THE NIFTY AND NIFTY BANK ENDED ALMOST ON A FLAT NOTE

NIFTY:

The NIFTY opened at 20965.30 without much of a change. The index initially moved higher but soon found resistance and turned down. Prices continued these sharp moves for the first two hours of trading. The index started moving inside a narrow range from the afternoon session and saw a mild up move but could not surpass the early morning highs. The sideways movement continued till the end. The index recorded first its intraday low at 20923.70 in its initial trades, then its intraday high at 21026.10, and finally closed at 20997.10 with a gain of 27.70 points or 0.13% up. The MEDIAL and METAL outperformed and closed with a gain of over 1% followed by REALTY and FMCG, PHARMA was the only sector that ended with a loss. OIL GAS and FINANCIAL ended on a flat note. We have been tracking support around 20500. This support is now shifted upwards at 20800. There is no visible resistance as the index is moving in uncharted territory. We should look for a buying opportunity in the direction of a breakout.

BANK NIFTY:

The BANK NIFTY opened at 47233.30 with a gap down of 50 points. The index initially moved higher then saw a sharp dip and then again turned up. Prices have moved higher but soon found resistance and were turned down. Prices did not move much lower and started a consolidation phase which lasted till the end. Prices first recorded its intraday low at 47186.60 then its intraday high at 47588, and finally closed at 47299.70 with a gain of just 16 points. PSU BANKS have outperformed, saw a sharp upside rally, and finally closed with a gain of 1.36%. PVT BANKs also moved up, saw a mild upside move, and closed with a gain of 0.15%. 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 up. There is no doubt about it as prices are making lifetime new highs for the past two trading days. We have been tracking support around 46300. The support is shifted to 46500 which is also the recent swing low. There is no visible resistance as prices are again trading in uncharted territory. We should look for buying only as far as prices are staying above 46300 support.

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Upcoming Economic Data

News Updates

• Benchmark indices ended higher in the volatile session on December 11 with Nifty around 21,000. At close, the Sensex was up 102.93 points or 0.15 percent at 69,928.53, and the Nifty was up 27.70 points or 0.13 percent at 20,997.10. About 2211 shares advanced, 1358 shares declined, and 174 shares unchanged.

• Riding high on positive sentiment behind power and PSU stocks, shares of Indian Renewable Energy Development Agency (IREDA) zoomed over 160 percent over its issue price of Rs 32. While some investors might look at booking profits, analysts believe that IREDA is a long-term play and has legs to rally more.

• Jaipur-based Motisons Jewellers has finalised December 18 as the opening date for its upcoming initial public offering (IPO). The company may be planning to raise around Rs 151 crore via public issue, if the offer price is considered as Rs 55 per share reported at the time of fund raising via pre-IPO placement.

• GMR Airports Infrastructure on December 11 saw a near 7 percent uptick in its share price on the NSE. This surge followed the acquisition of shares worth Rs 1,671.5 crore in GMR Airports Infrastructure by GQG Partners. At 2:55 pm, shares of GMR Airports Infrastructure were trading at Rs 73.15 apiece.

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

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