The Nifty Has Seen A Sharp Intraday Decline

NIFTY:

The NIFTY opened at 18662.40 with a gap up of 53 points. Prices started drifting downward after the opening tick, filled the gap, and then started a consolidation process. The index broke on the downside. Prices went down and then a gain formed a trading range which eventually a gain broke on the downside. The index has seen a sharp decline and then a sharp recovery in the last hour of trading. Prices have recorded its intraday high at 18664.70 and intraday low at 18410.10. The index finally closed at 18496.60 with a loss of 112.75 points or 0.61% down. IT underperformed today by ending with over 3% loss followed by METAL, REALTY, and OIL GAS which ended with a loss of more than 1%. FMCG outperformed today and closed with a gain of 0.86%. The short-term trend is sideways now which was up before. The last few days of narrow range broke on the downside. However, we have a strong support zone inside 18300- 18500 which may hold. For the time being, we should avoid trading the index. We should wait for an adequate setup to emerge. Resistance is now visible around the 18700 – 18800 zone.

BANK NIFTY:

The BANK NIFTY opened at 43765.30 with a gap up of 136 points. The index initially consolidated and tried to move higher but failed to do so and started drifting downwards after recording its intraday high at 43853.40. The decline becomes sharper in the afternoon session and prices have recorded its intraday low at 43361.70. Recovery came in the late hour of trading and the index finally closed at 43627.50 without much of a change. PSU BANKS have underperformed today and closed with a loss of 1.77%. PVT BANKS have also moved down today but ended with a loss of just 0.15%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AXIS BANK contributed the lowest. Support is now visible around 43000 – 43300 zones while there is no visible resistance as prices are trading in uncharted territory. We should look for buying only as far as prices are trading above the support levels.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended lower on December 9 with Nifty around 18,500.At Close, the Sensex was down 389.01 points or 0.62% at 62,181.67, and the Nifty was down 112.70 points or 0.61% at 18,496.60. About 1199 shares have advanced, 2220 shares declined, and 113 shares are unchanged.

• (CPI) inflation dropped sharply in October to 6.77 percent thanks to favourable base effect, the decline in inflation in November is expected to be smaller, but driven by both, a favourable base as well as moderating prices.

• Yes Bank on December 9 said it has received two letters from the Reserve Bank of India pertaining to its deals with CA Basque Investments and Verventa Holdings Limited.The bank plans to engage with the investors to complete its fund raising.

• Sula Vineyards and Abans Holdings will launch their initial public offering on December 12 with a projected mop-up of Rs 960 crore and Rs 345 crore. Landmark Cars will float its IPO the next day with an aim to raise Rs 552 crore

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)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
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 emailing 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
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