Bank Nifty Tests 40k! - Post-Market Analysis
NIFTY started the day at 17,177 with a gap-up of 69 points. The index had an opening fall of 80+ pts. Then, it consolidated in a tight range of 30 pts for most of the day. NIFTY closed the day at 17,151, up by 44 points or 0.26%.
BANK NIFTY started the day at 40,036 with a gap-up of 141 points. The index consolidated within the 39,900-40,000 range. There were multiple attempts to break the 40k resistance, and all of them failed. The index closed at 39,999, up by 104 pts or 0.26%.
NIFTY Pharma (+1.04%) and NIFTY PSU Bank (+0.8%) moved up the most. NIFTY Media (-0.32%) and NIFTY Realty (-0.1%) fell today.
Major Asian markets closed in the green. European markets are currently trading in the green.
HDFC Life (+3.05%) continued its up-move and was NIFTY50’s top gainer.
Pharma stocks Dr Reddy's Labs, Biocon, Lupin, Sun Pharma, Gland Pharma, Aurobindo Pharma, and Alkem Laboratories Ltd closed 1-2.6% higher.
Sula Vineyards (+3.8%) surged after brokerage firm CLSA gave a “Buy” rating with a potential upside of 40% from current levels.
Bajaj Finance (+2.1%) and Bajaj Finserv (+2.09%) rose today. Yesterday, Bajaj Finance allotted 49,600 non-convertible debentures with an 8.08% coupon rate.
BPCL (-1.8%) was NIFTY50’s top loser. Other state-owned companies like NTPC (-1.5%) and Coal India (-1.4%) also fell.
Sobha (-12.8%) crashed after reports revealed that the Income Tax department is carrying out searches at the company’s registered office and other premises.
Consolidation before a weekly expiry- an important day for option traders. It looks like the market is waiting for the US Fed interest rate decision, which will be out today.
If there is a breakout, I am expecting good resistance from the 40,500-600 zone in Bank Nifty.
In the case of Nifty, if there is a gap down opening tomorrow, we can expect lesser momentum. Because Nifty’s resistances- 17,130, 17,150, 17,205 and 17,230 will have more strength.
In Bank Nifty you can watch the 39,600 level and 40,300-370 zone for tomorrow.
PM Modi is holding a meeting today to review the Covid-19 situation in the country. I expect that it won’t be a major issue for the market.