HDFC Twins Save the Day Even as Infy Drags Nifty

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HDFC (NS: HDFC ) Twins Save The Day Even As Infy Drags Nifty [2-5-22]

NIFTY O / H / L / C

1924.45/ 17092.25/ 16917.25/ 17069.10 [-33.45/-0.20%]

BANK NIFTY O / H / L / C

36627.60/ 36235.25/ 35618.20/ 36163.75 [+75.60/+0.21%]

India Vix 20.28/+4.47%

FII DII Data +98 Crores

SGX Nifty @ 1945h -26

TOP 5 CONTRIBUTORS OF NIFTY

Lifters 34

Draggers 38

Net -4

TOP 3 CONTRIBUTORS OF BANK NIFTY

Lifters 408

Draggers 280

Net 128

CHART BASED DETAILS & ANALYSIS IS GIVEN IN THIS VIDEO:

https://youtu.be/KA07CZNK-R0

POSITIVES

Bank Nifty ended in the green.

HDFC twins ended in the green.

NEGATIVE

Nifty ended in the red.

Reliance (NS: RELI ) gave up 2800+ levels yet again.

Infosys (NS: INFY ) has been experiencing intense selling and is unable to hold 1550+ levels.

SUPPORT & RESISTANCE LEVELS -

For the remainder of the week, Nifty is likely to trade between 16800-and 17400.

&

Bank Nifty is likely to trade between 35000-37500 levels during the same period.

TRADING INSIGHTS & OBSERVATIONS

  1. The first trading session of the month started with a big gap-down that tested the resilience of the levels above 16900 as the Nifty opened at 16924. This down move was expected as that is what was indicated by SGX Nifty on 29-4 EOD itself.
  2. However, it was quite odd to see the Nifty struggling below 17000 when the US Futures including the US Tech Futures were trading well in the green. And with the gap-down move, India Vix also shot up back to 20+ levels with a 7% spike over the close of 29-4.
  3. One thing I noticed during the AM session was that despite the FIIs being net sellers on 29-4, there was no follow-up selling below 16900. This was mainly possible as the HDFC twins were non-negative and in fact, HDFC which is expecting its results today was up more than 1% intraday.
  4. Nifty suffered a lot on account of intense selling pressure in Infosys, SBI (NS: SBI ), Kotak Bank, and TCS (NS: TCS ). And when the biggies are under pressure ICICI Bank (NS: ICBK ) also felt that it should not fall behind and it also started trading in the red.
  5. This made it hard for Bank Nifty which was inching towards turning positive to fall further. In the AM session, Nifty held above 16900 and it kept moving in a narrow range below 17050 as it was experiencing severe selling around 17050.
  6. Today the FTSE seems to be observing a holiday so the indices may well have to wait for 1400h or 1500h, when one of the biggies [FIIs/DIIs], may try to take the indices in the direction in which they intend to.
  7. Whereas Infosys is witnessing selling pressure, it was good to see that Reliance was working hard to get back up above 2800 levels. I was expecting its results on 29-4, but now there is no mention even when it is due.
  8. If the indices end up following the US Futures in the closing play, Infosys may witness some short-covering and if that happens, Nifty may be able to sail past 17050 and possibly above the close of 29-4. If that does not happen, it would be a sign of caution for our markets as the markets take a break tomorrow.
  9. Even in the PM session, Nifty kept getting attracted towards the 16975 zone and with each dip towards that, even 17000 appeared to be an extremely hard resistance to clear. This happened as SBI & Kotak Bank started losing ground even as Infosys was trying hard to come up from the lows of 1530.
  10. Between 0945-and 1445h, Infosys was kept depressed by the pivot resistance as well as the Tick Average or the Average Trade Price. It could clear the levels only after 1445 - this was the main reason why Nifty was also kept in check despite the HDFC twins doing their best to lend support.
  11. And the move that usually comes at 1500h, started today at 1445h and ended by 1505h as Nifty shot up 130 points within that time and then it was not allowed to clear the close of 29-4 at 17102. This ensured that Nifty ended the day flat at 17069, however, thanks to HDFC Bank (NS: HDBK ), Bank Nifty ended in the green.
  12. FIIs are net sellers so a break of 17000 on 4-5 cannot be ruled out. We will have to see how the market sentiment is given that the Vix has also closed above 20.

Note: Posted purely for informational & educational purposes only. I am not SEBI Regd.

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  • VIRENDRA KUMAR YADAV @VIRENDRA KUMAR YADAV
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    • Umesh Rindani @Umesh Rindani
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