Sharp Decline in the Nifty, Nifty Bank; The Trend is again Sideways

NIFTY:

The NIFTY opened at 22009.65 with a gap up of 79 points. The index could not sustain at the higher levels and saw a sharp dip after recording its intraday high at 22011.05 just above the opening tick. The decline filled the gap and prices moved further on the downside but found support just above 21700. The index saw some recovery and then started moving sideways in the afternoon session. The index broke down, saw a sharp decline, recorded its intraday low at 21665.30, and saw a minor recovery towards the end. Prices have finally closed at 21717.95 with a loss of 212.55 points or 0.97% down. MEDIA outperformed and ended with a gain of almost 2% followed by OIL GAS. FMCG underperformed, led the bears, and ended with a loss of 2.06% followed by BANK and FINANCIAL. The short-term trend is again sideways as the index came below the breakout point around 21800. Support is visible around 21700 while resistance may emerge around 22100 which is very near the lifetime highs. The long-term trend is sideways now while the long-term momentum has been moving within the strength zone for the past few days.

BANK NIFTY:

The BANK NIFTY opened at 45973.85 with a gap up of just 57 points. The index initially moved sideways and eventually broke on the downside after recording its intraday high at 46181.20. Prices have seen a sharp decline which found support around 45300 and the index again started a consolidation process afterward. Prices have seen another breakdown towards the end, saw a sharp decline, recorded its intraday low at 44893.75, and finally closed at 45105.45 with a loss of 811 points. PSU BANKs have significantly outperformed, saw a sharp upside move, and ended with a gain of 2%. PVT BANKS have underperformed, saw a sharp intraday decline, and ended with a loss of 2.59%. Within the index, in terms of points, SBIN contributed the highest on the upside while ICICI BANK contributed the lowest. The short-term trend continues to be sideways as prices are moving range bound within a wide trading range with support around 44500 and resistance around 46500. However, after decline, the bias has changed on the downside.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended lower on February 9 with Nifty below 21,750 after RBI kept the policy rate unchanged. At close, the Sensex was down 723.57 points or 1.00 percent at 71,428.43, and the Nifty was down 212.50 points or 0.97 percent at 21,718.About 1341 shares advanced, 1908 shares declined, and 61 shares unchanged.

• ITC stock fell 4 percent in the afternoon trade after its largest shareholder, British American Tobacco (BAT), said it was working towards completing the regulatory process to pare its stake in the diversified conglomerate.

• The two-year long delay in hotel aggregator OYO’s public market debut may finally end as SoftBank Vision Funds, one of its largest backers, said that it expects the company’s initial public offer (IPO) to happen in 2024.

• Zomato reported a net profit of Rs 138 crore for the October-December period, marking the third straight quarter of the food aggregator’s earnings coming in the green.

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

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