Nifty, Nifty Bank closed lower for the third day; The short term trend is down

NIFTY:

The NIFTY opened at 21414.20 with a big gap down of 157 points. The index continued its bearish momentum and saw a sharp fall for the first 45 minutes of trading. However, prices reversed V-shaped after recording its intraday low at 21285.55, saw a sharp upside rally and almost recovered the entire loss but failed to hold there. A minor dip came and then the index formed a consolidation. The NIFTY moved sideways till the end. Prices have recorded its intraday high at 21539.40 and closed at 21462.25 above the opening tick with a loss of 109.70 points or 0.51% down. PHARMA outperformed today and closed with a gain of over 1% followed by REALTY, OIL GAS, and AUTO. FINANCIAL underperformed today and closed with a loss of 1% followed by METAL, BANK, IT, and FMCG. The short-term trend is down now as the NIFTY has been closing lower for the past three trading days. We were expecting the indeed may hold 21500 support but it broke down and closed lower. The long-term trend is down while the long-term momentum turned down from the strength zone and is now heading toward the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 45492.75 with a big gap down of 591 points. The index initially moved higher, filled the entire gap, and then found resistance there. Prices then took a U-Turn, saw a sharp decline, and came near to its opening tick. The index saw some recovery towards the end. Prices have recorded its intraday low at 45430.70, then its intraday high at 46184.05, and finally closed at 45762 with a loss of 321 points. PVT BANKs have underperformed today, saw a sharp downside move, and ended with a loss of 0.82%. PSU BANKs have outperformed today, saw a sharp upside move, and finally ended with a gain of 0.81%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while HDFC BANK contributed the least. The short-term trend is down now as the BANK Index has been closing lower for the past three trading days and incurred a loss of over 5%. After such a sharp fall, prices tend to consolidate or move sideways.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• In the highly volatile session the Indian benchmark indices ended lower with Nifty below21,500. At close, the Sensex was down 313.90 points or 0.44 percent at 71,186.86, and the Nifty was down 109.70 points or 0.51 percent at 21,462.30. About 1481 shares advanced, 1737 shares declined, and 70 shares unchanged.

• Polycab India on January 18 reported a 15.3 percent jump in net profit for the December quarter to Rs 416.51 crore against Rs 361.69 crore a year ago. Net sales for the quarter stood at Rs 4,340.47 crore, up 16.8 percent from a year ago, the cables and wires maker said in an exchange filing. Total cost jumped 19 percent to Rs 3,865.06 crore.

• ITC is a great growth story and is reasonably valued, GQG Partners CIO Rajiv Jain has said after his investment firm raised stake in the conglomerate in the December quarter after having owned the stock for two years. At the current level of 23x earnings, ITC’s valuation is “incredibly attractive” and the stock should see lower double-digit earnings as well, Jain said in an interview with CNBC.

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

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