Adani Twins Shine But Indices Fall Yet Again as Nifty Ends at 17321

NIFTY 17321/2-3-23

• The Open Price was +61 points compared to a 1-3 Open price which was a mildly bullish start to the day.
• Nifty made a low at 17306 which was a downward shift in the lower base and a bearish sign.
• The Close Price was -100 points from the open price which is a bearish sign.
• The Close - High difference was -124 points which is also a bearish sign.
• Nifty made a lower high, a lower low, and a lower close.
• The price action is bearish.

BANK NIFTY 40389/2-3-23

• The Open Price was +131 points compared to the 28-2 Open price which was a bullish start to the day.
• Bank Nifty made a low at 40312 which is a downward shift to the lower base and a bearish sign.
• The Close Price was -215 points from the open price which is a bearish sign.
• The Close - High difference was -383 points which is also a bearish sign.
• Bank Nifty made a higher high, a lower low, and a lower close.
• The price action is bearish.

Insights

• India Vix fell marginally to 12.97. I cannot make any conclusions from the recent moves as they do not seem to be in line with the price action. I will now only record it as a number and not comment.
• Bank Nifty appeared to be all set to cross 40800 which it could not yesterday but failed again. This time after making a higher high and then making a lower low and a lower close making things are hard for it to recover.
• HDFC Bank (NS: HDBK ) is the cause of the downfall as it accounted for 100 points of the fall whereas Axis Bank (NS: AXBK ) and Kotak Bank contributed 140.
• Nifty once again found it hard to stay above the 17400 lines and got sold to creator lower highs, lows, and a lower close as well. This is not a good sign.
• The Adani twins helped Nifty from ending below 17300 as they contributed 20 points. This is quite a refreshing scenario as a few days ago, these two were responsible for creating panic in the market.
• 17200 & 40000 remain crucial support lines and any test or breach of these levels tomorrow could spell further pain in the truncated week ahead.
• And this tweet for today’s FII-DII activity:

https://twitter.com/UmeshRindani/status/1631267153394671616?s=20

Here is the video: https://youtu.be/iFY_Uet78-A

FII-DII data

FII +12771 Crores

DII +2129 Crores

Net +14900 Crores

Support
17200-300 & 39200-400-600

Resistance
Every 50-100 points for Nifty starting with 17350 & every 100 points for Bank Nifty starting 40500.