Relief Rally Continued In The Nifty, Nifty Bank

NIFTY:

The NIFTY opened at 18089.80 with a gap up of 75 points. The index initially moved up but failed to sustain at the higher levels and saw a sharp intraday decline. The gap was filled quickly and the index fell further to record its intraday low at 17967.45 within the first hour of trading. Prices found support there and then started rising at a slow pace. The index recovered all the losses that came during the day, recorded its intraday high at 18149.25 towards the end of today’s trading session, and finally closed at 18132.30 near its day highs with a gain of 117.70 points or 0.65% up. All the sectoral indices have closed with a gain today except FMCG which ended with a loss of 0.41%. METAL outperformed and led the bulls today by closing more than 4% higher followed by MEDIA, REALTY, and OIL GAS. The short-term trend remained sideways. Support is now visible around 18000 while resistance is now visible around 18300. The short-term trend will be sideways as long as prices are moving within this range. As of now, we should step aside and avoid trading the index. Wait for an adequate setup to emerge. We will plan our trade accordingly.

BANK NIFTY:

The BANK NIFTY opened at 42827.75 with a gap up of 180 points. The index tried to move further up but failed to do so. Prices have started a steep fall and recorded its intraday low at 42394.15 within the first hour of trading. The index then started a steady up move which lasted till the end. Prices recorded its intraday high at 42927.20 and finally closed at 42866.60 with a gain of 219 points. PSU BANKS have outperformed today and closed with a gain of 1.29%. PVT BANKS have also seen a sharp intraday rally and closed with a gain of 0.61% Within the index, in terms of points, ICICI BANK contributed the highest on the upside followed by SBIN. It was a volatile day today in the Bank Index. After a gap-up opening, prices saw a sharp fall and then moved higher steadily for the rest of the day. The intraday range was comparatively narrow today. The short-term trend remained sideways as the index is seeing a relief rally after a sharp dedine. The last few days of sharp movement may lead the index to a consolidation process. For the time being, we should avoid trading the index and wait for a clear sense of direction.

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: Pending Home Sales (MoM) (Nov) on 28th  December, 2022 USD: ISM Manufacturing PMI (Dec) on 4th  January, 2023

NEWS UPDATES

• Benchmark indices ended higher on December 27 with Nifty above 18,100 amid buying across the sectors barring FMCG.At Close, the Sensex was up 361.01 points or 0.60% at 60,927.43, and the Nifty was up 117.70 points or 0.65% at 18,132.30. About 2504 shares have advanced, 889 shares declined, and 120 shares are unchanged.

• Ministry of Consumer Affairs, Food and Public Distribution announced 100 percent incentive on sugar sacrificed for producing ethanol from B-heavy molasses, sugarcane juice and syrup on December 26.

• The public issue of Radiant Cash Management Services continued to see muted response from the launch. It received bids for 1.24 crore shares as against an offer size of 2.74 crore shares, or just about 45 percent subscription till December 27, the final day of bidding.

• The Indian rupee declined on Tuesday, surrendering the strong gains of the previous session, as importers bought dollars and traders ignored the largely positive sentiment in the broader markets.The rupee fell to 82.8475 per U.S. dollar, compared to its previous close of 82.65.

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

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