SHARP DECLINE IN NIFTY, NIFTY BANK; BOTH INDICES HAVE RECORDED A WIDE RANGE DAY

NIFTY:

The NIFTY opened at 18117.30 with a big gap down of 138 points. The index initially moved higher sharply of more than 100 points and almost fill the gap within the first hour of trading. However, prices found resistance and started moving downside after recording its intraday high at 18216.95. Prices have seen a steep fall of more than 150 points and recorded its intraday low at 18055.45. The decline continued for till the end and the index finally closed at 18069 near its day’s lows with a loss of 186.80 points or 1.02% down. BANK and FINANCIAL led the bears today and closed with a loss of more than 2% followed by MEDIA and METAL. AUTO and FMCG outperformed today and closed with some gains. The short-term trend is still up but the bias is now changing to the downside. After an upside move, the index has been facing a strong resistance of around 18200 levels for the past fur trading days. We are expecting a process of consolidation here. Earlier, the index has spent the whole January month within the 17800-18200 range. Prices may again form a trading range within these two levels. The index closed with minor gains on the weekly timeframe but near the weekly lows. For the time being, we should step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 43110.65 with a big gap down of 543 points. The index initially moved up, almost fill the gap and then found resistance there. Prices have recorded its intraday high at 43588 and saw a sharp intraday decline to record its intraday low at 42582.20. The down move continued for the whole day and the index finally closed at 42669.25 with a loss of 984 points, PVT BANK underperformed today, saw a sharp intraday rally, and closed with a loss2.82 of 1.23%. PSU BANK has also moved down today and closed with a loss of 0.92%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is still up but the bias is now changing to sideways. We have seen a breakout from 43500 resistance but the index could not see a follow through so we now have a failed breakout which is a sign of bearishness. The support is visible around 42500 and the index is filling the gap, and then found resistance very near to this level. We should wait one or two more days for a clear sense of direction. Till then we should step aside and avoid trading the index.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• Market records biggest single-day fall in two months dragged by sell-off inHDFC twins. The Sensex was down 694.96 points or 1.13 percent at 61,054.29, and the Nifty was down 186.80 points or 1.02 percent at 18,069 points. About 1,499 shares advanced, 2,015 declined, and 127 were unchanged.

• Aditya Birla Fashion & Retail Ltd (ABFRL) on Friday announced it will acquire a majority stake in women’s branded apparel company TCNS Clothing, in a deal worth Rs 1,650 crore. The Aditya Birla group firm has entered into definitive agreements to acquire a 51 per cent stake in TCNS Clothing, which owns ethnic brands such as W, Aurelia, Wishful, Folksong and Elleven, said a joint statement.

• Paytm’s revenue rose 52 percent to Rs 2,335 crore in the March quarter (Q4) while loss narrowed to Rs 168 crore from Rs 763 crore in the year-ago period. The company’s payments services revenue grew by 41 percent YoY to Rs 1,467 crore in Q4FY23.

• JSW Energy arm signs PPA for 300 MW wind power project in Maharashtra. The wind power project is part of SECI Tranche-XII and is expected to be commissioned within the next 24 months. JSW Energy is aiming to reach 20 GW capacity by 2030 and a near-term target of 10 GW by 2025.

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

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