The Nifty and Bank Nifty closed higher after a few days of correction; Short term trend changes to up again

NIFTY:

The NIFTY opened at 21605.80 with a gap up of 88 points. Prices initially started a consolidation process for about one hour and then eventually broke on the upside after recording its intraday low at 21564.55. A sharp rally came but soon the index found resistance around 21680 and again started a consolidation process that lasted almost till the end. Prices have recorded its intraday high at 21685.65. The index moved very narrowly after a gap-up opening and finally closed at 21658.60 its day’s high with a gain of 141.25 points or 0.66% up. All the sectoral indices have moved in line with the benchmark index NIFTY and ended with gains led by REALTY which gains 6.76% followed by BANK and FINANCIAL, both ending with over 1% gains. The long-term trend is up while the long-term momentum has been moving inside the strength zone for the past few days. The Intermediate trend is up while the intermediate momentum has bounced up after spending a day within the weak zone. Both the momentums and trends have again aligned on the upside suggesting higher levels may be ahead.

BANK NIFTY:

the BANK NIFTY opened at 47805.40 with a gap up of 67 points. Prices initially moved higher after recording its intraday low at 47738.15 in its initial trades. A rally started and brought prices above 48200 where the index faced some resistance. A consolidation process started, the index recorded its intraday high at 48281.20 and finally closed at 48245.80 with a gain of 507 points. PSU and PVT BANKs, both indices, have performed almost the same, saw a sharp intraday rally, and finally ended with a gain of 1.03% & 1.17% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. BANK NIFTY moved higher for almost the whole day. It was a trend day on the upside where prices recorded its intraday low near the opening tick and intraday high near the closing tick. A correction seems over now as prices have held its support around 47500. Resistance is visible around 48500. Tomorrow, we should look for a buying opportunity on any sign of strength.

TECHNICAL PICKS

DERIVATIVE PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher on January 4 with Nifty above 21,650. At close, the Sensex was up 490.97 points or 0.69 percent at 71,847.57, and the Nifty was up 141.30 points or 0.66 percent at 21,658.60. About 2267 shares advanced, 1034 shares declined, and 79 shares unchanged.

• The Bajaj Finance stock gained over 3 percent on January 4, a day after the company shared business update for the December quarter in its assets under management (AUM) grew 35 percent on-year to Rs 3.11 lakh crore, suggesting a strong festive period. This is the first time that the company’s AUM has crossed the Rs 3-lakh-crore mark.

• Shares of several real estate companies were on a roll on January 4 with the Nifty Realty index surging more than 6 percent to a fresh all-time high of 836.45. The gains were led by Sobha which zoomed 20 percent to a new record high after Motilal Oswal Financial Services said the stock is one of its top picks for the year 2024. The brokerage has a buy call on the stock with a target price of Rs 1,400 as it believes Sobha will provide further growth visibility as it unlocks its vast land reserves and explores opportunities beyond its existing land bank..

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

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