NIFTY 17844/20-2-23
- The Open Price was -9 points compared to the 17-2 Open price which was a mildly bearish start to the day.
- Nifty made a low at 17818 which was a downward shift in the lower base and a bearish sign.
- The Close Price was -120 points from the open price which is a bearish sign.
- The Close - High difference was -159 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 40701/20-2-23
- The Open Price was -292 points compared to the 17-2 Open price which was a very bearish start to the day.
- Bank Nifty made a low at 40580 which is a significant downward shift to the lower base and a very bearish sign.
- The Close Price was -519 points from the open price and which is an extremely bearish sign.
- The Close - High difference was -590 points which is also an extremely bearish sign.
- Bank Nifty made a lower high, a lower low, and a lower close.
- The price action is bearish.
Insights
- India Vix inched up further and settled at 13.38. This is on the expected lines as it is a technical bounce.
- Bank Nifty was very weak yet again and it has made things difficult for Nifty as well. As I had mentioned earlier, the inability of HDFC Bank (NS:HDBK) to sustain higher levels has put pressure on Bank Nifty which was otherwise able to withstand the weakness in other banks due to strong support from HDFC Bank.
- HDFC Bank was joined by the PSU heavyweight SBIN as well in dragging the index which has caused bigger issues for Bank Nifty.
- Though Nifty appears to be more resilient than Bank Nifty on a comparative basis, it is only because of the unusual strength shown by Infosys (NS:INFY) as a counter bet.
- The indices have once again come to a very decisive level and any further weakness could drag Bank Nifty around 40000 and Nifty around 17600.
- A strong and sustained up move is necessary within the next 2 sessions to counter the negativity.
- The FII-DII activity on a net basis appears to be listless and indecisive.
FII-DII data
FII -159 Crores
DII +86 Crores
Net -73 Crores
Support
17600-17800 & 39800-40000
Resistance
17900-950-18000-050-100 & 40800-41000-200-400-600