Bearish Weekly Closing in Nifty! Big Move Incoming? - Post-Market Analysis

NIFTY started the day at 19,301 with a gap-down of 63 points. The index tried moving up initially, but it took rejection from yesterday’s low of 19,330 levels and fell to 19,250 levels. Then, it mostly consolidated in a 50-point range. Post 1:30 PM, good buying kicked in, which took the index all the way up to 19,375 levels. However, the index couldn’t sustain the up-move and fell back below 19,300 zones. Nifty closed at 19,310, down by 55 points or 0.28% 

BANK NIFTY (BNF) started the day at 43,724 with a gap-down of 166 points. The index mostly consolidated throughout the day between 43,770 and 43,960 levels with a negative bias. BNF closed at 43,851, down by 40 points or 0.09%. 

All indices except Nifty Media (+0.65%), Nifty PSU Bank (+0.23%), Nifty FMCG (+0.22%), and Nifty Metal (+0.2%) closed in the red. Nifty IT (-1.47%) fell the most.

Major Asian markets closed up to 2% in the red. European markets are currently trading in the red.

Today’s Moves

Adani Ent (+3.94%) was NIFTY50’s top gainer. Adani Ports (+%), Adani Green (+6.5%), Adani Power (+6.3%), and Adani Trans (+6.04%) rose sharply today.

Adani Group stocks were in focus after reports suggested that the Abu Dhabi National Energy Company PJSC (TAQA) is planning an investment of up to $2.5 billion in the group's power business. However, both parties have denied all reports.

Vardhman Textiles (+7.9%) surged on the back of strong volumes.

Hero MotoCorp (-2.14%) was NIFTY50’s top loser.

TCS (-2%), Mphasis (-2.09%), INFY (-1.6%), TechM (-1.7%), Wipro (-1.4%), and other IT stocks fell today.

Manappuram Finance (-3.89%) fell the most in over three months after a block trade.

Markets Ahead

Markets are holding the major support levels but are clearly bearish and facing selling pressure in every uptick. On a weekly time frame, both indices have closed in the red for the 4th consecutive week.

If there’s a negative opening on Monday, we can expect the bearishness to continue!

Nifty: The index closed just above 19,300 zones but is still under heavy selling pressure. The immediate supports to watch out for are 19,300 and 19,250 levels (the lows from today and Wednesday). The immediate resistance will be 19,400 levels.

On a daily time frame, Nifty is moving in a down-trending channel. If there’s a gap-up opening, the markets could take a pause and be volatile. On the other hand, a weak opening can trigger a fall to 19,200 and 18,900 levels.

Bank Nifty: The index is still in our volatile zone between 44,500 and 43,400. Bank Nifty can continue to be volatile and hit stop losses on both sides as long as it trades in this range. The immediate resistance now will be 44,100 and immediate support will be 43,650 levels.

Do wait for the volatile range to be broken to get better clarity on the upcoming trend.

Meanwhile, Jio Financial Services will list on NSE and BSE on Aug 21. Reliance moved up with strength following the news today.

How did this week go? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

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