NIFTY 17706/-0.68%/17-4-23
- The Open Price was +56 points compared to the 13-4 Open price which was a bullish start to the day.
- Nifty made a low at 17574 which was a significant downward shift to the lower base and a bearish sign.
- The Close Price was -156 points from the open price which is an extremely bearish sign.
- The Close - High difference was -156 points which is also a bearish sign.
- Nifty made a higher high, a lower low, and a lower higher close.
- The price action is not bullish.
BANK NIFTY 42262/+0.31%/17-4-23
- The Open Price was +923 points compared to the 13-4 Open price which was an extremely bullish start to the day.
- Bank Nifty made a low at 41799 which is a significant upward shift to the lower base and a bullish sign.
- The Close Price was -341 points from the open price which is a bearish sign.
- The Close - High difference was -341 points which is also a bearish sign.
- Bank Nifty made a higher high, a higher low, and a higher close.
- The price action is bullish.
Insights
- India Vix ended at 12.27/+3.02%.
- Contrary to expectations Bank Nifty opened a gap-up, fell for the next one hour or so, and completely erased all the gains that it had made. This was possibly on account of the O=H situation at the open which remained so till the end.
- It also broke 42000 with ease and at one stage threatened to also breach 41800 convincingly, but then it found support around that area and was able to bounce back over the next hour and then it was steadily moving up.
- It had to fight an intense battle to regain the level above the previous close and in the last half an hour it was able to do so and thus it could end in the green.
- The Nifty chart indicates that it had a gap-down opening, but the readings made available show that it had a gap-up opening. To this extent, there is a mismatch. This analysis is based on the numbers so for this post, Nifty made an O=H opening which is a bearish sign.
- Within the first hour itself, Nifty broke 17800, 17700, and 17600 with ease and there was no resistance offered at any of the levels.
- It then found support above 17575 and then kept moving up but it had to face stiff resistances around 17650-675-700 levels and somehow it was able to end above 17700.
- Infosys (NS:INFY) alone has dragged Nifty by 132 points and the HDFC twins dragged Nifty by another 56 points. This clearly shows the impact of the Q3 numbers - in the case of Infosys the numbers were muted and in the case of HDFC Bank (NS:HDBK) the numbers were good, but it hit its 52-week high and then made things hard for the indices.
- The FII-DII data has not been released at the time of posting but it is more likely that the FIIs would have sold.
FII-DII data
Not yet released
Support
17400-500 & 40800-41000
Resistance
17750-800-850 & 42400-600-800