The Nifty and Nifty Bank closed with some gains; Short term trend remains sideways

NIFTY:

The NIFTY opened at 21529.30 with a gap down of 15 points. The index initially saw a minor dip which found support quickly and prices bounced up and came into positive territory. Soon the index started a process of consolidation that lasted for the whole afternoon. In the last two hours of trading, prices have seen a breakout and rallied higher which lasted till the end. The NIFTY today first recorded its intraday low at 21448.65 in the morning trades, ts intraday high at 21641.85 towards the ends, and finally closed at 21618.70 near its day’s high with a gain of 73.85 points or 0.34% up. MEDIA outperformed today and closed with a gain of 3.47% followed by METAL and IT. FMCG and REALTY were the only sectors that ended with a loss. OIL GAS ended without much of a change.

The long-term trend is up while the long-term momentum has been moving inside the strength zone and again turned up. Both the momentums have again aligned on the upside suggesting higher levels may be ahead. The short-term trend is sideways now. The index is trading inside a narrow range. Wait for a decisive breakout.

BANK NIFTY:

The BANK NIFTY opened at 47073.85 with a gap down of 157 points. The index initially saw a dip but soon found support around 47000 and turned up. Prices have seen a sharp intraday rally which found resistance around 47400. The index started a consolidation process which lasted till the end. Prices first recorded its intraday low at 47010.80, then its intraday high at 47423.45, and finally closed at 47359.35 with a gain of 129 points. PSU BANKS have underperformed today, saw a mild downside move, and ended with a loss of 0.24%. PVT BANKs have outperformed today, saw a mild upside move, and ended with a gain of 0.34%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while AXIS BANK contributed the lowest. The short-term trend is sideways now. We have been tracking a narrow trading range of 1000 points with support around 47500 and resistance around 48500 which the index broke on the downside. However. The range has expanded itself with fresh support emerging around 47000 levels. Resistance is the same around 48500.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• The benchmark Indian indices managed to end higher on January 10 amid high volatility as investors preferred to stay on the sidelines ahead of the CPI inflation data and key Q3 earnings this week. The Sensex closed 271.50 points or 0.38 percent higher at 71,658, and the Nifty was up 73.90 points or 0.34 percent at 21,619.

• Reliance Industries Limited will help Gujarat meet half of its energy needs through renewable energy by 2030 to make the state a global leader in green growth, RIL chairman Mukesh Ambani has said. Speaking at the the inauguration of Vibrant Gujarat Summit on January 10, Ambani said Reliance invested more than $150 billion, or Rs 12 lakh crore, in creating world-class assets and capacities across India in the past 10 years. Of this, more than a third has been invested in Gujarat, he added.

• Aurobindo Pharma is in value unlocking mode again, and is now exploring a big-bang initial public offer (IPO) of its wholly-owned subsidiary — speciality generic firm Eugia Pharma Specialities — to raise around Rs 4,500 crore in 2024, multiple industry sources told Moneycontrol.

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

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