140 shares are unchanged.

• Siemens gained over 6 percent on December 7 after the engineering company said it emerged as the lowest bidder for manufacturing 1,200 electric locomotives for the India Railways. The cost of the project is reportedly around Rs 20,000 crore.

• The government’s 10-year bond yields jumped 6 basis points on Thursday after the Reserve Bank of India on Wednesday signalled that it will remain focused on inflation.

• UPI users will soon be able to separate and block funds in their accounts for specific use cases, according to a regulatory announcement from the Reserve Bank of India.

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

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