Closing Bell: Nifty ends around 18,600, Sensex gains 160 pts; PSU banks outperform

Nifty witnessed a lacklustre trading session as the index failed to give any directional move. For any meaningful directional move Nifty needs to go below 18,500 decisively or above 18,700 on a sustain basis.

Support below 18,500, is pegged at 18,350/18,200. On the other hand, above 18,700, resistance is visible at 18,900.

The bulls came back strong and knocked out the bears with full force surpassing the hurdle of 43,500 on a closing basis in Bank Nifty. The index confirms the continuation of the uptrend towards 44,000-44,600 levels on the upside.

The lower-end support stands at 43,000 which will act as a cushion for the bulls. The index remains in a buy mode and any dips should be utilized to initiate fresh long positions.

Markets remained range bound and ended marginally higher, in continuation to the prevailing trend. Most of the sectoral indices traded in tandem with the benchmark and ended flat to marginally higher. However, buoyancy in the banking pack was a major highlight, especially the PSU banking counters. Besides, selective buying on the broader front kept the traders busy.

Markets are seeing time-wise correction and weak global cues are delaying the recovery. We feel the consolidation may continue for some time however buoyancy in the banking pack coupled with buying in select index majors may result in a further rebound. Meanwhile, we recommend continuing with stock-specific trading approach and focusing on buying opportunities.

The Nifty witnessed a brief consolidation in the range of 18,500-18,600 in the last couple of sessions & is poised for a recovery. In terms of the price patterns, the index has formed an Ending Diagonal pattern on the hourly chart whose follow through is expected on the upside.

Going ahead, 18,650-18,670 is the immediate resistance zone beyond which fresh momentum can get built up. Overall short term target continues to be at 19,000 with reversal below 18,500 on a closing basis. The Bank Nifty has taken a strong leap on the upside from the support zone of 43,000-42,900.

After a topsy-turvy day's session, bulls found some feet towards the fag-end. Nifty reclaimed 18600 mark while Sensex managed to close just below psychological 62600 mark.

The upmove came despite a rate hike done by RBI yesterday and a potential rate hike scare by the Fed in its December 14th FOMC meeting.

Technically, Nifty’s make-or-break support is seen at 18,417 mark, while the index faces immediate hurdle at its all-time high at 18,888 mark.

After touching a record high, the domestic market experienced significant volatility as global markets tumbled due to fear of an economic slowdown and worries over a Fed rate hike.

Recession fears weighed on IT and pharma stocks while banks, especially PSBs, continued to support the bourses.

This volatility is expected to sustain in the global market as we await the Fed policy decision and US inflation numbers due next week.

With the RBI's credit policy overhang now behind them, investors bought selectively in banking, metal and automobile stocks, although the undertone remained cautious ahead of next week's US Federal Reserve meeting on interest rate.

Central banks have in fact given more hints that interest rate hike would continue next year, which investors fear could lead to a likely recession in the Western countries and the US and subsequently impact growth.

Technically, the inside body candle on daily charts is indicating non directional activity and indecisiveness between the bulls and bears. For bulls, 18,675 would be the important breakout level to watch out for. And above the same, we can expect a quick uptrend rally up to 18,800-18,835.

On the flip side, trading below 18,500 may fuel further weakness up to 18,435-18,400.

PSU Banks fired up markets for the fourth consecutive day this week as the PSU Bank Index rose 4% today as positive tailwinds coupled with under ownership stepped up momentum in several stocks.

With Indices at record highs, investors were seen actively accumulating several state owned banks with vast reach and trust available at reasonable valuations.

Indian rupee ended marginally higher at 82.43 per dollar against previous close of 82.48.

Indian benchmark indices ended higher in the volatile session with Nifty around 18,600.

At Close, the Sensex was up 160 points or 0.26% at 62,570.68, and the Nifty was up 48.80 points or 0.26% at 18,609.30. About 1808 shares have advanced, 1587 shares declined, and 122 shares are unchanged.

Axis Bank, IndusInd Bank, Larsen and Toubro, Eicher Motors and Hindalco Industries were among the top Nifty gainers, while losers included Sun Pharma, Divis Labs, Power Grid Corporation, NTPC and TCS.

On the sectoral front, PSU bank index rose nearly 4 percent, bank and Capital goods indices up 1 percent each. However, pharma index down 1 percent, power and realty indices down 0.5 percent each.

BSE midcap and smallcap indices rose 0.3-0.4 percent.

The Board of Directors of Ashok Leyland at their meeting held on December 8, 2022, based on the recommendations of the Nomination and Remuneration Committee, has appointed Mr. Shenu Agarwal as the Managing Director and Chief Executive Officer of the company
for a period of five years from December 8, 2022 to December 7, 2027, subject to the approval of shareholders.

Ashok Leyland was quoting at Rs 145.00, down Rs 0.10, or 0.07 percent.

RBL Bank was quoting at Rs 152.75, down Rs 0.65, or 0.42 percent.