Bank Nifty Outperforms Even as Nifty Ends Below 17550

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O 17584.85

H 17595.30

L 17442.35

C 17530.30/-144.65/-0.82%

BANK NIFTY EOD 37747.40/+133.60/+0.36%

SGX NIFTY at 1900h  +84

India VIX 18.16/-0.60%

FII DII data  -2256 Crores

NIFTY TOP 5 CONTRIBUTORS

Leaders    16

Laggards    76

Net        -60

BANK NIFTY TOP 3 CONTRIBUTORS [Please read Insight #10]

Leaders    185

Laggards    72

Net        113

CHART BASED DETAILS ARE AVAILABLE IN THE FOLLOWING VIDEO:

https://youtu.be/cR_nBFnN4IU

POSITIVES

Axis Bank (NS: AXBK ), Kotak Mahindra Bank Ltd (NS: KTKM ), and ICICI Bank (NS: ICBK ) led from the front and ended in the positive territory.

Bank Nifty cleared the key resistance at 37700 and ended above the line. 

NEGATIVES

Nifty ended below 17550.

Reliance (NS: RELI ), Infosys (NS: INFY ), State Bank Of India (NS: SBI ), and HDFC Bank (NS: HDBK ) ended in the red.

India Vix ended flat.

FIIs were net sellers for more than 3,000 Crores.

INDEX SUPPORT & RESISTANCE LEVELS

Nifty Support 17400-500

Nifty Resistance 17600-650-700

Bank Nifty Support 36800-37000

Bank Nifty Resistance 37900-38000-38200-38500

TRADING INSIGHTS & OBSERVATIONS

Updated as the day progressed

  1. Nifty opened 90 points lower aided by weak global cues & FIIs being net sellers meant that there would be further sell-off and that is what happened. In fact, the open price was below the intraday resistance levels from earlier sessions and till EOD, the resistance line was not broken.
  2. In the first few minutes, Nifty attempted to bounce back and was pushed down severely by 120+ points as it created the AM low at 17462. It then struggled to move in a choppy manner between 17490 & 17525 for more than 2 hours from 1030h. 
  3. Just before 1300h, Nifty tanked further as the FTSE also showed no signs of recovery after opening lower. Nifty then made the day low at 17442. It then found sudden buying interest as the US Futures recovered and Nifty made the day high at 17595 in the next one hour.
  4. As expected, Nifty was not allowed to even touch 17600 and the last 40+ minutes saw Nifty giving up 60+ points to end the day below 17550.
  5. In comparison to Nifty, Bank Nifty was better placed and consistently made higher lows after hitting the day low in the opening 30 minutes of action. That low was not broken despite the moves being choppy and in fact, Bank Nifty was mainly responsible for the sharp recovery made by Nifty. 
  6. From the day low of 37264, Bank Nifty hit a high of 37900+ registering a 650+ points gain. It finally ended above 37700 which was a key resistance level in the earlier sessions. It, however, had to struggle a lot to remain above 37500 as it made several unsuccessful attempts to cross the line. 
  7. What is interesting today for Bank Nifty is that it managed to end the day with a gain of 133 points despite HDFC (NS: HDFC ) Bank ending in the red. The rally in Bank Nifty was led by Axis Bank, Kotak Bank, and ICICI Bank. This is a very good sign as the tendency of HDFC Bank to keep Bank Nifty on oxygen was overcome by the other 3 private banks who worked together. 
  8. In my view, it appeared that this may well have been the game plan of the DIIs as the FIIs have been hammering the HDFC twins on a regular basis. FIIs have recently found a new hammering tool - Infosys. It keeps getting deflated ahead of its Q4 results tomorrow [13-4].
  9. The weakness in Nifty is mainly attributable to Reliance & Infosys as these two not only ended the day in red with a loss of 1%+ but also remained choppy throughout the day. Infosys is hovering around its 200 DMA and unless it posts a miserable set of numbers, it is more likely to bounce from here than go down further.
  10. And now let us talk about the leader in terms of results - TCS (NS: TCS ). It was a listless price action day in TCS as the prices kept moving in a narrow range. On account of the depressive performance of Infosys, TCS also came under pressure and ended the day in red though marginally. 
  11. It is my observation that companies that declare results see a more definite price action after the end of 1-2 days from the release of the results. This is actually a good sign and it gives the traders/investors an opportunity to be ready with their plan based on how the price moves immediately after the news is released. 

This post is shared purely for Educational & Informational purposes only.

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  • subhani sayam @subhani sayam
    Sir Please tell me about Monday opening of banknifty and nifty values I have taken call options.
    Like 0

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