NIFTY continued moving narrowly, wait for a decisive breakout

NIFTY:

NIFTY opened at 21705.75 with a gap up of 47 points. The index initially moved sideways for about one and a half hours and eventually broke on the downside after recording its intraday high at 21749.60. A sharp decline came but soon the index found support around the previous day’s closing price. Another range bound session started which again broke down and prices decreased to record its intraday low at 21629.20. Prices have sharply recovered in the last hour of trading and crossed above 21700. The index finally closed at 21710.80 just above its opening tick with a gain of 52.20 points or 0.24% up. IT outperformed, saw a sharp intraday rally, and closed with a gain of 1.29% followed by AUTO, REALTY, and OIL GAS. PHARMA, METAL, BANK, and FMCG underperformed and ended with a marginal loss. The long-term trend is up while the long-term momentum has been moving inside the strength zone for the past few days. The Intermediate trend is up while the intermediate momentum bounced up yesterday after spending a day within the weak zone. Both the momentums and trends have again aligned on the upside suggesting higher levels may be ahead.

BANK NIFTY:

he BANK NIFTY opened at 48245.55 without any gap. Prices initially consolidated and then eventually broke on the down side after recording its intraday high at 48381.95. The index has seen a sharp decline, then saw a consolidation which again broke down and prices moved down to record its intraday low at 47822.85. A sharp recovery came towards the end and the index finally closed at 48089.15 with a loss of 156 points. PSU and PVT BANKs, both indices, have performed almost the same, saw a mild intraday decline, and finally ended with a loss of 0.38% & 0.09% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while HDFC BANK contributed the lowest. Prices have been moving inside this range for the past 10 days. On the weekly timeframe chart, the index ends the week with a minor loss and is going through a process of consolidation from the past four weeks. For the time being, we should step aside and wait for prices to close beyond the 47500 – 48500 trading range. Intermediate and short-term trends are sideways in COFORGE. The stock has seen a sharp upside move and then started a process of correction. That correction found strong support around 5950 and prices bounced up. Traders should look for a buying opportunity above 6120 with a stop just below 6060 and a target around 6240Intermediate and short-term trends are sideways in INFY. The stock has seen a sharp upside move and then started a process of correction. That correction found strong support around 1500 and prices bounced up. Traders should look for a buying opportunity above 1545 with a stop just below 1520 and a target around 1595.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher on January 4 with Nifty above 21,650. At close, the Sensex was up 490.97 points or 0.69 percent at 71,847.57, and the Nifty was up 141.30 points or 0.66 percent at 21,658.60. About 2267 shares advanced, 1034 shares declined, and 79 shares unchanged.

• BLS E-Services, the subsidiary of BLS International Services, has raised Rs 13.75 crore in pre-IPO placement ahead of the filing of red herring prospectus with the ROC. Total 17 investors picked 11 lakh equity shares of the company, including Satnam Singh Takkar, Sandeep Srivastava, Vijay Kumar Agarwal, Rajya Vardhan Sonthalia, Shaurya Vardhan Sonthalia, and Tarun Chandmal Jain.

• Tata Passenger Electric Mobility (TPEM), the electric vehicle arm of Tata Motors, unveiled Punch.ev, which is based on its new ‘pure EV’ architecture ‘acti.ev’. The Mumbai-based carmaker revealed that acti.ev, which the company has positioned as compact vehicle architecture, will also underpin the upcoming Harrier EV, Curvv EV and Sierra EV.

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

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