Nifty, Nifty Bank Closed Almost On A Flat Note Despite Of A Gap Down Opening

NIFTY:

The NIFTY opened at 18340.30 with a gap down of 80 points. The index continued its bearish momentum, fell further on the downside, and started a consolidation process. Prices have seen a breakout and then rallied higher after recording its intraday low at 18202.65. The index recovered all the losses that came during the day and moved further on the upside. Prices recorded its intraday high at 18404.90 and finally closed at 18385.30 near its intraday highs with a loss of just 35.19 points or 0.19% down REALTY underperformed today and closed lower by 1.21% followed by the AUTO and MEDIA sectors. IT, OIL GAS, and METAL outperformed today and ended with minor gains. The INDIA VIX, an Index for volatility, is consistently moving around the 14 levels suggesting the bulls still have control over the markets. Intraday traders should look for trading opportunities on both sides of the market. Use the buy-on-dips and sell-on-rallies approach while carry-forward traders should step aside.

BANK NIFTY:

The BANK NIFTY opened at 43152.65 with a big gap down of 288 points. The index continued its bearish momentum and moved further on the downside. Prices found support around 43000 and then started rising after recording its intraday low at 42955.40. The index rallied sharply, recovered almost all the losses, and recorded its intraday high at 43426.20. Prices finally dosed at 43407.80 near its day highs with a loss of just 33 points. PSU and PVT BANKS both performed almost the same today and closed with a loss of 0.35% &0.25% respectively. Within the index, in terms of points. ICICI BANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend remained sideways. Moreover, a trading range within 43000-44000 zones also remained intact. For carry-forward trades, we should wait for this range to break one way or the other. It has been almost four weeks that the index is trading within this range. We may see a breakout soon. For the time being, Intraday traders can look for trading opportunities in both directions. Prefer to buy on dips and sell on rallies approach.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Federal Fiscal Deficit (Nov) on 30th December, 2022 INR: Infrastructure Output (YoY) (Nov) on 30th December, 2022	USD: Crude Oil Inventories on 21st  December, 2022 USD: GDP (QoQ) (Q3) on 22nd  December, 2022

NEWS UPDATES

• Benchmark indices ended marginally lower on December 20 with Nifty below 18,400. At Close, the Sensex was down 103.90 points or 0.17% at 61,702.29, and the Nifty was down 35.20 points or 0.19% at 18,385.30. About 1646 shares have advanced, 1780 shares declined, and 126 shares are unchanged.

 

• Fintech player Zaggle Prepaid Ocean Services Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering.

 

• The Bank of Japan’s unexpected hawkish shift sent shock waves through global markets as the developed world’s last holdout for rock-bottom interest rates inches toward policy normalization.Japanese government bonds and Treasuries both slumped, while the yen surged after the BOJ raised its cap on benchmark 10-year yields to around 0.5% from 0.25%, surprising every economist surveyed by Bloomberg.

 

• The board of Hinduja Global Solutions Ltd (HGS), the group’s business process management arm, approved a buyback of 60 lakh shares worth Rs 1,020 crore on 19 December.

 

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

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