Bank Nifty Makes Crucial Closing After Good CPI Data - Post-Market Analysis

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NIFTY started the day flat at 17,807. After the flat opening, the index started moving down and took support from Tuesday’s intraday resistance (17,730). From there, it made an amazing recovery and hit a day high at 17,842. NIFTY closed at 17,828, up by 15 points or 0.09%. 

BANK NIFTY started the day at 41,680 with a gap-up of 122 points. During the first half, the index managed to trade above the opening low and moved up very well after 12 PM. Bank Nifty closed at 42,132, up by 574 pts or 1.38%.

Nifty Bank (+1.3%), Nifty PSU Bank (+1.4%) and Nifty Realty (+1.1%) closed well in the green. NIFTY IT (-2.2%) fell heavily.

Major Asian markets closed mixed. Germany and the UK markets are trading flat. But France is trading with nearly 1% gain.

Today’s Moves

IndusInd Bank (+3.2%) was NIFTY50’s top gainer. Other banking stocks Axis Bank (+1.5%), PNB (+1.49), and Kotak Bank (+1.38%) also moved up.

AU Small Finance Bank (+17%) surged after RBI approved the re-appointment of its MD and CEO.

FACT (+12.4%) continued its rally after the Kerala govt announced plans to acquire the company’s land assets.

IT stocks Infosys (-2.7%), TechM (-2.08%), HCL Tech (-2.07%), TCS (-1.6%), LTTS (-1.1%) and others were under pressure due to weak quarterly earnings, a cautious outlook from TCS, and on rising concerns of a mild recession in the US.

Markets Ahead

I felt like it was a special expiry day today- India and US CPI numbers, Fed minutes, Bank Nifty above 42,000 and a V-shape recovery in Nifty.  What do you think?

Yesterday evening, India’s inflation rate for March came out at 5.66% and it was below estimates. US CPI numbers came out at 5.0%, against the expectation of 5.0%.

Both the numbers were really good. But Fed meeting minutes indicated that the officials are expecting a recession later this year because of the current banking crisis. Dow Jones and S&P 500 fell nearly 1% from the day high and the minutes came out.

This US closing and a profit booking from the 17,800 level caused the morning weakness in Nifty. Do you remember this long-term support trendline in Nifty? Nifty fell below this trendline in March and is now testing it. Our local cues are very strong and also Nifty is creating higher highs and higher lows (from June 2022).

Bank Nifty made a very crucial close today, above 42,000 after breaking the 41,700-900 resistance zone. Also, it is now very well above the trendline resistance and is looking good for another 1200 pts upside move.

We can expect profit bookings in between, but right now the market is looking super strong. I feel like it just needs to clear 17,860 resistance and then it will be ready for 18,280 levels. 

Our market is closed tomorrow on account of Dr Baba Saheb Ambedkar Jayanti.

How did expiry trading go? Let us know in the comments section of the marketfeed app!

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