Nifty ended with gains while Nifty Bank closed almost on a flat note; The short-term trend is down

NIFTY:

The NIFTY opened at 21615.20 with a big gap up of 153 points. The index initially moved higher but soon found resistance and started moving sideways eventually breaking on the downside. Prices recorded its intraday high at 21670.60, saw a dip after a breakdown but soon found support. The index started a consolidation process again and this time the range-bound session lasted till the end. Within the range, the index moved very volatile and saw multiple swings from one extreme to another. Prices have recorded its intraday low at 21575 and finally closed at 21622.40 with a gain of 160.15 points or 0.75% up. OIL GAS, METAL, FMCG, and AUTO outperformed today, saw a sharp upside move, and ended with a gain of over 1% followed by IT and REALTY. MEDIA underperformed today and ended with a loss of 0.96%. The short-term trend is down. The volatility is rising. We are now expecting a consolidation process after a sharp decline. As of now, we are advising traders to step aside and avoid trading the index. We have a big NEWS event UNION BUDGET ahead that may raise the volatility. The long-term trend is down while the long-term momentum turned down from the strength zone but turned up before reaching the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 46103.50 with a big gap up of 341 points. The index initially consolidated then moved higher but found support very soon. Prices saw a sharp dip after recording its intraday high at 46249.85. The gap was filled and then the index started a consolidation which lasted till the end. Prices have recorded its intraday low at 45558.05 and finally closed at 45735.80 with a loss of just 27 points. PSU BANKs have outperformed today, saw a sharp upside move, and finally ended with a gain of 1.15%. PVT BANKs have underperformed today, saw a mild downside move, and ended with a loss of 0.28%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while INDUSIND BANK contributed the least. The short-term trend is down now. Support is visible around 45500 while resistance is visible around 47000. The index is moving very near to its support.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark equity indices closed lower today as shares of Hindustan Unilever and Reliance Industries dragged after their Q3 results. The Nifty index closed 50.60 points or 0.23% lower at 21571.80 while the Sensex lost 259.58 points or 0.36% to close at 71423.65. Shares of Hindustan Unilever Ltd., Reliance Industries Ltd., IndusInd Bank Ltd., Tata Consultancy Services Ltd., and HDFC Bank dragged the index. Private sector lender ICICI Bank on January 20 reported a net profit of Rs 10,271.54 crore for the third quarter of the current financial year, clocking a 23.5 percent rise from Rs 8,312 crore in the year-ago period. The net profit was in line with the market estimates of Rs 9,946 crore. The bank’s gross non-performing asset (NPA) stood at 2.30 percent, down from 3.07 percent in the same quarter of the previous year. Net NPA stood at 0.44 percent, improving from 0.55 percent in Q3FY23.

• Kotak Mahindra Bank Ltd.’s net profit rose 7.6%, missing analysts’ estimates. The private sector bank’s standalone net profit rose to Rs 3,005.01 crore year-on-year, in the quarter ended December. Net interest income, or core income, for the bank rose 16% from last year to Rs 6,554 crore in the quarter. Other income rose 17.8% year-on-year to Rs 2,297.02 crore.

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.