Nifty ended with decent gains while Nifty Bank closed almost on a flat note; The Trend is Down

NIFTY:

the NIFTY opened at 21185.25 with a gap down of 53 points. The index initially moved down but found support quickly and bounced up. Prices have seen a sharp intraday rally which found resistance around 21400. The index then turned down and saw a mild dip which found support around the previous day’s closing price. Prices again started moving higher and crossed above 21400 comfortably. The rally continued till the end and the NIFTY recorded its intraday high at 21482.35. The intraday low was recorded at 21137.20 in the early trades. The index finally closed at 21453.95 with a gain of 215.15 points or 1.01% up. All the sectoral indices have moved in line with the NIFTY today and closed higher led by MEDIA and METAL which ended with a gain of around 3% followed by OIL GAS, FMCG, and IT. The short-term trend is down. We have been tracking support around 21000 and resistance around 21700. The index today found support before reaching the 21000 level. The long-term trend is down while the long-term momentum has been moving down and almost reached the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 46489.40 with a big gap down of 518 points. The index started moving higher from its opening tick and filled the entire gap within the first 20 minutes of trading. Prices rallied further but soon found resistance just below 45500 and turned down. A decline again brought prices into the negative zone but a recovery towards the end brought prices again into positive territory. The index first recorded its intraday low at 44489.40 then its intraday high at 45485.50 and finally closed at 45076.05 with a gain of just 69 points. PSU BANKS have outperformed today, saw a sharp upside move, and finally ended with a big gain of 1.97%. PVT BANKS have underperformed today, saw a mild downside move, and finally ended with a loss of 0.23%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while ICICI BANK contributed the lowest. The short-term trend is down. We have been tracking support around 44500 while resistance around 46500. The index today holds the support level after opening almost at 44500 and bounced up. The volatility is rising.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher in the volatile session on January 24 with Nifty above 21,450. At close, the Sensex was up 689.76 points or 0.98 percent at 71,060.31, and the Nifty was up 215.20 points or 1.01 percent at 21,454. About 2373 shares advanced, 1288 shares declined, and 81 shares unchanged.

• IT services major Tech Mahindra reported a 60.6 percent fall in net profit to Rs 510 crore year-on-year for the third quarter ended December 31, in a seasonally weak quarter as slowdown in demand continues in key verticals including hi-tech, telecom and financial services. Consolidated revenue for Q3FY24 declined 5 percent YoY at Rs 13,101 crore, largely in line Moneycontrol’s estimate of Rs 12,957 crore.

• IT services major Tech Mahindra reported a 60.6 percent fall in net profit to Rs 510 crore year-on-year for the third quarter ended December 31, in a seasonally weak quarter as slowdown in demand continues in key verticals including hi-tech, telecom and financial services. YoY net profit was significantly below Moneycontrol’s estimate of a decline of 41 percent YoY touching Rs 763 crore. Sequentially, net profit was up by 3 percent.

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

BOARDS MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.

For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)

Disclosure Appendix

Analyst Certification (For Reports)

Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com

The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.

As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:

(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and

(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.

For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.

Research Excerpts

This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.

Company-Specific Disclosures

Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or e-mailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.

Options related research:

If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in

Other Disclosures

All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.

Ownership and material conflicts of interest Disclosure

Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.

Country Specific Disclosures

India – For private circulation only, not for sale.

Legal Entities Disclosures

Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth  Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone: 011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in

EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:

1. Reports
2. a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;

(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;

(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;

2. Compensation

(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;

(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;

(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(d) EWL  or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(e) EWL or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.

3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL

Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.