The Nifty, Nifty Bank moved volatile for yet another session, a trading range is still intact

NIFTY:

The NIFTY opened at 21688 with a gap up of 70 points. The index tried to capitalize on the gap up but failed to do so and started moving downwards after recording its intraday high at 21726.50. Soon the index started a consolidation process and prices moved in a narrow range of just 40 points for about four hours. The range eventually resolved on the downside and the index saw a sharp decline. However, prices recovered toward the end and saw a sharp rally in the last hour of trading after recording its intraday low at 21593.75. The index finally closed at 21647.20 with a gain of just 28.50 points or 0.13% up. OIL GAS & AUTO outperformed, saw a sharp intraday rally and closed with a gain of over 1% followed by BANK and FINANCIAL MEDIA, IT, and FMCG underperformed and closed with a mild loss. The short-term trend is sideways as the index has been moving inside a narrow range of 300 points for the past twelve trading days. The long-term trend is up while the long-term momentum has been moving inside the strength zone but the direction is down. The short-term trend is sideways. The index is trading inside a narrow range. Wait for a decisive breakout.

BANK NIFTY:

The BANK NIFTY opened at 47538.60 with a gap up of 179 points. The index continued its early morning bullish momentum and started moving higher from its opening tick but soon found strong resistance. A decline started after prices recorded its intraday high at 47662.10 but soon the index formed a consolidation. The index eventually broke down and prices moved lower to record its intraday low at 47237 and then saw some recovery. BANK NIFTY finally closed at 47445.95 with a gain of just 86 points. PSU and PVT BANKs both indices have performed almost the same, saw a mild upside move, and ended with a gain of 0.64% & 0.41% respectively. Within the index, in terms of points, AXIS BANK 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 the past one month.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended with marginal gains in the volatile session on January 11. At close, the Sensex was up 63.47 points or 0.09 percent at 71,721.18, and the Nifty was up 28.50 points or 0.13 percent at 21,647.20. About 2022 shares advanced, 1251 shares declined, and 63 shares unchanged.

• HDFC Asset Management Company on January 11 reported a consolidated net profit of Rs 488 crore for the quarter ended December 2023. Net profit rose 32.2 percent year-on-year from Rs 369.2 crore in the same quarter last fiscal. Meanwhile, consolidated revenue rose 20 percent YoY to Rs 671.3 crore against Rs 559.6 crore in the year-ago period, HDFC AMC said in an exchange filing.

• Polycab India plunged 22 percent in the morning trade on January 11 after the income tax department said it unearthed “unaccounted cash sales” of about Rs 1,000 crore when it searched the company’s offices the previous day. Meanwhile, multiple block deals worth a total of Rs 1,293 crore also took place on the exchanges.

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

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