Market Analysis for January 2, 2018

On January 1, 2018- The nifty opened at 10,531 then rose to a high of 10,537 low of 10,423 and in the end closed at 10,435 thus making a significant loss of 95 points. The day was majorly ruled by bearish bears however in the last 60 minutes of trading the bears took control and formed a large bear candle on the daily candlestick charts.

According to pivot charts, Key support is at 10, 393 followed by 10,350 and key resistance is at 10,507 and 10,580.

Important news for the day:

1) State Bank of India has slashed its base rate by 30 bps to 8.65%, makings it’s base rate lowest in the country. the move to benefit more that 8 million borrowers.

2) Axis Bank has decided to put its ₹2000 crore Loan exposure to Bhushan steel for sale in distressed- assets market.

3) Car sales picked up in December 2017. Market leader Maruti Suzuki posted 11.4% rise in sales in december as reviving economy and surging stock market added to positive consumer sentiment.

4) Salil Parekh set to take over as Infosys CEO and MD today.

5) Due to surge in prices of food items, kerosene and cooking gas, the Retail Inflation for industrial workers rose to 3.97 percent in November 2017.

6) Helped by Robust Performance in segments like Refinery, Steel and Cement- The Eight core sectors grew by 6.8 percent in November 2017.

7) The Finance Minister has said that it will close subscription of eight percent Government Savings (Taxable) Bonds, 2003 from Tuesday.

8) State Bank of India is set to initiate insolvency proceedings against at least a Doreen defaulting companies including Videocon Industries after failing to recast their loans by December 31, 2017 deadline.