THE NIFTY & NIFTY BANK CONTINUED RECORDING LIFETIME NEW HIGHS

NIFTY:

The NIFTY opened at 20808.90 with a big gap up of 122 points. The index initially moved lower for the first five minutes of trading but soon found support and bounced up. Prices have recorded its intraday low at 20711.15 and saw a modest upside rally. That rally found resistance and prices again turned down towards the early morning lows. The index found support there and again rallied to record its intraday high at 20864.05. Prices have finally closed at 20855.10 near its day’s high with a gain of 168.30 points or 0.81% up. METAL outperformed and led the bulls by closing over 3% followed by OIL GAS and BANK. MEDIA and IT underperformed and ended with a loss of over half percent followed by REALTY and FMCG. Support is visible around 20300 while there is no visible resistance as the index is moving in uncharted territory. We should look for buying only as far as prices are moving above 20300 support.

BANK NIFTY:

The BANK NIFTY opened at 46895.90 with a big gap up of 450 points. The index initially moved down for the first five minutes of trading and then started moving higher after recording its intraday low at 46653.65. Prices could not move much higher and saw a sharp dip after recording its intraday high at 47230.55. That dip found support near the early morning lows and prices then moved sideways for the rest of the day. Prices finally closed at 46968.95 with a gain of 523 points. PSU and PVT BANKs both indices have performed almost the same, saw a sharp upside move, and closed with a gain of 1.41% & 1.18% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. The trend is very strong on the upside as the index has been recording lifetime new highs. Support is now visible around 46300 while there is no visible resistance as prices are trading in uncharted territory. We should look for buying only as far as prices are staying above 46300 support.

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News Updates

• Benchmark indices ended higher for the sixth consecutive session on December 5 with Nifty around 20,850. At close, the Sensex was up 431.02 points or 0.63 percent at 69,296.14, and the Nifty was up 168.30 points or 0.81 percent at 20,855.10. About 1611 shares advanced, 1833 shares declined, and 99 shares unchanged.

• Billionaire Anil Agarwal-led Vedanta Resources will sign a $1.2 billion loan agreement with a clutch of global private credit funds next week as it looks to partly repay $3.2 billion of bonds maturing in 2024 and 2025, said people aware of the matter.

• With the likely block sale in Honasa Consumer, Fireside Ventures has booked a massive 4,500 percent profit on its investment in Mamaearth parent. The firm had bought shares at mere Rs 7.33 apiece, as per the IPO prospectus. During Honasa’s public offering, Fireside Ventures had sold 79.7 lakh shares at issue price of Rs 324. This was followed by a likely block deal of 62.9 lakh shares at an average of Rs 352 on December 5. The venture capital firm still holds over 1.81 crore shares or 5.5 percent stake in the company.

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

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