18k Reclaimed, Followed by a 20-pts Tight Consolidation - Post Market Analysis


NIFTY opened the day at 18,044 with a gap-up of 108 points. The 18,060 level acted as a resistance in the morning and it was broken after 12 pm. Then, the same resistance started to act as support. During the second half, Nifty consolidated in a tight range of 20 points between 18,060-080. NIFTY closed the day at 18,070, up by 133 points or 0.75%. 

BANK NIFTY started the day at 40,802 with a gap-up of 228 points. The index consolidated in a 70-pts range for three and a half hours and then moved up. It hit a day high above 40,900, and the level acted as a strong resistance. Bank Nifty ended the day at 40,873 up by 299 points or 0.74%.

Nifty Bank (+0.74%), Nifty Finserv (+0.91%), Nifty FMCG (+0.75%) and Nifty Metal (+1.2%) closed with notable changes.

Major Asian markets closed flat to green. European markets are trading slightly in the green.

Today’s Moves

After Nifty entered the 18k zone, people started parking their money in FMCG stocks.

Tata Consumer (+2.8%) and Britannia (+2.3%) featured in the nifty 50 Top Gainers list. 

Tata Consumer has entered the health supplements segment with the launch of Tata GoFit. Also, they are planning to buy a stake in packaged water company Bisleri International.

ITC (+1%) hit a fresh all-time high with huge buying volume in the morning.

Bajaj Finserv traded ex-stock split today. Bajaj Finance (+1.6%) closed in the green.

Adani Defence announced its plans to develop HALE-Class Armed UAVs. Adani Defence is a wholly-owned subsidiary of Adani Enterprises (+2.6%).

Vedanta (+2.6%) closed in the green as it finalised Gujarat to set up the new Vedanta-Foxconn semiconductor plant.

HDFC Life (+1.4%) moved after a large block deal. It is said that Abrdn has completed the sale of a 2% stake in the company. SBI Life (+1.4%), LIC (+2.7%) also moved up.

Dixon (+2.2%) closed in the green after its subsidiary Padget electronics became the first company to receive payment under the PLI scheme.

Markets Ahead

India's August CPI (YoY) came out yesterday after the market hours and was reported at 7.00% against the estimate of 6.90%.

But this data did not affect the market since U.S markets close well in the green. Markets participants are waiting for the US CPI data, which is expected today evening. 

Nifty marked the strongest close since 19th January this year. The 18,110-130 zone is expected to create resistance. Also, Nifty crossing 18k with the help of a gap-up is not good, because this may trigger significant profit booking. Nifty moving down a little, and then breaking 18k resistance would be great. On the downside, 17,800 is expected to act as good support.

On October 27, 2021, Bank Nifty closed at 40874 with a red candle, and today after nearly 11 months, the close is near the same level as a green candle.

HDFC Bank closed above 1500 levels after many days. Once 1516 resistance is clear, we can see more upside.

India Rupee closed at the highest level in one month.

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