05.01.23-Thursday, 08.30 am 

Good Morning all... 

What has happened yesterday? Nifty Index, as expected and written, opened on a flat note at 18230.65, our expected opening band 18220-18205 on opening move, the Index made a day high 18243 thereafter, it moved down, made a day low 18020.60 and closed at 18042.95 on a negative note with an intra loss 189.60 points, i.e., -1.04%.

What will happen today? 

Nifty Index: Today, the Nifty Index may open on a positive note near 18075-18100-18120 levels; if open, trade and sustain above 18100-18120 then, the index may test 18145-18175-18190-18210-18240-18265-18300 levels. On the other hand, the immediate support lies at 18020-17990-17970 if, the Index move below 17970 then, it may try to re-visit 17940-17910-17890-17830 levels.

Special Mention: Yesterday, the Nifty Index unable to continue the pull back rally beyond our threshold resistance band i.e., 18265-18320, made a day high 18243, as expected the sell-off dragged the Nifty index till 18020 and closed below our threshold support levels i.e, 18080; today, the Index must break 18150-18265 levels, if it moves and sustain above 18265 then, it may re-test 18345-18430-18475 levels in the near term. Once again I reiterate that, the Nifty Index may face strong resistance near 18265-18320 band, it must move and close above these levels atleast for three consecutive trading sessions, then only further up move is possible till 18475-18600-18700 in the near term. On the other hand, if the Index moves below 18020-17970 then, it may try to re-visit 17775-17430 levels in the near term. Let see how the Index opens today at 18075-18100-18120 levels, the intra volatility may be in a high note due to today's weekly option expiry and tomorrow's week-end factor, trade with due caution and aviod aggressive short/long position, is my advise at this juncture.

INDIA's Macro Data:

On 02nd Jan'23, the S&P Global Manufacturing PMI data for the month of Dec'22 released, it moved up to 57.80% from 55.70% (Nov'22). Likewise, the S&P Global Services PMI data for the month of Dec'22 released yesterday, it moved up 58.50% from 56.40% (Nov'22).

The RBI MPC meet held on 07th Dec,  the MPC increased the Repo rate by 35 bps from 5.90% to 6.25%.

GDP data for the Q2 ending Sep'22 released on 30th Nov'22, the GDP slipped into 6.30% Vs.13.50% (Q1-Jun'22).

IIP data for Oct'22 released on 12th Dec-Monday, the data shows that, the Industrial production turned to a negative zone at -4% when compared to the last month (Sep"22) reading i.e., 3.50%.

Annual Inflation data for Nov'22 releasd on 12th Dec, the data shows that the Inflation has come down further to 5.88% from Oct'22 level i.e., 6.77% and WPI Inflation data also came on 14th Dec-Wednesday for the month of Nov'22, it stood at 5.85% Vs.8.39% (Oct'22).

India Inc. Earnings:

The India Inc. Q2 (Jul-Sep'22) earnings started to announce, so far out of 4248 companies 4170 announced their Q2 earnings, the net profit seen a positive growth about 14.50%, when compared with a last quarter. The Net profit for Q2 stood at Rs.243,423.70 Cr. as against the Q1 net profit of Rs.212,606.30 Cr. 

Nifty Bank Index: Yesterday Nifty Bank Index, opened at 43417.50, on the opening move, it made a day high 43578.40; thereafter, it moved down, made a day low 42858.65 and closed on a negative note at 42958.80 with an intra loss 466.45 points, i.e., -1.07%, today the Nifty Bank Index must move above 43080-43180 levels; if to do so, then it may try to test 43300-43365-43490-43575 levels. On the other hand, any weakness near 43080-43180 further, it moves below 42940-42860 then, the Index may re-visit 42745-42660-42620-42575-42490-42385 levels.

Trading Strategy: The members/followers/readers, those who re-invested recently near 17800 levels in Nifty 50 stocks, try to start book profit near 18250-18320-18475 with a gain 6-10% and wait for further correction to re-invest once again.

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Wishing you for a safe, secured and profitable trading.