The Nifty, Nifty Bank started the week on a Negative Note; The Short-Term trend is Sideways

NIFTY:

The NIFTY opened at 21921.05 with a gap up of 68 points. The index could not sustain at the higher levels and saw a sharp dip for the first five minutes of trading. Prices have filled the gap and then bounced up sharply. The rally found resistance around 21950 and prices started a consolidation process. That consolidation eventually broke on the downside towards the end. The index recorded its intraday high at 21964.30 in the morning and a sharp decline towards the end brought prices to its intraday low at 21726.95. The NIFTY finally closed at 21771.70 with a loss of 82.10 points or 0.38% down. PHARMA, OIL GAS, and AUTO outperformed, saw a sharp upside rally, and ended with a gain of over 1% followed by REALTY. FMCG and FINANCIAL underperformed and ended lower by over half percent followed by IT and BANK. The short-term trend is again sideways. We have seen a breakout from 21800 resistance in the last week and we were waiting for a confirmation. That did not come and the index eventually came back below 21800 resistance. The long-term trend is down while the long-term momentum has turned up before reaching the weak zone.

BANK NIFTY:

The BANK NIFTY opened at 45962.25 without much of a gap. The index initially saw a sharp dip but found support quickly and bounced up after recording its intraday low at 45615.10. A rally came which found strong resistance around 46000 and prices saw a dip again. These ups and downs continued for the whole day and the index moved sideways for most of the time. Prices have recorded its intraday high at 46048.60 and finally closed at 45756.65 with a loss of 198 points. PSU and PVT BANKS both indices have performed almost the same, saw a mild downside move, and finally ended with a loss of 0.42% & 0.14% respectively. Within the index, in terms of points, BANK BARODA contributed the highest on the upside while KOTAK BANK contributed the lowest. The short-term trend is sideways. We have been tracking support around 44500 while resistance around 46500. The index remained within the range for almost the last three weeks. The range is wide enough so we may not see a breakout soon.

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UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: M3 Money Supply on 07th February, 2024 INR: Interest Rate Decision on 8th February, 2024	USD: Initial Jobless Claims on 08th February, 2024 USD: CPI (MoM) (Jan) on 13th February, 2024

NEWS UPDATES

• India’s benchmark stock indices ended lower on Monday as last-hour selloffs erased all morning gains, led by losses in index heavyweights Reliance Industries Ltd. and Bharti Airtel Ltd. The Nifty settled 0.38%, or 82.10 points, lower at 21,771.70, while the Sensex fell 0.49%, or 354.21 points, to end at 71,731.42. The Nifty gained as much as 0.51% and the Sensex 0.42%. Shares of Reliance Industries Ltd., Bharti Airtel Ltd., Bajaj Finance Ltd., Larsen & Toubro Ltd., and UPL Ltd. dragged the Nifty 50 lower.

• Bharti Airtel Ltd.’s third-quarter profit rose, meeting analysts’ estimates. The country’s second largest telecom company’s net profit increased 37.41% year-on-year to Rs 2,876.4 crore in the quarter ended December 2023, according to an exchange filing on Monday.

• Services activity in the country highlighted a pickup in growth momentum in January due to surging demand that led to rise in sales and output, a private survey showed on Monday. The seasonally adjusted HSBC India Services PMI Business Activity rose to 61.8 in January from 59 in December, according to a release. A print above 50 means expansion, while a reading below 50 indicates contraction.

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

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