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Reliance Soars, Private Banks Drag, and PSU Banks Rise

Published 30-06-2024, 10:35 pm
NSEI
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NIFVIX
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NSEBANK
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AXBK
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BRTI
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HDBK
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ICBK
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RELI
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SBI
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TAMO
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SBIL
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BANH
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Nifty 24010/-0.14%/28-6-24

  • The Open Price was 41 (13 points higher than the closing price of the previous session, giving a  mildly bullish start to the day. 
  • Nifty made a low at 23986 (23805) which was a significant upward shift to the lower base and a bullish sign. 
  • The Close Price was -75 (163) as compared to the open price which is not a positive sign. 
  • The Close - High difference was 163 (43) points which is also not a positive sign. 
  • Nifty’s range for the day was  188 (282) points.
  • Nifty made a higher high, a higher low, and a lower close.   
  • The price action is bullish.

Bank Nifty 52342/-0.89%/28-6-24

  • The Open Price was 64 (110) points compared to the cloning price of the previous session giving it a mildly positive start to the day. 
  • Bank Nifty made a low at 52242 (52639) which is a sharp downward shift to the lower base and not a positive sign.  
  • The Close Price was -533 (-169) points from the open price which shows early signs of bearishness. 
  • The Close - High difference was 688 (369) points which also confirms signs of early bearishness in the short term.
  • Bank Nifty’s range for the day was 788 (542)  points.  
  • Bank Nifty made a lower high, a lower low, and a lower close.
  • The price action is cautiously bullish. 

Insights for 28-6-24

  • India Vix ended at 13.80/-2.47%. 
  • Nifty Lifters 270 (61)  Reliance (NS:RELI), Tata Motors (NS:TAMO), and SBI Life (NS:SBIL).
  • Nifty Draggers 213 (18) ICICI Bank (NS:ICBK), HDFC Bank (NS:HDBK), and Bharti Airtel (NS:BRTI). 
  • Bank Nifty Lifters 139 (95) PNB, SBI (NS:SBI), and Bandhan Bank (NS:BANH).
  • Bank Nifty Draggers 456 (127) ICICI Bank, HDFC Bank, and Axis Bank (NS:AXBK).
  • Despite a strong bullish performance by Reliance for the second day, Nifty could not be saved from closing in the red.
  • The Private Banks came in for profit booking and the PSU Banks gained. This is a very interesting situation. Is this a sector rotation? 
  • The institutional activity is not easy to understand as on some days, the FIIs buy in huge quantities and on some other days, the DIIs buy in huge quantities. There does not appear to be any pattern.
  • Bank Nifty looks worn out and fatigued as even yesterday, it could not move in a decisive manner. In that case, it will remain under pressure. 

Link to the Video:

https://youtu.be/uXCcz09aWhY?si=M7sjFcRdG00f7Cpi

What May Happen Next Week

The H1 of 2024 has ended on a positive note as Nifty ended above 24000 and Bank Nifty ended above 52000. Both are lifetime monthly close levels. As long as the indices hold on to these levels on a closing basis, the short term bullishness will also continue. A lot depends on how Bank Nifty performs next week and whether Reliance comes in for profit booking. If it does, Nifty will find it hard to stay above 24000. I am cautiously bullish for the next week as well.

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