Momentum Buildup in Bank Nifty - Post-Market Analysis
NIFTY opened the day at 17,840 with a gap-up of 69 points. The index took sudden support from 17,800 and moved 150+ pts to the day high. Nifty closed the day at 17,929, up by 158 points or 0.89%.
BANK NIFTY started the day at 41,410 with a gap-up of 128 pts. The index consolidated in the morning and moved up later. But it couldn’t clearly break the 41,600 resistance. Bank Nifty closed the day at 41,648, down by 366 pts or 0.89%.
Nifty Finserv (+0.90%), Nifty FMCG (+1%), Nifty IT (+0.99%), Nifty Metal (+1%), and Nifty PSU Bank (+1%) closed in green today.
Major Asian markets closed mixed today. European markets are trading in the green currently.
UPL (+3.8%) ended among the top gainers today in the NIFTY50 index.
ITC (+3.2%) gained ahead of the record date (Feb 15) for an interim dividend of ₹6 per share. The FMCG major also expects to sell more than ₹2,000-cr worth of raw tobacco to British American Tobacco in FY24.
Reliance (+2.3%) said it is planning a ₹75,000 crore investment in Uttar Pradesh.
Oil India (+6.9%) continued its strong rally after reporting a record profit in the Oct-Dec quarter (Q3).
Eicher Motors (-2.3%) fell sharply even after it posted a 62% YoY increase in net profit to ₹741 crore in Q3. The results met street expectations/estimates.
Adani Green (-5%) and other Adani Group stocks declined amid reports that the group has been in talks with Abu Dhabi’s International Holding Corp (IHC) since last week to infuse capital into Adani Enterprises or other group entities.
India’s CPI data that came yesterday wasn’t great, and everyone was waiting for some weakness. Today's movement cannot be considered a trend confirmation, which is adding more to the uncertainty.
The 15-min chart pattern is Bank Nifty is very interesting. The index is testing 41,600-700 resistance for the last two weeks. I am expecting 41,500 to act as support tomorrow.
U.S. inflation data will be out today. This data might not affect our market if there is no huge change from estimates.
India’s Jan Wholesale Price inflation came out at 4.73% against the expectation of 4.5%. But this is better than 4.95% in December.
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