Nifty Traded Very Narrow, We Should Look For Buying Only

NIFTY:

The NIFTY opened at 18600.65 with a gap down of 101 points. The index initially moved down but soon found support and bounced up after recording its intraday low at 18577.90. A rally started which took prices above the opening tick. The momentum was very weak so prices did not rally further and started a consolidation process around the 18600 level. A sharp surge towards the end brought prices to its intraday high at 18654.90 and the index finally closed at 18642.75 near its day’s high but with a loss of 58.30 points or 0.31%. All the sectoral indices have closed lower today except FMCG and OIL & GAS which ended with minor gains. IT, MEDIA led the bears today followed by METAL and PHARMA. Short-term support is visible around 18600 while a strong support zone is visible inside 18300 – 18500. We should look for a buying opportunity. The idea is to buy on a dip at or below 18500 or buy on a breakout above 18730. In case of a gap up above 18730 or a gap down below 18500, wait till 09:30 AM and then look to buy above the first 15 min high. Keep a stop of 80 points and a target of 240 points from your entry price.

BANK NIFTY:

The BANK NIFTY opened at 43093.90 with a gap down of 228 points. The index bounced up and rallied sharply to fill the gap. Prices found resistance around the previous day’s closing price and then started drifting downwards after recording its intraday high at 43306.85. A decline brought prices to its intraday low at 43076.40 and the index consolidated to finally close at 43143.5 with a loss of 178 points. PSU BANKS have outperformed today and closed with a gain of 1.26%. PVT BANKS have underperformed today and closed lower by 0.43%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while ICICIBANK contributed the lowest. It was a choppy day where prices have moved in a sideways manner and continued trading narrow as today’s range was just 230 points. Since the range is very narrow inside the 42740 – 43340 zones, it should see a breakout soon one way or the other. Strong Support is visible around 42000. A close below this support may change the short-term trend to sideways. We should look for a buying opportunity only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended lower in the volatile session on December 6 with Nifty around 18650.At Close, the Sensex was down 208.24 points or 0.33% at 62,626.36, and the Nifty was down 58.20 points or 0.31% at 18,642.80. About 1565 shares have advanced, 1825 shares declined, and 135 shares are unchanged.

• Sula Vineyards is considered a “category creator” and once the listing plans fructify, it would arguably be the first IPO in India by a pure play wine manufacturer.”The issue will open for anchor investors on Dec 9 and will be open for the public from Dec 12 to Dec 14,” said one of the persons above.

• Maruti Suzuki India on Tuesday said it is recalling 9,125 units of its models Ciaz, Brezza, Ertiga, XL6 and Grand Vitara to fix possible defects in a part of the front row seat belts.The affected vehicles were manufactured between November 2-28, 2022, Maruti Suzuki India said in a regulatory filing.

• The World Bank on Tuesday revised upwards its GDP growth forecast for India to 6.9% from 6.5% for 2022-23, saying the economy was showing higher resilience to global shocks.

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

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