Bears Further Tighten the Grip as Nifty Ends Below 17050

Published 14-03-2023, 08:42 pm

NIFTY 17043/-0.65%/14-3-23 

  • The Open Price was -261 points compared to 13-3 Open price which was a significant bearish start to the day. 
  • Nifty made a low at 16987 which was a very sharp downward shift in the lower base and a very bearish sign. 
  • The Close Price was -117 points from the open price which is a bearish sign. 
  • The Close - High difference was -191 points which is also a bearish sign. 
  • Nifty made a lower high, a lower low, and a lower close.   
  • The price action is extremely bearish.

BANK NIFTY 39411/-0.39%/14-3-23

  • The Open Price was -832 points compared to the 13-3 Open price which was an extremely bearish start to the day. 
  • Bank Nifty made a low at 39454 which is a very sharp downward shift to the lower base and a very bearish sign.  
  • The Close Price was -111 points from the open price which is a bearish sign. 
  • The Close - High difference was -357 points which is a very bearish sign.  
  • Bank Nifty made a lower high, a lower low, and a lower close.
  • The price action is extremely bearish.

Insights

  • India Vix remained unchanged at 16.22. 
  • In the first hour, it appeared as if the price action of yesterday was getting replayed as Bank Nifty opened the gap down mildly and then shot up and it appeared as if the index would hit 40000 with ease. However, the spike in the index was cut short abruptly below 39800.
  • What followed then was again a replay of yesterday as the index kept falling to lower levels and those levels gave way easily to the next lower level. At one stage the severity of selling pressure was so intense that it appeared that Bank Nifty may even breach 39000.
  • Bank Nifty then recovered well and has now ended above 39400 but is still in the red.
  • Nifty opened with a mild gap up and then like Bank Nifty, it immediately started to show signs of strength and even sailed past 17200 in style. However, it also met with resistance and started its downward journey. 
  • In the afternoon session, bears tightened their grip on Nifty so much that it broke 17000 as well. The price action was very bearish and Nifty was unable to hold on to the higher levels and ended below 17050.
  • On an EOD basis, the Adani twins and IT twins ensured that Nifty ended well below 17100.
  • The FII-DII net numbers are in line. 

FII-DII data 

FII  -3087 Crores

DII +2121 Crores

Net -965 Crores

Support
16800-17000 & 39000-200-400

Resistance
17050-100-150-200 & 39600-800-40000-40200

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