NIFTY 17721/7-2-23
- The Open Price was -28 points than 6-2 Open price which was a bearish start to the day.
- Nifty made a low at 17652 which was a downward shift in the lower base and a bearish sign.
- The Close Price was -68 points from the open price which is a bearish sign.
- The Close - High difference was -89 points which is also a bearish sign.
- Nifty made a lower high, a lower low, and a lower close.
- The price action is bearish.
BANK NIFTY 41490/7-2-23
- The Open Price was -17 points than 6-2 Open price which was a flat start to the day.
- Bank Nifty made a low at 41095 which is a downward shift to the lower base and a bearish sign.
- The Close Price was -22 points from the open price and which is a mildly bearish sign.
- The Close - High difference was -139 points which is also a bearish sign.
- Bank Nifty made a lower high, a lower low, and a higher close.
- The price action is in the recovery stage and may turn bullish.
Insights
- India Vix declined further and ended at 14.11. This is a good sign and it is likely that the downside from here may be limited and the moves may not remain choppy.
- Bank Nifty was sold-off sharply from the day high, however, it made a smart recovery and it was able to end in the green which is a good sign.
- Once again, Bank Nifty was able to have its OHLC levels above 41000 which is also a good sign.
- On the other hand, Nifty was struggling and is still looking very weak as it was unable to sustain itself for long even above the previous close of 17764. Though it m managed to contain the damage, it could not end the day in the green.
- The price action of the indices and some of the heavyweights indicates that there may be a big move coming up in the next few sessions.
- The Adani duo which is part of the Nifty 50 pack made good gains in comparison to the earlier sessions which was a good sign. Despite this, the sentiment in Nifty was dull on account of Infosys (NS:INFY) and Reliance (NS:RELI) which have been witnessing selling pressure.
- The DIIs somehow did not choose to match the FII selling which possibly explains why Nifty was under pressure today. This also means that if there is a gap-up opening tomorrow, it may get sold into.
FII-DII data
FII -2560 Crores
DII +640 Crores
Net -1920 Crores
Support
17400-600 & 39800-40000
Resistance
17750-17800-850-17900 & 41600-800-42000