DATA-DRIVEN ANALYSIS OF NIFTY & BANK NIFTY W/E 4-8-23
- Nifty EOW 19517 Vs 19646 & Bank Nifty 44879 Vs 45468.
- Nifty's low for this week at 19296 Vs 19563 & Bank Nifty's low for the week was 44279 Vs 45238.
- The indices have lost their firm grip over the bullish run and there has been a significant decline in the India Vix as well to 10.57.
- Lower Vix is likely to hamper recovery attempts and the indices started going down eventually on account of a lack of momentum.
- FIIs ended up as the net sellers for 3545 Vs 3075 Crores and the DIIs were the net buyers for 5617 Vs 5234 Crores.
- IT twins, HDFC Bank (NS:HDBK), and Reliance (NS:RELI) have helped steady Nifty.
- GIFT NIFTY EOD 4-8-23 is +29.
Insights 4-8-23
- India Vix ended at 10.57/-5.54%.
- Nifty Lifters +93 HDFC Bank, Reliance, and Infosys (NS:INFY).
- Nifty Draggers -28 SBI (NS:SBI), Bajaj Auto (NS:BAJA), and Tata Motors (NS:TAMO).
- Bank Nifty Lifters +512 - HDFC Bank, Axis Bank (NS:AXBK), and ICICI Bank (NS:ICBK).
- Bank Nifty Draggers -310 -SBI, and Bank of Baroda (NS:BOB).
- The indices opened gap-up and remained so for some time until Bank Nifty in its typical style retested the previous close area and then moved up.
- The indices remained choppy throughout and went up and down at periodic intervals.
- Here is what I tweeted in the final hour after observing the moves of Nifty: https://twitter.com/UmeshRindani/status/1687387285141209089?s=20
- The fact that Nifty could not break out of the range for the day is not a good sign. Similar is the case with Bank Nifty as it rocketed towards 45100+ and then came down sharp;y only to end below 45900.
- SBI declared its results today and it was a huge drag on Bank Nifty in particular. It was only because of a counter-offensive by HDFC Bank that Bank Nifty could end on a positive note.
- The indices have recovered but I am unsure if this is on account of a short-covering or a bounce back. The reason is that Bank Nifty ended far away from the day high, This would impact Nifty as well.
- If the recovery has to continue, the indices should hold on to the day’s low for the rest of the week.
Support-
19200-300 & 44000-200-400
Resistance
19550-600-50-700 & 45000-200-400