The Nifty ended lower while Nifty Bank closed on a flat note; Short-Term trend is sideways

NIFTY:

The NIFTY opened at 21661.10 without much of a gap. The index recorded its intraday high at 21677 in its initial trades and saw a sharp decline for the first hour of trading. Prices then started moving sideways. That range-bound movement continued for the next four hours of trading where prices moved within a narrow range of just 60 points. The index broke down eventually and saw a sharp decline in the last 30 minutes of trading to record its intraday low at 21500.35. Prices have finally closed at 21517.35 with a loss of 148.45 points or 0.69% down. The REALTY outperformed and closed with a gain of 1.23% followed by PHARMA, OIL GAS, and MEDIA. IT underperformed and ended with a loss of 2.52% followed by METAL which ended 1.181% down. The long-term trend is up while the long-term momentum has been moving inside the strength zone for the past few days. The Intermediate trend is up while the intermediate momentum has been moving down and reached the weak zone. Both the momentums have started contradicting each other suggesting confusion amongst the traders.

BANK NIFTY:

The BANK NIFTY opened at 47796.30 with a gap up of 86 points. Prices initially moved lower sharply for the first half an hour and then found support around 47500. The index bounced up and saw an upside rally that faced resistance around the early morning highs. Prices could not surpass the early morning highs, recorded it’s intraday low at 47481.35, and it’s intraday high at 47798.75. The index finally closed at 47738.55 with a gain of just 28 points. PSU BANKs have outperformed, saw a sharp upside move, and closed with a gain of 1.15%. PVT BANKs have underperformed, moved sideways, and finally ended with a gain of just 0.05%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while HDFC BANK contributed the lowest. BANK NIFTY moved very volatile and ended the session almost on a flat note. We have to wait for one more day of higher closing above 47500 to confirm if this support is holding or not. As of now, we should step aside and watch how prices behave around the above-mentioned support levels.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE
AXISBANK	1105.95	BUY	Intermediate and short-term trends are sideways in AXISBANK. The stock has seen a sharp upside move and then started a process of correction. Prices have found strong support around 1090 and bounced up. We may see an upside move here. Traders should look for a buying opportunity above 1108 with a stop just above 1094 and a target around 1136.
PERSISTENT	7262.20	BUY	Intermediate and short-term trends are sideways in PERSISTENT. The stock has seen a sharp upside move and then started a process of correction. Prices found strong support around 7200 and bounced up. We may see an upside move here. Traders should look for a buying opportunity above 7280 with a stop just below 7200 and a target around 7440.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s benchmark stock indices ended lower for a second day in a row on Wednesday as HDFC Bank Ltd, Infosys Ltd, and Reliance Industries Ltd weighed. Intraday, the benchmark S&P BSE Sensex declined 0.82% 0r 588.51 points to 71,303.97, while the NSE Nifty 50 fell 0.76% or 165.45 points to 21,500.35.

• Adani-Hindenburg Case: Supreme Court Gives Clean Chit To Adani Group, Dismisses All Allegations The top court disposed of the petitions, finding that the ‘threshold for a transfer of investigation’ has not been made out.

• Private lender RBL Bank Ltd. has sold around Rs 800 crore worth of bad loans in a stressed asset deal, according to two people with direct knowledge of the matter. The transaction was conducted at a discount of 97-98% of the gross book value of the assets, the people quoted above said. This implies a return of 2-3% for the bank.

• Bajaj Auto Ltd. said on Wednesday its board of directors will consider a proposal for a buyback of fully paid-up equity shares in a meeting on Jan. 8.

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

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