Markets Close Flat Ahead of US Inflation Data - Post-Market Analysis
NIFTY started the day at 18,303 with a gap-up of 39 points. The index showed strength initially by going till 18,350 zones and then came under selling pressure. It fell below the important support zone of 18,250 around 2 PM and closed at 18,265, up by 1.5 pts or 0.01%.
BANK NIFTY started the day at 43,438 with a gap-up of 154 points. Unlike Nifty, Bank Nifty consolidated in the first half and then took proper rejection from 43,500 levels. The index fell nearly 400 points from the day high and closed at 43,198, down by 85 pts or 0.2%.
All indices except NIFTY IT (+0.73%), NIFTY Auto (+0.47%), and NIFTY Pharma (+0.4%) closed in the red. NIFTY PSU Bank (-2.75%) fell the most.
Major Asian markets closed mixed. European markets are currently trading in the red.
Divis Labs (+2.95%) was NIFTY50’s top gainer.
Coal India (+1.5%) moved up despite a decline in Q4 FY23 profits.
Mankind Pharma made a stellar market debut on NSE and BSE today. The shares listed at a 20% premium and closed at Rs 1,422.
Mahanagar Gas (+7.4%) hit a 52-week high on account of margin improvement in Q4.
UPL (-2.94%) was NIFTY50’s top loser. The company’s Q4 net profit fell 43% YoY to Rs 792 crore on pricing pressure and delayed planting season.
Indiabulls Real Estate (-20%) crashed as Nam Estates-Embassy One merger faces delays.
18,250 in Nifty and 43,150 in Bank Nifty are the recent swings that are acting as good support zones. But if there’s a flat opening and these levels are breached, we can expect the indices to fall further down to 18,050 zones in Nifty and 42,650 in Bank Nifty in the coming week.
India VIX has been slowly raising, which indicates the fear of traders in the market. Whenever Vix raises, we can expect markets to correct.
But on the other side, if Nifty crosses today’s high and Bank Nifty breaches the important round level and resistance zone of 43,500, we can expect both indices to move further up slowly.
All eyes will be on US consumer price inflation (CPI) tomorrow!
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