Market Ends Flat Amidst Volatility - Post-Market Analysis
NIFTY opened the day at 17,905 with a gap-up of 61 points. The index was highly volatile throughout the day and showed some weakness. The index took multiple supports from yesterday’s low near 17,820. NIFTY closed the day at 17,826, down by 18 points or 0.1%.
BANK NIFTY started the day at 40,784 with a gap-up of 83 pts. It was volatile during the first half and consolidated after that. The index closed at 40,673, down by 28 points or 0.07%.
NIFTY PSU Bank (-1.79%), NIFTY Realty (-1.2%) moved down the most today. NIFTY FMCG (0.11%) and NIFTY Finserv (+0.05%) were the only indices that closed in the green.
Major Asian markets closed mixed. European markets are trading in the red.
NTPC’s (+3.1%) green energy arm has invited bids for a rupee-denominated term loan of up to ₹9,000 crore.
Tata Power (+2%), Adani Power (+4.9%), and PowerGrid (+0.65%) surged after the Ministry of Power invoked Section 11 of the Electricity Act to meet the expected rise in power demand. [Section 11 mandates all imported coal-based generating power plants to operate and generate at their full capacity.]
Adani Ent (-3.1%) emerged as NIFTY 50’s top loser. The Adani Group's total market cap has fallen below the $100 billion mark since Hindenburg Research released its harsh report.
Shares of PSU banks PNB, Union Bank, IOB, Central Bank, Canara Bank, UCO Bank, Bank of India ended 1.2 to 6.5% lower.
As we discussed last Friday, the market is still in the range of 17,730-18,250 as it missed a major trigger. Because of the weakness in Bank Nifty, Nifty is trading lower and we need to watch three major levels- 17,820 and 17,765, and 17,720.
Bank Nifty would see a fall with momentum only if 40,480 is clearly broken. We can consider 40,000-40,100 as the immediate support zone and 39,450 as the major support.
For the last many days, Bank Nifty was showing weakness and Nifty was consolidating. But it might change soon. You see, if Bank Nifty stays above 40,480, there might be a consolidation and we need to see how Nifty will react to this.
India's GDP data will be out today. The minutes of the US Federal Reserve’s latest policy meeting will be released tomorrow (it would throw light on the central bank's future interest rate hikes).
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