The Nifty & Nifty Bank Both Indices Have Seen A Sharp Intraday Decline

NIFTY:

The NIFTY opened at 17421.90 with a minor gap up. The index initially moved higher and soon faced resistance and turned down after recording its intraday high at 17529.90. Prices have started drifting downwards and continued the bearish momentum for the whole day. The index reached around 17100 and recorded its intraday low at 17113.45. A minor recovery came in the last 30 minutes of trading and the index finally dosed at 17154.30 near its day’s lows with a loss of 258.60 points or 1.49% down. All the sectoral indices have moved down today and closed lower. The BANK, AUTO, and MEDIA led the bears today and ended with a loss of over 2% followed by REALTY and FINANCIAL. A strong support zone is visible around the 16800-17000 ranges. We are expecting prices to hold this support zone if the decline continues. Resistance is visible around the 17250-17300 range. The volatility has exceptionally risen today as the INDIA VIX, a benchmark index for volatility, has risen more than 20% and is now moving above level 16. Our view is the same. We should look for a trading opportunity on an intraday basis.

BANK NIFTY:

The BANK NIFTY opened at 40356.10 with a gap down of 132 points. The index initially moved higher, filled the gap but soon faced resistance. Prices have turned down after recording its intraday high at 40690.05 and it’s a sharp intraday decline that lasted till the end. The index recorded its intraday low at 39454.60 and finally closed at 39627 with a loss of 861 points. PSU and PVT BANK both indices have performed almost the same today, saw an intraday de, and losing decline, and closed lower by 2.87% & 244% respectively Within the index, in terms of points, INDUSIND BANK contributed the highest on the downside followed by ICICI BANK. The trend is down. In the last three trading days, prices have seen a down move of almost 2000 points and today broke down a wide trading range inside 39800-41800 levels. For the time being, we should avoid taking carry-forward trade and shift our focus to intraday trading only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended lower in the third consecutive session on March 13 with Nifty below 17,200 At close, the Sensex was down 897.28 points or 1.52% at 58,237.85, andNifty 50 was down 258.60 points or 1.49% at 17,154.30. About 768 shares advanced, 2745 shares declined, and 144 shares unchanged.

• The statement from US Federal Reserve, the Treasury and the Federal Reserve Insurance Corporation (FDIC), assuring protection for depositors of Silicon Valley Bank (SVB), will be incrementally positive for risk sentiment but cannot be seen as the return of the Fed put, according to equity strategists at Nomura.

• Tech Mahindra has selected Mohit Joshi of Infosys as its managing director and chief executive officer from December. In an uncertain macro environment, foreign brokerages see this as a neutral move at best.

• HSBC Holdings Plc on March 13 announced that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1. SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion as on March 10, 2023.

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

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