The Nifty index recorded its lifetime new highs; Nifty bank still moving in a range

NIFTY:

The NIFTY opened at 21773.55 with a big gap up of 126 points. The index initially moved lower but soon found support and turned up before filling the entire gap. A sharp rally came after prices recorded its intraday low at 21715.15. The rally lasted almost till the end, took the index to lifetime new highs and prices recorded its intraday high at 21928.25. A minor decline came but the index recovered in the last 30 minutes. The NIFTY finally closed at 21894.55 near its intraday high with a gain of 247.35 points or 1.14% up. The IT sector significantly outperformed, saw a sharp upside move and closed with a gain of 5.14% followed by REALTY and OIL GAS. MEDIA underperformed and closed lower by 0.65% followed by AUTO and PHARMA. The long-term trend is up while the long-term momentum has moved down from the strength zone and heading toward the weak zone. The Intermediate trend is sideways while the intermediate momentum has reached the strength zone. Both the momentums are now contradicting each other indicating confusion amongst the trades.

BANK NIFTY:

The BANK NIFTY opened at 47572.70 with a gapup of 127 points. The index could not sustain at the higher levels and started drifting downwards to fill the gap. Prices found support there, recorded its intraday low at 47408.50, and started moving higher. A sharp rally came which took prices to its intraday high at 47873.70. The index saw some correction towards the end and finally closed at 47724.65 with a gain of 279 points. PSU BANKS have significantly outperformed, saw a sharp upside move, and closed with a gain of 2.75%. PVT BANKS have also moved up, saw a mild upside move, and ended with a gain of 0.31%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is sideways now. We have been tracking a narrow trading range of 1500 points with support around 47000 and resistance around 48500. The index has been moving within these two levels for over a month. We should now wait for this range to break one way or the other.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended at record levels and extended the winning streak for the fourth consecutive session on January 12 with Nifty around 21,900 led by Information Technology stocks. At close, the Sensex was up 847.27 points or 1.18 percent at 72,568.45, and the Nifty was up 247.30 points or 1.14 percent at 21,894.50. About 1940 shares advanced, 1323 shares declined, and 67 shares unchanged.

• IT services company Wipro on January 12 reported a 12 percent year-on-year (YoY) fall in net profit at Rs 2,694 crore for the third quarter of the current financial year. This profit in-line Moneycontrol’s poll estimates of Rs 2,706 crore. This is the fourth consecutive quarter wherein the company has reported a fall in profits YoY.

• HDFC Life Insurance on January 12 reported a net profit of Rs 365 crore for the October-December quarter of financial year (FY) 2023-24, up by 16 percent from Rs 315 crore recorded in the year-ago period. The net premium income of the insurer came in at Rs 15,235 crore, up 6 percent from Rs 14,379 crore in the year-ago quarter. The solvency ratio of the insurer dropped to 190 percent from 209 percent on a YoY basis.

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

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