A Very Very Strong Nifty Close. Bank Nifty Targets 43k? Nifty IT to Breakout? - Post Market Analysis


NIFTY opened the day at 17,923 with a gap-up of 124 pts. An opening above 17,900 triggered profit booking and it moved down to take support from yesterday’s resistance below 17,800. The index tried to break the intraday resistance line, but it was a failed attempt. NIFTY closed the day at 17,833, up by 34 points or 0.19%. 

BANK NIFTY started the day at 40,520 with a gap-up of 311 pts. The index tried to move up in the morning and after some time it fell 400 pts from the day's high. Bank Nifty took good support from yesterday’s high and ended the day at 40,415 up by 206 points or 0.51%.

Nifty IT (+2.2%) outperformed all the other indices.  Nifty Bank (+0.51%), Nifty Auto (+0.52%), Nifty PSU Bank (+0.48%) and Nifty Realty (-0.47%) closed with around 0.5% changes.

Major Asian markets closed well in the green. European markets are trading more than 1% up.

Today’s Moves

This Wednesday Nifty IT opened near 27,500 which is good support and shot up. The IT stocks are continuing the move with TechM (+3.4%) closing as the Nifty 50 Top Gainer. In the last 3 days, it has moved nearly 8% and is fantastic.

HCL Tech (+1.8%), Infy (+2.4%), MindTree (+3%), Mphasis (+2.3%), TCS (+1.5%), LTTS (+4%) and Wipro (+1%) also moved up.

After rallying for many days, cements stocks saw profit booking today with Ultra Cements (-1.9%) closing as Nifty 50 Top Loser. 

Ambuja Cements (-1.5%), JK Cements (-3.3%), India Cements (-1.1%), Ramco Cements (-1%), ACC (-2.2%) and Star Cement (-2%) also closed in the red.

SBI (+1.6%) hit an all-time high today after its Chairman expressed a positive outlook for the coming months. The stock is testing the horizontal channel consolidation.

According to SIAM data, passenger vehicle wholesales grew 21% in August. From the auto sector, Ashok Leyland (+1.3%), Bharat Forge (+2.9%), Eicher Motors (+1.3%), and Maruti (+1.7%) gained well.

The initial reviews of the Brahmastra movie are not great and PVR (-5.1%) and Inox Leisure (-5%) closed in the red.

Tanla (+4.7%) has approved a share buyback for a total of Rs 170 crores at Rs 1200.

Rain Industries (-7.7%) moved down after the shutdown of a unit in Europe due to the gas shortage.

Nazara Tech (+10.9%) skyrocketed on Google’s decision to allow fantasy sports on Play Store.

Markets Ahead

A wonderful week for the market. 

Nifty ended the two-week losing streak with a gain of more than 1.6%. It has closed the week above 17,800 for the first time since the second week of January 2022.

Bank Nifty is doing an amazing job with forming green candles for 3 weeks in a row. Since the third week of July, Bank Nifty has formed only one red candle and it with a loss of 0.15%.

Currently, we do not have many historical levels above 40,000 in Bank Nifty. Using technical analysis, we are expecting it to hit 43,000 if a daily candle close above 40,900 happens. 

Nifty IT is also doing very well for the last three days. The index is nearly 30% below its high. With today’s close above 28,500, we expect Nifty IT to have room for upside next week.

Nifty Midcap is having an amazing time- twelve green weekly candles in a row.

According to AMFI data, equity mutual funds witnessed a net inflow of Rs 5,942 crore in August and this is the second lowest since October 2021.

Hey, based on what, a stock enters into a FnO ban? How does it affect the movements? Share your answers in the comment section below.

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