Was it a Staged Weekly Expiry as Indices End Flat After Gap-up Opening?

  • Stock Market Analysis
  • Editors Pick

NIFTY O / H / L / C

16854.75/ 16945.70/ 16651.85/ 16682.65 [+5.05/+0.03%]

BANK NIFTY O / H / L / C

35705.35/ 35934.85/ 35133.80/ 35232.85  [+75.60/+0.21%]

India Vix 20.29/-7.27%

FII DII Data +155 Crores

SGX Nifty @ 1910h -41 

TOP 5 CONTRIBUTORS OF NIFTY

Lifters 18 [ This is unlikely to be true as Infosys (NS: INFY ) contribution was 3%+]

Draggers 18

Net 00

TOP 3 CONTRIBUTORS OF Nifty Bank

Lifters 571

Draggers 442

Net 129

CHART BASED DETAILS & ANALYSIS are GIVEN IN THIS VIDEO: https://youtu.be/_OJX02VgWYo

POSITIVES

IT stocks remained firm throughout the session despite intense volatility in the PM session.

Infosys led the way with a 3%+ close which was the only reason why Nifty was able to survive intense volatility and selling pressure.

Kotak Mahindra Bank Ltd. (NS: KTKM ) defied the odds and ended just below 1800.
NEGATIVE

Once again the indices fell from the higher levels.

India Vix is down by 7%.

HDFC Bank (NS: HDBK ) is getting hammered by the FIIs yet again. 

FIIs were once again net sellers for 2,000+ Crores.

SUPPORT & RESISTANCE LEVELS - 

From a high of 16945, Nifty made a low of 16651, just short of 300, and ended at 16682. The market is playing out within the resistances and a loud move is likely on the cards on either side of the 16600-16800 in a day or two. 

TRADING INSIGHTS & OBSERVATIONS

  1. Nifty opened the gap-up with a convincing lead despite the global cues looking weak to negative. This itself was surprising but maybe the indices overreacted [or the FIIs took the opportunity to make money] and in a mode to repair the damage done yesterday.
  2. From the start, Infosys appeared string and it was one of the main reasons why Nifty was able to hit higher levels. 
  3. However, the FIIs were net sellers yesterday so the indices had to fall upon open and that is what happened and the Nifty fell to the line of support around 16780. It then made a good recovery and cleared 16900+ levels in what turned out to be the day high at 16945.
  4. Soon thereafter, Nifty began its downward voyage drifting gradually with a few bouts of support coming in between and then again getting sold into at higher levels. 
  5. It was a typical Sell on Rise kind of situation and that was possibly based on the fact that the US Futures were throughout in the red even when FTSE was in the green. And we know that Nifty has the tendency to follow the red color more than the green and that is what it did. 
  6. In the last 90 minutes, there was an intense fight going on to defend the 16700 lines but it was evident that selling was getting intensified as soon as Nifty approached 16750.
  7. At 1500h, Nifty fell sharply and it was clear that this was staged to ensure that Nifty does not end above 16700 and the Call Writers were very successful in doing so. 
  8. Usually,  the previous close is a good line of support for any price to bounce back, but today, it did not happen, and instead, it just ended around the area leaving the market participants guessing about its intentions for the last day of the trading week. 
  9. After a while, today Nifty OHLC levels were below 17000, and Bank Nifty levels were below 36000. Does this indicate anything? We will have to wait & watch. 
  10. In the end. It was a battle between the teams of Infosys & Kotak Bank Vs. Reliance (NS: RELI ) & HDFC (NS: HDFC ) Bank. The closing prices indicate neither won, however, I feel it is Reliance who won even though Infosys played an important role in not letting Nifty slide further.

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

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Trading Appetite @Trading Appetite
    What kind of crappy article is this, in market everything I staged by BIG players.. Dow had biggest intraday gains since 2020 after rate hike was announced only to wipe off al gains.. Request Investopedia to scrutinize immature articles like this which are written out of wild imaginations of the author!
    Like 2
    • Umesh Rindani @Umesh Rindani
      Thank you for the feedback. I appreciate your perspective.
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100

Related Articles