Sharp Decline Continued For The Second Consecutive Trading Day

NIFTY:

The NIFTY opened at 18101.95 with a gap up of 59 points. The index initially consolidated for about two hours and then saw a breakdown after recording its intraday high at 18120.30. Prices have seen a sharp intraday decline and went below 17900. The index started a consolidation process and eventually broke on the upside after recording its intraday low at 17892.60. Prices have seen a sharp recovery in the last two hours of trading and finally closed at 17992.15 with a loss of 50.80 points or 0.28% down, FMCG, OIL GAS, AUTO, and PHARMA outperformed today and ended with a gain of over 15%. BANK, FINANCIAL and IT underperformed today and ended with a loss of over half percent. We have been tracking a narrow trading range on the daily timeframe chart with support around 18000 and resistance around 18250. This range has seen a breakdown today but the index closes very near to 18000 support. Today was the eighth day for this range. As suggested earlier, “a breakout in either direction may give us a directional move.” We should wait for prices to close beyond this range. Till then, we should avoid trading the index

BANK NIFTY:

The BANK NIFTY opened at 43073.05 with a gap up 94 points. The index initially consolidated and then broke on the downside after recording its intraday high at 43137.55. Prices then saw a steep fall and recorded its intraday low at 42298.60. The index has seen some recovery in the last two hours of trading and finally closed at 42615.95 with a loss of 364 points. PSU BANK has outperformed today and closed with a gain of 0.23% PVT BANK has seen an underperformance today and ended lower with a loss of 0.79% Within the index, in terms of points, BANK BARODA contributed the highest on the upside while ICICI BANK contributed the least BANK NIFTY continued moving lower sharply for the second consecutive trading day. However, a mild recovery has trimmed the losses in the last two hours. We have mentioned a trading range of 1000 inside 42500-43500. Prices have broken down this range but came back and closed within this range. The short-term trend remained sideways. We should avoid trading the index as far as prices are moving within this range. Wait for a decisive breakout on either side.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Manufacturing Output (MoM) (Nov) on 12th  January, 2023 INR: CPI (YoY) (Dec) on 12th  January, 2023	USD: Unemployment Rate (Dec) on 6th  January, 2023 USD: ISM Non-Manufacturing PMI (Dec) on 6th  January, 2023

NEWS UPDATES

• Indian stock benchmarks ended lower on Thursday, dragged by declines in banking, financial, and IT stocks. The S&P BSE Sensex ended 0.5% lower at 60,353.27, while the Nifty 50 closed 0.28% lower at 17,992.15. Of the Nifty 50 constituents, 33 advanced, while 17 declined.

• India’s automobile sales at dealerships slowed in December, after a festive boost to sales in the last two months, as weak demand for two-wheelers pulled down the total tally. Total sales fell 5.4% to 16.22 lakh units in the month, according to the Federation of Automobile Dealers Associations. The sales were 21% and 12% lower than corresponding months in 2020 and 2019, respectively.

• Godrej Consumer Products Ltd. expects “double-digit” sales growth in the three months through December, driven by higher demand for its home care and personal care products and easing input costs. The consumer goods maker said that its performance has also gotten better since the previous two quarters when sales grew by 7%.Mukesh Ambani, the billionaire chairman of Reliance Industries Ltd., will be focusing his attention

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

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