Bank Nifty Touches All-Time High! - Post-Market Analysis
NIFTY started the day at 18,339 with a gap-up of 24 points. Right from the beginning, the index showed strength and constantly moved up to 18,460 levels. When Bank Nifty touched its all-time high and started retracing, Nifty also started falling and closed below the important resistance zone of 18,400. NIFTY closed at 18,398, up by 84 points or 0.46%.
BANK NIFTY started the day at 43,821 with a gap-up of 27 points. The index showed no signs of weakness and moved up steadily to hit the all-time high levels (44,151) again, took resistance, and consolidated to close at 44,072, up by 278 pts or 0.64%.
All indices closed in the green today. NIFTY Realty (+4.3%), NIFTY Media (+2.06%), NIFTY FMCG (+1.14%), and NIFTY PSU Bank (+1.13%) moved up the most.
Major Asian markets closed mixed. European markets are currently trading in the green.
Hero MotoCorp (+3.3%) was NIFTY50’s top gainer. CEO Niranjan Gupta said the company is gearing up for its highest-ever model introductions in FY24.
Tata Motors (+2.9%) moved up after the automaker reported a better-than-expected net profit of Rs 5,408 crore for Q4.
Real estate stocks Sobha (+11.7%), DLF (+7.39%), Oberoi Realty (+4.8%), Prestige (+4.8%), and others surged after DLF posted stellar Q4 numbers.
Zensar Technologies (+13.1%) is up 26% in just 5 days! Analysts are neutral-to-positive on the stock after the IT firm reported stellar Q4 results.
Adani Ent (-2.4%) was NIFTY50’s top loser. Other group firms Adani Transmission (-5%), Adani Green (-3%), and Adani Total Gas (-5%) also fell despite exiting the Additional Surveillance Measure (ASM) framework.
The better-than-expected decline in inflation to below 4.7% pushed banking stocks up. The yield on the benchmark 10-year government bond fell to below 7%. A drop in bond yields increases the value of banks' bond portfolios.
India's annual wholesale price index (WPI) fell for the first time in nearly three years to (-) 0.92% in April.
As we said in last Thursday’s (May 11) post-market report, if the resistance of 43,500 is crossed, BANK NIFTY could hit a target of 44,150— and it happened today!
Nifty is still 500 points away from its all-time high (ATH), and if Bank Nifty doesn’t take resistance or falls and continues the up-move, we can expect Nifty to also hit its ATH and Bank Nifty to hit 44,500 levels.
Now, 18,300 zones in Nifty and 43,650 levels in Bank Nifty (the previous swings) can act as supports. If those levels are breached, we can expect the indices to consolidate or correct a little bit.
The Indian markets have absorbed the Karnataka election results positively, but still have to wait for confirmation tomorrow if today’s highs are being crossed in both indices.