The Nifty moved very volatile and ended with a loss; The Trend is down

NIFTY:

The NIFTY opened at 21454.60 without any gaps. The index initially moved down sharply for about the first two hours of trading and brought prices around 21250. Prices found strong support there and started a consolidation process which lasted almost till the end. The index eventually broke higher towards the end and saw a mild recovery in the last 30 minutes of trading. The index first recorded its intraday high at 21459 just above the opening tick in its early trades, then its intraday low at 21247.05, and finally closed at 21352.60 with a loss of 101.35 points or 0.47% down. The REALTY sector outperformed and closed with a gain of 0.67% followed by MEDIA, METAL, and AUTO which ended with marginal gains. PHARMA, FMCG, and IT underperformed and ended with a loss of over 1%. The short-term trend is down. Prices are moving very randomly on the daily timeframe chart as the index has been moving in a manner of one-day up and one-day down manner with no sense of direction. The long-term trend is down while the long-term momentum has been moving down and almost reached the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 45057.95 with a gap down of just 19 points. The index started moving lower from its opening tick and then found support around 44500. Prices started a consolidation process and moved range-bound for the whole afternoon around 44500 in a tight, narrow range. The index eventually broke higher and saw a sharp intraday rally towards the end. Prices have recorded its intraday low at 44429, then its intraday high at 45139.05, and finally closed at 44965.85 with a loss of 110 points. PSU BANKS have outperformed, saw a mild upside move, and finally ended with a gain of 0.13%, PVT BANKs have underperformed, saw a mild downside move, and finally ended with a loss of 0.26%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is down. We have been tracking support around 44500 while resistance around 46500. The index has been holding the support levels for the past two trading days.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s benchmark stock indices ended lower in a truncated week on Thursday, weighed by losses in index heavyweights HDFC Bank Ltd. and Axis Bank Ltd. On a weekly basis, the indices closed lower for the second week, with the Nifty and the Sensex falling 1% this week. The NSE Nifty 50 settled 101.35 points, or 0.47%, lower at 21,352.60, and the S&P BSE Sensex fell 359.64 points, or 0.51%, to end at 70,700.67.

• The Reserve Bank of India (RBI) has granted a payment aggregator (PA) license to Zomato Payments Private Limited, the subsidiary of food delivery platform Zomato. The approval will allow the firm to facilitate ecommerce transactions through its platform.

• JSW Steel’s net profit for the December quarter was Rs 2,450 crore, marking a 12% QoQ decrease but a substantial increase from Rs 474 crore a year ago. The revenue for the quarter reached Rs 41940 crore, with operating EBITDA at Rs 7180 crore, down 9% sequentially. This decline was attributed to lower sales volumes and increased costs of iron ore and coking coal, partially offset by higher EBITDA from overseas operations.

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

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