Nifty Ended With Minor Gains, Nifty Bank Closed With a Loss

NIFTY:

The NIFTY opened at 21653.60 with a big gap up of 140 points. The index initially saw a minor dip which found support quickly and prices have bounced up sharply afterward. A rally started which took the index above 21700. Prices found strong resistance there and started a consolidation process that lasted for the whole afternoon and eventually prices broke down. A sharp decline came towards the end which erased most of the gains. Prices have recorded its intraday high at 21724.45, its intraday low at 21517.85, and finally closed at 21544.85 with a gain of 31.85 points or 0.15% up. REALTY outperformed and closed with a gain of 2.52% followed by AUTO, PHARMA, and METAL. REALTY under performed and ended with a loss of 3.30% followed by BANK and FINANCIAL. The short-term trend is still up as the index continued moving inside a narrow range of about 300 points. However, the index has been hovering around the support levels for the past two days. The long-term trend is up while the long-term momentum has been moving inside the strength zone but the direction is down now.

BANK NIFTY:

The BANK NIFTY opened at 47705.40 with a big gap up of 241 points. The index initially saw a dip but soon turned up and saw a sharp upside move. Prices have found resistance around 47900 and started a consolidation process which lasted for the whole afternoon session. That range eventually broke down and prices saw a sharp decline afterward which gave up all the gains. The index first recorded its intraday high at 47939.30, then its intraday low at 47156.05, and finally closed at 47230.95 with a loss of 233 points. PSU and PVT BANKs both indices have performed almost the same, saw a mild downside move, and closed with a loss of 0.16% &0.37% respectively. The short-term trend is sideways now. We have been tracking a narrow trading range of 1000 points; The index broke down 47500 support and closed below this level for the second consecutive day confirming a breakdown. Support is now visible around 46300 while resistance is still may emerge around 48500. For the time being, we should step aside and avoid trading the index.

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NEWS UPDATES

• Benchmark indices ended higher for the second consecutive session on January 9 amid volatility with Nifty around 21,550. At close, the Sensex was up 30.99 points or 0.04 percent at 71,386.21, and the Nifty was up 31.80 points or 0.15 percent at 21,544.80. About 1984 shares advanced, 1330 shares declined, and 71 shares unchanged.

• Polycab tanked over 7 percent on January 9 after reports Rs 200-crore tax evasion. Sources told CNBC TV18 that the income tax department detected Rs 250-300 crore of transactions booked in the company’s promoter accounts. The company had denied the allegations.

• Indian IT companies will likely beat the predictions of continued weakness and see strong earnings growth in 2024 on AI spending boost, Omniscience Capital CEO and Chief Investment Strategist Vikas Gupta has said. India and US tech companies are expected to have a 15 percent earnings growth during the year, Gupta said in an interview to Moneycontrol.

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

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