NIFTY FINALLY CONSOLIDATES AFTER TREMENDOUS UP MOVE; BANK NIFTY RECOVERS FROM INITIAL DIP

NIFTY:

NIFTY opened at 20932.40 near yesterday’s close but within no time prices took a dip. Prices made a low near yesterday’s low at 20850.80 and found support again at that level then bounced back. The index made an intraday high of 20935 and eventually closed at 20916.10 with a minor loss of 20 points. MEDIA and PHARMA sectors have outperformed and led the bulls by closing just under 1% followed by PSUBANK and REALTY.FMCG and METALS underperformed and ended with a loss of over half a percent. Index stocks like ADANI PORTS and POWERGRID led the bulls and closed with a gain of more than 2% while ULTRATECHCEM closed with 1.8%. Support is visible around 20300-20500 while a minor resistance is started to visible at 20950-21000 levels.

BANK NIFTY:

BANK NIFTY opened at 46735.40 near yesterday’s close and saw a sharp dip in the first 15 minutes of the day. The index made a low at 46507.15 and found support there. Thereafter, Bank Nifty started recovering and closed near yesterday’s close at 46839.40 with a minor gain of 38 points. PSU BANKS again managed to close higher with a gain of 0.58% whereas PVT BANKs closed with a minor loss of 0.12%. Within the index, in terms of percent, PNB contributed the highest on the upside while IDFCFIRSTB dragged the Index lower. The trend is strongly on the upside as the index continues to find intraday support at lower levels. Support is now visible around 46300 while resistance is started to build near 47300 levels. We should look for buying only as far as prices are staying above the support of 46300.

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News Updates

• Benchmark indices broke seven-day winning streak and ended lower in the volatile session on December 7. At close, the Sensex was down 132.04 points or 0.19 percent at 69,521.69, and the Nifty was down 36.50 points or 0.17 percent at 20,901.20. About 1893 shares advanced, 1342 shares declined, and 81 shares unchanged.

• Shares of Paytm traded over 18 percent lower as of afternoon trade on December 7 after the company announced plans to slow down its small-ticket postpaid loans while it looks to expand its high-ticket personal loans and merchant loans. The decision has not gone well with brokerages as well, prompting them to cut their revenue estimates for the company.

• Shares of Tata Power soared around 9 percent on December 7 to hit a fresh record high after brokerage firm JM Financial upgraded the stock to ‘buy’ rating from hold earlier. The brokerage also raised its price target on the stock by 40 percent to Rs 350 from the earlier target of Rs 220. The revised price target implies a potential rally of 24 percent over the next 12 months.

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

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