The Nifty and Nifty Bank started the week on a negative note; both Indices closed around the support levels

NIFTY:

NIFTY opened at 21747.60 with a gap up of 37 points. The index initially moved sideways for the first 15 minutes of trading and then eventually broke on the downside. The index again moved down and went into a consolidation in the afternoon. That range broke down towards the end and prices have seen another leg of a decline. The index first recorded its intraday high at 21763.95, then its intraday low at 21492.90, and finally closed at 21513 near its intraday low with a loss of 197.80 points or 0.91% down. MEDIA and REALTY outperformed and closed with minor gains. The rest of the sectoral indices moved in line with the NIFTY and closed lower led by FMCG, METAL, and BANK as they ended with a loss of over 1%. The NIFTY started the week on a negative note and ended the session with a loss of nearly 1%. On the daily time frame chart, we have been tracking a narrow trading range of 300 points inside the 21500-21800 zone. The long-term trend is up while the long-term momentum has been moving inside the strength zone but the direction is down now. The Intermediate trend is sideways while the intermediate momentum has turned down before reaching the strength zone.

BANK NIFTY:

The BANK NIFTY opened at 48096.65 without much of a gap. Prices initially moved down and then consolidated which broke on the downside. This consolidation and breakdown continued for the whole day and the index kept on sliding lower. In this process, prices have recorded its intraday high at 48154.50, its intraday low at 4737.35, and finally closed at 47464 with a loss of 625 points. PSU BANKS have underperformed, saw a sharp intraday decline and closed with a loss of 2.48%. PVT BANKs have also moved down, saw a sharp intraday decline, and closed with a loss of 1.12%. Within the index, in terms of points, AU BANK contributed the highest on the upside while HDFC BANK contributed the lowest. For the time being, we should step aside and avoid trading the index. We will look for a shorting opportunity in the index continued closing below 47500. A buying opportunity may emerge when prices reverse and come back inside the 47500-48500 trading range.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended snapped their two-session rally to end lower after opening with marginal gains. Today’s fall was because of losses in shares of financial services, FMCG and IT companies. The Nifty ended 199.70 points or 0.92% lower at 21,511.10 points while the Sensex lost 665.73 points or 0.92% to end at 71,360.42 points. Intraday, Nifty hit a low of 21,492.90 and the Sensex hit a low of 21,492.90 and the Sensex hit a low of 71,301.04.

• Mamaearth parent Honasa Consumer was locked in 10 percent upper circuit as it hit a record high of Rs 490.20 after a large deal involving 32.60 lakh shares, representing a one percent stake in the company, took place on the exchanges on January 8. The floor price of the deal was Rs 437 apiece, a discount of nearly 2 percent from the previous close. The total transaction value was at Rs 142 crore.

• Walmart-owned ecommerce giant Flipkart is reportedly planning to trim its workforce by 5 to 7 percent, a decision is likely to affect around 1,500 employees. According to reports, the exercise has already been set in motion with performance reviews and will be completed by March-April 2024. Flipkart has 22,000 employees.

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

BOARDS MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.

For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)

Disclosure Appendix

Analyst Certification (For Reports)

Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com

The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.

As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:

(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and

(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.

For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.

Research Excerpts

This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.

Company-Specific Disclosures

Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or e-mailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.

Options related research:

If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in

Other Disclosures

All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.

Ownership and material conflicts of interest Disclosure

Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.

Country Specific Disclosures

India – For private circulation only, not for sale.

Legal Entities Disclosures

Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth  Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone: 011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in

EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:

1. Reports
2. a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;

(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;

(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;

2. Compensation

(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;

(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;

(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(d) EWL  or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(e) EWL or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.

3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL

Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.