The upside rally continued in the Nifty and Nifty Bank; Lifetime new highs continued

NIFTY:

NIFTY opened at 21497.65 with a gap up of 56 points. The index continued its early morning bullish momentum and moved higher from its opening tick. The rally was sharp which lasted till the end and prices recorded its intraday high at 21675.75. The NIFTY finally closed at 21654.75 with a gain of 213.40 points or 1% up. All the sectoral indices have moved in line with the NIFTY and closed higher except for OIL GAS which ended with a marginal loss. AUTO, METAL, and BANK have led the bulls and ended with a gain of over 1%. We have been tracking a support level of around 21000 and a resistance level of around 21600. The NIFTY broke above 21600 resistance and closed higher. The index also recorded lifetime new highs at 61675.75. The short-term trend is up. The index has been moving higher for the past four trading days after a sharp one-day dip. Fresh support is now visible around 21250 while there is no visible resistance as prices are moving in uncharted territory. The long-term trend is up while the long-term momentum has been moving inside the strength zone for the past few days.

BANK NIFTY:

BANK NIFTY opened at 47818.50 with a gap up of 56 points. A sharp rally came but the index saw a dip in the afternoon. However, prices again bounced up and rallied higher. The rally lasted till the end, prices recorded its intraday high at 48347.65 and finally closed at 48280.55 with a gain of 518 points. PSU BANKS have outperformed, saw a sharp upside move, and closed with a gain of 2.06%. PVT BANKs have also moved higher, saw a mild up move, and closed with a gain of 0.97%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by ICICI BANK. The breakout has changed the short-term trend on the upside again. We should now look for a buying opportunity only on any dip or consolidation breakout. Fresh support is now visible around 47500 while there is no visible resistance as the index is moving in uncharted territory.

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Domestic                                                                                                                                                  International
INR: FX Reserves, USD on 29th December, 2023 INR: RBI Monetary and Credit Information Review on 29th December, 2023	USD: Manufacturing PMI (Dec) on 02nd January, 2024 USD: JOLTs Job Openings (Nov) on 03rd January, 2024

News Updates

• Bulls kept domestic markets on a solid ground with both NSE Nifty and BSE Sensex hitting new all-time highs towards the end of trading session on December 28. This comes on the back of improving global sentiments, wherein traders have rapidly raised bets on interest rate cuts as early as March 2024. The BSE Sensex clocked record high of 72,484 levels to eventually end 0.5 percent higher at 72,410 levels, while NSE Nifty 50 index breezed past 21,800-mark to end 0.5 percent up at 21,778 levels on December 28.

• The Reserve Bank of India’s (RBI) Financial Stability Report released on December 28 stated that schedule commercial banks are well capitalised and capable of absorbing macroeconomic shocks over a one-year horizon. Under the baseline scenario, the aggregate CRAR of 46 major banks is projected to slip from 16.6 per cent in September 2023 to 14.8 per cent by September 2024.

• FirstCry parent Brainbees files IPO papers with SEBI; FirstCry will raise Rs 1,816 crore through a primary issue while existing investors like M&M, SoftBank and others will sell a total of 5.44 crore shares via an Offer for Sale (OFS).

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

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