Global Cues, Infosys & HDFC Twins Drag Indices

  • Stock Market Analysis
  • Editors Pick

O 17740.90

H 17779.05

L 17650.95

C 17674.95/-109.40/-0.62%

BANK NIFTY EOD 37613.80/-138.25/-0.37%

SGX NIFTY at 1900h -48

India VIX 18.27/+3.28%

FII DII data Not yet available

NIFTY TOP 5 CONTRIBUTORS

Leaders 32

Laggards 95

Net -63

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

Leaders 54

Laggards 178

Net -124

CHART BASED DETAILS ARE AVAILABLE IN THE FOLLOWING VIDEO:

https://youtu.be/UKIbVgOTQfk

POSITIVES

ICICI Bank (NS: ICBK ) and TCS (NS: TCS ) ended in the green.

Because of ICICI Bank and Kotak Mahindra Bank Ltd (NS: KTKM ), Bank Nifty performed better than Nifty .

NEGATIVES

Except for ICICI Bank & TCS, the rest of the heavies ended in the red.

Nifty ended below 17700.

India Vix is up by 3%.

INDEX SUPPORT & RESISTANCE LEVELS

Nifty Support 17500-600

Nifty Resistance 17700-750800-850-900

Bank Nifty Support 36800-37000

Bank Nifty Resistance 37700-37900-38000

TRADING INSIGHTS & OBSERVATIONS

Updated as the day progressed

  1. Indian markets woke up with negativity spread all over the global markets so finding a ray of hope at the open was going to be hard. And when such situations come up, it is now common knowledge that FIIs would by force of habit start selling in bulk to create panic - and that is exactly what happened.
  2. As a result, at one stage in the first hour of the day, India Vix was up by 7%+. So much for it ending the week on a good note and so much for the Indices also ending on a high note.
  3. For a change today, the banks are better off than Nifty as ICICI Bank, Kotak Bank, and State Bank Of India (NS: SBI ) traded in the green for the most part of the first hour and then steadied in the green. As expected the HDFC (NS: HDFC ) twins continue to get hammered and they were joined by the IT twins.
  4. Surprisingly, Infosys (NS: INFY ) is leading the pack of losers with over 2.5% - it is expecting its results only 13-4, but is much weaker than TCS whose result is due today. In fact, TCS also fell from the positive start but after intense volatility, it recovered and is currently [after 2 hours of trading] trading just below the 3700 mark.
  5. Whereas Bank Nifty was able to turn green within some time, Nifty is far away from the green line. And another key reason for this is the fact that Reliance Industries Ltd (NS: RELI ) is also down and along with Infosys, it is putting in extra pressure on Nifty and making it hard for Nifty to move/sustain at higher levels.
  6. Between 1000-1100h, Nifty moved from around 17675 [earlier a resistance, now support] to the next resistance around 17715 and then came back to the line by the end of the hour. It then found good buying interest and went up to retest the pivot point at 17742 where it hit resistance and then fell close to the support line around 17675.
  7. As the FTSE opened, Nifty waited for some time to see how the FTSE moves, and seeing that the FTSE is down but not as much as the other indices, it started recovering and once again crossed 17700. This time it was able to clear 17715 resistance with ease and consolidated below 17742.
  8. This move was possible as Reliance went up quickly and well above 2600. This is what the scrip can do to Nifty even when the rest of the heavyweights - the HDFC twins & Infosys are still trading in the red.
  9. However, this relief proved to be short-term as Nifty took resistance below 17780 and then in a gradual manner drifted to break 17750, then 17700, and finally creating the day low at 17650 and remained around the area till the end of the day.
  10. It was a listless closure from Nifty driven down in the last hour mainly by the HDFC twins and Infosys. It is surprising that ahead of TCS results, Infosys was shivering so much. Is the market discounting a listless Q4 result by the IT heavyweight?
  11. Between 1000-1530h, TCS traded in a narrow range of 3670-3711. Clearly, the traders/investors were very cautious in paying higher even though the performance is likely to be good. The numbers since released appear good - and I will leave it at that as the real test is how it will play out tomorrow.
  12. On an EOD basis, ICICI Bank was the lone fighter against the giants like the HDFC twins & Infosys & Reliance which ended in the red. This holds good for Nifty as well as Bank Nifty.
  13. The indices are in indecisive mode as on one day they spike and on the other day they dive. This is causing increased volatility and resultantly, India Vix has gone up by 3%+ on an EOD basis. Now only 2 more sessions remain till the end of this week so the Vix may remain higher.

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

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