Nifty 50 EOD 17-6-21
- Open: 15648.3
- High: 15769.35
- Low: 15616.75
- Close: 15691.4
- Trading Range Low to High: 152.6 points
- Max Available Opportunity: 152.6 points
- Likely Max Realistic Opportunity @ 50%: 76.3 points
- Days to Expiry: 07 days
- Basis: -11 points
- Reading Based on Basis: Negative bias - Sell on Rising sort of
- India VIX: 15.29 / +2.82%
Top 3 Gainers
- UltraTech Cement Ltd (NS:ULTC) - A refreshing change in the leadership as it took support from 50 DMA. The good thing is that the scrip managed to close just around the day’s high si momentum seems to be picking up.
- Asian Paints Ltd. (NS:ASPN) - It regained the lost ground of ATH and has decisively closed well above the psychological level of 3000. The momentum also appears to have picked up after a brief pause yesterday. More upside in store.
- TCS (NS:TCS) - After almost 2 months since making ATH, the scrip has managed to close above 3300 and at an ATH which is a good thing. It is still some distance away from the ATH so that may end up being a resistance as the scrip has the tendency to turn around quickly after facing a hurdle.
Top 3 Losers
- Adani Ports (NS:APSE) - Yet again in the free fall mood after decisively breaking 50 DMA and it appears to be heading towards 200 DMA around 650-660. The intensity of the fall is such that it may end up hitting the line tomorrow itself.
- Tata Steel (NS:TISC) - And this one too has not changed its position and has kept moving down gradually. It is now approaching an intermediate support area so it would be interesting to see if it gets some support there or slides down to 50 DMA.
- IndusInd Bank (NS:INBK) [INBK] - With yesterday's gap down open, it appears that it is heading to fill the gap which is now in sight - if we consider the wick as a gap-filling tool, then the gap has been filled. Looks like it has taken support for now on the Change In Polarity line on the Hourly chart.
Positives
Tata Consultancy Services Ltd. (NS:TCS), Infosys Ltd (NS:INFY) and Hindustan Unilever Ltd. (NS:HLL) have helped Nifty stay afloat above the lower levels. Reliance (NS:RELI) has also managed to stay firm despite increased volatility and has closed above the decisive mark of 2200. Support from Kotak Bank also helped Nifty and is a good sign.
Negatives
Despite the sharp rally after the fall, Nifty failed to close above 15700 indicating some more weakness may be in store. For Nifty to move up and sustain above 15700, Nifty Bank support is essential and that is becoming weaker by each close. This is a cause of concern with almost all Banknifty constituents ending in red which is what has been bothering Nifty.
Concluding remarks
Nifty’s inclination towards testing lower levels is visible so unless there is some good trigger, it may keep drifting as it has made Lower Highs and Lower Lows after briefly breaching the previous close in the morning session.
Whenever the Nifty is seeing a sell-off, it is attracting buyers at lower levels which is a good thing but the move back up needs to sustain. A similar situation happened yesterday as well when there was a spike after the gap down open and then again sell-off
TCS and Infy have closed at ATH so these two may with the help of Reliance and HUL hold the fort. It is the tendency of Reliance to drag the markets or pull the markets upon its own strength so whenever there is a strong down / up move, it prefers to stay away from it.
Today's close on Nifty would be crucial as it is the last day of the week as well as the session that leads into the June Series expiry. So all eyes are on the 15550-600 to 15750-820 zone.