THE NIFTY AND NIFTY BANK ENDED ALMOST ON A FLAT NOTE

NIFTY:

The NIFTY opened at 19417.10 with a gap up of just 24 points. The index initially moved higher but found resistance before reaching 19450 and started drifting downward. Prices recorded its intraday high at 19443.50 and saw a sharp downside move but then turned around quickly. Soon the index started a consolidation process that lasted till the end. The NIFTY recorded its intraday low at 19381.30 and moved very narrowly for almost the whole day. The index finally closed at 19396.45 with a gain of 2.85 points or 0.01% up. METAL, FMCG, MEDIA, and AUTO outperformed and gained over half a percent. PHARMA, IT, and FINANCIAL underperformed and ended with minor losses. BANK and OIL GAS moved sideways and closed without much of a change. The short-term trend is sideways since the index is moving very narrowly within 250 points of a trading range for the past six trading days inside the 19250-19450 zones. The range is very narrow and it should resolve very soon one way or the other.

BANK NIFTY:

The BANK NIFTY opened at 44125 with a gap up of 164 points. The index could not move higher and started a consolidation process. Prices have broken on the downside after recording its intraday high at 44151.30. The index saw a mild down move, recorded its intraday low at 43938.70, and finally closed at 43950.40 with a loss of just 11 points. PSU BANK has underperformed today, saw a sharp downside move, and ended with a loss of 0.49%. PVT BANK has outperformed today, saw a mild upside move, and closed with a gain of 0.18%. Within the index, in terms of points, AU BANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is sideways and the index is hovering around its strong support zone of 43500-44000.

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News Updates

• Indian benchmark indices ended on a flat note in the volatile session on August 22. At close, the Sensex was up 3.94 points or 0.01 percent at 65,220.03, and the Nifty was up 2.90 points or 0.01 percent at 19,396.50. About 2150 shares advanced, 1390 shares declined, and 124 shares unchanged.

• Bharat Heavy Electricals Ltd (BHEL) jumped over 10 percent to Rs 111.25 on August 22 after the company secured order worth Rs 4,000 crore from a wholly-owned subsidiary of Adani Power Limited. The scrip hit a new 52 week high of Rs 112.85.

• Linde India gained more than 9 percent on August 22 to hit an all-time high of Rs 5,765.75. Since its Covid-19 low of Rs 378 on March 24, 2020, the stock has surged 15 times.

• Debt-ridden telecom operator Vodafone Idea plans to clear about Rs 2,400 crore of dues to the government by September, sources privy to the development said. The company recently cleared pending dues of licence fees and spectrum usage charges of about Rs 450 crore for the March quarter of 2022-23, a source told PTI.

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

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