Sharp Intraday Decline In Nifty, Nifty Bank

NIFTY:

the NIFTY opened at 18230.65 without any gap. The index initially consolidated and broke on the downside after recording its intraday high at 18243 in its initial trades. Prices have seen a sharp intraday decline and then found support around 18050. A pullback started and prices went above 18100. The index again started falling and recorded its intraday low at 18020.60. Prices consolidated towards the end and finally closed at 18042.95 near its day’s lows with a loss of 189.60 points or 1.04% down. All the sectoral Indices have declined today and ended with a loss. METAL and REALTY led the bears today and lost over 2% followed by MEDIA, OIL GAS, and BANK which ended with a loss of over 1%. We have taken a trade on the long side around 18150 and for today, we have suggested staying long with a stop at 18150 and a target at 18550, Prices moved down and hit the stop loss. We exited with no profit and no loss. The short-term trend is sideways. A narrow trading range is now visible on the daily timeframe chart with support around 18000 and resistance around 18250. Prices have been moving within the range for the last six trading days. A breakout in either direction may give us a directional move. For he time being, we should avoid trading the index and wait for a breakout.

BANK NIFTY:

The BANK NIFTY opened at 43417.50 with a gap down of just 31 points. Initially, the index went higher but soon found string resistance and started drifting downwards after recording its intraday high at 43578.40. The index kept on sliding lower throughout the day and went below 43000, A pullback afterwards failed and the index again went down to record its intraday low at 42858.65. Prices have finally closed at 42979.60 with a loss of 469 points. PSU and PVT BANKS both indices have performed almost the same today, saw a sharp intraday decline, and closed lower by 1.83% & 1.01% respectively Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by SBIN. We have taken a trade on the long side around 42150 and for today, we have suggested staying with a stop at 43100 and a target at 44450. Prices moved down and hit the stop loss so we exited this trade with a loss of almost 50 points We were expecting a sharp move today and that came on the downside as the index recorded a downtrend day. Yesterday, we have mentioned a pattern of Bullish Head & Shoulder which did not get confirmed today. Moreover, a narrow trading range is now visible on the daily timeframe chart with support around 42500 and resistance around 43500. The short-term trend is sideways. Avoid trading the index as far as prices are moving within this range.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Nikkei Services PMI (Dec) on 4th  January, 2023 INR: CPI (YoY) (Dec) on 12th  January, 2023	USD: JOLTs Job Openings (Nov) on 4th  January, 2023 USD: ISM Manufacturing PMI (Dec) on 4th  January, 2023

NEWS UPDATES

• Benchmark indices ended lower on January 4 amid selling across the sectors.At Close, the Sensex was down 636.75 points or 1.04% at 60,657.45, and the Nifty was down 189.50 points or 1.04% at 18,043. About 1154 shares have advanced, 2230 shares declined, and 135 shares are unchanged.

• The Union Cabinet on January 4 approved an initial outlay of Rs 19,744 crore for the National Hydrogen Mission with an aim to make India a global manufacturing hub of this clean source of energy.

• Shares of Orient Cement Ltd. jumped nearly 13% after it refuted reports about Adani Group buying a stake in the company from its founders.

• The year 2022 saw India reach a milestone of 1 million electric vehicle sales for the first time since the country started manufacturing battery-powered vehicles. This was a twofold growth over the previous year, and came after customers shrugged scars of EVs catching fire in early 2022.

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

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