Market Closes in the Green. Resistance Shifted to 15,900 - Post Market Report

NIFTY opened the day at 15,926 with a gap-up of 226 points. The index couldn’t break the opening high and was moving in a wavy style. Breaking day lows were weak and the index saved more than half of the morning gains. Nifty closed at 15,832, up by 132 points or 0.85%.

BANK NIFTY started the day with a gap-up of 498 pts at 34,126. The index was slowly moving down and fell more than 1% from the day's high. But the previous day’s high acted as good support and Bank Nifty closed the day at 33,811, up by 183 points or 0.55%.

All sectoral indices closed in the green today. Only Nifty IT (+2%) and Nifty Metal (+1.5%) had more than a 1% change. Nifty Media (+0.01%) closed flat.

Major Asian markets closed strongly in the green today. European markets are all currently trading flat to green.

Today’s Moves

Energy related PSU stocks and IT companies closed as Nifty 50 top gainers. Coal India (+3.1%), ONGC (+3%), BPCL (+2.4%), LT (+2.7%), HCL Tech (+2.6%), TechM (+2.6%) and INFY (+2.3%) moved up.

From the IT sector, Coforge (+3.9%), Mindtree (+4.4%), and Mphasis (+3.4%) also moved up.

Paras Defence (+5.3%) made a last-minute rocket jump after NSIL agreed to transfer technology for optical imaging systems to the company.

Bajaj Auto (+1.2%) has approved share buyback at the maximum price of Rs 4600 for a total of up to Rs 2500 crore. The stock didn't move up because the total buyback value was below street estimates.

Welspun Corp (+4.4%) moved up after it secured orders worth Rs 600 crore.

GHCL (+4.5%) has inaugurated a new spinning unit at Manaparai in Tamil Nadu.

Hikal (+5.3%) has received permission from the Bombay High Court to resume production at Raigad, Maharashtra plant. 

Paytm (+8.2%) closed above the 700 level for the first time since March 11, this year. 

Zomato (-6.6%) moved down as analysts said that its deal with Blinkit will be good for the future, but not in the near term.

Markets Ahead

What do you think about the market condition? Has Nifty reached the target?

For some days our market is moving up along with other global markets. But the market couldn't regain investor-trader confidence completely. That's why major gap-ups are not sustaining.

Nifty Metal is a perfect example of this. Many metal stocks including Vedanta and Jindal Steel are at good supports. But the index is moving up and down.

It will be good for the market to consolidate here for a few days before moving up.

15,930, 16,000, and 16,170 are very crucial resistances for Nifty and if they are strongly broken we will have a trend confirmation.

On the Bank Nifty side, a day candle close above 34,100 will give more clarity.

Reliance has been weak for many days and is trading with lesser volume compared to the same month of 2020 and 2021. 

Even though Nifty IT closed 2% up, the index is struggling at the 28,400 level. But we may see it above 30,100, who knows!

Are you confident in the current market condition? Let us know in the comments section of the marketfeed app!