NIFTY, NIFTY BANK FOUND RESISTANCE, SAW A SHARP INTRADAY DECLINE

NIFTY:

The NIFTY opened at 18432.35 with a gap up of 34 points. The index could not sustain at a higher level and started drifting downwards from the opening tick. The index recorded its intraday high at 18432.35 at the open, moved down, and found intraday support around 18350. Prices have formed a narrow trading range there which broke on the downside. Prices have seen another leg of down move that lasted till the end. The NIFTY recorded its intraday low at 18264.35 and finally closed at 18286.50 with a loss of 112.35 points or 0.61% down. All the sectoral indices have closed with a loss today except IT which ended with minor gains. MEDIA and AUTO led the bears today followed by BANK and FINANCIAL. The index made another attempt to break above 18400 but in the end, prices closed well below this level. A breakout from this 200 points range may give us a tradable move. For the time being, we should step aside and avoid trading the index for the carry-forward trades

BANK NIFTY:

The BANK NIFTY opened at 44144.15 with a gap up of almost 100 points. The index initially moved down after recording its intraday high at the opening tick and filled the gap. Prices further moved down but found support around 43900 and formed a trading range. The range lasted almost the whole day. However, prices have seen a sharp decline towards the end, recorded its intraday low at 43815.75, and finally closed at 43856 with a loss of 189 points PSU BANK has outperformed today, saw an intraday rally, and closed higher by 0.72%. PVT BANK has underperformed today, saw an intraday decline, and closed with a loss of 0.58%. Within the index, in terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is still up as prices are moving near the top of an ongoing up move and also near the lifetime highs which was recorded at 44151.80. However, the index is finding resistance around this level for the past two days.

TECHNICAL PICKS

DERIVATIVE PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended lower on May 16 with Nifty below 18,300. At close, the Sensex was down 413.24 points or 0.66percentat 61,932.47, and the Nifty was down 112.30 points or 0.61percentat 18,286.50. About 1,790 shares advanced, 1,627 shares declined, and 132 shares were unchanged.

• Bank of Baroda (BOB) on May 16 announced its results for the quarter ending March 2023. The bank reported its highest-ever quarterly net profit of Rs 4,775 crore, recording a 168 percent year-on-year rise.

• Indian Oil Corp Ltd on May 16 reported 67 percent year-on-year jump in standalone net profit to Rs 10,059 crore for the quarter ended March 2023. Net profit stood at Rs 6,021 crore in the year-ago period.

• Tesla execs to visit India in effort to strengthen supply chain amid diversification beyond China. The discussions will revolve around the possibility of local sourcing of components for Tesla’s car models, as the company looks beyond China.

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

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