HDFC Twins, Infosys Help Nifty End at 15350 Even as Reliance Melts with the Metals

  • Stock Market Analysis
  • Editors Pick

Nifty O / H / L / C

15334.50/ 15382.50/ 15191.10/ 15350.15 [+56.65/+0.37%]

Nifty Bank O / H / L / C

32873.40/ 32926.10/ 32426.40/ 32684.80 [-58.25/-0.18%]

India Vix 22.41/-1.54%

FII DII Data +876 Crores

SGX Nifty @ 1800h -14

TOP 5 CONTRIBUTORS OF NIFTY

Lifters 73

Draggers 53

Net +20

TOP 3 CONTRIBUTORS OF BANK NIFTY

Lifters 617

Draggers 439

Net +178

CHART-BASED DETAILS & ANALYSIS are GIVEN IN THIS VIDEO: https://youtu.be/fOEcXKUmEzM

POSITIVES

Nifty ended in the green and above 15300.

The HDFC (NS: HDFC ) twins put up a strong show.

The FIIs have sold for less than 1,500 Crores & the net number is +800 Crores.

NEGATIVE

Bank Nifty ended in the red despite a strong performance by HDFC Bank (NS: HDBK ).

Reliance (NS: RELI ) fell more than 3% from the day's high.

SUPPORTS & RESISTANCE LEVELS

In view of the intense volatility and the prevailing uncertainty, I do not feel it is possible to draw these lines. However, on a broader level following are the supports that the indices are likely to hold on to:

Nifty 14800-15000

Bank Nifty 31800-32000

TRADING INSIGHTS & OBSERVATIONS

  1. More than any other non-US traders, the Indian traders may have been tracking the moves of the US Futures, especially after the parent index, Dow Jones , kept creating new 52-week lows on 17-6, after the close of our markets.
  2. In view of this, the expectations were very much set right for yet another down day and a possible close below 15200 as well. However, the US Futures were trading in the green when our markets opened and hence, the Nifty opened with a mild positive gap-up. At least I was mentally prepared that at the first available resistance, Nifty was likely to fall big time.
  3. The reason was simple - the FIIs had sold in excess of 7,500 Crores. And I was not disappointed by them as in the first 5 minutes itself Nifty hit the AM high of 15362 and then for the 30 minutes kept falling. I was expecting Nifty to retest the swing low of 15183 and break it to hit 15150.
  4. However, much to my surprise, Nifty did not break the swing low even though it breached 15200 with ease. After making the morning low at 15191 [which for good was the low for the day as well], Nifty found buying interest and moved up by 100+ points.
  5. It faced several hurdles around the 15300 mark and for quite some time it could not move beyond the range of the 15250-300 zone. And just before 1100h, Nifty was helped by the HDFC twins in breaking the 15300+ barrier in a decisive manner, and over the next 90 minutes, it hit what ended up as the day high at 15382.
  6. The US Futures were going up and down and therefore, Nifty had no other option but to come down even though the FTSE was trading in the green. And today, it was the turn of Reliance to fall from the height of fame in 2617 to the valley of 2521, a massive 96 points or 3.6%+ decline!
  7. Between 1230-1445h, Nifty fell 130+ points mainly driven by Reliance, Metals, and the banks other than HDFC Bank. This was a big fall and just when it appeared that Nifty may indeed break and end below 15200, Reliance changed its mind.
  8. In the last 45 minutes, Reliance almost touched 2550 after recovering from the lows and Nifty bounced back 125+ points and was able to comfortably end the day on a positive note at 15350. This was a welcome change when many [me as well] would have expected a negative close yet again.
  9. However, Bank Nifty did not disappoint those of us who were expecting a negative close as it ended in the red despite a massive contribution of 581 points by HDFC Bank on the positive side.
  10. On 17-6, it appeared that Bank Nifty may be leading Nifty to greener pastures, but the tables turned and it was Nifty which ended in the green. HDFC ended the day with a jump of 4%+ after hitting its 52-week low on 17-6.
  11. Nifty will need the help of Reliance if it has to cross 15400 in a decisive manner and Bank Nifty would need HDFC Bank to stay in the green and the rest of the members not to turn negative. Only then it would be able to close above 33000.
  12. The US markets are closed for the day so the global markets would be missing the wisdom and guidance of the parent Dow Jones. In view of this, tomorrow’s session would be quite an interesting one as the real weakness or the strength of our markets may be on display tomorrow.

Note: Posted purely for informational & educational purposes only.

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