The Nifty and Bank Nifty closed lower today; Short-term trend changes to sideways

NIFTY:

The NIFTY closed at 21665.80 with a loss of 76.10 points or 0.35% down; The PHARMA outperformed and closed with a gain of 2.46% followed by OIL GAS, MEDIA, and METAL AUTO, IT, and REALTY underperformed and ended with a loss of over 1% followed by BANK. After a flat closing yesterday, the index moved down sharply and ended with a loss. It was again the BANKING stocks that led the bears as the top 4 PRIVATE BANKS HDFC, ICICI, AXIS, and KOTAK BANK ended the day with a loss. The short-term trend is sideways now which was up before as the index broke down after recording three narrow range days. The support is visible around 21250 while resistance is visible around 21800. 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 turned down from the strength zone and is now heading toward the weak zone. Both the momentums have started contradicting each other suggesting confusion amongst the traders.

BANK NIFTY:

The BANK NIFTY opened at 48194.80 with a gap up of 130 points. Prices initially moved lower and filled the gap quickly. The index recorded its intraday high at 48223.55, its intraday low at 47689.80, and finally closed at 47710.55 with a loss of 354 points. PVT BANKs have underperformed, saw a sharp downside move, and closed with a loss of 1.17%. PSU BANKs have also moved down saw a mild decline, and finally closed with a loss of 0.38%. Within the index, in terms of points, ICICI BANK contributed the highest on the downside followed by KOTAK BANK. BANK NIFTY continued moving downward and extended its losses for the third consecutive trading day. The intraday range was wide as prices have traveled within a range of over 500 points. The short-term trend is sideways now which was up before as the index has been closing lower for the past three trading days. We will get a buying opportunity if prices hold the 47500 support level. A breakdown may give us a shorting opportunity. As of now, we should step aside and watch how prices behave around the above-mentioned support levels.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended lower on January 2 with Nifty around 21,650. At close, the Sensex was down 379.46 points or 0.53 percent at 71,892.48, and the Nifty was down 76.10 points or 0.35 percent at 21,665.80. About 1691 shares advanced, 1631 shares declined, and 72 shares unchanged.

• Alok Industries soared 20 percent and was locked in its upper circuit at Rs 25.80, also its highest level in 52-weeks, on January 2 after Reliance Industries Ltd (RIL) subscribed to non-convertible redeemable preferential shares worth Rs 3,300 crore.

• VST Industries Limited soared 20 percent to Rs 4,060 and were locked in the upper circuit following a report that 4 percent equity stake in the company was sold in a block deal.

• The Finance Ministry is likely to hold a meeting this week to assess the revised estimate for disinvestment for FY24 to bring it to a “reasonable level” in view of no strategic sale of CPSEs this year and the department relying solely on OFS (offer for sale) and IPO (initial public offer) instruments, which have led to Rs 10,051.73 crore proceeds so far.

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

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