Nifty, Nifty Bank Has Seen A Sharp Intraday Decline

NIFTY:

The NIFTY opened at 18435.15 with a gap up of 50 points. The index initially moved up but failed to sustain at higher levels and started drifting. Prices recorded its intraday high at 18473.35 and saw a sharp intraday rally for almost the whole day. The index spent its last two hours of trading moving sideways. The NIFTY recorded its intraday low at 18162.75, saw a minor pullback which failed quickly, and finally closed at 18199.10 near its day lows with a loss of 186.20 points or 1.01% down. PHARMA outperformed today and closed with a gain of 2.39% followed by IT which ended with a gain of 0.53% The rest of the sectoral indices have shed over 1% except the FMCG which ended with a loss of 0.90%. This indicates volatility is rising. We can also see it by watching the INDIA VIX which rose above 15 today after recording a swing low below 12. We may see a process of consolidation here within the 18000-18500 range. It is very early to say this so we should wait for confirmation. As of now, we should step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 43525.75 with a gap up of almost 100 points. The index continued moving higher but soon lost its momentum and started drifting downwards after recording its intraday high at 43614.65. Prices have seen a sharp intraday decline for almost the whole day, recorded its intraday low at 42363.80, and finally closed at 42658.05 with a loss of 749 points. PSU and PVT BANKS both performed almost the same today, saw a sharp intraday decline, and closed with a loss of 2.85% & 1.88% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the downside followed by AXIS BANK. A trading range within 43000-44000 zones has seen a breakdown today and prices have closed much below 43000 support levels. This pattern is giving us a downside target of around 42000, Since the volatility also rose today and the index has been recording wide-range days so its is possible that we may see some kind of consolidation. For the time being, we should step aside and avoid trading the Index.

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: GDP (QoQ) (Q3) on 22nd  December, 2022 USD: Initial Jobless Claims on 22nd  December, 2022

NEWS UPDATES

• The Indian benchmark indices opened higher but declined in trade amid high volatility on Wednesday. The Sensex closed 635 points down, or 1.03%, at 61,067.24, while the Nifty 50 was 186 points lower, or 1.01%, at 18,199.10 by end of trading hours.

• KFin Technologies continued to receive tepid response from investors, though it managed to get full subscription on December 21, the final day of bidding. The offer has garnered bids for 6.03 crore shares against IPO size of 2.37 crore shares, getting subscribed 2.54 times as per the data available with exchanges.

• Buybacks through stock exchanges will be phased out by 2025, Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India, said in the media briefing.

• Shares of Glenmark Pharmaceuticals Ltd. gained after the company launched a new diabetes drug. The high insulin-resistance type II diabetes drug for adults, priced at Rs 14.90 per day, will reduce the daily cost of therapy by 40%, the company said in the exchange filing.

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

BOARD 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)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
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 emailing 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
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