Nifty Analysis Report - February 13, 2024

STOCK PICKS FOR 13 FEB 2024

IPCALAB , SUNPHARMA, LTTS AND COFORGE

Overview:

The market commenced the week on a downward trajectory, influenced by mixed signals, culminating in a loss exceeding half a percent. Despite an initially neutral stance, the Nifty gradually descended, settling near its intraday low at 21,616. This decline was widespread across sectors, with notable pressure observed in realty, metal, energy, and banking segments. Furthermore, both midcap and smallcap indices experienced substantial downturns, exacerbating the prevailing negative sentiment.

Bank Nifty Performance:

The Bank Nifty index remained firmly under the control of bears, encountering notable resistance at higher levels. The breach below the immediate support zone of 45,000 underscored the prevailing bearish sentiment. Presently, the index faces immediate resistance at 45,100, with a potential breakthrough likely to trigger short-covering movements, propelling it towards the 45,500 level. Conversely, the immediate support lies at 44,800, and breaching this level may intensify selling pressure, potentially leading the index towards the 44,000 mark.The banking index notably retested its long-term moving average of 200 DEMA, with profit-taking observed across other sectors. This signifies a broader trend of cautiousness among investors, particularly in the banking segment.

Equity Indices Performance:

On February 12, Indian equity indices closed lower, with the Nifty hovering around the 21600 mark. This decline was primarily driven by selling pressure across sectors, excluding IT and pharmaceutical stocks. The Sensex concluded down by 523 points at 71072, while the Nifty decreased by 166 points at 21616.

Recommendations:

Given the current scenario characterized by prevailing bearish sentiment and resistance at higher levels, maintaining short positions is advisable. Investors should remain vigilant and utilize any temporary pauses or rebounds as opportunities to reduce long positions.

Conclusion:

In conclusion, the market's downward trajectory on February 12 underscores the prevailing bearish sentiment, influenced by mixed cues and sectoral pressures. Cautious trading strategies, such as maintaining short positions and capitalizing on temporary rebounds, are recommended in the current market environment.

Disclaimer:

This report is for informational purposes only and should not be construed as financial advice. Investors should conduct their own analysis or consult with a financial advisor before making investment decisions.