The Nifty and Nifty Bank take a pause, expecting a consolidation process soon

NIFTY:

the NIFTY opened at 21434.80 with a gap down of just 22 points. The index initially moved lower for the first five minutes of trading and then quickly bounced up. Prices have started moving higher but could not see much upside and faced resistance around the previous day’s closing price. A minor decline came that could not go below the early morning lows. The index first recorded its intraday low at 21365.35 in morning trades, then its intraday high at 21482.80 in the afternoon session, and finally closed at 21418.65 with a loss of 38 points or 0.18% down. MEDIA outperformed and ended with a gain of 1.18% followed by PHARMA and METAL. REALTY underperformed and closed with a loss of nearly 1% followed by BANK, FINANCIAL, and FMCG. The intraday movement was very volatile whereas the intraday range was very narrow of about 117 points. Within the NIFTY 50 index, RELIANCE led the gains while the BANKING Stocks have led the bears. The short-term trend is up and very strong as prices are moving around its lifetime new highs. We have been tracking support of around 21000 while there is no visible resistance.

BANK NIFTY:

the BANK NIFTY opened at 48068.50 with a gap down of 112 points. The index initially moved down and then bounced up. However, prices faced resistance around the early morning higher and again turned down. This kind of volatile movement continued till the end and prices remained in negative territory for the whole day. The index recorded its intraday high at 48076.60, its intraday low at 47806.70, and finally closed at 47862.05 with a loss of 218 points The short-term trend is up. There is no doubt about it as the index is trading near its lifetime new highs and making a bullish pattern of Higher Highs and Higher Lows. The support is now visible around 47500 whereas there is no visible resistance.

We should look for buying only as far as prices are staying above 47500 support. A breakdown below 47500 may indicate a sideways short-term trend. In that case, we will look for both buying and selling opportunities.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

Upcoming Economic Data

News Updates

• Benchmark indices closed lower, snapping a three day rally, after rising to near their lifetime high levels. Today’s fall was because of the losses in shares of banks, fast moving consumer goods, and information technology stocks. The Nifty 50 index closed 38 points or 0.18% lower at 21,418.65 while the Sensex shed 168.66 points or 0.24% to close at 71,315.09.

• Iliad said on Monday it had submitted a proposal to Vodafone to merge their Italian units, a move that would combine its fast-growing consumer base with the British company’s strength in business in a highly competitive market. Shares in Vodafone, which said last month it was reviewing options for its Italian operation, rose 5.5 percent in early trading on the Iliad joint-venture proposal, which Reuters first reported on Friday..

• Mining and metals major Vedanta Limited approved a second interim dividend of Rs 11 per equity share on December 18, which is 100 percent on face value of Rs 1 per equity share for financial year 2023-24 (FY24). On December 18, the stock of Vedanta closed 1.4 percent higher at Rs 260 per share. In comparison, the benchmark Sensex was down 168 points or 0.24 percent to 71,315 levels.

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

Board 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.