Nifty Ends Below 17800 As Indices Face Selling Pressure

NIFTY 17764/6-2-23 

• The Open Price was +96 points than the 3-2 Open price which was a bullish start to the week. 
• Nifty made a low at 17698 which was an upward shift in the lower base and a positive sign. 
• The Close Price was -53 points from the open price which is a bearish sign. 
• The Close - High difference was -58 points which are reasonable. 
• Nifty made a lower high, a higher low, and a lower close.   
• The price action is in the recovery stage but not bullish.

BANK NIFTY 41374/6-2-23

• The Open Price was +510 points than the 3-2 Open price which was a bullish start to the week. 
• Bank Nifty made a low at 41261 which is a significant upward shift to the lower base and a positive sign.  
• The Close Price was -155 points from the open price and which is a bearish sign. 
• The Close - High difference was -349 points which is also a bearish sign.  
• Bank Nifty made a higher high, a higher low, and a lower close.
• The price action is in the recovery stage but not bullish.

Insights

• India Vix ended in the green on account of the weakness in the indices. 
• Bank Nifty as well as Nifty could not sustain the higher levels upon opening and started to fall thereafter. 
• The day was very choppy with several attempts made by the indices to recover from the opening damage done to them, but most of the attempts failed. 
• The reason was simple - as soon as the indices peaked, there was intense selling which brought them down again and this went on for quite some time.
• It was good to see that the OHLC for Bank Nifty was above 41200.
• The fact that the indices recovered from the lows by the EOD is a good sign. 
• Adani Ports hit the upper circuit of 10% in the last half an hour and Adani Enterprises (NS: ADEL ) ended flat after recovering from the sharp fall. It appears that the ASM rule invoked by NSE has helped steady the stocks and the sentiment.       
• The FII-DII buying has almost matched! This is unusual and appears as if the same person was executing trades on behalf of the two sides of the market.  

FII-DII data 

FII  -1218 Crores

DII  +1213 Crores

Net +15 Crores

Support
17400-600 & 39800-40000

Resistance
17800-85000-950-18000 & 41600-800-42000